Not the emerging markets of the past
Emerging markets have always been an exciting place to invest. And while they can be volatile and suffer from liquidity problems, markets are becoming more developed, more mature, more differentiated as well as often more resilient.
From a variety of tech components, to electronics, digital payments, e-commerce, biopharma, gaming, social media and many more areas, emerging markets companies are innovating and becoming increasingly competitive on a global scale.
Here are the 10 themes we believe will drive opportunities in emerging markets in the next 10 years.
1. Emerging market middle classes are driving growth in air travel
Before the COVID-19 pandemic, around 150 million people in Asia travelled for the first time each year. Over the next 20 years, the region is expected to account for around 50% of incremental air traffic1, fuelled by the rapidly rising middle class population.
In China, domestic air travel had almost returned to pre-COVID levels in late 2020 after the coronavirus outbreak in the country was brought largely under control. However, the recent rise in coronavirus cases led to the return of some travel restrictions.