It’s easy to fall for gloom and doom. Spend more than ten minutes on social media, and you’ll be convinced that society is crashing down around us. Economic collapse? Imminent.
But as entrepreneurs, we know better. Money is always changing hands, no matter the overall sentiment. So, to make money, we need only get in front of cash flows with a product/service that adds value.
But, there’s no question: our task is made easier by targeting growing industries. A rising tide lifts all boats, as they say. So, as we stand here in the year 2021, what sectors are surging in the UK? Below, we’ll profile six niches that are currently booming.
Opportunities Continue to Grow Abundantly for Online Entrepreneurs in the UK
Before we get started, a preamble – targeting a well-known industry gives you the best possible odds for success. However, you can succeed in any sector by doing your research, collaborating with experts, and through sheer hustle.
And so, here are six niches that are hot and have huge growth potential over the short to medium term.
E-Commerce
For much of the last 18 months, High Street shops had been shuttered. And even when they haven’t, fear of contagion kept many customers cocooned at home. But, despite all this, almost everyone still managed to get their groceries, household products, and consumer goods.
How? Over the past year and a half, e-commerce has stepped up in a big way. According to Emarketer.com, this sector’s revenue mushroomed 46.5% year-over-year. Amazon, Tesco, and Argos, along with scores of smaller shops, have supplied the nation with an army of warehouse workers and delivery people.
Faced with being left behind, old-school retailers have scrambled to cobble together a delivery infrastructure. And, now that technological laggards have finally tried home delivery, some will continue ordering online even after COVID.
For these reasons, Emarketer expects 2021 will be another strong year, with 20.5% growth projected.
Digital Marketing
As you saw above, people didn’t stop spending just because they were stuck at home. With brick-and-mortar shops shut, consumers took to the internet. But, what triggered them to buy? On internet-connected devices, everything from display ads to Instagram influencers drove these actions.
It’s all encompassed by a field known as digital marketing. From the first contact to the final sale, there are multiple chances to influence buyer behaviour. And in the past 18 months, activity has picked up significantly.
Despite the economic dislocation caused by the pandemic, digital ad spending rose 12% from 2020. And with online buying habits established (and more brick-and-mortar brands moving online), opportunity abounds.
If you have marketing chops but do most of your work in traditional arenas, it’s time you went digital.
Medical PPE
Despite our best efforts, it appears COVID-19 will be with us for the long haul. Since its emergence, this coronavirus has undergone several major mutations. Already, the delta variant has shown resilience against existing vaccines.
So, for this reason, we believe medical PPE will continue to be a growth market. The sector has boomed over the past year, posting growth figures of 32% (per IBIS World).
And, looking forward into 2022, there’s little reason to doubt this rally won’t continue. Apart from the delta variant, the Global South continues to struggle with vaccination coverage. And, with influenza and cold transmission at unprecedented lows due to mask-wearing, it’s likely some citizens will adopt this practice as a permanent habit.
CBD Products
After decades of prohibition, CBD products are suddenly enjoying widespread popularity in many countries. This turn of events has been somewhat unexpected, though, as CBD is breaking through even in nations where recreational consumption of cannabis is still illegal.
The UK is one of those countries. Thankfully, though, producers can derive this therapeutic compound from hemp, a plant that does not contain significant (>0.2%) amounts of THC. Because of this, entrepreneurs can produce, distribute, and sell CBD legally throughout the United Kingdom.
As CBD Oil UK Guide amply demonstrates, this is happening online and on the High Street. Now, this is a young industry, so year-over-year growth figures aren’t yet reliably available. But, according to Analytical Cannabis, a trade publication in the cannabis/CBD/psychedelics space, sales are expected to top 690 million GBP in 2021.
With increasing acceptance and the industry’s relative youth, it’s reasonable to expect CBD will enjoy significant growth over the medium term.
Precious Metals Refining
Over the past year, COVID restrictions & shutdowns have left supply chains in shambles. And even when they haven’t, massive reductions in demand have atrophied their infrastructure. On top of all this, Western governments have printed an unprecedented volume of cash.
As a result, inflation is starting to rear its ugly head. Not since the 1970s and 1980s has the world been subjected to such pressures. And so, concerned investors have begun to hedge their bets. In 2021, many have done this by shovelling unproductive capital into stocks and cryptocurrencies.
But, others have opted for the old-school approach – buying precious metals. As a result, producers of precious metal implements (coins, bars, sheets, etc.) have seen their revenue shoot up 35% since 2020.
In 2021, re-opening economies are increasing pressure on withered supply chains. As a result, inflationary pressures will likely persist in the short term. For this reason, precious metals may continue to be a wise investment over the next year or two.
Bicycle Retailing
If you haven’t noticed, more Britons are prioritising their health these days. Call it a side effect of the pandemic, but we’re watching our diets more closely and getting more exercise.
Because of this, it’s been tough to track down a bicycle lately. All the shops are selling out, and understaffed factories can’t build them fast enough. So, if you’re looking for a retail product to sell, this one looks like a sure winner.
According to IBIS World, bicycle retailing revenues are up 42.5% year-over-year. Now, it’s unclear whether this boom will last beyond the short term, but the emergence of e-bikes may change things. Unlike their unpowered predecessors, they are an easier sell to casual riders. So, if you’re a savvy merchant, medium to long term success is still possible in this niche.
There’s Always Opportunity Out There
Cash is always changing hands. In good times or bad, there’s always an opportunity to profit off the needs of the moment. All you need to do is find one that’s not being fully met. Then, do your research and fill the gap.
Because of you, someone will get what they want, and you’ll make money. Everyone wins!