We know that obesity is affecting our health and our health care costs but few of us have thought about how the epidemic is spreading across the world. The WHO (World Health Organization) has coined it “Globesity”. In developing countries it used to be the key issue was malnourishment; now the concern is the surge in obesity. Mexico has the biggest problem with two thirds of its population obese. It is estimated by WHO that by 2030 over 1 billion people will be obese around the world.
With so many people and countries directly affected by obesity it is becoming a driver in our global economy. Globesity is now an investment opportunity. It was a humbling thought to me to realize that obesity is so wide spread (pardon the pun) that investment firms now have people dedicated to studying it and responsible for coming up with investment strategies related to this disease. It is viewed as a megatrend because people, companies and countries are spending and will be spending mega amounts of money on all areas related to this escalating epidemic.
Bank of America with Merrill Lynch recently issued an investment primer studying the economics of obesity and the areas of investment that will grow as a result of this trend. They identified 4 areas of growth or themes—Pharmaceuticals & Health Care, Food, Commercial Weight Loss & Diet Management, and Sports Apparel and Equipment. Seems pretty logical those themes will prevail as we struggle to management and reverse the upward trend of Globesity.
As many of us, and now it looks like it will be most of us, struggle with our weight and the other related health issues it fosters, it seems to me a good idea not only to invest in products to help us mange and improve our health but also invest in the companies producing the products. Why not invest in the companies helping us with some of the solutions? Maybe it is time our 401k got new tennis shoes, a high tech treadmill and drank a high protein smoothie out of a right-sized glass to help us fight our Globesity battle of the bulge.
