Impact investing, which aims to generate positive social and environmental impact alongside financial returns, has been growing steadily over the past decade. Multiple factors have contributed to the expansion of the impact investing market, most notably the rise of millennial and women investors who seek to align investments with values. Recent surveys have indicated the market size has surpassed $500 billion globally and continues to gain momentum.
Millennials drive the growth of impact investing market
Millennials have been a major driving force behind the growth of impact investing in recent years. Compared to older generations, millennial investors have a much stronger preference for putting their money towards companies that demonstrate social responsibility and sustainability. With millennials set to inherit over $30 trillion in wealth from baby boomers, their focus on impact is reshaping the investment landscape.
Women investors expand the scope of impact investing
Women now control more wealth than ever before, estimated to be over $40 trillion globally. Studies show that women investors are more likely to consider social and environmental impact alongside financial returns. Their growing involvement has broadened the scope of impact investing beyond traditional areas like microfinance into diverse sectors such as clean technology and sustainable agriculture.
Market size exceeds $500 billion and continues to grow
Fueled by the trends above, the global impact investing market has grown to over $500 billion by recent estimates. The market is projected to reach $1 trillion by 2030 according to consulting firm McKinsey. Furthermore, the impaet investing industry has seen an influx of institutional investors, demonstrating that the approach is moving mainstream. Even with the tremendous growth achieved so far, most experts agree that impact investing is still in its early stages with ample runway for further expansion.
Impact investing has experienced remarkable growth in market size over the past decade, surpassing $500 billion globally. Key factors powering this expansion include the rise of millennial and women investors who seek to align capital with social responsibility. Still in its early phases, impact investing is poised for robust growth in the coming years as more investors embrace its potential to drive positive change.