What are some of the most popular and trending industries? Here’s our list of the top industries to start an online business in 2017!
By: Catherine Perry
Can you believe that 2016 is soon to be a memory? The end of the year is right around the corner and most of us are thinking of new beginnings in the New Year. Are you thinking about making a change in your career? If you are, then strongly consider becoming an owner of an ecommerce business. As an ecommerce retail owner, you will be a participant in a segment of business that is experiencing explosive growth, and is projected to continue climbing in the years to come.
eMarketer, a leading source of digital marketing information, projected that retail ecommerce sales would reach $1.915 trillion this year, which is “a 23.7% growth rate forecast for 2016” and “expects retail ecommerce sales will increase to $4.15 trillion in 2020.” So, from $1.915 trillion in 2016 to $4.15 trillion in 2020! Friends, that is some incredible growth rate!
If you want to be in the ecommerce business, you’re probably very aware that there are many industries from which to choose. You may be a bit overwhelmed as you consider the niche you would like to be in. Our advice is to find an industry that really interests you and, maybe, even have a passion for and that is poised for growth.
We thought it might help if you know the industries that are showing great revenue numbers and growth. So, in this article we are outlining what we think are the 11 best ecommerce industries going into 2017. (Note that these are in no particular order.)
Coffee & Tea
If you just look at the lines at Starbuck’s, as well as, the number of coffee shops that are opening every day, you know that there are multitudes of people who are drinking coffee! According to IBISWorld, during the past five years, the Coffee Production industry fared well, exhibiting 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%.
Not only is coffee a big retail industry, but so is tea.In 2016, the global tea beverage market is estimated to be worth about 38.2 billion U.S. dollars. The Tea Association reports, tea is the most widely consumed beverage in the world next to water, and can be found in almost 80% of all U.S. households. On any given day, over 158 million Americans are drinking tea.The health benefits of drinking tea have been widely publicized. In their article “Trending Products 2016,” A Better Lemonade Stand cites the benefits of Green Tea by saying, “Green tea is generally healthier than other beverages, it contains less caffeine, and most importantly, there are so many uses and variations of the product allowing the possibility for you to come up with new product ideas that incorporate green tea or green tea extract.” As more people are striving for a healthier lifestyle, they are buying products that have wellness benefits, and tea is a big one!
Fitness & Health
To continue on the healthy lifestyle topic, any business that is related to Fitness and Health will see upwards movement because these are great ecommerce industries to own. In our article “Fitness–and Everything That Goes With It–Is IN!” we cited several statistics showing the largest trends in the fitness industry. For example, take a look at this article on the Crossfit industry: http://cnb.cx/1qsQVRY.
The global market for Sports and Fitness Clothing is projected to reach $196.2 billion by 2020, driven by increasing participation in sports and fitness activities. While the Fitness Equipment Market is expected to reach $11.9 billion, globally, by 2020 according to Allied Market Research. The growth in this market is continued to be driven by rising awareness about fitness and healthy living, increasing number of health clubs, and the advent of innovative products combining electronics and fitness. The take-away is that because people are living longer and are on the road to being healthy by exercising more and eating better then anything that relates to these endeavors is going to be a growing ecommerce retail business. It’s a great time to own an online fitness website as Consumers are turning to online stores to find all the essentials they need to stay healthy and fit!
Another strong ecommerce industry is Outdoor Recreation. Again, as people are becoming more active they are finding things to do outdoors like hiking, camping, boating, and canoeing to name just a few. It is reported by the Outdoor Industry Association’s Outdoor Recreation Economy Report, roughly $23 billion was spent on hunting, roughly $33 billion was spent on wildlife viewing, and roughly $35 billion was spent on fishing.Outdoor activities have many benefits to physical and emotional health as cited on livestrong.com such as a “better body,” “social benefits,” “feeling good,” “mind and movement” and many others. So, products that relate to outdoor recreation like clothes, gear, and equipment will be big sellers in this industry.
There is a definite increase in consumer interest in the Emergency Preparedness industry. With so many natural disasters occurring, as well as a feeling of anxiety in the general stability of the world, people are spending more dollars to outfit their survival plan if something does happen. Based on a Facebook poll of survival-interested people, Hubspot’s blog titled “The Doom Boom: Inside the Survival Industry’s Explosive Growth” notes certain events as an economic collapse, grid failure, and natural disasters as being the top three concerns. Products that can be included in a preparedness kit and that aid in surviving an event for at least 72 hours are popular in this industry category.
The home decorating trend continues to grow! Everyone wants to make their living space show their individuality and be a respite from the “outside world.” Shopping online for all kinds of furniture from vintage to contemporary and modern is showing huge interest with the millennial generation. Forbes.com, in their article “The Seismic Shift to Millennials Driving Dramatic Change in U.S. Furniture Market,” (http://bit.ly/2h3kbuT) has statistics and reasons for the rapid pace of increased spending on furniture in general and more specifically by millennials. “The Consumer Buying Trends Survey conducted by Furniture Today shows that millennials have become the largest consumer group in the US furniture and bedding market. In 2014, they represented 37% of the market, a significant increase compared to the 14% they represented in 2012.”
Those statistics are amazing, but let’s look also at the ecommerce furniture industry as a whole. “In a furniture market that is growing at a rate of 2.9% annually, e-commerce sales are expected to double, from $15 billion in 2012 to $32 billion by 2018.” According to eMarketer, “E-commerce accounted for 21% of total furniture sales in 2014, and it is forecast to grow to 30% by 2018.” So, as you can see, the furniture and home decor industry is great to be in!
Forbes cites that it is now trendy for millennials to stay at home and entertain rather than go out for their cocktails. As reported on Expressnews.com, home bars are a big trend in home décor for both high-end real estate and apartment/condo living as well. Staying in and having wine or a special cocktail is what people want to do now more than traveling to a bar or restaurant. According to Michael Kelley, owner of Mod Pad Mid Century Store, 2615 Broadway, the popularity of the AMC series “Mad Men” has had an influence on the resurgence of the home bar. “It’s kind of a lifestyle thing,” Kelley said. “In the ’60s, everybody had a bar, even in their offices. ‘Mad Men’ popularized the whole thing and made it more mainstream.”
Plus, people love to unwind with a great glass of wine! This industry is set to reach $318,344 by the end of 2017. The US is the largest wine consuming nation in the world with more than 100 million people now drinking wine. While 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. Couple these trends with millennials’ preferred mode of shopping being online and it makes a strong case for a wine/home bar ecommerce business.
Parents have long been striving to find toys and products that will both entertain and educate their children at the same time. Now more than ever, parents want their children to have opportunities to learn while they are playing. Businesswire.com reports that “E-learning and other interactive activities have been gaining popularity over the last five years, with educators around the world emphasizing on the importance of practical education over books and theoretical learning.” Toys and products that provide a practical education experience are in strong demand. There is no question that the educational products and toys ecommerce market will continue to grow in the years to come that’s why you should consider owning a toy internet business in 2017.
It is a growing trend for pets to be considered as a part of the family—almost like the humans! The American Pet Products Association reports Americans spent an all-time high of $55.7 billion on their pets in last year and spending will creep close to $60 billion this year. 68% of U.S. households own a pet, which equates to 82.5 million homes. Demographically speaking, the population is aging and baby boomers are now becoming pet owners as their children are leaving the “nest”. At the same time, there are more single- member households than ever before, as young people are getting married later and divorce rates remain high. All this adds up to a veritable pet-buying frenzy: new dog and cat ownership continues to expand at nearly 4% per year, even in the face of the recent recession.
Online options for pets give the consumer many more choices of healthy alternatives. Both preventative health care products and accessories have experienced a surge in sales in the last couple of years. “As more owners become aware of a healthier online alternative for their pet care, it is not surprising to see that the growth of e-commerce in the pet sector will continue to grow at 15 to 20 percent in 2016-17.” IT is a great time to own an online pet business as this is a huge industry that will continue to see growth in the future.
There are few events that cause the stress that weddings do. Every bride wants the wedding to be just right. And, there are many moving parts—the invitations, the thank you notes, the favors, the bridesmaid gifts, and on and on. Even when there is a wedding coordinator, the bride is still the one who has the decisions to make and all of this takes time. Shopping at an online wedding business has become a huge time saver in the process. Weddings are big business. According to The Knot in their survey of over 19,000 respondents, “approximately 1 in 5 brides are spending more than $30,000 on their wedding, and 12% of brides are spending more than $40,000.” They break it down further to the average dollars spent for each line item such as invitations, wedding cakes, florists, favors, etc. So, you can see that the wedding industry is an online business industry that is strong, even in recession, and we think it is an industry that will continue to grow.
There are over 4 million babies born each year in the U.S. alone, which results in this being such a big retail market. According to Statistica.com, “The baby care market was worth 44.7 billion U.S. dollars in 2011 and is expected to increase total sales to 66.8 billion U.S. dollars by 2017.” It costs a lot of money just to have the essentials for a baby, around $12,000 for just the first year, as cited on parenting.com. Baby care products includes toys, wipes, feeding accessories, diapers, body care products, carrying and transporting, just to name a few. New parents (who, by the way, are up at all hours of the night) “are increasingly stocking up online, making the online baby-products business one of the most successful segments in the retail landscape”, according to IBISWorld. It is believed the growth in demand can be attributed in large part to people starting families later in life. IBIS World also reports strong growth which can be attributed to the ease of online shopping and increased consumer spending. So, if you love baby stuff, you should definitely look at this industry.
Eco-Friendly, Organic & Green Products
Wait a minute! There is one more category that is big and growing that we wanted to add to our list…GREEN! According to surveymonkey.com, “1 in 3 consumers prefer eco-friendly options.” We found a report of a study written in 2015 by nielson.com on purchasing habits that has astounding information on the green market. This study found that the millennial generation continues “most willing to pay extra for sustainable offerings—almost three-out-of-four respondents in the latest findings, up from approximately half in 2014.” Additionally, the Nielson survey found that the next generation is even more interested in buying green. “The rise in the percentage of respondents aged 15 – 20, also known as Generation Z, who are willing to pay more for products and services that come from companies who are committed to positive social and environmental impact was also strong—up from 55% in 2014 to 72% in 2015.”
And, let us not leave out the Baby Boomers, “Fifty-one percent of Boomers (50-64) surveyed are willing to pay extra, an increase of seven percentage points since last year. This segment will remain a substantial and viable market in the coming decade for select products and services from sustainable brands.” If you are looking for an industry that is poised for tremendous growth in the future, you should definitely consider an eco-friendly and organic online business.
Take the Next Step to Investing in Your Future
So, there you have it for our top 11 picks for the best ecommerce industries going into 2017. We encourage you to start your research from here, make your list of possible industries and continue to gather more information. Find an industry you are interested in and that has a strong indicator for growth. The ecommerce business is not going to decline; it is only going to get bigger! Add economic growth and all the many benefits of owning your own business and you have a formula for exciting success!
Ready to make your selection? Visit www.pure-ecommerce.com to see the online business opportunities. Have any questions about these industries or on how to start an online business, post below, we’d love to hear from you!