By: Noel Vermeire
Wondering what some of the best industries to start an online business in 2016. Well, Pure-Ecommerce has complied a list the 10 best for you!
It is very understandable when you are considering to start on online business you do your homework. This is why Pure-Ecommerce would like to help take some of the “work” out of it by narrowing down some of the most popular industries to start an online business in the New Year. What industry should you choose? Well, we are leaving that part up to you, but we can help provide some helpful information to get you started down the right path. We know this is a big decision to become an ecommerce entrepreneur, but it is also an extremely exciting time too! Just remember, it is key to select an industry and niche market that you are passionate about. You do not want you passion to fizzle out, but only continue to grow stronger. In this blog we want to share with you ten high-growth industries with supporting information about each one.
What to Consider Before You Choose
You do not want to choose a specific industry lightly, as mentioned above you want to ensure it is an area that interests you. You are starting a business so this is an industry you’ll be working in day in and day out for a very long time so you want to be sure you consider the following:
You like the industry and have passion for it.
The industry is a viable, popular and profitable industry.
Will the industry continue to grow and have sustainability in the future.
Next you will want to make a list of possible industries in which interest you. They may range from pets, furniture/home decor or gifts. Examine you list to determine are there certain industries that you think will be a “big seller” and appeal to a large demographic now and in the future. Once you have compiled your list it is then time to do your “home work” on each on so you continue to narrow down your search until you find the perfect online business for you!
Pure-Ecommerce’s List of 10 Best Industries to Start an Online Business in 2016
Drum roll please……here they are in no particular order:
Consider These Facts and Figures About Each Industry
Consumers no longer only worry about their health in January after they make their New Year’s Resolution to “get healthy”. They are taking health and fitness very seriously as we all should and it reflects in this industry! This industry includes a variation of products including activewear, accessories, equipment, nutritional supplements and health foods.
The NPD Group Chief Industry Analyst,Marshal Cohen, said, “Activewear is booming, with sales growth exceeding that of the apparel market as a whole, and it’s because consumers are wearing activewear not only to the gym, in the gym, and from the gym, but they are working out, going out, and even hanging out in activewear. Consumers are drawn to its comfort and versatility, and the fact that it still makes a fashion statement. Activewear, by nature, also evokes a sense of athleticism and wellbeing, which only adds to its appeal.”
A recent study done by the NPD Group found that activewear sales in the U.S. accounted for $33.7 billion, or 16 percent of the overall $206.3 billion apparel market between July 2013 and June 2014. NPD predicts the global market for activewear will grow to $178 billion by 2019.
Another exciting aspect of being part of the fitness industry is as an online business owner you do not have to envelope the industry as a whole. You have the opportunity to own an online store that focuses one niche in the fitness market, such as, yoga or possibly health foods. Here’s some exciting stats about these two areas as well. $10,300,000,000 is spent annually in the US on yoga products, this is an increase of 87% on yoga product spending over the last 5 years. While nutrition and weight loss is a $44 billion industry. Global sales of healthy food products, in fact, are estimated to reach $1 trillion by 2017, according to Euromonitor. There are many avenues to consider when it comes to the fitness industry and the possibilities of where you could take your online fitness business is up to you!
IBISWorld data shows “rising pet ownership in the United States and growth across the e-commerce sector have caused the industry to experience overall growth, despite the recession. Furthermore, increasing demand for premium pet food and online animal pharmaceutical sales also contributed to industry growth during the past five years. IBISWorld forecasts that industry revenue will increase in the five years to 2019.” Package Facts reported some of the key trends shaping in the pet industry including pet medications sales in particular have been among the most affected by the consumer shift in purchasing pet products online. The purchase of pet products online grew 38% in 2014 and roughly a third of pet owners buy pet products via the Internet. Now do you understand why we have this industry on our top 10 list!Everything is going to the dogs….and cats….well, relatively speaking! It is no secret people love their pets and they love to pamper them with lots of products from toys, clothing, gear, food, treats and so on. This has created a boom in the pet industry as shown by the American Pet Products Association as the total sales for 2015 is estimated to reach $60.59 billion. According to the 2015-2016 APPA National Pet Owners Survey, 65% of U.S. households own a pet, which equates to 79.7 millions homes.
It’s no surprise people shop online to find great gifts to give for a special occasion, therefore, the gift industry holds strong on our top 10 list. The industry has seen growth in personalized and monogrammed gifts. Personalized products began to grow in popularity during 2013 as discussed in the Forbes article, “Having It Their Way: The Big Opportunity in Personalized Products“. People love to see their name or initials on everything from clothing, jewelry, bags, shoes, etc. It’s a fun way for them to show of their personal style in a unique and special way!
Of course, the holidays is one of the most demanding times of the year for gift giving. As reported by Social Media Today, the online sale amount for Thanksgiving Day was $162, Black Friday was $137 and Cyber Monday people spent an average of $133. Consumers are not only spending during the holidays as the National Retail Federation estimates the Gift industry is valued at over $300 billion. Now, can you see why we have included the gift industry in our list? Owning an online gift website could be the perfect pick for you!
#4: Furniture and Home Decor
You may not think of consumers purchasing furniture online, but they definitely do. Furniture Today reports, “Eight out of 10 consumers have bought home furnishings online. 65% of online buyers have been happy with what they bought. 47% of consumers say they’d never buy a sofa online and 20% would never buy a mattress online. Half of consumers with a smartphone used it both before and during a brick-and-mortar furniture store shopping trip. Millennials and higher-income consumers are most likely to use their smartphone while shopping. Online furniture and bedding sales totaled $9 billion last year, about 9% of total furniture sales.” People like to accessibility they have by shopping at online furniture businesses to find quality home furnishing and decor. They can shop online to find a larger variety of furniture and home decor versus going into their local furniture stores where they are limited to only a few select styles. This is why it is being predicted the U.S online furniture sales in 2016 are projected to reach $91.6 billion; an increase of 20.1%. Wow, that’s a great jump and it’s an exciting to be in the furniture industry.
“Cheers” to another strong industry! People enjoy having a glass of vino or cocktail to unwind and what better way to shop for their wine necessities or home bar essentials than online. Our research shows that this is a strong industry to be in with continued growth. The U.S. Wine market as outlined by Statista reports Total retail value of wine sales in the U.S. is $37.6 billion. While the U.S. wine industry’s sales growth was at 8.22%. Social media also plays a role in the success of this industry as 80% of people talking about wine on Facebook and 40% chatting about wine on Twitter, wine is not only a great conversation piece, but also a great market to own a niche market website business.
While the demand of including a bar in the home has increased. According to Forbes, the home bar has become one of the quintessential bonus rooms in homes today. Both men and women partake in the design theme and appeal to their home bar space. 2016 is the year for you to considering owning a wine ecommerce online store featuring all the home bar essentials!
Parents and educators are continuously searching for educational products, tools and toys to assist in teaching children. The Toy Association highlighted educational toys as a continuing trend not only with electronic devices, but open-ended toys and games. According to them, “they help promote creativity, resourcefulness and problem-solving skills by allowing kids the freedom to explore exactly how they want to play, depending on their abilities and interests. With many kids today leading very structured lives, open-ended play gives them a chance to relax, have fun, and enjoy being kids without prescribed rules or restrictions.” Another top trend they discuss is, “Smart” Play speaks to the growing number of educational and academically focused toys on the market. It includes innovative toys that teach kids Science, Tech, Engineering, Arts and Math (STEAM) – a trend first identified by TIA last year – as well as classic games and activities that promote the development of cognitive and social skills.”
Teach and play toys are a great combination when it comes to owning a toy internet business. The “demand for intelligent and interactive toys is expected to continue growing and fuels the global toys and games market” as reported by Global Industry Analysts. They continue by saying, “the global toys and games industry is expected to hit the $100 billion mark by 2015.” The demand for quality toys for play, as well as, educational purposes will never stop, which makes this an exciting industry to start an online business in 2016.
People love the adventure of the outdoors! What better way to tap into this market than to own an online business in this specialty niche market. From camping, hiking, hunting, fishing, boating, survival and more this is a booming industry as reported by the Outdoor Industry Association. They state the outdoor recreation market “is an economic powerhouse in the United States, each year generating $646 billion in consumer spending.” While Forrester predicts the surge in eCommerce sales will continue through 2017 eventually reaching $370 billion spent online. Now that’s a great combination! You may not realize this, but the aging population and early retirement also will drive the industry, as early retirement will give people more time for outdoor recreational activities.
Something’s brewing, literally, it’s the coffee and tea industries. Sure these industries have been popular for numerous years, but like many other markets people are going online to purchase their brew essentials. According to IBIS World, during the past five years, the Coffee Production industry “has fared well, exhibiting strong revenue growth due to increases in input commodity prices that were passed on to customers. Moreover, in the next five years, the industry will benefit from consumer demand for premium-coffee products.The industry has an annual revenue of $13 billion in the US and is set to have a growth of 4.5%.”
The demand for tea will continue to brew over the next five years, according to IBIS World. They say this is “due to increased health awareness and new product offerings.” The tea industry has an annual revenue of $2 billion and is set to experience an annual growth of 6.9%. This could be the market where you find your niche, are you ready?
the baby industry it is set to reach $66.8 billion in total sales by 2017 in the United States. IBIS World states, the “Online Baby Product Sales industry has undergone a rapid growth spurt over the past five years, resulting from technological change and innovation within online shopping platforms as well as the increasing acceptance of online transactions among consumers.” Not only parents, but friends and family of the new little one like shopping online to find anything from clothing, furniture, gifts, gear and more. If you want to help expecting and new parents, friends and family provide great products for their new bundle of joy then you should consider starting your own online baby boutique, rest assure this industry will not be going anywhere with close to 4 million babies being born in the U.S. each year!
Who doesn’t love weddings? What a magical industry to be apart of as you help the happy couple find the essentials they need to make their wedding day the most memorable day of their lives! Over the past few years the online wedding industry has displayed continued growth, with 78% of couples using the internet to search to find products & services for their wedding. Couples are not only shopping the web for their wedding, but they are using it as a helpful resource for planning as 76% of then use wedding or bridal websites.
The average cost of a wedding today is $31,213 according to The Knot. Every year there are approximately 2.5 million weddings and this industry has grown to a blossoming 40 billion dollars per year. Now, that’s a lot of “I do’s” being said!
Are you ready to take the next step?
No, we are not still on the wedding subject….We want to know if by outlining what we think at Pure-Ecommerce will be the top 10 online businesses to start in 2016 has helped you make your decision. We encourage you to start your research from here, make your list of possible industries and continue to gather more information. Then choose your favorite! Remember, we are always happy to schedule a free phone consult to discuss the industries you may be considering as you start an online business.
Ready to make your selection? Visit www.pure-ecommerce.com to see the online business opportunities for 2016. Have any questions about these industries or on how to start an online business, post below, we’d love to hear from you!