Monday 3 June 2013

Rising Global Consumer Demand Offers Viable Investing Options

The global economy, according to many analysts, is expected to double by 2020. As a result, there will be an incredible amount of worldwide opportunities for businesses and investors to capitalize on. From an investor’s perspective, the options may seem endless when exploring what profitable investments may be available as the world’s economy unfolds into the future, so it would help to put things into a measure of perspective to narrow down the long list of potential options.

In the business and investment world, consumer demand dictates the supply. There was a recent report that forecast there will be an additional 1 billion people that will be considered to be “new global consumers” by the year 2025. This means there will be a huge need for more food, clothing and shelter that will have to be met, providing many different opportunities for businesses and investors to choose where they would like to put their money to grow and generate profit. This demand will not just be limited to the basics of survival but also everything else the modern-day consumers like to purchase, such as electronics and toys and furniture etc..

When you are looking at the range of these commodities, another sector that will be in strong demand is the hard assets that are needed to manufacture and transport the supply of consumer goods. Also, it would be wise to consider many different aspects of the shipping industry since 90 percent of the world’s consumer goods are delivered by the maritime sector. Again, the rationale behind narrowing down a list of potential options revolves around the likelihood of what will be in strong demand as the global economy grows to it’s expected unprecedented levels.

For example, it has been predicted that the level of global port infrastructure needed to meet the rising shipping container demand in the next ten years is expected to be about 2.5 times the present level. Already in the last ten years, trillions of dollars have been invested in more than 140 countries around the world to upgrade their port systems, and it looks like there is going to be a demand for tens of trillions of more dollars that will be needed just to keep up. This provides many opportunities for business and investors looking to profit from a growing sector that is experiencing constant growth levels now and expected to for many years in the future. That is a good recipe for investment success. Invest in growth markets.

Better yet, invest in sectors that are essential to facilitate the growth in the growing markets. Like the shipping industry. With all this global consumer demand that is expected on the horizon, there will also be a massive demand for shipping containers to transport all the increased demand for consumer goods all around the world. Currently there are tens of millions in circulation. In the next ten years that number is expected to be in the hundreds of millions. The global economy of the future is going to provide many great opportunities as it continues to grow and with it, many viable investment and business options to choose from. It’s just a matter of picking the best one that consistently delivers steady returns for investors.

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