Meatless alternatives are on the rise, but so is global meat consumption

Meatless alternatives are on the rise, but so is global meat consumption

One of the dangers investors is looking at the world with blinders on because it means missing the larger picture. For example, if we were to look at the recent stock price success of Beyond Meat, a new constituent in the Tematica Research Cleaner Living index, and chatter over the expanding reach of Impossible Foods, one might think the world was no longer interesting in meat.

To the contrary, we are continuing to see the tailwind of our New Global Middle-Class investing them spur demand for the protein complex.

When it comes to the burgers or steaks on your plate, looks and tastes can be deceiving as “meatless meat” and “plant-based meat” gain traction.

Sales of meat alternative grew 30% in 2018 compared to the previous year, according to Nielsen Product Insider.

While the alternative meat market could grow to be worth $140 billion globally in the next ten years, according to Barclays, it’s still a small percentage of the current $1.4 trillion global meat market which is also showing no signs of slowing down.

Still, the demand for alternatives has increased.

Despite the trend in eating plant-based “meat,” global consumption for meat is still on the rise, driven in part by countries like China and Brazil which saw a massive increase in recent decades.

The average person in China, for instance, went from consuming just nine pounds of meat per year in 1961, to 137 pounds per year in 2013, according to The Economist.

“As countries get wealthier, there’s a tendency to eat more meat as a sign of wealth, as a sign of like, ‘I can afford it,’” said Lily Ng, CEO of Foodie, a food magazine and online platform based in Hong Kong.

Globally, the average amount of meat consumption has nearly doubled over the past 50 years.

Although, countries including the U.S. and the U.K. may have reached a so-called “Meat Peak” — which means total meat consumption has hit a peak and declined slightly recently. In addition to that, one in three people in the U.K. says they’ve stopped or cut down on eating meat, according to a survey by Waitrose supermarket.

Source: Meatless alternatives are on the rise, so is global meat consumption

China accounted for nearly half of app downloads in 2018

China accounted for nearly half of app downloads in 2018

It’s not only the pace of the smartphone market that is slowing here in the US, so is the rate at which we are downloading apps even though Apple’s App Store and Google Play remain dominant platforms. A new report shows that China, India, Brazil, and Indonesia are the driving force behind app downloads and app-related revenue growth, which likely reflects the deployment of 4G networks and the adoption of smartphones. No wonder Apple is keen on cracking China and India. To us, this is our Rise of the New Middle-class investing theme intermingling with our Digital Lifestyle theme.

Global app downloads topped 194 billion in 2018, up 35 percent from 2016, according to App Annie’s annual “State of Mobile 2019” report released today. Consumer spending across app stores was up 75 percent to reach $101 billion. The report, which analyzes trends across iOS, Android and the third-party Android stores in China combined, follows the company’s earlier report released at year-end, which looked at downloads and spending across just iOS and Google Play.

According to the “State of Mobile” report, China accounted for nearly 50 percent of total downloads in 2018 across iOS and the third-party stores, despite the slowdown related to a nine-month game license freeze in the country. China also accounted for nearly 40 percent of consumer spending in 2018.

Emerging markets played a role in fueling downloads, as well, accounting for three out of the top five markets for downloads (India, Brazil and Indonesia). Download growth in the U.S., meanwhile, has slowed.

Developing markets played little role in consumer spend, however. Instead, the countries contributing the most on that front were (in order): China, the U.S., Japan, South Korea and the U.K.

It found that Chinese mobile gaming giant Tencent was the global leader for overall revenue across iOS and Android, not counting the third-party Android app stores. It was also the leader in game revenue. Tencent topped the non-game app chart for 2018, too, with its Tencent Video app clocking in at No. 3.

Source: China accounted for nearly half of app downloads in 2018, 40% of consumer spend | TechCrunch

Market Volumes and Lessons for M&A

Equity markets are being propped up by impressively cheap money: central bank liquidity injections and the overtime-price of money, interest rates. Typically during times of rising equity prices, merger and acquisition activity ramps up. Most expected 2013 to be a banner year for M&A activity and began trumpeting the return of such with the Heinz deal involving Warren Buffet. That deal warrants a closer look however as Buffet didn’t invest in the equity side, that side is primarily coming from Brazil. Buffet provided debt financing to the tune of 9%, not exactly a ringing endorsement of longer-term growth. Right now M&A activity continues to be in a noteworthy low because M&A is not dependent on cheap money, but rather on long-term growth prospects and confidence. The lack of such activity is yet another signal that the recent rise in equity markets warrants caution. If we look at market volume, the number of shares traded on a daily basis has fallen almost 60% since 2007. This shortage of volume implies that there is little conviction in today’s directional trends.