Chinese consumption may become the most powerful opportunity Australian investors see over the next decade, a leading investment manager says.
Ellerston Capital chairman Ashok Jacob, once a close adviser to billionaire James Packer, says China is on the way to becoming the largest economy in the world in five years.
"China's consumption is coming though like a tidal wave. I do believe China's consumption may well be the most powerful theme that we will see for the next decade as Australian investors," Mr Jacob told the 2016 Stockbrokers Association of Australia conference on Thursday.
Ellerston was once the Packer family's investment and funds management group.
Mr Jacob is a former chief executive of James Packer's private company, Consolidated Press Holdings, and is a former board member of James Packer's casinos company, Crown Resorts.
Mr Jacob said demand for food in China will grow strongly and is set to become increasingly relevant to the Australian food industry.
Demand for health supplements and infant formula from Australia is already strong in China.
But China's appetite could triple or quadruple each year because of the enormous increasing number of people who can afford such products.
Mr Jacob said no other existing or future market for Australian goods, including India, would have that potential.
"For that reason China is just going to become more and more relevant to the Australian food industry for at least the next decade," Mr Jacob said.
"If Australia plays its cards right, I think you're going to see some enormous opportunities emerge here (in the Chinese market)."
Mr Jacob likened the opportunity to a "a variation of the mining boom", with China seeking trusted products instead of iron ore and coal.
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