Consumer trends are among the critical elements to understanding the growth in retail and other consumption-related sectors. Robeco talks about two key themes in its outlook for consumer trends 2023, namely consumer health and sustainable consumption, discussing the various investment pointers in its report.
The investment management firm talks about new solutions for weight loss, vision correction companies which are seeing a boost from a growing customer base, and lastly the beauty products sector which is gaining popularity.
“In general, post-Covid consumers are taking a more proactive approach towards their health and well-being. These trends are also supported by demographic tailwinds with Millennials and Gen Z in the US spending at a rate six to seven percentage points higher than the average consumer on wellness products and services, according to McKinsey,” writes Richard Speetjens, Portfolio Manager at Robeco.
The asset manager further dives deeper into the three points mentioned above, talking about the consumer trends 2023. Robeco expects that interest in weight loss drugs will increase in 2023 as health insurance coverage expands, among other things, whereas more than five billion people in the world require vision correction products and services.
On the sustainability front, the investment management firm says that consumers are increasingly making climate-conscious choices.
“In recent years, public sentiment, technological progress, and economic rationale have each reached a tipping point in favor of sustainably produced goods and services. We see a multi-year opportunity across a broad array of segments including automobiles, apparel, food, and energy for innovative companies to provide consumers with solutions that are not only sustainable, but also market competitive,” as per Jack Neele, Portfolio Manager at Robeco.
Citing a survey, Robeco says that almost 85% of millennials say it is important for companies to implement programs to improve the environment, followed by Gen Z (80%), Gen X (79%), Baby Boomers (72%) and the silent generation (65%).
“With inflation and recessionary fears currently top of mind for consumers, the premium that sustainable products are able to charge and consumers’ willingness to pay up to do good will both likely erode…Nevertheless, as new technologies develop, quality improves and prices decline to help to drive adoption over time,” concludes Robeco.
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