Why these are my favourite ASX growth shares to buy and hold

There are plenty of ASX shares that could deliver strong growth over the next few years.

But I particularly like businesses that have already built something successful and still have plenty of room to expand.

Here are three ASX growth shares I would be happy to buy today and hold for many years.

Breville Group Ltd (ASX: BRG)

Breville is one of my favourite examples of an Australian business that has successfully taken its products to the world. The company has built a reputation in premium kitchen appliances, particularly coffee machines.

What I like is how Breville has positioned itself in a market where customers are often willing to spend more for better equipment.

Making coffee at home has become a serious hobby for many people, and Breville has developed products catering to everyone from beginners to enthusiastic home baristas.

I also think there is considerable potential for Breville to build on its international success. The company already has a presence in major markets, but there are still countries where its brands have room to become more established.

Of course, premium appliances are discretionary purchases, so weaker consumer spending can affect sales. But over the next decade, I think Breville has a realistic opportunity to become a much larger global business.

Xero Ltd (ASX: XRO)

Xero is another ASX growth share I would be comfortable backing for the long term. One thing I particularly like about the accounting software provider is how important its platform becomes to customers once they start using it.

A small business might initially sign up to manage its accounts, but over time it can begin using Xero for invoicing, payroll, payments, and other financial tasks.

Accountants also become familiar with their clients’ systems, making the platform an important part of how businesses manage their finances.

I think that creates valuable customer relationships that can last for years. It also gives Xero opportunities to generate more revenue from customers as they adopt additional services.

The acquisition of Melio is particularly interesting because it strengthens Xero’s payments offering and could help accelerate its expansion in the United States.

There are execution risks and artificial intelligence (AI) could be a threat. But with millions of small businesses around the world still relying on older systems, I think Xero has a substantial market opportunity ahead.

Sigma Healthcare Ltd (ASX: SIG)

My final pick is Sigma Healthcare, which I think could look considerably different by 2035.

The combination of Sigma and Chemist Warehouse has created a business with an extensive pharmacy retail network and substantial pharmaceutical distribution operations.

I am particularly interested in its international ambitions. Chemist Warehouse has already demonstrated that its retail model can work outside Australia, and there could be significant opportunities to build its presence in new markets over time.

Healthcare and pharmacy spending should also benefit from ageing populations and ongoing demand for medicines and related products.

I think this positions Sigma to grow into a much larger company over the next decade.

Foolish takeaway

I would be happy owning all three shares for the long term.

Each has an established business and opportunities to grow well beyond its current size.

For me, the prospect of seeing what these companies could become over the next five to ten years makes them worth buying and holding today.

The post Why these are my favourite ASX growth shares to buy and hold appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.