How your business can find growth in emerging markets

For ambitious businesses, emerging markets offer a compelling mix of opportunity and challenge. While infrastructure gaps, regulatory complexity, and unfamiliar consumer behaviours can present real hurdles, these can be overcome with the right support and knowledge. Meanwhile, ongoing global trade tensions and policy uncertainty have also added a layer of complexity, contributing to more cautious growth projections in some regions.

Yet for companies able to navigate these difficulties, the potential upside is exciting. Rapidly expanding economies, a rising middle class with increasing spending power, and tech-savvy, mobile-first populations create fertile ground for expansion. The key to success lies in careful market selection, strong local partnerships, and timing – finding the right opportunity, in the right place, at the right moment.

The macroeconomic outlook in emerging markets presents a clear opportunity for small and medium businesses (SMBs) ready to expand internationally.

While recent trade tensions and tariff uncertainties have softened some growth forecasts, emerging markets are still expected to outpace advanced economies over the coming years. Crucially, consumer markets in these regions are evolving rapidly.

Middle-class growth is a key part of the story. While estimates vary depending on methodology, Oxford Economics projects that the number of middle-class households in emerging markets will nearly double by 2034, reaching just under 700 million. By 2029, it predicts that two out of every three middle-class consumers will be in the Asia-Pacific region.⁴

For SMBs, this expanding middle class has the potential to translate into stronger consumer spending and a rising appetite for higher-quality products – an area where European brands are particularly well-positioned to compete.

For businesses ready to take the leap, there are several key enablers that can smooth the path:

• Cross-border logistics platforms help reduce complexity around international shipping, customs clearance, and last-mile delivery.
• Regional fulfilment hubs can significantly shorten delivery times by positioning inventory closer to end customers.
• Automation tools streamline critical tasks such as duty and tax calculations, currency conversion, localised documentation, and parcel tracking – all essential for a seamless customer experience.
• And increasingly, AI-driven localisation offers a smart way to tailor websites, product listings, and marketing to local preferences – covering everything from language and currency to product recommendations and cultural nuances.

Asia remains a powerhouse among emerging markets – and while China plays a major role, it’s far from the whole story. The region continues to deliver strong growth: GDP across Asia Pacific is projected to expand by just under 4% in 2025, with a similar pace expected in 2026.⁵

By country, China’s economy is forecast to grow by 4% in both 2025 and 2026, but faster growth opportunities lie elsewhere in the region. India stands out, with expected growth of 6.2% in 2025 and 6.3% in 2026.⁶ Vietnam and the Philippines are also set to see robust growth, each projected to expand by more than 5% in 2025.⁷

Digital connectivity is transforming consumer access across the region. Mobile internet users in Asia are expected to grow from 1.4 billion in 2024 to 1.8 billion by 2030, significantly increasing the number of digitally reachable consumers.⁸ For businesses looking to engage Asian markets, mobile-first strategies are not just smart – they’re essential.

Economic growth is steady in Sub-Saharan Africa, with the World Bank forecasting 3.7% growth in 2025, rising to an average of 4.2% in 2026-27.⁹ However, this growth is uneven across the region, and high debt levels, currency volatility, and inflation remain significant headwinds.

The region’s young and fast-growing population is one of its greatest assets. Close to 70% of Sub-Saharan Africa’s population is under the age of 30, and many are mobile-first digital natives.¹⁰ This represents a large and increasingly connected consumer base – but one that still faces important barriers.

While 4G connectivity is expanding and expected to account for 50% of all mobile connections by 2030, around 13% of the population still lives outside mobile broadband coverage, and many more face challenges such as high device costs, low digital literacy, and expensive mobile data.¹¹

Eastern Europe offers strong potential for small and medium enterprises (SMEs), combining the benefits of emerging markets with proximity and familiarity. While growth is moderating, the region remains resilient: GDP is expected to expand by 3.5% in 2025, rising to 4.3% in 2026.¹² Major cities are key consumption hubs, and western brands are often seen as aspirational – though value for money remains essential.

E-commerce is a steadily growing entry point. The sector is expected to generate $54.91 billion in revenue in 2025, with forecasts reaching $65.35 billion by 2030.¹³ Consumers across the region are becoming increasingly digital, particularly in urban areas, and online marketplaces are playing a central role in cross-border trade and brand discovery.

Cross-border e-commerce is mixed but growing. In Hungary, 61% of online shoppers buy from abroad, compared to 38% in Poland and 26% in Czechia.¹⁴ Regionally, cross-border sales rose 15% in 2024 to reach €24 billion – highlighting increasing openness to foreign brands, especially those that can offer competitive pricing, reliable logistics, and localised customer experiences.¹⁵

Localisation is about far more than just translation – it’s about truly resonating. In emerging markets, this means carefully adapting everything from tone of voice and messaging to product fit and pricing. Cultural relevance is essential, as are practical considerations like affordability, payment preferences, and technology constraints. Be mindful of the specific needs and limitations of the consumers you’re targeting.

And while regions may appear unified on the surface, country-level differences in consumer preferences and behaviours can be significant. A one-size-fits-all approach rarely works, so tailoring your offering to each market is key to building trust and driving growth.

While this may seem a big task, it’s possible to take smaller steps. Start by adapting your core message and customer touchpoints, for example, and pinpoint one or two major differences that matter in the market and adapt your strategy accordingly.

Having the right partners on board when entering emerging markets can be essential. Local knowledge and experience can help navigate complex, unfamiliar dynamics – think everything from understanding the regulatory environment and consumer attitudes, to leveraging existing local relationships to reduce risk and boost efficiency. Shifts in government policy, inflation, and evolving legal or regulatory frameworks can happen quickly, so it pays to stay informed and agile.

Logistics and fulfilment are key areas to focus on. Emerging markets can have less developed infrastructure and delivery networks, which if not navigated successfully can lead to poor customer experiences and headaches for your business. For smaller businesses, it’s worth looking for partners who understand the local landscape and can offer scalable services that match where you are now and where you plan to get to.

Payment preferences in emerging markets often differ significantly from those in developed economies. Digital methods dominate in many locations, driven by limited traditional banking infrastructure and restricted consumer access. This has propelled mobile money – a mobile phone-based payments system – to the forefront, especially in Sub-Saharan Africa, the world’s most active region for mobile money usage.¹⁶

Additionally, digital wallets and super apps play a crucial role, particularly in Asia, while cash on delivery and real-time instant payments are important in some markets. To succeed, businesses should conduct careful research in their chosen market, but don’t think you have to cover every payment base immediately. Starting with the most used methods, then adding more as you grow, could be a smart move.

For smaller businesses, the best approach is often to start small. Begin by identifying one or two suppliers to test. This allows you to explore new sourcing options with limited risk and investment. To maximise your reach without overextending your team, you could make use of digital sourcing platforms and online trade directories to help identify and vet potential partners quickly and cost-effectively.

However, it’s a good idea to keep a close eye on your IP, and register it locally where possible, as local safeguards may not be as strong as ones you are used to.

While expanding to emerging markets may feel bewildering for small and medium businesses, it’s important to realise that you don’t have to do it alone. There are many areas of support to tap into, if you know where to look. Here are some good starting points:

Export and trade finance: This kind of financial assistance can help SMEs manage risk and improve cash flow at crucial times. Export finance, for example, can allow businesses to get paid faster by advancing cash against outstanding invoices. Guarantees – usually provided by the seller’s and/or the buyer’s banks – can also help to reduce risk and build trust, making international trade smoother. Grants, loans and other financing, meanwhile, can often be available from governments to help support businesses wishing to expand.

Export promotion programmes: These initiatives are designed to help businesses expand internationally. They can encompass a wide variety of elements, from training and networking events to export advice and trade missions.

Customs advantages: Countries will often provide incentives such as free trade zones to encourage businesses to export. These can provide customs relief, streamlined customs clearance procedures and sometimes tax incentives, helping to reduce costs, drive efficiency and increase flexibility. Find out about common customs mistakes and how to avoid them.

Public-private partnerships (PPPs) and incubators: Both help businesses access the resources and expertise they may need to expand internationally. PPPs can provide shared assets like logistics infrastructure or technology platforms, or joint initiatives aimed at simplifying trade processes and market entry. Incubators typically offer tailored guidance, practical resources, and valuable connections that help businesses grow in global markets.

Strategic growth in emerging markets can be within reach for SMBs if you go in with your eyes open to the challenges as well as the opportunities. It’s important to develop a well-researched plan that’s tailored to your business but, by starting small, staying informed and having the right partners on board, you could set a solid foundation for sustainable growth. If you’re interested in taking your business across borders, find out how the EU can support cross-border expansion.

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