Insyte Weekly: Wellness tourism sector expected to grow, Nestle tackles nutrition in Africa, and more

Media & Entertainment

As reported by Wendy Lee, Spotify is enhancing its platform to attract more video creators, podcasters, and influencers, aiming to compete with YouTube, Instagram, and TikTok. The company recently showcased new tools to help creators boost earnings and better track performance. Spotify Premium subscribers in select markets will soon gain access to ad-free videos, with creators receiving a share of streaming revenue. Originally focused on music, Spotify has expanded to include over 300,000 video podcast shows, audiobooks, and other content types. Moving away from exclusive podcast deals, Spotify is now offering incentives to appeal to a broader range of creators as video demand rises. With over 250 million users having streamed a video podcast, Spotify seeks to reduce churn, increase ad revenue, and grow user engagement. CEO Daniel Ek acknowledged the platform’s smaller scale compared to YouTube but emphasized Spotify’s potential to serve creators seeking a multi-platform presence. As Spotify reaches 640 million active users, it projects its first profitable year in 2024, marking a pivotal moment in its growth.

Fintech

As reported by Gloria Methri, A recent study by Revolut Business and Dynata reveals a shift among European businesses from traditional banks to FinTech solutions, driven by dissatisfaction with high fees, slow transactions, and poor mobile functionality offered by legacy banks. The survey of nearly 3,000 business leaders across Europe found that 63% of businesses believe traditional banks are too slow to meet their financial needs, with 79% of respondents expressing dissatisfaction. Larger enterprises are particularly concerned, with 64% worried about falling behind competitors if they do not adopt FinTech solutions, nearly double the concern reported by smaller firms. To address these needs, Revolut has introduced Revolut Business 5, offering tools tailored to agile financial management for modern businesses. High-profile clients like Barry’s have already seen improved efficiency, reducing time spent on expense management from days to hours with increased control over expenses. Revolut Business now accounts for 15-25% of the company’s gross profit, underscoring the rising demand for fast, flexible, customer-centric banking options.

Charles Daly reported that Klarna Group Plc, the Swedish payments company, has filed for an initial public offering (IPO) in the U.S., aiming to go public once the Securities and Exchange Commission (SEC) completes its review. Collaborating with Goldman Sachs, JPMorgan Chase, and Morgan Stanley, Klarna has yet to disclose share details or pricing. Analysts estimate the company’s current valuation at around $14.6 billion, an improvement from its 2022 valuation of $6.7 billion but significantly below its 2021 peak of $45.6 billion. The valuation drop reflects broader challenges, including tech sector volatility driven by geopolitical factors and rising interest rates. The filing comes amid recent internal board tensions, where shareholders recently ousted board member Mikael Walther following conflicts with company leadership. Klarna’s IPO will depend on market conditions at the time of SEC approval.

AI

New research by HBR highlights the impact of generative AI (gen AI) on online labour markets, showing significant declines in demand for certain freelance jobs since the introduction of tools like ChatGPT and image-generating AI. Analyzing over 1.3 million job posts from July 2021 to July 2023 on a major freelancing platform, researchers observed the most significant reductions in "automation-prone" jobs, including writing, software development, and graphic design. Following the debut of ChatGPT, demand for writing jobs decreased by over 30%, with similar declines in other automation-susceptible sectors like coding and engineering. Image-generating AI tools have led to a 17% reduction in demand for graphic design and 3D modelling roles within a year of their introduction. Unlike previous automation technologies, Gen AI's influence appears more pervasive and shows no signs of rebounding. These trends point to Gen AI's potential to reshape labour markets more profoundly than earlier automation advances, like robotic adoption in traditional sectors, which produced less significant job displacement. As gen AI tools continue to evolve, the workforce may face ongoing challenges and adaptation requirements, especially in tech-driven roles.

Tourism

As cited by Jenna Walters, The wellness tourism sector is projected to reach $1.35 billion by 2028, making it the third-fastest-growing segment of the wellness market. Two types of wellness travellers drive this growth: primary wellness travellers, motivated by wellness-centric destinations, and secondary wellness travellers, who seek to maintain wellness during their trips. Luxury brands like IHG’s Six Senses and SBE’s Estate Hotels are expanding in the U.S. to attract primary wellness travellers, offering destinations focused on longevity and preventative medicine. For secondary travellers, hotels such as Choice Hotels and Hilton’s Tempo brand incorporate wellness-focused amenities, from upgraded fitness centres to in-room Peloton bikes. Technological enhancements, such as improved air quality and spa innovations, are also reshaping guest experiences. Additionally, sleep tourism is emerging as a significant trend, with over 25% of tourists projected to seek wellness treatments for better sleep in 2025.

Retail

According to Anthonia Obokoh, Nestlé is leveraging research and development (R&D) to address Africa's nutritional needs while promoting environmental sustainability. Despite economic progress, many African communities face challenges accessing affordable and nutritious food. Nestlé’s R&D strategies, including the “Creating Shared Value” initiative, aim to bridge these gaps through locally sourced ingredients, advanced food processing, and food fortification.

Key efforts include:

1. Affordable Nutrition: Products like NIDO Chap Chap and NESCAFÉ SUNU use local ingredients such as maize and millet to provide accessible, culturally relevant nutrition.

2. Food Fortification: Nestlé fortifies products with essential vitamins and minerals, tackling micronutrient deficiencies like iron and iodine shortages.

3. Sustainability and Innovation: With initiatives in regenerative agriculture and academic partnerships, Nestlé is driving food system improvements and building local scientific capacity.

By focusing on tailored product development and local talent, Nestlé is advancing its vision of healthier, sustainable food systems for Africa.

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