These Eight New Industries Are Sweeping The Markets In 2020!
Every entrepreneur hopes of bringing the next invention which solves the woes of the public. But sadly, more often than not, the startups are taking the opposite route with just offering solutions hoping a problem creeps up!
A good place to start is by asking yourself ‘what value am I adding for the consumers?’. Finding out which quantitative market need is being fulfilled is your solution. Answering these will lay the groundwork for your startup and even help you take your product/service forward.
Included below are a few industries that are bubbling with potential and if you’re an entrepreneur looking to start, continue reading to find the sectors which are waiting with open arms!
Providing Drinkable Water
The scariest aspect of global warming is the potential loss of clean drinkable water – and as any economist might have guessed – one of the most booming industries in 2020 is providing safe and sanitary water.
If you wish to protect the public health and have a passion for monitoring and catering to the increasing need for sanitary water, this sector is where you need to be.
The scarcity of water causing a crisis that started in the town of Flint in Michigan raised questions regarding the safety of water, the degree of contamination and the filtration systems all around The United States.
Arranging sufficient investment from major venture capitalists can prove to be difficult as most do not target such initiatives. Besides, overcoming the barriers in water testing software that connects with hardware continues to be a few hurdles that need to be crossed.
A few companies that overcame all these barriers are Danaher and Xylem. Both organizations have various brands in this sector. A major focus of this industry is on creating new sources of clean water and Bill Gates foundation, called the Zero Mass Water is a breakthrough venture that draws water that is drinkable out of the air surrounding us by using solar panels and have so far created one for $2000.
There is a promising growth in investment in the drinkable water industry. The investment has substantially grown from 25% to about 50.7% in the short period of just five years as per PitchBook, a research and data company.
Non-Binary Self-care And Wellness Products
With LGBTQ+ communities leaving their mark, an interesting market to be on the lookout for is the gender-neutral wellness products sector. Those days are behind us when ‘beauty’ was limited for females and men were expected to just ‘groom’. Products ranging from shampoos, conditioners, perfumes, moisturizers, and deodorants among other self-care items are now focusing on ingredient lists rather than gender.
The younger generation has boycotted traditional genders giving preferences to nonbinary products. This movement also leads to an increased number of men embracing skin wellness trends and practices.
A challenge that newcomers will have to overcome is the surplus amount of established brands in the market. Larissa Jensen, Vice President of NPD Group states that there is hardly any challenges to developing these kinds of products and selling them online. But the trend in your favor is that customers are open to new things with limited loyalty to already existing brands that are well established. So ensuring your product stands out will get you noticed.
If your business model can tackle challenges sprung by distribution, you will surely succeed. Having limited reach, large cosmetic retailers are choosing to stay gendered and only specialty stores that are on the higher end of price points are stocking with gender-neutral products.
While the demand for eco-friendly packaging and safe formulas are high, the development of the same can prove to be a little expensive.
Competition to keep an eye out for would include giants like Gucci, Lululemon and Sister brands of Ordinary. These have an established base in gender-neutral personal care items in addition to various ‘indie’ personal wellness brands, which are popping up almost every year.
Throughout the years, the beauty industry has always been a good investment and this will continue to grow significantly throughout the year. Research from CB Insights shows that men’s beauty products and non-gendered wellness products are gaining momentum significantly in 2020. Multibillion-dollar deals for The Dollar Shave Club are proof of the expanding ‘inclusive beauty industry’.
Prevention Against Gun Violence
With a shocking total of 400+ shootings in the United States, according to the Gun Violence Archive, organizations providing technology to prepare for the same is the need of the hour. With a high number of workplace violence, demand for external firms providing guidance has emerged. Be it schools, organizations or businesses – all are willing to invest in the security and technology that can eliminate unthinkable situations. To cater to this growing need, this growing industry started providing employee training, high-tech tools for surveillance and even have consultants who help develop organizational policies to avoid any such occurrence.
A survey provided by human resources management in 2019 highlighted how close to half of the human resource professionals have experienced some sort of workplace-related violence.
Having resources and policies, which align with the government and obeying all laws, rules, and regulations is of utmost importance for any business thinking of joining this industry. Ensuring HR regulations in addition to surveillance, profiling, and possession of weapons are all compliant with the state in Matthew Doherty’s opinion, who is the Senior Vice President at The Hillard Heintze, which is a consulting firm focusing on risk management.
Most companies in this field rely on personnel with law backgrounds or military experience but even they might not be enough for an all-rounded operation. If you plan on entering this industry, finding and creating a niche and hiring skilfully so that all aspects are covered is Doherty’s suggestion to anyone entering this very high stakes sector.
That being said, gun violence remains a very sensitive issue and demands extensive measures to build trust amongst clients. With hardly any data to point you in the right direction as to what might be the best and the most effective strategy, there remains disagreement on the best practices that should be adopted. Liability proves to be issued considering the possibility of injury during the duration of drills or even foul due to not following regulations.
More limelight is being thrown on the best safety measures, more and more consultancies are spurring active-shooter combat training and vendors selling equipment are pushing reinforced doors, high tech surveillance, and panic buttons.
With Alice Training Institute being one of the prominent providers of active-shooting training, more security consultancies are focusing on offering cutting edge surveillance systems and equipment. Tomahawk Strategic Solution is one such startup which brought in a total of $2.8 Million of revenue in the year 2018 by selling law-enforcement equipment and active shooter drills.
IHS Markit has estimated that equipment like cameras surveillance, panic-buttons, reinforced doors will continue growing to $3.2 billion by the next year, which sounds promising. Not a lot of statistics to encompass the whole sector but research continues to show growth. A survey by the Wall Street Journal conducted in 2019 with 800 small scale businesses showed that about 35% of owners are taking preventive steps to avoid workplace violence.