The number of individuals with a net worth of $30 million or more is projected to increase by 8% in 2023, with the United States experiencing the majority of this growth, according to a new report. The 2024 Ultra Rich Report identifies 426,330 individuals with a net worth of $30 million or more, qualifying them as ultra-wealthy. Their collective wealth is expected to rise by 7% to $49 trillion in 2023, primarily due to a surge in stock prices at year-end.
In the United States, the number of ultra-wealthy individuals rose by 13%, reaching 147,950 people. This signifies that the United States now holds one-third of the world’s ultra-wealthy population.
The report forecasts a 38% increase in the number of ultra-rich individuals, reaching 587,650 over the next five years. Their combined wealth is projected to rise by $19 trillion, creating significant opportunities for businesses catering to the ultra-wealthy.
“The market for personal luxury goods and lifestyle services has been experiencing rapid growth, driven by the increasing diversity of interests and demands of the global ultra-high-net-worth population,” the report states. “A similar trend has been observed in high-end real estate worldwide, along with a growing emphasis on family wealth transfer planning amidst the rise of first-generation wealth.”
The report reveals that ultra-wealthy individuals are expected to contribute $118 billion to luxury spending in 2023, representing roughly one-third of global luxury spending. They possess $38 trillion in investable assets (approximately one-third of the total) and account for $190 billion in charitable giving, constituting 38% of total philanthropy.
New York City boasts the highest number of individuals with a net worth of $30 million or more globally, with a count of 16,630. Following closely is Hong Kong with 12,546, followed by Los Angeles with 8,955 and Tokyo with 6,445. The report suggests that anticipated interest rate cuts and emerging growth industries are likely to continue supporting wealth creation for the ultra-high-net-worth individuals this year and next.
“New and diversified opportunities for wealth generation and asset diversification will emerge,” the report states. “These opportunities will be supported by structural trends such as the shift toward green energy, advances in digitalization, expanded industrial incentives, increasing urbanization, enhanced female labor participation in emerging markets, and the growing adoption of generative AI.”
The Rise of the Ultra-Wealthy: Global Trends and Opportunities in 2023
The world’s ultra-wealthy population is growing rapidly, with a projected increase of 8% in 2023, according to a new report. This growth is being fueled by a strong stock market and a growing number of individuals reaching the $30 million net worth threshold. The report, titled "The 2024 Ultra Rich Report," provides valuable insights into the dynamics of this elite group, highlighting their spending habits, investment strategies, and the opportunities they create for businesses catering to their needs.
A Booming Global Ultra-Wealthy Population
The number of ultra-wealthy individuals worldwide is now estimated to be 426,330, with their collective wealth reaching $49 trillion in 2023. This represents a significant increase from the previous year, with the United States leading the charge, accounting for one-third of the global ultra-wealthy population.
| Region | Number of Ultra-Wealthy Individuals |
|---|---|
| United States | 147,950 |
| Asia | 122,430 |
| Europe | 106,250 |
| Other | 49,700 |
The report forecasts further growth in the ultra-wealthy population over the next five years, with an expected 38% increase to 587,650 individuals by 2028. This surge will be supported by emerging growth industries like renewable energy, digitalization, and artificial intelligence, driving wealth creation and diversification.
Emerging Opportunities for Businesses
The growing ultra-wealthy population presents a significant business opportunity, particularly for companies specializing in luxury goods, lifestyle services, high-end real estate, and wealth management.
- Luxury Spending: The ultra-wealthy are projected to spend $118 billion on luxury goods in 2023, representing roughly a third of global luxury spending. This demand is driven by their diverse interests and increasing desire for unique experiences.
- Lifestyle Services: The ultra-wealthy are seeking tailored services that cater to their demanding lifestyles, such as private travel, concierge services, and bespoke experiences.
- High-End Real Estate: The demand for luxury residential properties is increasing globally, with the ultra-wealthy actively seeking prime locations in major cities and desirable vacation destinations.
- Wealth Management: With $38 trillion in investable assets, the ultra-wealthy are seeking sophisticated wealth management solutions, including family office services, alternative investments, and philanthropic guidance.
Key Cities for Ultra-Wealthy Individuals
New York City reigns supreme as the global hub for ultra-wealthy individuals, boasting a population of 16,630 individuals with a net worth of $30 million or more. Hong Kong and Los Angeles follow closely, with 12,546 and 8,955 ultra-wealthy residents respectively. Tokyo rounds out the top four with 6,445 individuals.
Factors Driving Growth and Opportunities
The growth in the ultra-wealthy population is being driven by a confluence of factors, including:
- Favorable Economic Conditions: The global economy is expected to remain relatively strong, with anticipated interest rate cuts and emerging growth industries supporting wealth creation.
- Technological Innovations: Advances in digitalization, artificial intelligence, and other technological fields are driving innovation and creating new avenues for wealth generation.
- Shift to Green Energy: The transition to a greener economy is creating opportunities in renewable energy, sustainable technology, and green infrastructure, attracting investment from the ultra-wealthy.
- Expanding Industrial Incentives: Governments around the world are employing industrial incentives to attract foreign investment and stimulate economic growth, creating further opportunities for wealth creation.
- Increasing Urbanization: The increasing concentration of population in urban areas is driving demand for high-end real estate, luxury services, and other urban-focused businesses.
The Role of Philanthropy
The ultra-wealthy are also playing an increasingly significant role in philanthropy, contributing $190 billion to charitable causes in 2023. This represents 38% of total global philanthropic giving, demonstrating the significant impact that this group has on social initiatives and charitable organizations.
Conclusion
The growth of the ultra-wealthy population presents both challenges and opportunities. While there are concerns regarding income inequality and the concentration of wealth in the hands of a select few, the increasing affluence of this group also fuels economic growth and creates a significant market for businesses catering to their needs.
The key to success in this market lies in understanding the unique needs and preferences of the ultra-wealthy, providing tailored solutions and personalized experiences that meet their high expectations. As the ultra-wealthy continue to grow in number and influence, their impact on the global economy and society will continue to evolve.
