Thematic Reads: November 22, 2021

Thematic Reads: November 22, 2021

Thematic Reads

Each week Team Tematica consumes an immense quantity and range of content as we look to stay on top of the latest data and mine it for tailwind and headwind signals for our investment themes and indices.

Cleaner Living
Growing demand for items that claim to be better for you and the planet:

We know that clean beauty is a key driver of the beauty industry growth around the world. In fact, a third of all beauty launches in the US and a quarter of beauty launches in Europe included clean, vegan and natural claims last year. And the proportion is only growing. At Coty, we are leading the industry in the introduction of clean, vegan and crueltyfree products, as well as working on ways to make our packaging more sustainable. At Coty, we aim to be a leader in clean makeup, in clean skin care, in clean body care and clean fragrances.”
Coty Inc. (COTY) CEO Sue Y. Nabi, Coty 2021 Investor Day

The global health food market is expected to reach $557.6 billion in 2024, increasing at a CAGR of 7.15% over the 2020-2024 period. The fastest regional market is the U.S., owing to the growth in health-conscious population as well as growing people’s awareness about the health benefits of a nutritional and balanced diet.
Research and Markets, Global Health Food Market Report 2020-2024

“The growing preference for food and beverage ingredients perceived as somehow “clean” is a global phenomenon, says Dave Lundahl, founder and CEO of the behavioral research firm InsightsNow, which has been tracking this consumer segment extensively for the past four years. “These are consumers with heightened concerns about ingredients—they will not buy products that have certain ingredients in them,” he says. “They will go right to the back of the package and look to see what’s in a product.” Euromonitor International projected global sales of clean label food products would hit $180 billion in 2020, while worldwide sales of clean label ingredients like natural colors and flavors, starch and sweeteners, fruit and vegetable ingredients, flours, and others will jump from $38.8 billion in 2021 to $64.1 billion in 2026 at a compound annual growth rate of 6.8%, predicts Market Data Forecast.
The Changing Face of Clean Label

Cyber Security & Data Privacy
Securing individuals and organizations against cyber threats and privacy violations:

“Cloudflare automatically detected and mitigated a DDoS attack that peaked just below 2 Tbps — the largest we’ve seen to date. This was a multi-vector attack combining DNS amplification attacks and UDP floods. The entire attack lasted just one minute. The attack was launched from approximately 15,000 bots running a variant of the original Mirai code on IoT devices and unpatched GitLab instances.
Cloudflare blocks an almost 2 Tbps multi-vector DDoS attack

The South Korean Ministry of Justice has provided more than 100 million photos of foreign nationals who travelled through the country’s airports to facial recognition companies without their consent, according to attorneys with the non-governmental organization Lawyers for a Democratic Society.”
South Korea Is Giving Millions of Photos to Facial Recognition Researchers

“Wind turbine maker Vestas (VWS.CO) on Monday said the cyber attack it reported at the weekend has affected parts of its internal IT infrastructure and that data has been “compromised”. The incident, the financial implications of which are as yet unclear, comes as Vestas juggles record demand for green power against supply constraints and high raw material costs that are pressuring profit margins.
Vestas data ‘compromised’ by cyber attack

Digital Infrastructure & Connectivity
The Buildout and upgrading of our Networks, Data Storage Facilities, and Equipment:

Qualcomm (QCOM) sees more than 750 million 5G handset shipments in 2022, up from ~525 million in 2021, with more than 950 million in 2023 and over 1.1 billion 5G handsets shipped in 2023, roughly 85% of the handset market. The company also sees the IoT market reaching $67 billion in 2024, up from $42 billion in 2021 driven by XR/metaverse devices, edge networking and industrial applications.
Qualcomm (QCOM) CFO Akash Palkhiwala at Qualcomm’s 2021 Investor Day

Thus far, 185 5G networks have been launched compared to 693 4G LTE networks.
5G Americas

The US data center construction market was valued at $7.24 billion in 2020, and it is expected to achieve a value of $14.17 billion by 2026, registering a CAGR of 11.64% over the forecast period.
Mordor Intellilgence

– In 2021, worldwide 5G network infrastructure revenue is expected to reach 19.13 billion U.S. dollars. In 2022, this is set to grow further to 23.25 billion U.S. dollars set to be generated globally from 5G network infrastructure.

Digital Payments & FinTech
Companies leveraging technology to disrupt and improve the financial services and payments industries:

“Daimler AG, the parent company of Mercedes-Benz, partnered with Visa to enhance payment authentication and security for its in-car payments solution, Mercedes pay, per Digital Transactions… Visa will bring its Cloud Token Framework—which guards sensitive payment information with encrypted tokens and improves two-factor transaction authentication—to Daimler Mobility, the company’s unit specializing in financial products… In-car payments are gaining steam as more connected cars hit the road—the number of connected cars is expected to top 352 million globally by 2023, according to Capgemini.”
Visa enhances Daimler AG’s in-car payment security and authentication

Tematica Research Indices


About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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