Quality of Life

A better quality of life for all is the ultimate goal of sustainable development. Quality of life is about happy, healthy and ethically responsible living for individuals, families and communities.  Increasing awareness of the downside of modern lifestyles is prompting more and more people to place greater priority on the health, ethical and environmental dimensions of consumption, stimulating an array of new markets.

The Challenge

  • In 2005, the World Health Organisation (WHO) projected that, globally, 1.6 billion adults were overweight and at least 400 million adults were considered obese. It projects that by 2015, 2.3 billion adults will be overweight, and more than 700 million will be obese.1
  • People are increasing concerned about the quality and safety of food and products they purchase, and the way it has been produced. In agriculture, around 31,000 tonnes of chemicals are used in farming in the UK each year to kill weeds, insects and other pests that attack crops. 150 of the available 350 pesticides used have been identified as potentially causing cancer.2 Numerous studies have found pesticide residues in up to a third of food, including residues of more than one chemical.3
  • The population in the western world is ageing.  The UN forecasts the European population aged 85+ will grow at a 5.6% compound annual growth rate (CAGR) in 2005-10, and a 2.8% CAGR to 2050.4

Markets & Drivers

Increased consumer demand for healthier, safe products, combined with tightening environmental and health regulations are creating opportunities for companies able to respond effectively to these trends. Also of great significance is the increasing demand for housing and social care services, while greater female participation in the workforce is changing family structures, requiring solutions that enable women to have families while continuing to work.

  • According to the Organic Trade Association (OTA), organic food sales in the USA currently total US$ 17 billion and represent the fastest-growing category in food retail. Double-digit growth is expected to continue, having grown at a CAGR of over 18% for the 5 years from 2002.5
  • The US market for elderly living solutions, which encompass nursing and housing related services, totalled US$ 150 billion in 2006.6
  • According to International Health, Racquet & Sportclub Association (IHRSA), the estimated market size of the US health club industry in 2006 was US$17.6 billion in revenues .7

Investment Opportunities

The Qualify of Life theme focuses on companies whose goods and services promote sustainable lifestyles among all age groups, including children and the elderly. This includes companies in the following sub-themes:

  • LOHAS (Lifestyles of Health & Sustainability) – providing solutions which promote physical and dietary wellbeing, as well as respond to growth in green/ethical consumerism
  • Social care & support - providing solutions for the care of the most vulnerable in society, including the young and the elderly

Examples of companies within the Quality of Life theme include...

  • Care UK (UK), a provider of social care solutions for the elderly and those with specialist needs
  • Life Time Fitness (USA), a manager of sports, athletic, and fitness centres
  • Wessanen (The Netherlands), a food company offering organic and natural foods

Footnotes

[1] WHO Factsheet No. 311, September 2006

[2] The Soil Association website: www.soilassociation.org

[3] http://organicconsumers.org

[4] Goldman Sachs, ‘A good time to care: initiating on five companies in the nursing home sector’, March 2008

[5] Citigroup, ‘Harvesting the Organic Opportunity’, October 2007 

[6] William Blair & company, Senior Living Industry’, September 2006

[7] Lehman Brothers, ‘Healthy lifestyle’ April 2006











 

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