Emerging Markets have a Thirst for Consumer Stocks

As middle classes expand, the retail and leisure infrastructure develops alongside this to supply and service improvements and changes in diet and lifestyle

Lombard Odier 14 November, 2014 | 3:28PM

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Odile Lange-Broussy, co-manager of the Lombard Odier Emerging Consumer Fund discusses the thirst for brands and the brewing sector among developing economies. 

In the developing world as populations grow and wealth rises the options for investors multiply. Plainly there is more desire for a whole range of consumer goods, but which products will see this aspiration turned into profitable demand? Put simply –what brands are accessible to people whose income is now sufficient for some discretionary expenditure? The brewing sector is set to be one of the early beneficiaries of this trend. A branded beer in a bar or at home is a visible consumer desirable, despite being a relatively small ticket item.

The scale of the market opportunity is huge. The African Development Bank estimates that Africa’s middle class, reckoned to number just 115 million for the whole continent in 1980, has grown to 326 million in the past three and a half decade, making up 33% of Africa’s population today.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Lombard Odier  is one of the largest independent Swiss private banks, specialising in private asset management.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies