Every Friday, we answer a common question about fulfillment, shipping, or business. This week’s question comes from one of the fans who entered our giveaway contest for a Roku. Today we will answer the following question: “what are the fastest-growing industries right now?”
The coronavirus has so completely disrupted day-to-day life that predictions about 2020 made in 2019 hold no real authority. As such, to find the fastest-growing industries, you have to look for “industries on track to overperform in 2020.” It’s a subtle difference, but it changes the research that we use for this article, which you can find here and here.
10 Fastest-Growing Industries Right Now
According to IBIS World, a research firm, ten industries in particular are on-track to significantly overperform in 2020. These industries are:
- Data storage: Many companies are having their employees work from home for the first time. As such, companies are having to very quickly upscale their data storage capacity.
- Online food ordering and delivery platforms: Because individuals are unable to leave their homes for safety or even legal reasons, online food delivery surged in popularity. This trend is likely to continue for the duration of the pandemic and well afterward.
- Childcare services: In many countries, such as Australia, childcare services are receiving substantial subsidies. This is more than making up for a shortfall in revenue for some companies.
- Electronics retailing: With more people at home than ever before, electronics and appliances are selling quicker than ever before.
- Hardware and building supplies retailing: Many people with extra time on their hands are finally doing the home improvement projects that they have been planning for a long time. At the same time, the construction industry is finding it much easier to build than ever before. These factors together mean it is a very good time to be selling products for projects that range in size from urban revitalization to home landscaping.
- Pickup and delivery services: Much like with online food delivery, pickup and delivery services in general are performing incredibly well since few people want to leave the house.
- Bookstores: With so many people stuck at home, books provide a cheap form of entertainment and escapism. Bookstores, therefore, are having a very good business year.
- Online groceries: After growing rapidly in 2019, online grocery delivery exploded in popularity in 2020 since far fewer people are willing to leave their homes to pick up groceries.
- Sanitary paper and consumer staples: Everything from all-purpose cleaners to hand sanitizer to toilet paper is seeing a massive spike in demand. This is not likely to go anywhere.
- Buy now, pay later: IBIS World says it best. “[Increased demand in buy now, pay later (BNPL) services was] led by consumers shifting away from traditional credit cards and opting instead for BNPL services, which give consumers an instant loan at the point of sale. Industry revenue growth during 2019-20 will largely be supported by strong growth in online shopping as consumers continue to self-isolate and restrict their social movements. While consumers are expected to limit their discretionary purchases during this period of economic uncertainty, consumers will likely continue purchasing essential goods and services they need immediately, but cannot pay for upfront.”