Outlook for global water, food and energy demand
Mar 15, 2013
At the current rate of increasing demand, water demand will exceed water supply by 40% by 2030, arguably making water more scarce than oil.
By 2030, global food demand is set to increase by 50%, water demand by 40% and energy demand by 50% threatening to create a perfect storm for investors, corporates, governments and stakeholders.
At present some 1. 7 billion people lack access to clean water, while 46 countries are living in a state of water stress, water scarcity or absolutely water scarcity.
Solutions in the water sector currently represent a 500 billion dollar market which is growing at between 5-6% per year.
Significant opportunities exist across water management, water treatment as well as infrastructure and supply and by 2020 we anticipate that the water solutions market could reach some $ 1 trillion.
If we look at the value chain across water management there are huge opportunities in terms of achieving more crop per drop, more efficient irrigation, better metering of water as well as reducing house hold water consumptions.
Investors are increasing looking to the $500 billion water solutions market as a long term investment theme. Water offers steady inflation protection returns and is a viable alternative to volatile equity markets and lower bond yields.