Microsoft teams reported a new daily record of 2.7 billion meeting minutes in April, a 200% increase.
As Prada and Gucci make use of face masks, the market is expected to grow by 53% from 2020 to 2027.
The market for meal sets is forecast to grow by 17.78% by 2020, with Hello Fresh and Gousto leading the way
In a few weeks our world was changed. Toilet paper became very popular, the sale of hand disinfectants skyrocketed, and fabric face masks became an indispensable accessory. The COVID 19 pandemic created several industries overnight. Meanwhile, the existing industries that helped us adapt to our new “stay at home” reality – such as food packages, video conferencing and games – were booming.
In light of this, which industries have thrived in the face of the COVID 19 pandemic and what would be wise investments to make during the crisis?
As social life was put on hold, many people looked for alternative ways to use their time. For this reason, the sale of fiction increased by a third during the curfew period. Home schooling also boosted sales, with children’s textbooks rising by 234% to the third highest level ever recorded.
As expected, Amazon coped particularly well with this increase, with subscription-based revenues (such as Kindle) rising to $5.6 billion in the first quarter (a year-over-year increase). Other retailers also benefited, with Rakuten Kobo reporting an increase in new subscriptions and purchases and Draft2Digital reporting a 25% increase in e-book sales. Although this is a positive sign for the sector, it remains largely dominated by Amazon (83% of e-book sales in the US), with independent booksellers and smaller companies crowding around the rest. The market opportunities here are therefore limited in the future.
2. coffee market for domestic use
Due to house orders, 80% of the coffee stores were closed during the entire curfew period, which led to a boom in the sale of coffee for home use. COVID-19 has accelerated the market growth for instant coffee to a CAGR of over 5%. In April 2020, Nestle reported the strongest quarterly sales growth in five years.
Coffee consumption has also increased due to the lockdown, as people drink an average of 2.45 cups per day before COVID. Now it lies more near with 2,8 cups.
It will be interesting to see how this will change with the reopening of jobs. However, the majority of workers (57%) do not want to return to their jobs full-time, and this could be reflected in continued coffee consumption at work and at home. The trend towards coffee consumption at home could therefore continue long after the end of the pandemic. Reports also suggest that consumers are shifting to more niche coffee producers and direct e-commerce sales with independent producers, reflecting the general shift towards local retailers and producers. Against this background, there is a clear market opportunity for companies and investors who can offer a defined, unique coffee product.
3. esports and gambling
The pandemic caused widespread disruption to physical exercise and prompted many traditional sports providers to rethink their models. For example, a virtual version of the Australian Grand Prix, “Not The Aus GP”, saw professional Formula 1 drivers competing against professional players, with the virtual event streamed on YouTube and Twitch.
The overall gaming traffic increased by 75% during peak hours. Game streaming platforms such as Twitch, YouTube Gaming and Facebook Gaming all reported significant growth of 20% during peak hours. One entertainment company, the Modern Times Group, expects a 25-35% increase in revenue in its e-sports vertical in the first half of the year.
Forecast and reported annual change in revenue of the Modern Times Group’s (MTG) eSports vertical compared to the previous year
Forecast and reported annual change in sales of the eSports verticals of the Modern Times Group (MTG) due to the coronavirus pandemic in Q1 2020 and Q1 2009
As esports and streaming gaming attracted more fans (and revenues) before the pandemic, the industry’s growth will undoubtedly continue well into the future. Investors would do well to explore this sector now, while it is still in its infancy, especially as the involvement of major personal sports organizers will have accelerated its acceptance by mainstream audiences.