Lesson 2: What is the difference between individual and market demand?

Individual demand, as the name implies, pertains to a single person or family, whereas market demand encompasses patterns for a large number of people in a certain category. Someone who is enthusiastic about dogs is more inclined to spend more for a canine product than someone who is only mildly interested. The tastes of one individual may not mirror the preferences of your whole target market.

So, what’s the big deal about this? It’s critical to realize that while doing your own market research to predict demand, you’ll need to poll a large number of people—not simply those who are most enthusiastic about your sector or product. If you forecast solely on individual demand, you risk having inaccurate data and being exposed to big losses. Market demand is made up of a collection of distinct demand data points.