Investing in the wellness boom
If you’re looking to invest in growth industries, then the theme of health & wellness is a pretty good place to start.
9 March 2019
I’ve highlighted in previous articles the impact longer life spans are having on people’s financial outlooks and the solutions we, as investment managers, need to provide as a result. But the prospect of us all living longer also presents huge investment opportunities.
In developed and many developing markets, the focus is not just on living longer, but healthier. There is now more attention being paid to what we eat (whether that is reducing fat, salt and sugar, or promoting organic goods) and how active the lifestyles we lead are.
That’s one reason why the ‘wellness’ industry is booming.
In developed and many developing markets, the focus is not just on living longer, but healthier.
Valued at US$4.2 trillion it is estimated to be growing at twice the rate of global economic growth. Within this, personal care is worth US$1.1 trillion, while healthy eating, nutrition and weight loss are valued at US$702 billion.*
For me, nutrition is of particular interest. Food technology will play a crucial part in resolving the major challenges which come from longer life spans and changing dietary patterns, such as rising levels of type-2 diabetes. Food & beverage producers are having to find technical solutions to significantly reduce the calories in what they offer consumers.
Companies like Dutch firm DSM are at the forefront in this area, in particular, its animal-feed business, as farmers increase productivity to feed the emerging middle classes’ protein-rich diets; and its human-nutrition products business, as increased urbanisation creates greater demand for packaged food.
It’s clear that wellness is no longer merely a luxury item, instead it should be considered as an important global structural trend.
*Source: Global Wellness Institute, Global Wellness Economy Monitor, October 2018
This information is issued and approved by Martin Currie
Investment Management Limited (‘MCIM’). It does not
constitute investment advice.
Past performance is not a guide to future returns.
Market and currency movements may cause the capital value
of shares, and the income from them, to fall as well as rise and
you may get back less than you invested.
The opinions contained in this document are those of the
named manager(s). They may not necessarily represent the
views of other Martin Currie managers, strategies or funds.
The information provided should not be considered a recommendation to purchase or sell any particular security. It should not
be assumed that any of the security transactions discussed here were or will prove to be profitable