Millennials are not interested in buying anything, be it property, entertainment, or even expensive clothes. According to the Institute of Fiscal Studies, renting figures have trebled since the 1990s. We are living in an age of virtual libraries where we stream music and films online, without needing to own any of them. People are using the same concept when it comes to their wardrobe. This ‘generation rent’ does not want to spend money on high-end global brand clothes which, in the era of social media, get ‘old’ and ‘non-reusable’ just with a click of one photo. Gone are those days when renting clothes and jewellery was only reserved for the rich and famous for a shoot or any red carpet event. There are plenty of rental fashion sites that are offering premium branded clothing line on rent for a fraction of the retail price. As people are socializing more often, they are preferring to ‘hire’ fine-quality branded dresses instead of paying the retail price for just one-time use.

Growing popularity of online shopping portals, supported by rising internet penetration and proliferation of smartphones is the prime reason of booming online clothing rental market. The advancement in technologies such as artificial intelligence (AI) has further driven the demand for online shopping by making the process even more convenient for people. Growing middle class population in developing economies is further contributing to the market growth of online clothing rental.

Global Internet Penetration, Percentage of Population, 2012 to 2017

Source: The World Bank Group

Rising use of social media platforms such as Twitter, Facebook, Snapchat, and Instagram has surged the demand for rented clothes, especially among women. Rapidly emerging popularity of fashion vlogs across these social media platforms is also contributing to the market growth of online rental clothing globally. Increasing number of red carpet events, both across movie and television industry, is further augmenting the demand for clothes on rent for short duration, and thereby positively impacting the market growth of online clothing rental.

Global Online Clothing Rental Market Size, US$ Billion, 2019 and 2025

Source: Knowledge Sourcing Intelligence Analysis

Another reason for emerging popularity of using rented clothes instead of buying new ones is the rising awareness regarding environmental sustainability. Clothing companies are encouraging people not to throw away their used clothes and re-use them as ‘fashion pollution’ is having detrimental effects on the environment. Clothing generates its own carbon and water footprint, with the fashion industry’s CO2 emissions expected to rise to more than 2.5 billion tonnes per year by 2030. According to the figures from the United Nations Environment Programme (UNEP), it takes 3,781 litres of water to make one pair of jeans from the production of the cotton to the delivery of the final product to the store. This is equal to the emission of nearly 33.4 kilograms of carbon equivalent. As a result, consumers as well as companies are bringing up the concept of not buying something new and expensive while diminishing the environmental footprint. With the rise of online clothing rental platforms, the reduction in the amount of new clothes in circulation will eventually help to maintain the environmental sustainability. The idea of minimalism and the option of renting clothes also offers people more opportunities to be creative and constantly changing their fashion style without even buying more expensive clothes.

Growing number of fashion-conscious individuals who lack finances to purchase clothes of their choice which are expensive are anticipated to make use of online clothing rental platforms to the fullest since renting a dress is always cost-efficient, especially in today’s world when the trend keeps changing with a blink and people do not want themselves to be seen wearing the same outfit on different occasions. As a result, the global online clothing rental market will continue to boom during the forecast period.

Rapidly growing e-commerce sector, especially in the Asia Pacific region is expected to propel the market growth during the next five years. Consumers in countries like India and China are increasingly opting for rented clothes including runway-ready outfits and haute couture fashion for various events and occasions. With social media playing a crucial role in the success and failure of brands, fashion rental startups are attracting primarily millennials who are aware of the latest trends and the best designers. Rentals help consumers save money, time and the headache of storage and maintenance of a huge pile of clothes.

Companies in online clothing rental industry are constantly trying to provide clothes on rent both accessible and affordable and are launching new clothing rental platforms in order to make a strong position in this emerging industry. In 2019, for instance, etailer My-Wardrobe.com launched a website called MyWardrobe HQ where users can buy and rent clothing and accessories. Rental costs are agreed between the renter and the owner or brand. In 2018, the country’s largest, the first and only official online rental platform for designer outfits as launched- BChu Runway-offering outfits from over 150 world-class brands. In the United States, a healthy clothing rental economy has also emerged with brands like Gwynnie Bee and Le Tote offering clothes on rent. Canada is also a home to various online rental companies including Atelier Privé, Rent Frock Repeat, and dresst. 

The future of fashion is expected to move beyond traditional model with a keen focus on accessibility, affordability, and environmental sustainability. With more and more efforts are being put across various industries in saving the planet, the market for online rental clothing will continue to thrive during the forecast period.

ABOUT THE AUTHOR:

Anjali Joshi is a senior market research analyst at Knowledge Sourcing Intelligence. She oversees a team of analysts and is known for the quality of market intelligence she delivers to the clients which range from start-ups and Non-profit Organizations to Fortune 500 companies. Anjali’s keen understanding of international business and market dynamics, coupled with her years of experience working in this industry, allows her to analyse current and future trends across both global and clients’ target markets and help them in making informed decisions.

NEV refers to the new energy vehicles that are either fully or partially powered by electric power such as Battery Electric Vehicles (BEVs) or Plug-in Hybrids (PHEVs). These taxis further have low running and maintenance costs and cause less or no harm to the environment. These are some of the key factors that are augmenting the adoption of new energy vehicles as taxis in various countries.

Global Nev Taxi Market, Forecasts From 2019 to 2025, in US$ Billion

Source: Knowledge Sourcing Estimates

The graph mentioned above represents the market size of the global NEV taxi market which shows that the market is poised to witness a strong growth throughout the forecast period by reaching US$55.558 billion by the year 2025 from US$11.674 billion. The major factors that are anticipated to augment the market growth for NEV taxi include the several initiatives taken by the government of both developed and developing economies regarding the protection of the environment. The booming adoption of electric vehicles as a sustainable mode of commuting is also a key factor that plays a significant role in shaping up the growth of the global NEV taxi market throughout the course of the next five years. Furthermore, the rapid penetration of new market players in the electric vehicle industry with an aim to expand their market share and gain a competitive edge over other players also shows the potential for the market to grow in the near future.

The market is also expected to grow on account of several government initiatives in the developing economies to promote the use of NEVs as taxis as public transport is considered to be a major contributor to carbon emissions. For instance, the Indian Government announced its plans in 2019 in which it is expected that the government may mandate the deployment of around 40% of electric feet by the various taxi providing companies throughout the country. Also, increased funding in the country received by taxi providers for the promotion of the electric fleet also shows the potential for the market to grow in the near future. For instance, in March 2019, Ola announced its spin-off Electric Business as a separate business unit and received funding worth US$56 million from Tiger Global and Matrix India.

 

Segment Overview:

The global NEV taxi market has been segmented on the basis of vehicle type and geography. By the vehicle type, the market has been segmented on the basis of Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV), and Fuel Cell Vehicle (FCV). Geographically, the segmentation of the market has been done on the basis of North America, South America, Middle East, and Africa, Europe, and Asia Pacific.

The battery-electric vehicle (BEV) segment is anticipated to hold a decent market share throughout the forecast period on account of the presence of a vast number of vehicles under this segment. The plug-in hybrid segment is projected to show a notable growth during the next five years as the entry of new market players under the plug-in hybrid segment is a major factor supplementing the growth of plug-in hybrid electric taxis over the course of next five years. Also, Plug-in hybrid electric vehicles are those electric vehicles that use batteries for powering up the electric motor and also use an alternative fuel such as gasoline or diesel for power the other propulsion source such as an internal combustion engine. These vehicles can run on electricity and on fuel also offers a higher fuel economy in comparison with conventional vehicles.

Geographically, the North American region is anticipated to hold a substantial share in the market on account of early technology adoption of the presence of a well-established electric vehicle charging infrastructure in the countries like the United States and Canada. The European region is expected to hold a good amount of share in the market on account of the presence of a considerable large number of automotive manufactures across several countries of the region. Furthermore, the market in the APAC region is expected to witness a healthy growth on account of the presence of the fastest-growing economies such as India and China among others, and transport is considered as the backbone of these economies. The constantly growing pollution coupled with the increasing government budgets towards the setting up of necessary infrastructure for the easy deployment of electric feet further bolster the market growth in the APAC region.  For instance, in November 2018 EV Motors India in partnership with DLF, ABB India, and Delta Electronics plans to set up 6500 electric vehicles (EC) charging stations across the country over the next five years.

The Recent Outbreak of COVID-19

The market is projected to witness a slight downfall especially in the short period of the next six to eight months due to the intense outbreak of the novel coronavirus disease. The outbreak of the disease has led to a ban on travel across may countries. There is a temporary halt in the activities across the tourism sector that has led to a decline in the demand for taxi services. Also, various government measures to reduce the spread of the disease such as social distancing, and lockdowns has also led to a decline in the traveling activities also. Moreover, the temporary halt in manufacturing activities is also anticipated to moderately inhibit market growth during the short run.

Government Initiatives Regarding the Promotion of EVS

Increasing the need to use vehicles that utilize greener technologies is driving the growth of electric vehicles throughout the globe. The governments of various countries in both developing and developed economies of the world are implementing numerous strategies and taking numerous initiatives for the promotion of electric vehicles is expected to significantly drive the NEV taxi market growth during the next five years. Also, the increase in the deployment of electric vehicles has also grown exponentially in the past years, this also shows the growth potential for the global electric sports market to grow during the course of the next five years.

Electric Car Deployment – World, 2013 to 2018, in Million Units

Source: IEA

As the global population is mushrooming rapidly, growing food insecurity challenge requires rise in the agricultural produce. According to the World Bank Group data, the global population has surged from 6.922 billion in 2010 to 7.674 in 2019. However, with continous rise in dearth of natural resources- land and water- there is a constant need to adopt modernized farming methods and equipment which enables the conservation of these resources and other inputs by ensuring their efficient distribution. It also reduces unit costs of production through higher productivity yields while focusing on input conservation.

Global Total Population Data, in Billion, 2010 to 2019

Source: The World Bank Group

With crop production constantly exposed to dynamic and unpredictable challenges, crop nutrition and pest protection are most important and delicate aspects of farm management. The rising levels of greenhouses gases and global temperature are directly affecting the spread of pests and diseases in crops. According to the study led by a team of researchers from the University of Washington and the University of Colorado Boulder, crop losses is estimated to be most acute in areas where warming increases both population growth and metabolic rates of pests and insects. In a 2016 study, an analysis of 1,300 known pathogens and pests estimated their potential cost to global agriculture at over US$40 billion annually if they continue to spread. As such, rapid shift from traditional to advanced farming techniques to increase the agricultural productivity while saving crops from getting destroyed by pests and insects is accelerating the need for agricultural sprayers.

Agricultural sprayers are a special type of farm equipment which are used for the application of liquid fertilizers and pesticides during the crop growth cycle. These remarkable farming tools are available in various sizes and types, from hand-held and manual sprayers to large trailed or mounted sprayers, followed by advanced atomizers. Versatile, large-scale farmers and farm co-operations have also started practicing aerial spraying.

The most critical stages of crop production is the period between planting and harvesting. Crops need fertilizers for the uptake of necessary nutrients for proper growth and development while they should also be taken care of to eliminate weeds and infestation by crop pests and insects. According to the Food and Agricultural Organization of the United Nations (FAO), the global demand for fertilizer nutrient use is projected to surge from 184,017 thousand tonnes in 2015 to 201,663 thousand tonnes in 2020.

Global Demand For Fertilizer Nutrients, in Thousand Tonnes, 2015 to 2020

Source: The Food and Agricultural Organization of the United Nations (FAO)

The step of controlling weeds and pests also requires the use of agrochemicals such as herbicides and insecticides. According to the World Health Organization (WHO), there are more than 1,000 pesticides that are used around the world to ensure the safety of food crops from insects and pests. According to the FAO statistics, the global trade volume of pesticides increased from 10,230,567 tonnes in 2015 to 11,552,828 tonnes in 2018. Another reason for the high demand for pesticides is the growing plantation of GMO crops which are increasingly becoming more and more resistant to pesticides which, in turn, is further surging their usage in order to prevent the crop loss.   

However, high usage of pesticides is not only dangerous to the environment but also to human health. According to the WHO, pesticides are among the leading causes of death by self-poisoning, especially in low- and middle-income countries as they are intrinsically toxic and spread in the environment. The most at-risk population are farmers and agricultural workers who apply pesticides and are directly exposed to these chemicals. Many studies worldwide have also proved the link between pesticides and diseases such as cancer, ADHD, Alzheimer’s disease, and even birth effects. These chemicals also pollute the water sources and thus, throw the whole ecosystem off balance. Also, the excess use of chemical fertilizers has led to a decline in the soil fertility.

In order to spray these chemical in a limited but effective quantities, agricultural sprayers have become an essential piece of agricultural sector for effective crop production and protection. By properly and efficiently applying chemicals to control weeds, insects, and diseases, farmers can give their crops the best chance for high yields.

Traditionally, the spraying of fertilizers, pesticides, and insecticides is done by a farm worker carrying a backpack type sprayer which requires more human effort. With growing adoption of modern farm equipment, the demand for easy-to-use and operate agricultural sprayers is booming at a remarkable rate. With the use of mechanized spraying equipment and machines, agrochemicals are distributed evenly on the farm and reduces the quantity of waste, resulting in the prevention of losses and wastage of input. As against conventional spray technology that requires excessive pesticide use to achieve effective pest control in crop production, new precision agricultural sprayers apply optimum amount of pesticide. Type of agricultural sprayers include hand-held sprayers, airblast sprayers, and aerial sprayers. Emerging popularity of drone sprayers is also playing an important role in the growing agricultural sprayers market. The use of agricultural drones for spraying is rising at a significant rate in order to reduce the amount of crop loss due to pest and insect attacks. Moreover, the relaxation of regulations regarding the use of drones in many countries is also paving the way for drone manufacturers to capture this spraying segment of agricultural equipment market.  

Global agricultural sprayer manufacturers are continuously diversifying their product portfolio while collaborating with each other to expand their customer base. FLIGHTS Co., Ltd, a Japanese drone company which promotes the use of drones in various industries, developed its own cost-effective drone for spraying pesticides in 2019. John Deere expanded its 4-Series Sprayers range by introducing its biggest sprayer so far- the 1,600-gallon capacity R4060 Sprayer. LEMKEN launched self-propelled field sprayer NOVA which is able to perform a variety of operations with low noise and stress level. New Holland launched ‘Defensor 2500’ which is an advanced sprayer and is designed to protect Brazilian crops.

ABOUT THE AUTHOR:

Anjali Joshi is a senior market research analyst at Knowledge Sourcing Intelligence. She oversees a team of analysts and is known for the quality of market intelligence she delivers to the clients which range from start-ups and Non-profit Organizations to Fortune 500 companies. Anjali’s keen understanding of international business and market dynamics, coupled with her years of experience working in this industry, allows her to analyse current and future trends across both global and clients’ target markets and help them in making informed decisions.

Active packaging is a type of packaging which is witnessing widespread adoption by customers for the purpose of preserving the quality and shelf life of products like foods, beauty and personal care products, and beverages among others. Active packaging has some chemicals or reagents either integrated into the material or inside the package in order to maintain the quality of contents. Although all packaging solutions are meant to offer protection to the contents, active packaging solutions are known to add to the overall shelf life of packaged contents by offering required favourable environment to them.

The market growth for active packaging solutions is partially attributed to rapid growth of cosmetics industry worldwide. Although cosmetics and personal care products have been in use from a very long time, many countries are emerging as lucrative markets for industry players. Changing demographics and macroeconomic environment across such countries is favouring the increase in sales of cosmetics products, thus opening doors to immense growth opportunities for industry players. Saudi Arabia, for instance, had, for long, remained a follower in the global cosmetics market on account of stringent and orthodox regulations which had been keeping the country’s cosmetics and personal care sector from realizing its real potential. But, increasing number of working women in this country has transformed the sector’s performance in the country. The figure given below shows the growth in the proportion of working women in Saudi Arabia:

% of Wage and Salaried Workers, Female (% of Female Employment)

 

Source: The World Bank Group

Since working women have their own salary to spend from, spending on cosmetic products in this country has been witnessing an impressive increase. Pushing through of a good number of social reforms by the crown prince of the Kingdom of Saudi Arabia, in order to curb the influence of ultraconservatives on lifestyle of women in the country has also been instrumental in boosting the growth of cosmetics market in Saudi Arabia. Many global cosmetic product manufacturers have been pumping investments in this country in order to harness the immense untapped potential held by the sector here. As investments, both by domestic and international cosmetics companies, continue to stream into the production of cosmetics and personal care products in this country, the demand for packaging solutions will also continue to grow. Changes like these can be seen across many other economies worldwide. Such economies which had been underperforming for a fairly long time in this sector are now showing good growth. Since enhancing the quality and shelf life of these products is key to retaining customers, manufacturers are increasing the adoption of active packaging, thus fuelling the market growth.

The market growth is also being driven by increasing adoption of active packaging solutions among fresh and processed food manufacturers. North America and Europe are known to be the early adopters of new and innovative technologies. High awareness among people regarding the ill effects of some types of packaging solutions has led many companies to adopt active packaging solutions in order to offer highest levels of food quality and security to customers. The demand for this type of packaging is not confined to these two regions. Asia Pacific has emerged as one of the key markets for active packaging among F&B players. The demand for active packaging in this sector in this region is being contributed to by increasing focus of people in many economies on health. Japan, for instance, is one of the most developed economies in the world and besides being known for the role this country plays in the global economic growth, it is known for the focus of its people on healthy lifestyle. The country is witnessing a solid increase in the production of organic food on account of rising focus of people on healthy foods. The figure given below shows the trend in production of organic food in Japan from 2005 to 2015:

Domestic Production of Organic Food (Plant, Non-Processed), 2005-2015, Metric Tons

Source: Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF)

Increasing production of organic food items in this country is driving with it the demand for innovative packaging solutions in order to preserve the nutritional value of the food items, thus fuelling the adoption of active packaging by customers.

The global active packaging market growth will continue to remain good over the medium and long term. One of the other factors which seem to be favouring the market growth is solid growth of global pharmaceutical industry and stringent regulations in many regions regarding packaging of pharmaceutical products. Pharmaceutical sector has remained a key contributor to the global GDP for a very long time. Since this sector is somewhat resistant to recession, countries have been making huge investments into strengthening it. Another way of seeing this is that many countries are seeking to minimize their dependency on other economies for many drugs, which is pushing them towards making such investments. Let us look at Australia’s efforts in this direction for instance. As a result of the Turnbull government’s efforts to stimulate the country’s medical sector under 2018-19 budget, global companies such as Pfizer, Eli Lily, Johnson & Johnson, and Merck are planning to invest more in Australian market. Under the 2018-19 budget, the Australian government announced the $1.3 billion medical industry growth plan which included $248 million to be spent on the expansion of clinical trials in the country. While this is just one example, countries like India and China, along with many other economies across Asia Pacific, Africa, Europe and Americas are also pumping investments into gaining a considerably strong position in the global industry. As this continues, demand for active packaging solutions is also increasing, thus propelling the market growth.

About the Author:

Dhiraj Kumar Sharma is a Market Research Analyst at Knowledge Sourcing Intelligence. He combines his outright understanding of technologies with years of experience working in the industry to deliver actionable information to clients who span across industries and geographies. Dhiraj often works closely with clients in order to better understand their requirements and is known for the quality of market insights he delivers to them.

The human-animal bond has always been an important one, so strong and undeniable. People all around the world love their pets unconditionally, be it dogs, cats, birds, or horses, and so treat their furry friends as an important part of the family. Being considered as a family member, it is the responsibility of humans to take good care of their pets. This is why pet insurance is getting so much popularity. Pet insurance provides illness and accident coverage for family-owned pets, primarily dogs and cats. Pet insurance policies are very similar to human health insurance policies with annual coverage offered at an actuarially-determined rate subject to various terms and conditions.

The global pet insurance market is significantly growing as more and more people are owning pets across the globe. Rising awareness about pet insurance policies is also inducing people to take health and accident coverage policies for their pets as pet owners are increasingly spending on their pet’s welfare and health while cutting on expensive veterinary bills.

Global Pet Insurance Market Size, US$ Billion, 2019 and 2025

Source: Knowledge Sourcing Intelligence Analysis

Following are the pet insurance policies a pet owner can choose from after checking and understanding what various policies cover and how much is the premium:

• Veterinary fees for the cost of diagnosing and treating injuries/illnesses. This normally includes the cost of consultations, examinations, tests, medication, bandages, surgery, and hospitalization. This also includes alternative therapies like homeopathy, acupuncture, herbal remedies, and complementary treatments such as osteopathy and hydrotherapy. 

• Third Party Liability in case one’s pet injures someone or damages someone else’s property for which the owner is legally responsible.

• The purchase price of the pet in case it gets lost, stolen, or dies due to an injury or illness before a specified age.

• Advertising costs in order to help find the lost pet and the cost of reward if someone finds or recovers your pet.

• Overseas vet fees so as to pay for emergency veterinary treatment for the pet if the owner takes it abroad under the Pet Travel Scheme.

Europe is the major region constituting high number of pet owners in the region where the coverage level in European countries such as the United Kingdom and Sweden is around 30 per cent. Also, the first pet insurance policy was issued in 1890 in Sweden for horses and livestock. Later in 1924, the first pet insurance policy covering a dog was issued in Sweden. Then in the United Kingdom, the first pet insurance policy was issued in 1947. North America is also a significant regional market for pet insurance manufacturers with the North American Pet Health Insurance Association (NAPHIA) representing more than 99 per cent of the U.S. and Canada pet health insurance industry as an advocacy group. According to the NAPHIA statistics, the total premium volume for NAPHIA members in 2017 was US$1.03 billion in the U.S., representing 23.2 per cent growth from 2016 (as shown in Figure). Also, the direct premium in this country was approximately US$640 billion in 2017.

U.S. Pet Insurance Premium Volume, US$ Million

Source: North American Pet Health Insurance Association (NAPHIA)

As the number of households owning atleast one pet is escalating in the Unites States and Canada, the demand for pet insurance policies is also rising. According to NAPHIA, the total number of pets insured reached 2.43 million at the end of 2018, up by over 17 per cent from 2017. Out of all animals, dogs represented nearly 88.9 per cent of in-force gross premium in 2018. As the demand for pet insurance is rising, insurance companies are also expanding into this lucrative market. According to NAPHIA, there are currently 12 major pet insurance companies in North America.

As the total expenditure incurred on pets is rising at a remarkable rate, pet owners are trying to cut the cost by purchasing pet insurance policies to some extent. According to the American Pet Products Association's 2019-2020 National Pet Owners Survey, the total U.S. pet industry expenditures has surged from US$48.35 billion in 2010 to US$72.56 billion in 2018. With unexpected vet treatment often costing a lot, it is not surprising that some pet owners, especially owning an expensive breed, want to be prepared for any unplanned medical care their furry friends need. As per the American Pet Products Association's 2019-2020 National Pet Owners Survey statistics, surgical vet accounts for the highest amount of expenditure for both dogs and cats, followed by food and routine visit. As such, people are increasingly opting for pet insurance policies so as to be protected against the unexpected costs that arise when their pets need medical treatment while helping the pet to live a longer and healthier life.

Although pet insurance is a relatively small sector of the insurance industry, it is showing signs of substantial growth as pets are becoming more integrated into people’s lives. People are seeing pet insurance policy as a way to be able to afford some of the most expensive treatments for their pets. As there is also a rise in the prevalence of diseases in domesticated animals, the global pet insurance market is set to grow at a significant growth rate in the coming years.  

With this ongoing popularity of pet humanization because of the pet companionship which provides a fundamental psychological need for many people, the demand for pet care products and services including food, grooming products, pet insurance policies, and even pet-friendly traveling services will continue to soar in the coming years.

ABOUT THE AUTHOR:

Anjali Joshi is a senior market research analyst at Knowledge Sourcing Intelligence. She oversees a team of analysts and is known for the quality of market intelligence she delivers to the clients which range from start-ups and Non-profit Organizations to Fortune 500 companies. Anjali’s keen understanding of international business and market dynamics, coupled with her years of experience working in this industry, allows her to analyse current and future trends across both global and clients’ target markets and help them in making informed decisions.