Investors should look for opportunities in companies that embrace positive trends in the leisure industry, say Credit Suisse analysts in a new report.

In the latest edition of Credit Suisse’s Global Investor Focus, the bank’s analysts and a range of external experts take an in-depth look at changing leisure habits and their impact on various sectors. The study examines demographic, regional, and sociological factors and how these will impact future lifestyles.

“The growing importance of personal well-being (work/life balance) and the fact that baby boomers are reaching retirement age should maintain the trend toward more recreational offerings,” it suggests. “In many economies today, 20% of the workforce is already employed in providing goods and services for the leisure industry. The market for these types of goods will continue to grow and should become a key driver of economic growth in the 21st century.”

The report says that analysts see a global trend in the fact that well-paid workers and managers have little free time, but are willing to pay a higher price for customized, top-quality leisure goods and facilities. “In addition, this growing segment of the population wants to make the most of the limited leisure time it has,” it says. “Many people will expect the leisure and consumer market of the future to provide them with more recreational time and a more individualized and high-quality leisure experience.”

“Large, modern shopping malls, such as Sihlcity in Zurich, combine shopping facilities with a host of entertainment outlets within a relatively small area, helping consumers economize on time. International real estate companies, for example, should reap the long-term rewards of this global trend,” it predicts.

Additionally, it sees shifting consumer appetites. “The motive for consumption is no longer social differentiation, but personal well-being. New-luxury goods are not as expensive as traditional luxury items, but differ from budget products in terms of quality, lifestyle and service enhancements,” it finds. “Whether for travel, sportswear, nutrition or beauty care, consumers are turning to top-quality products and services at above-average prices. Consumption is being driven by personal well-being and thus the growing value of leisure time, rather than the need to assert social status.”

The report also sees a growing “technologization” of leisure activities. “The emerging Asian markets, with China at the forefront, are particularly well positioned and are the driving force in entertainment electronics and communications. Hardware manufacturers, internet gaming specialists and media content suppliers should all benefit from this development,” it forecasts. “Following the digital revolution and its permeation into the leisure industry, Credit Suisse’s analysts expect nanotechnology to lead the way in improving quality of life and to gain ground in areas such as sportswear, entertainment and information electronics.”

Tourism remains the growth area in the leisure world of the future, it adds, “Tour operators will profit principally from changing demographics, as a growing number of retirees enjoy a more active retirement. One of the main beneficiaries of this trend will be cruise operators.”

Finally, it concludes, “Ultimately, for many people it is becoming increasingly important to devote their free time to their appearance, health and mind – to the advantage of the sports goods manufacturers, the (private) education industry and pharmaceutical companies offering cosmetic products.”