By Ishan Dan | Wed 18 Aug 2021
The team at Insync Funds Management has a knack of identifying and assessing disruptors and global ‘Megatrends,’ and then building a portfolio of the most profitable and innovative companies that become the winners of tomorrow. The current pace of disruption is extraordinary, and has continued during the coronavirus. Significant demographic changes are converging with the digital transformation of the global economy. One such area that has seen significant disruption is the pet industry.
In Australia, especially, pets are treated not just as loved members of the family, but having the same status as our children or partners. Insync says this “pet humanisation” is a global Megatrend that has actually accelerated due to the effects of Covid-19, and is unlikely to reverse in coming years.
“This interesting Megatrend is easily evidenced in how much money we are prepared to spend on our pets’ health, what we feed them, and what priority they hold in our overall household decision-making. It is also obvious from the choice of services available to pet owners, and the outrageous prices for ‘designer’ breeds,” says Insync.
As an investor, this all gives rise to a couple of interesting questions – Why is this occurring, and what businesses are taking advantage of this phenomenon?