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.
Healthier & Better Alternatives To Junk Food
Being health conscious is in vogue and is taking over our lifestyles. Consumers are seeking better, healthier, and safer varieties of their favorite snacks! Despite that being the rage, Americans crave junk foods like cookies and chips.
To cater to that, companies are creating minimally processed food with vegetables and fruits with a heavy focus on fewer calories which mimic the texture of junk food using artificial ingredients.
Striking a balance between terms like ‘vegan’ and ‘sugar-free’ while still ensuring that the taste is not compromised is a minefield but promising in terms of revenue generation. This can be hard given that people perceive the aforementioned terms to mean the food will taste great. Hence, consumers will continue to seek better versions of their favorite snacks.
Manufacturing, product development, logistic and distribution management remain the top hurdles faced by startups and established businesses alike. Almost all challenges that apply to the normal packaged food industry apply here as well. Add to that plethora of barriers is getting government approvals and meeting the FDA standards is yet another task.
In this sector, you might have to fight for the limited shelf space where giants like Wholefoods have set footholds firmly.
Competition can prove to be fierce, as the biggest producer of snacks can bring down prices. This can be one of the downsides of entering this sector.
Smaller-scale companies are focusing on creating less-processed food like kale chips while big names owned by General Mills like Annie’s with their organic Cheez and Peatos coming up with crunchy Cheetos made of protein from peas are a few brands which are on the lookout for healthy alternatives. Be it the healthier junk food or the vegan alternative sub-industry, both are sprinkled with fierce competition from many smaller sized companies. We even have Snackins making meatless pork rind out of onions, yucca, and mushrooms. A report by IBISWorld stated that ‘Low caloric products belonging to larger brands are growing at a rate faster than high-caloric products over that last 10 years’.
Despite the cut-throat competition, snack production is valued at a close $43 billion as per IBISWorld, which is a good indication of the demand. So coming up with groundbreaking products under the organic, healthier, low caloric and free of gluten variables will hit a good mark with the millenials.
Optimizing Freight Services With Logistics
A New Wave of Logistics is a relevant latest data-crunching initiative to provide greater efficiencies. Automation is taking industries by storm and this, in turn, is creating opportunities that are able to match a shipper with trucks, optimizing the whole process. These software-based operations focus on smoothing the freight services.
Truckers produce sufficient data during their driving time and using high-end GPS, all the data like engine performance, miles covered, etc. are logged in. digital freight brokerage can be used with sophisticated and fast GPS systems to log in the information electronically.
The work might not be appealing due to the high logistical aspect but is important nonetheless. The estimated value may seem low for the software made for bolting-on solutions at only $3.2 billion as per Armstrong & Associates when it’s compared to the total $86.5 billions for overall freight brokerage market. But the expected rate of growth is 54% by 2030, bringing in revenue close to $1.6 trillion, while the overall freight will grow 26% reaching $20.6 billion as per the American Trucking Association.
FourKites, MacroPoint and Project44 are few existing players in the sector that are focusing on tracking during transit, offering their services to brokers, shippers, and carriers. Then we have Triumph Pay and Hub Tran mainly offering automating freight brokerage data solutions. Third-party logistics like Uber Freight and Convoy are also prominent players in this sector. Given that 2016 federal law requires all data to be lodged electronically, this is a booming industry worth exploring.
Wearable Tracking Devices For Pets
Many young families are shifting from human babies to adopting furry ones! That opens the gate to monitoring devices for pet’s wellness which focuses on the physical health of pets ensuring that they are happy and safe mentally. Owners are anxious about their pet’s health conditions and hence this industry was born.
GPS devices for tracking have been fairly common technology for pet’s safety, taking the USA’s expenditure in this sector to a whopping 72.6 billion dollars as it continues to grow according to American Pet Products Association in 2018.
Compared to the other, this sector has the least amount of barriers given that it is still nascent. The wearable is a smaller sub-segment of a much larger industry of Pet Care products. These include clothing, travel items, toys, leashes, collars, beds, and various other accessories.
Established companies like Whistle and FitBark dominate the dog health sector with location trackers technologies while Motorola and Garmin provide training services for dogs.
Rest assured, the market is growing at a steady rate and might grow up to close to $1.7 billion by 2024 from just $703 million in the last year according to this researching firm called Markets&Markets.
High Technology Earth Imagery Services
Our quest for what lies beyond the earth is never-ending. Especially in America, the private sector of the space industry is accelerating as rates to send a rocket into space isn’t as high as it used to be and launch vehicles are readily available.
The need for a launch vehicle was a very likable market considering the commercial advancement of the sector. This type of use of electronics has enabled a new wave of hobbyists and the younger generation to attempt to reach the orbit of the earth.
The USA happens to be one of the world’s largest production channels of data collected from the satellite. And experts can foresee an increase in demand for imagery services of the earth by a first responder, scientist, and farmers.
SpaceX and Blue Origins have become a household name as they are bringing the global rocket launch value close to hundred per year! Even though such endeavors are common now, hitching rides on top of the rockets are an expensive affair. And the high-resolution imagery sector heavily relies on this service.
Liabilities in terms of launch failure are a downside as there is not a lot of guarantees when it comes to this sector. It is a risk that needs to be undertaken and has no way around.
Major U.S. companies with firm footholds in this observation industry include Planet Labs, Capella Space among others. And in the international sphere, we have Italy’s GEOS and Japan’s Perspective.
Despite the high-risk factors, investments made for the space technology is growing and has reached $2.27 billion in the last year from about $2.6 million a few years ago in 2011 as per data provider for this sector, PitchBook.
Eco-Friendly Consumer Goods
Last year saw a substantial increase in a boycott of plastic straws. #savetheturtles was trending and everyone was talking about it. This is the best time for the development of cutting edge solutions to recyclable, compostable and reusable products. With that, many high-tech startups started developing a wide range of sustainable household products.
Climate crisis left the masses alerted and a need for innovative solutions to the plastic was born. With most states boycotting one-time use plastic, the government is taking multiple measures to assure the reliance on plastic is reduced with mostly positive results. Consumers are also sensitive about finding less polluting alternatives to the plastic with a heavy focus on plant-based materials.
Sustainability is an issue that doesn’t have a way around. There exist no cheap and easy solutions to these issues but since plastic dominates such a huge chunk of this market, there exist multiple entryways.
There also is a segment of customers who turn a deaf ear to the climate change consciousness drive and are unwilling to pay a high price for eco-friendly variables. That can pose great difficulty as biodegradable substances require expensive resources. Another hurdle to this sector is the high carbon emissions produced during the production of these eco-convenient products.
Since the market is so huge, there are scattered pockets of competition, Abeego being one of them. They offer beeswax-based alternatives to cling wrap and other startups like Stasher are revolutionizing silicon storage bags which are heat resistant and dishwasher safe. From cleaning product leaders like Truman or E6PR providing wildlife-friendly beer rings, multiple innovative products are catering to this growing need, to BioCellection and Kiverdi coming up with ways to help the plastic breakdown process while recycling the plastic into new materials.
Estimating around $486 billion in the US, the bioplastic industry is promising according to IBISWorld. Bioplastic is made from corn which is a renewable material and the annual growth rate was at 2.1% since 2014. CB Insights has considered this movement towards sustainable goods in the CPG industry as something that should be watched in 2020.