Investment themes in a post-COVID-19 world
Meet the Supertrends: Explore our long-term investment themes for the future.
The 2020 coronavirus outbreak will likely be viewed as a turning point in our lives and thinking. The crisis has challenged existing systems and structures, sowing the seeds for further change. We believe that our Supertrends, long-term investment themes that we first identified in 2017, will shape the global landscape as we emerge from this crisis.
Against the backdrop of the coronavirus pandemic, governments and companies are facing a unique time of social responsibility to address the key concerns of citizens around the world, including inequality, rapidly changing work environments, old age funding, housing affordability, healthcare and education.
Large infrastructure projects are more likely to get approval in a low interest rate environment. Regulation changes and the move to lower-carbon economies are additional drivers for new renewable energy projects. The use of big data to manage infrastructure is a key element in the ongoing development of smart cities.
Digitalization is ongoing and the coronavirus has catalyzed this process further. Increased mobility, automated real-time processes (edge computing), and at-home education and entertainment and healthcare are just some of the areas experiencing rapid growth.
The world's senior population will double to more than two billion by 2050. This fuels growth in sectors catering to the needs associated with an aging population, such as healthcare, insurance and funding solutions, and consumer and property markets. Two-thirds of the incremental number of seniors will reside in Asia, an area of the world that remains under resourced in both healthcare provisioning and public and private insurance solutions.
Sustainability is a key concern for those that make up the millennial generation. Generation Y and Z are more likely to adopt a plant-based or vegetarian diet due to concerns about the environment and health. This is driving sales of meat and dairy alternatives. Millennials are also taking the lead in other areas, including subscription-based services.
Global warming has caused major disruption in weather patterns, and extreme conditions appear to be becoming the new norm. Governments around the world have stepped up efforts to fight climate change and embarked on energy transition strategies to achieve the targets established under the 2015 Paris Agreement.
Read more about our six Supertrends.