The consumer sector is vast, with household consumption globally totaling $14tr and representing 60% - 70% of most developed economies. We focus our consumer investing in 4 key areas: food & beverages, leisure, retail and consumer goods.
Each of these segments are effected by a number of global and economic factors including rising levels of general wealth and an aging population in most markets. Most spectacularly we are seeing the rise of a new consumer class in India and China. In India alone there is a middle class of some 400m people.
In addition many consumer markets are seeing some strong trends:-
- Time poor consumers seeking convenience
- A desire for a healthier, more natural and environmentally friendly lifestyle
- A polarization of markets between high end brands and value brands with the middle being squeezed
At 3i we have been investors in the consumer sector for many years and have a portfolio of over 100 investments valued at $0.8bn. Most of our investments are through our buyout and growth capital businesses in Europe but increasingly we are making investments in the sector in the US and Asia.