Asia is expected to see a boom in consumption in 2011, amid rising incomes, changing demographics, a higher savings rate, and a changing overall psychology, a report by Newton shows.

In its global outlook for 2011, Newton said the population dynamics will be the key driver of rising consumption.

For instance, China, whose population now has a lower percentage representing the very young age brackets, is seeing a decline in the number of those financially dependent on those in the prime working ages. This drop, according to the report, will enable Chinese workers to spend more of their earnings on discretionary consumption. Government programs for healthcare and social housing are also creating a safety net for the public, thus, freeing up more money for other purchases.

"Have already seen the impact of China's productive power over the last decade, we believe the world now will begin to feel the force of its consumptive power, especially as the vast population in the rest of the region follows China's lead up the income and consumption curves," Jason Pidcock, investment leader of Asian equities for Newton, said in the report.

"There are 500 million individuals rapidly moving up the income curve with aspirations to spend more on products and services ranging from low-end staples, such as diapers, to luxury goods such as designer clothes and luxury cars," he added.

According to the 2010 wealth report by Capgemini and Merrill Lynch, Asia Pacific's population of high net worth individuals rose 25.8 per cent to 3 million in 2009, with their combined wealth even surpassing that of Europe's on the same year at $9.7 trillion. Japan is the single highest HNWI market in the region, accounting for 54.6 per cent of the region's HNWI numbers, with China trailing a close second, accounting for 31 per cent. The highest rise came from Hong Kong, which went up 104.4 per cent in 2009 to 76,000 HNWIs.

Newton is the UK-based asset management unit of The Bank of New York Mellon Corporation.