The consumer sector is vast, with household consumption globally representing 60% of global GDP. We focus our consumer investing in four key areas: Consumer Goods; Retail; Food and Drink and Leisure.
Each of these segments are effected by a number of global and economic factors including rising levels of general wealth and an ageing 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 polarisation 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.
