The developed world is facing the need to transform its economy in order to meet Net Zero targets. This means a quick return to business as usual is most unlikely. Instead, we are entering a New Normal, where demand patterns will see major change:

Business

• Auto, consumer goods, electronics demand will focus on durability/sustainability
• Supply chains will be localised and reshoring accelerated in the western world
• New business models based on Recycling, Reuse and Redesign need to be developed and implemented

Finance

• Investors are focusing on the threat of stranded assets, as moves towards a Net Zero economy accelerate
• A number of major asset managers see this coinciding with a re-evaluation of current stock market valuations
• Demographic profiles are also evolving, as today’s ageing populations are essentially a replacement economy

People

• Lockdowns led many people to refocus on the home, and on the importance of family and friends
• They also proved a tipping-point in terms of the adoption of video tools for day-to-day communication
• Sustainability priorities have moved up the agenda, as people have learnt to value clear skies and fresh air

The global economy is based on consumer needs. And it is clear that consumers are refocusing on areas that are sustainable and affordable. These behavioural changes have the potential to create major new markets, whilst side-lining many formerly very popular areas.