Solactive In recent years, food delivery services have experienced a surge in demand, which has accelerated significantly during the Covid-19 crisis …
Timo Pfeiffer, Chief Markets Officer at Solactive
With paradigm shifts appearing all over society, the trend of ordering food online ought to consolidate further, resulting in an investment opportunity for asset owners, who want to participate in the potential increase in stocks’ values, thereby benefiting from this development in the process.
Solactive recently rolled out its Solactive Food Delivery Index, which now serves as the underlying for an index tracker certificate issued by major investment company Vontobel. To develop the index, Solactive utilized its proprietary Natural Language Processing algorithm ARTIS® once more.
A recent industry report published by Frost & Sullivan, a consulting and market research firm, implies that the food delivery industry’s revenue could grow to USD 200 billion until 2025, doubling its current revenues within merely five years. According to McKinsey, the development of the food delivery market spawned two distinct types of food delivery platforms, which are Aggregators and New Deliveries.
Aggregators offer the possibility to order from multiple restaurants through a single online portal and New Deliveries provide the additional necessary logistics for restaurants to provide their delivery offerings. Additionally, anti-food-waste apps, which try to sell unused or unsold food at a discount, are also an upcoming trend in the food delivery industry.
The Solactive Food Delivery Index is composed of stores or restaurants providing delivery offerings, hosts of delivery platforms, and delivery service providers. To obtain the index universe, Solactive’s ARTIS® technology analyzed more than 500.000 individual documents, and determined, which companies are more relevant to the food delivery industry by identifying their degree of thematic relevance based on theme-related keywords given to the algorithm as an input.
“Major shifts in society create space for innovative investment strategies, both in the short term and the long run. This is why we’ve released our Solactive Future Trends Index Series, which, eventually, gave rise to our Solactive Food Delivery Index,“ comments Timo Pfeiffer, CMO of Solactive. “We are very delighted to collaborate with the team of Vontobel, and are looking forward to releasing more innovative and forward-thinking investment solutions in the future.”
Vontobel’s Index Tracker Certificate trailing the Solactive Food Delivery Index went live on the 11th of June in Germany, Switzerland, Sweden, and Italy.