5 companies set to win from Australia’s population explosion

The Australian Bureau of Statistics (ABS) has released its latest projections on Australia’s population growth rates and the results make for interesting reading by investors.

Under the ‘medium’ scenario, Australia’s population is forecast to almost double from 22.7 million people in 2012 to 41.5 million in 2061. The near doubling of the population in approximately 50 years is fast when one considers it took about 225 years for the population to get to 22.7 million.

Interestingly the long-term projections which extend out to 2101 provide a very wide range for Australia’s population (between 42.4 million people and 70.1 million people). Under the ‘medium’ scenario, however, the population will grow by just a further 12 million to 53.6 million in 2101.

The projected population growth within the next 50 years will require a significant increase in infrastructure and create opportunities for many companies to benefit and grow.

5 companies that should do particularly well out of Australia’s population explosion are:

  • Lend Lease (ASX: LLC): As one of Australia’s major property and infrastructure companies Lend Lease is well positioned to win contracts to build critical assets and housing to accommodate a burgeoning population.
  • Transurban (ASX: TCL): The major cities of Sydney and Melbourne are already experiencing serious bottlenecks and traffic congestion. Toll roads will become increasingly used and more will be required.
  • Woolworths (ASX: WOW) and Wesfarmers (ASX: WES): As two of Australia’s major retailers they stand to benefit from feeding and clothing a population twice the current size.
  • Origin Energy (ASX: ORG): The 41.5 million people will all require essential services such as water, electricity and gas. Origin’s vertically integrated business has it well placed to benefit from Australia’s population growth.

Foolish takeaway

Identifying investment themes that provide a tailwind is an important trait for investors to develop. The tailwind from population growth will help some firms more than others making the selection of the right stocks critical.

Want your wealth to balloon like Australia’s population?

Discover The Motley Fool's favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of "The Motley Fool's Top Dividend Stock for 2013-2014."

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!