Past performance does not predict future returns. You may get back less than you originally invested. Reference to specific securities is not intended as a recommendation to purchase or sell any investment.
This article is featured in the Q3 2025 Future Strategist newsletter, you can read the rest of the newsletter here.
As digital scales endlessly, analogue cuts through by offering presence, scarcity and authenticity. These qualities are shaping the next chapter of consumer markets.
Digital technology has expanded for decades, reshaping how we live and work. From streaming services to social platforms and online retail, growth has seemed unstoppable. But alongside this digital surge, another story is unfolding. Analogue is making a renaissance.
A teenager queues outside a record shop for a vinyl release. A friend gives you a mug with your initials on it. A colleague hands you a leather notebook embossed with your name. What appears to be nostalgia is, in fact, a signal of shifting consumer values. People are rediscovering the weight and permanence of what can be touched, kept and remembered.
The power of the physical
Digital is everywhere but it is weightless. A playlist scrolls past in seconds, and an email is archived and forgotten. Analogue offers something different: a physical encounter.
A record sleeve is artwork you can hold. A book takes up space on a shelf and marks a moment in time. A film print has edges and imperfections that make it unique. Psychologists note that these anchors help people remember and focus in ways digital cannot.
The evidence is clear. UK vinyl sales reached 6.7 million in 2024, the highest in more than 30 years. In the US, vinyl generated more than $1.2 billion, outselling CDs for the first time since the 1980s. Print books still dominate, generating nearly £2 billion in the UK and accounting for more than three-quarters of sales in the US.
Even younger generations raised on apps are returning to notebooks and stationery. Writing by hand engages the brain in a different way. Turning a page slows you down. In a culture driven by speed, the physical makes people pause — and this pause is where meaning sticks.
Scarcity creates value
Digital is infinite. Songs, photos and posts exist in endless supply. Analogue is finite, and that scarcity creates value.
A limited edition record sells out in hours. A first edition book holds its worth. A handmade gift carries meaning because there is only one. In a world of instant availability, people are drawn to what is rare and intentional. Analogue triumphs because it is inherently unique, creating value through its scarcity.
Authenticity and connection
Analogue also signifies care. A handwritten card takes time. A crafted object suggests skill and attention to detail. These qualities feel personal in a world of automation, making the recipient feel truly valued.
This is where personalisation becomes powerful. People respond to objects that feel made for them. A handwritten postcard from a trip, an engraved fountain pen or a framed photo printed on fine art paper carries more weight than any automated message.
This is why marketplaces built around tangible goods are thriving. Platforms such as Etsy, Shopify, Folksy and Amazon Handmade give global reach to artisans. They demonstrate that digital and analogue are not in conflict but instead are in partnership. Digital provides scale. Analogue provides meaning.
Offline, the signals are just as strong. The UK craft market is worth over £3 billion. Younger buyers now make up a third of sales. Craft fairs draw thousands over a weekend as people seek unique items they cannot find in mass market stores. Globally, the arts and crafts sector is projected to reach over $76 billion by 2034.
Even vintage technologies are being personalised. Film photographers create custom albums and families commission handcrafted board games and puzzles. Vinyl has also gone personal, with services offering to press one-off records from playlists. Analogue thrives because it carries a human fingerprint.
The analogue signal
The power of analogue should not be underestimated. It cuts through precisely because it is different. In a world where digital can be copied and forgotten in seconds, analogue offers weight, scarcity and human connection.
For investors, the signals are clear. Vinyl sales continue to climb. Print books remain dominant. Instant cameras are thriving. Craft markets are expanding globally. These are durable markets, not curiosities.
The analogue renaissance is a counterbalance to digital saturation and a reminder of what people value most. Growth will continue in both digital and analogue. The lesson for business leaders is simple: people respond to what is scarce, deliberate and personal. Those who see this shift early will be best placed to capture its value.
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KEY RISKS
Past performance does not predict future returns. You may get back less than you originally invested.
We recommend this fund is held long term (minimum period of 5 years). We recommend that you hold this fund as part of a diversified portfolio of investments.
The Funds managed by the Global Equities team:
- May hold overseas investments that may carry a higher currency risk. They are valued by reference to their local currency which may move up or down when compared to the currency of a Fund.
- May encounter liquidity constraints from time to time. The spread between the price you buy and sell shares will reflect the less liquid nature of the underlying holdings.
- May invest in smaller companies and may invest a small proportion (less than 10%) of the Fund in unlisted securities. There may be liquidity constraints in these securities from time to time, i.e. in certain circumstances, the fund may not be able to sell a position for full value or at all in the short term. This may affect performance and could cause the fund to defer or suspend redemptions of its shares.
- May have a concentrated portfolio, i.e. hold a limited number of investments or have significant sector or factor exposures. If one of these investments or sectors / factors fall in value this can have a greater impact on the Fund's value than if it held a larger number of investments across a more diversified portfolio.
- May invest in emerging markets which carries a higher risk than investment in more developed countries. This may result in higher volatility and larger drops in the value of a fund over the short term.
- Certain countries have a higher risk of the imposition of financial and economic sanctions on them which may have a significant economic impact on any company operating, or based, in these countries and their ability to trade as normal. Any such sanctions may cause the value of the investments in the fund to fall significantly and may result in liquidity issues which could prevent the fund from meeting redemptions.
- May invest in companies predominantly in a single country which maybe subject to greater political, social and economic risks which could result in greater volatility than investments in more broadly diversified funds.
- May hold Bonds. Bonds are affected by changes in interest rates and their value and the income they generate can rise or fall as a result; The creditworthiness of a bond issuer may also affect that bond's value. Bonds that produce a higher level of income usually also carry greater risk as such bond issuers may have difficulty in paying their debts. The value of a bond would be significantly affected if the issuer either refused to pay or was unable to pay.
- May, under certain circumstances, invest in derivatives, but it is not intended that their use will materially affect volatility. Derivatives are used to protect against currencies, credit and interest rate moves or for investment purposes. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. The use of derivatives may create leverage or gearing resulting in potentially greater volatility or fluctuations in the net asset value of the Fund. A relatively small movement in the value of a derivative's underlying investment may have a larger impact, positive or negative, on the value of a fund than if the underlying investment was held instead. The use of derivative instruments that may result in higher cash levels. Cash may be deposited with several credit counterparties (e.g. international banks) or in short-dated bonds. A credit risk arises should one or more of these counterparties be unable to return the deposited cash.
The risks detailed above are reflective of the full range of Funds managed by the Global Equities team and not all of the risks listed are applicable to each individual Fund. For the risks associated with an individual Fund, please refer to its Key Investor Information Document (KIID)/PRIIP KID.
The issue of units/shares in Liontrust Funds may be subject to an initial charge, which will have an impact on the realisable value of the investment, particularly in the short term. Investments should always be considered as long term.
DISCLAIMER
This material is issued by Liontrust Investment Partners LLP (2 Savoy Court, London WC2R 0EZ), authorised and regulated in the UK by the Financial Conduct Authority (FRN 518552) to undertake regulated investment business.
It should not be construed as advice for investment in any product or security mentioned, an offer to buy or sell units/shares of Funds mentioned, or a solicitation to purchase securities in any company or investment product. Examples of stocks are provided for general information only to demonstrate our investment philosophy. The investment being promoted is for units in a fund, not directly in the underlying assets.
This information and analysis is believed to be accurate at the time of publication, but is subject to change without notice. Whilst care has been taken in compiling the content, no representation or warranty is given, whether express or implied, by Liontrust as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified.
This is a marketing communication. Before making an investment, you should read the relevant Prospectus and the Key Investor Information Document (KIID) and/or PRIIP/KID, which provide full product details including investment charges and risks. These documents can be obtained, free of charge, from www.liontrust.com or direct from Liontrust. If you are not a professional investor please consult a regulated financial adviser regarding the suitability of such an investment for you and your personal circumstances.
