A new report by the World Resources Institute (WRI) and the International Finance Corporation (IFC) has measured for the first time the size and structure of markets at the “base of the pyramid” (BOP): the four billion people worldwide earning less than $3,000 per year. Drawing on income data from 110 countries and expenditure data from 36 countries, The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid provides an analytic foundation for assessing business and development opportunities within BOP markets in a manner that is comparable across countries.

The data show that the BOP is a $5 trillion annual market–much bigger than previously thought, and largely unserved by business and enterprise.

For example, half of BOP health care spending is on pharmaceuticals, much higher than in more affluent countries. This is especially the case in rural areas, where access to clinics is often limited. Companies should see these data as evidence of demand (and willingness to pay) for quality, low-cost drugs and efficient distribution systems. They may also suggest that for-profit franchise models could provide efficient, sustainable healthcare delivery to the BOP.