Robeco logo

Important Information

Warning/Important note: This website contains information which is only available to qualified investors as defined below. If you are not a qualified investor, please click “I Disagree” to leave the website.

By clicking on "I agree", I declare that:

  • I am a qualified investor as defined under 1

  • I have read and understood the Terms and Conditions and Disclaimers as described under 2


1 - This website may only be accessed directly or indirectly by the following persons in Singapore:
1) “institutional investor” under section 304 of the Securities and Futures Act 2001 (“SFA”), which means:
(i) the Government; (ii) a statutory board as may be prescribed by regulations made under section 341 of the SFA; (iii) an entity that is wholly and beneficially owned, whether directly or indirectly, by a central government of a country and whose principal activity is (A) to manage its own funds; (B) to manage the funds of the central government of that country (which may include the reserves of that central government and any pension or provident fund of that country); or (C) to manage the funds (which may include the reserves of that central government and any pension or provident fund of that country) of another entity that is wholly and beneficially owned, whether directly or indirectly, by the central government of that country; (iv) any entity (A) that is wholly and beneficially owned, whether directly or indirectly, by the central government of a country; and (B) whose funds are managed by an entity mentioned in sub-paragraph (iii); (v) a central bank in a jurisdiction other than Singapore; (vi) a central government in a country other than Singapore; (vii) an agency (of a central government in a country other than Singapore) that is incorporated or established in a country other than Singapore; (viii) a multilateral agency, international organisation or supranational agency as may be prescribed by regulations made under section 341 of the SFA; (ix) a bank that is licensed under the Banking Act 1970 (Cap.19); (x) a merchant bank that is licensed under the Banking Act 1970; (xi) a finance company that is licensed under the Finance Companies Act 1967; (xii) a company or co-operative society that is licensed under the Insurance Act 1966 to carry on insurance business in Singapore; (xiii) a company licensed under the Trust Companies Act 2005; (xiv) a holder of a capital markets services licence; (xv) an approved exchange; (xvi) a recognised market operator; (xvii) an approved clearing house; (xviii) a recognised clearing house; (xix) a licensed trade repository; (xx) a licensed foreign trade repository; (xxi) an approved holding company; (xxii) a Depository as defined in section 81SF of the SFA; (xxiii) an entity or a trust formed or incorporated in a jurisdiction other than Singapore, which is regulated for the carrying on of any financial activity in that jurisdiction by a public authority of that jurisdiction that exercises a function that corresponds to a regulatory function of the Authority under this Act, the Banking Act 1970, the Finance Companies Act 1967, the Monetary Authority of Singapore Act 1970, the Insurance Act 1966, the Trust Companies Act 2005 or such other Act as may be prescribed by regulations made under section 341 of the SFA; (xxiv) a pension fund, or collective investment scheme, whether constituted in Singapore or elsewhere; (xxv) a person (other than an individual) who carries on the business of dealing in bonds with accredited investors or expert investors; (xxvi) the trustee of such trust as the Authority may prescribe, when acting in that capacity; or; (xxvii) such other person as the Authority may prescribe.


2) “relevant person” under section 305(1) of the SFA, which means:
(i) An accredited investor; (ii) a corporation the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; (iii) a trustee of a trust the sole purpose of which is to hold investments and each beneficiary of which is an individual who is an accredited investor; (iv) an officer or equivalent person of the person making the offer (such person being an entity) or a spouse, parent, brother, sister, son or daughter of that officer or equivalent person; or (v) a spouse, parent, brother, sister, son or daughter of the person making the offer (such person being an individual).

3) any person who acquires the units [in a collective investment scheme] as principal if the offer is on terms that the units may only be required at a consideration of not less than $200,000 (or its equivalent in a foreign currency) for each transaction, whether such amount is to be paid for in cash or by exchange of units in a collective investment scheme, securities, securities-based derivatives contracts or other assets, and if the following condition is satisfied: (i) the offer is not accompanied by an advertisement making an offer or calling attention to the offer or intended offer; (ii) no selling or promotional expenses are paid or incurred in connection with the offer other than those incurred for administrative or professional services, or by way of commission or fee for services rendered by any of the persons specified in section 302B(1)(d)(i) to (vi) of the SFA; and (iii) no prospectus in respect of the offer has been registered by the Authority or, where a prospectus has been registered (A) the prospectus has expired pursuant to section 299 of the SFA; or (B) the person making the offer has before making the offer (1) informed the Authority by notice in writing of its intent to make the offer in reliance on the exemption under this subsection; and (2) taken reasonable steps to inform in writing the person to whom the offer is made that the offer is made in reliance on the exemption under this subsection.

4) Or otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

If you are not any of the types of persons described above, you are not authorized to enter this website and you should leave this website immediately.

2 Terms and Conditions
You acknowledge that you have read these Terms and Conditions (“Terms”) prior to accessing the website located at www.robeco.com/sg (“Website”) and you agree to be bound by the Terms. If you do not agree to all of the Terms, you are not an authorised user and you should not use the Website. The Website is owned by Robeco Singapore Private Limited (company registration number: UEN. 201541306Z), which is licensed by the Monetary Authority of Singapore (“MAS”) pursuant to the Securities and Futures Act 2001 (“SFA”) of Singapore, and is managed by Robeco Singapore Private Limited and/or its affiliates (collectively, as “Robeco”). The Website is intended for and should be accessed by institutional investors or accredited investors (as defined under Section 4A of the SFA) of Singapore. The Website is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject the Robeco to any registration or licensing requirement within such jurisdiction. It is your responsibility to observe all applicable laws, rules and regulations of any relevant jurisdiction. The content contained in the Website is owned by Robeco and/or its information providers and is protected by applicable copyrights, trademarks, service marks, and/or other intellectual property rights. You may not copy, distribute, modify, post, frame or link the Website, including any text, graphics, video, audio, software code, user interface, design or logos. You may not distribute, modify, transmit, reuse, repost, or use the content of the Website for public or commercial use, including all text, images, audio and/or video. Robeco may terminate your access to the Website for any reason, without prior notice. Neither Robeco, nor any of its associates, nor any director, officer or employee accepts any liability whatsoever for any loss arising directly or indirectly from the access of the Website. You agree to indemnity and hold Robeco, its associates, directors, officers or employees harmless against any and all claims, losses, liability, costs and expenses arising from your use of the Website due to violation of the Terms. Robeco reserves the right to change, modify, add or remove any parts of the Terms at any time and for any reason. The Terms shall deemed to be effective immediately upon posting. The Terms shall be governed by, and shall be construed in accordance with, the law of Singapore.

Disclaimers
The Website has not been reviewed by the MAS. Accordingly, the Website may not be accessed directly or indirectly to persons in Singapore other than (i) to an institutional investor under Section 304 of the SFA, (ii) to a relevant person pursuant to Section 305(1), or any person pursuant to Section 305(2), and in accordance with the conditions specified in Section 305, of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

Nothing in the Website constitutes tax, accounting, regulatory, legal or investment advice. The Website is for informational purposes only and should not be construed as an offer to sell or an invitation to buy any securities or products, nor as investment advice or recommendation or for the purpose of soliciting any action in relation to Robeco’s businesses, or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such an offer and solicitation. Any reproduction or distribution of information from the Website, in whole or in part, or the disclosure of its contents, without the prior written consent of Robeco, is prohibited. By accessing to the Website, you agree to the foregoing.

The funds referred to in the Website are for information only. It is not a recommendation or investment advice, nor does it mean the funds is suitable for all investors. The contents of the website is not reviewed by the MAS. Any decision to participate in the funds should be made only after reviewing the sections regarding investment considerations, conflicts of interest, risk factors and the relevant Singapore selling restrictions. The Funds referred in this Website are notified with the MAS and are only available to the professional investors in Hong Kong and to qualified investors in Singapore. You should consult your professional adviser if you are in doubt about the stringent restrictions applicable to the use of the Website, regulatory status of the funds, applicable regulatory protection, associated risks and suitability of the funds to your objectives.

Any decisions made based on the information contained in the Website are the sole responsibility of yours. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives. The investments and strategies contained in the Website may not be suitable for all investors and are not guaranteed by Robeco.

Investment involves risks and may lose value. Historical returns are provided for illustrative purposes only and do not necessarily reflect Robeco’s expectations for the future. The value of your investments may fluctuate. Past performance is no indication of current or future performance. The Website may contain projections or other forward looking statements regarding future events or future financial performance of countries, markets or companies and such projection or forecast is not indicative of the future. The information contained in the Website, including any data, projections and underlying assumptions are based upon certain assumptions, management forecasts and analysis of information available on an “as is” basis and without warranties of any kind, whether express or implied, and reflects prevailing conditions and Robeco’s views as of the date published or indicated, and maybe superseded by subsequent events or for other reasons. The information contained in the Website are accordingly subject to change at any time without notice and Robeco are under no obligation to notify you of any of these changes. Robeco expressly disclaims all liability for errors and omissions in the information presented in the Website and for the use or interpretation by others of information contained in the Website.

Robeco Singapore Private Limited holds a capital markets services licence for fund management issued by the MAS and is subject to certain clientele restrictions under such licence. An investment will involve a high degree of risk, and you should consider carefully whether an investment is suitable for you.

I Disagree

26-01-2023 · Insight

Consumer trends in 2023: Consumer health and sustainable consumption

Two trends we see gathering momentum in 2023 are consumer health and sustainable consumption.

    Authors

  • Richard Speetjens - Portfolio Manager

    Richard Speetjens

    Portfolio Manager

  • Jack Neele - Portfolio Manager

    Jack Neele

    Portfolio Manager

Summary

  1. Consumers are spending more on their own health and also on sustainable products

  2. Novel weight loss solutions, skincare and optical health are growing categories

  3. Technological advancements and new incentives drive electric vehicle and solar affordability

Consumer Trends in 2024: The resilient shopper

In 2022 the Robeco Global Consumer Trends strategy added more weight to areas like consumer health, and we also see a bright future for companies serving customers with more sustainable products and services. These are two of the themes to watch for in 2023 and beyond.

Improving solutions for body mass, dermatology, and vision drive consumer health trends ahead

First, recently approved, effective weight loss drugs have sparked interest among consumers, medical professionals and healthcare providers. Second, five billion people and growing live with poor or corrected vision, offering substantial opportunities for vision correction companies. Third, dermocosmetics are gaining popularity thanks to their efficacy and clever marketing by beauty companies. 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.

Increasing consumer interest in weight loss drugs

We expect consumer interest in weight loss drugs to increase substantially in 2023 as health insurance coverage expands, marketing efforts increase, and product availability improves. Obesity, a severe form of being overweight, is associated with over 200 health complications, including type 2 diabetes, and puts a substantial strain on global healthcare budgets. Worldwide an estimated 750 million people are obese. Treating obesity-related diseases costs an estimated USD 425 billion across OECD nations every year. So, healthcare payors (individuals, employers or governments) have an incentive to reduce obesity prevalence, for example, with the help of novel pharmaceuticals.

Currently, only some 2% of obese people are treated with obesity drugs. Consumer interest on social media, and on Google searches, for weight loss drugs is also increasing. Interestingly, in anticipation of regulatory approval and an increased supply of obesity drugs, type 2 diabetes drugs Mounjaro and Ozempic, which both also help weight loss, have seen rising interest from consumers.

Figure 1: Interest in new weight loss and diabetes drugs on Google search

Figure 1: Interest in new weight loss and diabetes drugs on Google search

Source: Google, 2022.

Consumer Trends

Consumers appetites are changing, your portfolio should too
Discover more
View all themes


Five billion people require vision correction products and services

Companies treating poor vision have substantial growth opportunities thanks to the sheer amount of people needing vision correction to function as well as they possibly can in daily life. About 2.7 billion people live with uncorrected poor vision and another 2 billion live with corrected vision and regularly need new glasses or contact lenses when their vision changes, products wear out, better technology becomes available, or when their fashion tastes change. A small percentage of the combined 4.7 billion people will receive eye surgery for which equipment is being supplied by a small number of highly specialized companies. Future growth in the number of people needing vision correction is driven by changing consumer behavior including increased screentime, more intensive near-sight work, and demographic trends like population aging and population growth in Asia (where short-sightedness is more prevalent).

Two growth opportunities to highlight are short-sightedness and protection from the sun. First, zooming in on short-sightedness, also known as myopia, we find that the percentage of people being myopic is forecast to increase from 33% now to 40% in 2030 and 52% in 2050 or almost 5 billion people according to the Brien Holden Vision Institute (Figure 2). Second, approximately 6 billion people risk suffering sun damage to their eyes due to lack of protection. In some countries such as Australia, health insurers are already reimbursing consumers for sunglasses costs. In other words, there are plenty growth opportunities for vision correction companies.

Figure 2: Number of myopes and prevalence

Figure 2: Number of myopes and prevalence

Source: Brien Holden Vision Institute, 2016.

Dermocosmetics link consumer desire for beauty with health

Depending on your presence on TikTok you may have seen the ‘DermDoctor’, a practicing dermatologist with a medical degree and 17 million followers who regularly educates his followers on basic dermatology and skincare. Dermocosmetics products sales are growing about 10% per annum, twice that of the overall beauty market, helped by influencers like the DermDoctor. Growth is mainly because these products are developed by pharmacists and dermatologists and offer solutions to specific skin problems such as sensitive skin, eczema or acne. Given that these products often treat clearly visible facial skin ‘imperfections’ they are also closely tied to consumers’ sense of beauty. Add recommendations by medical professionals and high service distribution via pharmacies, and one has a fast growing, profitable product category with loyal customers.

Figure 3: Beauty categories forecasted annual growth

Figure 3: Beauty categories forecasted annual growth

Source: company results, Robeco estimates, 2023.

The resurgent sustainable consumer

Beyond their own health, increasingly consumers also want the choices they make to be sustainable for the planet too. 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.

Get the latest insights

Subscribe to our newsletter for investment updates and expert analysis.

Stay updated

Interest broadens across consumer groups

Once constrained to nature lovers and young idealists, the market for sustainably produced products has expanded across generations, geographies and political affiliations. According to The Conference Board Global Consumer Confidence Survey, 85% of Millennials say it is extremely, or very important that companies implement programs to improve the environment. Those in the Generation Z and X brackets express similar levels of environmental support at 80% and 79% respectively. Notably, even older generations have gotten behind the cause, with 65% of the silent generation also indicating strong support for corporate environmental programs. Similarly, even in the politically divided US, 76% of Americans have a positive view of wind energy and 82% see solar energy in a favorable light according to a Morning Consult poll. This positive public view of environmental concerns was underscored last year by passage of the US Inflation Reduction Act (IRA) which directs nearly USD 394 billion in funding to support renewable energy, electric vehicles, related manufacturing, and other environmental programs.

Figure 4: Percentage of consumers that believe it is extremely or very important that companies implement programs to improve the environment

Figure 4: Percentage of consumers that believe it is extremely or very important that companies implement programs to improve the environment

Source: The Conference Board, Nielsen, Bernstein Research

Strong trends, still early in the adoption cycle

While there is often a gap between consumers’ stated preferences and how they spend, the growth in sales of electric vehicles and the installation of solar panels demonstrates that interests and actions can converge under the right conditions. Over the last five years, sales of passenger battery electric vehicles (BEV) rose at a 61% compound annual growth rate versus sales of petrol powered vehicles which declined at a 5% CAGR over that period. Notably, in 2022, in spite of ongoing semiconductor shortages, Bloomberg New Energy Finance (BNEF) estimates BEV sales rose 66% year on year to 7.6 million, accounting for 9.4% of the global market. Similarly, with a 15.3% CAGR, wind and solar generation has expanded at more than 10 times the rate of total electric power generation over the past five years. BNEF estimates the combined share of those renewable energy sources reached 12.7% of the global electric power in 2022 and will account for more than a quarter of the market by 2030.

Figure 5: Battery electric vehicle share of passenger vehicle sales & combined wind and solar share of electricity power generation, worldwide

Figure 5: Battery electric vehicle share of passenger vehicle sales & combined wind and solar share of electricity power generation, worldwide

Source: Bloomberg New Energy Finance, 2022

Economics increasingly drive sustainable purchases

Driven by technological advancement, new business models, and renewed incentive programs, electric vehicles and renewable energy are increasingly not only the most climate-friendly options, but also the most economical choice for consumers. Over the last decade, renewable energy development costs have decreased substantially with the unsubsidized cost of solar and wind energy down 77% and 46% respectively, according to Lazard. Combined, the average price of utility scale solar and wind power generation is 39% less expensive than gas, and 67% less than coal. Similarly, while the upfront purchase price of a BEV is still higher than a comparable petrol-powered vehicle, the annual running costs are nearly 30% less given the lower costs of fuel (electricity), and lower maintenance costs (fewer moving parts).

While environmental concerns and social values continue to play a role in consumer motivation to shop sustainably, quality ranks higher. According to a 2022 survey conducted by First Insight and the Wharton School of the University of Pennsylvania, 29% of consumers cited quality as the leading factor driving consumer preference for sustainable products. Similarly, craftmanship and durability combined rank nearly as high, with 25% of consumers citing those attributes as their primary rationale for shopping sustainably. Product durability is likely the key factor driving 68% of respondents in the First Insight survey to indicate a willingness to pay more for a sustainable product. A similar dynamic is found in the luxury market where high-end automobiles, handbags, and watches retain significantly greater value at resale than mass market products. The longer useful lifespan of well-made products contributes to the circular economy with less waste and reduced demand on natural resources.

New business models are also helping to drive the benefits of the circular economy beyond the luxury market. Leveraging the broad infrastructure and payment systems developed to support traditional ecommerce, new marketplaces like ThredUp and Vinted bring the cluttered thrift store to the digital age. Although Lithuania-based Vinted has more than 75 million registered users across 18 countries, the company is just scratching the surface of the USD 860 billion global apparel market.

Cautious consumers won’t derail long-term outlook

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. Indeed, according to Deloitte’s Global State of the Consumer Tracker, citing cost as the primary factor, the percentage of consumers who had recently purchased a sustainable product fell from 49% in their March 2022 survey to 40% in September. Nevertheless, as new technologies develop, quality improves and prices decline helping to drive adoption over time. Given the vast market opportunity, material progress to date and the early stage of adoption for technologies like renewable energy and electric vehicles, the sustainable consumer shift should present multiple years of growth and opportunity for both innovative entrants and agile incumbents.

Important information

This information is for informational purposes only and should not be construed as an offer to sell or an invitation to buy any securities or products, nor as investment advice or recommendation. The contents of this document have not been reviewed by the Monetary Authority of Singapore (“MAS”). Robeco Singapore Private Limited holds a capital markets services license for fund management issued by the MAS and is subject to certain clientele restrictions under such license. An investment will involve a high degree of risk, and you should consider carefully whether an investment is suitable for you.