Sectors Set to Thrive in 2021
The COVID-19 pandemic has made 2020 a truly unique year. With the conditions and situations we are experiencing, one of which is a lockdown. The pandemic has fundamentally changed our everyday existence, forcing us to make significant adjustments to how we choose to live, work and learn.
However, it is undeniable that several sectors are developing rapidly in this pandemic. Industries that may not have offered standout investment opportunities before the onset of the virus may suddenly now have notable appeal, and vice versa.
As such, 2021 will be more interesting than most years, with COVID-19 offering up new and compelling ways for seeking the opportunity to prosper.
Online Retail
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Given that lockdown continues to confine people to their homes, for the time being, the online retail sales boom that took hold in 2020 remains far from over. Indeed, shopping online for goods and services is now very much part of the “new normal”, which means the e-commerce market remains primed for further growth. According to Statista research, global retail e-commerce sales totaled $3.53 trillion and are expected to grow to a whopping $6.54 trillion in 2022.
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The Asia-Pacific is likely to be among the fastest growers in this sector. Indeed, a September forecast by US market research company Forrester predicted online retail sales growth in the Asia-Pacific to climb from $1.5 trillion in 2019 to $2.5 trillion in 2024, at a compound annual growth rate (CAGR) of 11.3 percent. The forecast is based on data for 11 Asia-Pacific countries—Australia, China, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Thailand, and Vietnam—with China the clear leader for the region. According to Forrester estimates, China’s online retail sales market will reach $2 trillion by 2024 and will account for 50 percent of global online retail sales in 2020.
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Asia’s high smartphone penetration rates go a long way to explaining this trend, with more than three-quarters of online retail sales in the region being executed on mobile devices. “In contrast to Europe and the US, the smartphone is the preferred device for online buyers in Asia Pacific countries,” Forrester observed. “In 2020, 75.8 percent of online retail sales will occur on smartphones, and we expect online retail sales by smartphone to grow at a CAGR of 13.6 percent to reach $2 trillion by 2024.”
(Source: https://internationalbanker.com/brokerage/growth-sectors-for-investors-to-consider-in-2021/)
IT and tech
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Amazon, Oracle, Red Hat, Tanium, and Twilio are among the many tech companies actively looking to hire trainee accountants. They are posting an estimated 50% more accounting and finance jobs on recruitment websites in the US, compared to 2019.
(Source: https://www.accaglobal.com/us/en/student/sa/features/2021-sectors.html)
Pharmaceuticals
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Many of the larger pharmaceutical companies offer graduate schemes in non-laboratory roles. Leading companies include AstraZeneca and GSK, which offer Future Leaders Programmes in finance and procurement.
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As many pharmaceutical companies are global, once through the door you may have access to jobs all over the world.
(Source: https://www.accaglobal.com/us/en/student/sa/features/2021-sectors.html)
FMCG
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FMCG (fast-moving consumer goods) businesses that recruit large numbers of graduates are often responsible for household-name brands. They typically sell large quantities of relatively low-cost products that customers buy regularly, such as cleaning products, toiletries, cosmetics, and confectionery.
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All consumer goods companies want to sharpen their competitive edge and ensure their future success by recruiting graduates with the right skills and attitudes.
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Companies to keep an eye on in 2021 include Unilever, Mars, Danone, and Procter & Gamble.
(Source: https://www.accaglobal.com/us/en/student/sa/features/2021-sectors.html)
Food and beverage
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The food and drink sector is one of the few sectors that suffered a limited impact as a result of the Covid-19 pandemic. Companies such as Yilli, Pepsi Cola, and Danone have a wealth of opportunities for trainees.
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Pepsi fared relatively well during 2020 and remains focused on streamlining its portfolio. Yili has overtaken Danone to become the most valuable dairy brand in the world, while Nestlé’s portfolio remains the most valuable food and drink portfolio, with a total brand value of US$68.5bn.
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The company has a raft of expansion projects on the horizon, including in Australia, the US, and Switzerland.
(Source: https://www.accaglobal.com/us/en/student/sa/features/2021-sectors.html)