Which Consumer Trends Will Outlive Lockdown?

Consumer companies were lucrative investments in 2020, but predicting long-term winners is harder. Shoppers are expected to splash the cash this year

James Gard 20 May, 2021 | 10:22AM
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In May 2020 we asked the question, “Have Consumer Habits Changed Forever?” and a year on, the answer is: yes and no. But even the experts don’t know exactly which ones are here to stay and which ones we’ll leave behind as lockdown eases. As part of our week-long look at investing themes, we try to forecast the future of spending.

In hindsight, consumer companies were the place to be last year – enforced time at home saw a spike in music and TV subscriptions like Netflix (NFLX) and Spotify (SPOT), closed restaurants meant a roaring trade for the likes of Just Eat (JET), while Amazon (AMZN) boomed as non-essential retailers closed their doors. These companies were hot in 2020 but many have struggled to maintain the pace of growth in 2021. But that doesn’t mean the trends they are tapping into won’t be profitable for investors in the long term

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James Gard  is content editor for Morningstar.co.uk