Market Potential Index (MPI) - 2016

March 10, 2016

About the Index

Global marketing has become more and more important over the years with the increasing trend of internationalization. Faced with too many choices, marketers have the challenge of determining which international markets to enter and the appropriate marketing strategies for those countries.

The purpose of this study is to rank, with a U.S. focus, the market potential of 87 identified countries and to provide guidance to the U.S. companies that plan to expand their markets internationally. While the U.S. is not included in the rankings, the insights provided by the index are still applicable to companies located in other international markets.

This indexing study is conducted by the Michigan State University-International Business Center to help companies compare prospect markets on several dimensions. Eight dimensions are chosen to represent the market potential of a country on a scale of 1 to 100. The dimensions are measured using various indicators, and are weighted in determining their contribution to the overall Market Potential Index (MPI).

Since 1996, the MPI has been calculated for 26 countries identified as "Emerging Markets" by The Economist magazine. However, in order to cover a wider range of markets, a decision has been made to increase the number of countries to 87.

Please see the bottom of the page, or click the following link for the changes in effect as of 2014 & 2015. Changes for 2014. Changes for 2015.

View MPI Table

View MPI Table

Market Potential Index (MPI) - 2016

Overall Rank Country Market SizeMarket Size Market Growth RateMarket Growth Rate Market IntensityMarket Intensity Market Consumption CapacityMarket Consumption Capacity Commercial InfrastructureCommercial Infrastructure Economic FreedomEconomic Freedom Market ReceptivityMarket Receptivity Country RiskCountry Risk Overall ScoreOverall Score
1 China 1 100 2 95 86 1 2 92 15 62 81 22 79 7 21 78 1 100
2 Hong Kong 53 1 34 58 1 100 74 43 1 100 1 100 1 100 1 100 2 57
3 Singapore 56 1 9 76 10 76 73 43 2 84 16 70 2 88 2 93 3 50
4 India 2 37 6 78 78 32 27 66 65 28 55 45 77 7 40 67 4 48
5 Japan 3 19 69 38 14 70 1 100 6 70 15 70 72 9 2 93 5 48
6 Canada 11 8 52 50 20 67 12 73 23 56 5 76 3 67 2 93 6 47
7 Germany 7 11 60 43 17 68 3 91 4 77 12 71 33 17 2 93 7 44
8 United Kingdom 12 7 62 42 8 78 4 87 3 79 10 73 40 15 10 85 8 41
9 Qatar 68 1 1 100 2 94 56 54 26 53 56 45 9 27 19 83 9 40
10 Switzerland 51 1 56 44 4 80 18 72 9 68 4 77 8 38 2 93 10 39
11 South Korea 10 9 31 61 58 48 6 81 29 52 29 63 24 20 10 85 11 38
12 United Arab Emirates 41 2 24 65 5 80 47 56 10 67 57 44 5 45 23 78 12 36
13 Netherlands 33 3 72 37 48 53 10 74 5 75 13 71 7 40 10 85 13 35
14 France 9 9 70 38 27 62 5 85 11 65 32 60 56 12 25 77 14 35
15 Belgium 38 2 75 34 34 59 16 72 8 69 21 66 4 46 10 85 15 34
16 Australia 21 4 58 44 24 65 24 68 13 63 3 78 48 14 10 85 16 33
17 Norway 39 2 65 39 22 66 11 73 19 58 19 69 44 15 2 93 17 31
18 Austria 49 2 73 36 23 66 19 71 16 62 20 68 31 19 2 93 18 30
19 Sweden 35 2 68 38 45 54 20 70 12 65 17 70 39 16 2 93 19 30
20 Brazil 5 17 32 59 57 48 63 47 45 40 49 49 84 5 53 56 20 29
21 Poland 28 3 47 53 47 53 25 67 30 51 22 66 47 14 25 77 21 29
22 Israel 50 2 28 63 42 55 42 58 40 46 25 65 20 21 37 68 22 29
23 Ireland 70 1 79 30 60 45 30 64 18 60 8 74 6 44 25 77 23 28
24 Estonia 85 1 50 52 69 37 29 64 20 58 7 74 12 25 25 77 24 28
25 Turkey 14 6 14 71 25 63 36 61 49 40 51 48 68 10 60 50 25 28
26 Denmark 62 1 76 32 39 57 21 69 7 69 9 73 32 18 10 85 26 28
27 Malaysia 31 3 16 68 65 41 54 54 36 47 45 52 18 23 24 77 27 28
28 Czech Republic 48 2 61 43 67 38 15 72 27 53 18 70 14 25 25 77 28 28
29 Slovakia 69 1 63 41 53 50 9 75 39 46 27 65 10 27 25 77 29 28
30 Finland 43 2 80 29 29 62 13 73 17 60 14 70 52 13 10 85 30 27
31 Saudi Arabia 19 5 10 75 74 35 41 58 25 54 77 29 35 17 33 72 31 27
32 Lithuania 80 1 64 40 33 60 35 61 28 53 11 72 16 24 21 78 32 27
33 Indonesia 6 11 15 69 77 32 40 58 62 30 53 46 76 8 48 61 33 26
34 Italy 13 7 85 24 21 67 8 77 22 57 33 59 63 10 50 61 34 26
35 Russia 4 18 51 51 64 42 43 58 34 49 78 24 73 8 68 39 35 26
36 Mexico 8 9 42 54 38 58 77 41 66 27 43 53 17 24 40 67 36 26
37 New Zealand 60 1 71 38 28 62 45 58 31 50 2 79 42 15 10 85 37 26
38 Kuwait 58 1 25 64 35 58 62 50 33 50 63 39 28 19 20 83 38 26
39 Spain 17 6 86 19 31 60 7 77 24 55 26 65 59 11 34 69 39 25
40 Peru 36 2 5 81 61 45 72 45 77 23 38 57 71 9 31 72 40 24
41 Vietnam 27 4 4 83 66 39 60 51 60 32 79 24 13 25 58 50 41 24
42 Bahrain 83 1 33 59 75 35 53 54 14 63 59 42 15 25 46 61 42 23
43 Latvia 84 1 59 43 46 54 33 61 32 50 31 62 30 19 50 61 43 23
44 Chile 37 2 44 53 37 58 78 39 54 38 6 75 38 16 37 68 44 23
45 Cambodia 81 1 3 85 32 60 49 56 70 26 75 32 29 19 72 34 45 23
46 Philippines 26 4 23 65 36 58 71 46 67 27 48 49 69 10 31 72 46 23
47 Oman 71 1 7 77 84 13 68 46 41 45 60 41 22 21 18 83 47 23
48 Slovenia 82 1 83 26 59 48 14 73 21 57 37 58 19 22 34 69 48 22
49 Uruguay 78 1 48 52 30 61 51 56 56 37 23 66 66 10 48 61 49 22
50 Kazakhstan 42 2 18 68 71 36 17 72 55 37 65 38 67 10 62 45 50 22
51 Bulgaria 61 1 66 39 54 50 39 60 48 40 35 59 26 19 45 62 51 21
52 El Salvador 77 1 53 47 3 92 75 43 58 34 41 55 49 14 58 50 52 20
53 Argentina 24 4 36 58 11 74 38 60 52 38 66 38 83 6 80 17 53 20
54 Bangladesh 25 4 12 74 49 53 48 56 83 17 69 36 81 7 66 39 54 20
55 Hungary 54 1 77 32 72 36 26 67 42 44 34 59 11 26 53 56 55 20
56 Thailand 22 4 30 61 80 30 64 47 51 38 68 37 23 20 56 56 56 20
57 Romania 45 2 78 32 50 52 32 63 43 41 36 59 54 12 39 67 57 19
58 Costa Rica 75 1 38 56 52 51 83 31 57 34 28 65 25 20 40 67 58 19
59 Serbia 66 1 67 39 18 68 28 64 53 38 44 53 46 15 65 40 59 19
60 Croatia 72 1 74 34 56 49 23 68 44 41 39 57 50 14 52 56 60 19
61 Portugal 52 1 84 25 19 68 57 53 37 47 30 63 53 12 34 69 61 19
62 Pakistan 16 6 40 55 16 68 37 60 69 27 72 35 86 5 79 17 62 18
63 Egypt 20 4 39 56 7 78 46 57 68 27 76 30 82 6 78 23 63 18
64 Sri Lanka 73 1 8 76 44 55 67 47 63 29 70 36 78 7 69 39 64 18
65 Nicaragua 79 1 17 68 12 73 76 42 75 23 58 43 37 16 77 23 65 18
66 Dominican Republic 63 1 27 64 26 62 80 36 78 22 46 51 51 14 62 45 66 17
67 Cyprus 86 1 82 28 9 76 59 53 50 39 24 65 36 17 71 36 67 17
68 Paraguay 74 1 19 67 55 50 79 38 72 25 50 48 45 15 61 45 68 17
69 Tunisia 64 1 49 52 41 56 61 51 76 23 47 50 43 15 64 45 69 17
70 Colombia 29 3 21 66 62 43 86 25 71 25 40 56 74 8 46 61 70 16
71 Guatemala 65 1 29 63 6 80 85 26 79 21 54 45 58 11 57 51 71 16
72 Morocco 40 2 45 53 73 35 69 46 59 33 61 40 55 12 40 67 72 16
73 Ukraine 23 4 81 29 40 56 22 68 38 46 73 35 41 15 83 1 73 14
74 Honduras 76 1 37 58 15 69 84 31 81 21 62 40 21 21 72 34 74 14
75 Algeria 32 3 20 66 85 1 52 54 82 18 80 24 70 10 40 67 75 13
76 Iraq 34 2 11 75 79 30 34 61 84 16 82 20 60 11 83 1 76 13
77 Belarus 57 1 41 55 76 34 31 63 46 40 83 20 34 17 83 1 77 12
78 Nigeria 15 6 46 53 51 52 81 35 80 21 71 35 85 5 75 28 78 12
79 South Africa 18 5 55 46 63 43 87 1 35 47 42 55 64 10 55 56 79 11
80 Papua New Guinea 87 1 22 66 83 15 70 46 86 6 64 38 27 19 70 39 80 11
81 Ecuador 55 1 26 64 68 37 82 33 73 25 67 37 57 12 74 28 81 11
82 Uzbekistan 44 2 13 71 82 15 44 58 74 24 85 14 75 8 82 12 82 10
83 Venezuela 30 3 54 46 43 55 55 54 61 30 86 13 65 10 83 1 83 9
84 Azerbaijan 67 1 57 44 81 22 58 53 64 28 74 33 61 11 66 39 84 9
85 Greece 47 2 87 1 13 73 50 56 47 40 52 47 62 11 76 28 85 8
86 Burma 46 2 35 58 66 47 85 9 84 19 87 1 81 12 86 3
87 Cuba 59 1 43 54 70 37 65 47 87 1 87 1 80 7 83 1 87 1

View Year to Year Comparison

View MPI Year to Year Comparison

Year to Year Comparison (Some of the countries don't have ranking before 2014 because those countries were added to MPI in 2014)

Country 2016 2015 2014 2013 2011 2010 2009 2008 2007 2005 2004 2003 2002 2001 2000 1998 1997 1996
China 1 1 1 3 3 2 2 2 1 3 4 5 5 5 6 5 2 3
Hong Kong 2 2 2 2 2 1 3 1 2 1 1 1 1 3 2 2 4 2
Singapore 3 3 5 1 1 3 1 3 3 2 2 2 2 1 1 1 1 1
India 4 4 7 9 6 8 11 11 9 9 8 9 10 11 8 10 10 10
Japan 5 5 3
Canada 6 6 4
Germany 7 7 6
United Kingdom 8 9 9
Qatar 9 8 27
Switzerland 10 10 8
South Korea 11 11 10 4 4 4 4 5 6 4 3 3 3 2 10 3 9 5
United Arab Emirates 12 12 13
Netherlands 13 15 17
France 14 13 11
Belgium 15 16 18
Australia 16 14 12
Norway 17 17 14
Austria 18 19 16
Sweden 19 18 19
Brazil 20 20 20 17 11 11 16 23 23 18 20 17 16 18 21 20 22 20
Poland 21 22 28 7 8 6 7 10 10 8 9 8 8 9 9 12 6 13
Israel 22 25 30 5 7 7 6 9 5 5 5 4 4 8 4 4 5 4
Ireland 23 24 23
Estonia 24 23 56
Turkey 25 31 36 8 10 10 12 13 11 15 15 14 14 20 17 18 19 18
Denmark 26 27 22
Malaysia 27 21 35 12 14 15 10 14 12 13 14 13 17 15 16 8 13 7
Czech Republic 28 39 40 6 5 5 5 6 7 7 7 7 7 7 7 7 7 19
Slovakia 29 33 33
Finland 30 26 26
Saudi Arabia 31 28 37 19 21 17 15 20 18
Lithuania 32 29 34
Indonesia 33 34 39 16 17 14 22 19 21 19 17 16 22 21 23 16 17 21
Italy 34 32 24
Russia 35 37 15 13 19 21 9 12 13 11 12 15 13 19 19 19 21 23
Mexico 36 38 25 15 12 12 14 8 14 10 11 10 11 14 15 22 14 9
New Zealand 37 35 21
Kuwait 38 36 41
Spain 39 30 31
Peru 40 41 51 14 16 20 21 25 25 17 21 18 18
Vietnam 41 42 50
Bahrain 42 47 55
Latvia 43 44 29
Chile 44 40 32 10 15 13 13 15 16 14 10 11 9 16 13 14 11 14
Cambodia 45 45 73
Philippines 46 46 47 23 22 26 23 18 22 20 18 20 19 17 12 15 18 22
Oman 47 48 49
Slovenia 48 43 38
Uruguay 49 49 42
Kazakhstan 50 50 63
Bulgaria 51 55 43
El Salvador 52 52 52
Argentina 53 56 59 18 13 19 18 17 17 21 19 23 15 13 14 17 3 12
Bangladesh 54 57 53
Hungary 55 51 46 11 9 9 8 7 8 6 6 6 6 10 11 11 16 15
Thailand 56 53 45 20 18 18 19 16 15 12 13 12 12 12 18 13 15 8
Romania 57 54 44
Costa Rica 58 58 48
Serbia 59 62 54
Croatia 60 65 58
Portugal 61 64 60 4 3 6 12 11
Pakistan 62 60 66 24 24 23 20 24 20
Egypt 63 59 62 21 20 16 17 21 19 16 16 19 21
Sri Lanka 64 63 71
Nicaragua 65 70 68
Dominican Republic 66 61 64
Cyprus 67 71 65
Paraguay 68 66 80
Tunisia 69 69 57
Colombia 70 67 67 22 23 24 26 26 27 24 23 24 24
Guatemala 71 72 76
Morocco 72 68 61
Ukraine 73 73 69
Honduras 74 81 78
Algeria 75 77 79
Iraq 76 76 81
Belarus 77 79 75
Nigeria 78 74 85
South Africa 79 78 70 26 26 22 25 22 24 22 22 21 20 22 22 21 23 17
Papua New Guinea 80 85 84
Ecuador 81 75 74
Uzbekistan 82 80 83
Venezuela 83 83 77 25 25 25 24 27 26 23 24 22 23 23 20 23 20 16
Azerbaijan 84 84 82
Greece 85 82 72 6 5 9 8 6
Burma 86 87 86
Cuba 87 86 87

Dimensions and Measures of Market Potential for 2016

Dimension Weight Measures Used
Market Size 25/100
  • Electricity Consumption (2012)1
  • Urban Population (2014)1
Market Intensity 15/100
  • GNI per Capita Estimates Using PPP (2014)1
  • Private Consumption as a percentage of GDP (2014)1
Market Growth Rate 12.5/100
  • Compound Annual Growth Rate (CAGR) of Primary Energy Use (2008-2013)2
  • Compound Annual Growth Rate (CAGR) of GDP (constant 2005 US$) (2009-2014)1
Market Consumption Capacity 12.5/100
  • Consumer Expenditure (2014)4
  • Income Share of Middle-Class (2013)1
  • Household Annual Disposable Income of Middle-Class (2014)4
Commercial Infrastructure 10/100
  • Cellular Mobile Subscribers (2014)3
  • Households with Internet Access (2014)3
  • International Internet Bandwidth (2013)1
  • Number of PC's (2014)4
  • Paved Road Density (2014)4
  • Population per Retail Outlet (2015)4
  • Available Airline Seats (2015)11
  • Logistics Performance Index (LPI) (2014)12
Market Receptivity 10/100
  • Per Capita Imports from US (2015)7
  • Trade as a Percentage of GDP (2014)1
Economic Freedom 7.5/100
  • Economic Freedom Index (2015)5
  • Political Freedom Index (2015)6
Country Risk 7.5/100
  • Business Risk Rating (2015)8
  • Country Risk Rating (2015)9
  • Political Risk Rating (2015)10
Data used are those available for most recent year. All sources were accessed in January 2016.

Changes as of 2014

As of 2014, the MPI is going to be calculated for those 87 countries which have been selected according to the following criteria:

  • Countries that are in the top 100 performers in terms of Total GDP
  • Countries with a population of one million or more.
  • Countries for which reliable data is available for the majority of the indicators used.

Also, the weighting of the dimensions used to calculate the index has been changed as follows:

Dimension Until 2014 After 2014
Market Size 20.00 25.00
Market Intensity 14.00 15.00
Market Growth Rate 12.00 12.50
Market Consumption Capacity 10.00 12.50
Commercial Infrastructure 14.00 10.00
Market Receptivity 12.00 10.00
Economic Freedom 10.00 7.50
Country Risk 8.00 7.50
TOTAL 100.00 100.00

Changes as of 2015

As of 2015, the MPI will be calculated according to the following changes:

  • The Compound Annual Growth Rate (CAGR) of Primary Energy Use will be used instead of Average Annual Growth Rate of Primary Energy Use while calculating the Market Growth Rate.
  • The Compound Annual Growth Rate (CAGR) of GDP (constant 2005 US$) will be used instead of Real GDP Growth Rate while calculating the Market Growth Rate.
  • A third measure, Disposable Income of Middle-Class, will be added to the calculation of Market Consumption Capacity.
  • International Internet Bandwidth, Available Airline Seats and Logistics Performance Index (LPI) will be added to the calculation of Commercial Infrastructure, and Main Telephone Lines and Percentage of Households with Color TV will be removed.

For More Information:

For the indexing methodology, please refer to:

"Measuring The Potential of Emerging Markets: An Indexing Approach" - S.Tamer Cavusgil,
Business Horizons, January-February 1997, Vol. 40 Number 1, 87-91: doi .

" Complementary Approaches to Preliminary Foreign Market Opportunity Assessment: Country Clustering and Country Ranking " - S. Tamer Cavusgil, Tunga Kiyak, and Sengun Yeniyurt
Industrial Marketing Management, October 2004, Volume 33, Issue 7, 607-617: doi .

For additional inquiries, please contact MSU-IBC.

Glossary