As the world continues to grapple with the impacts of the COVID-19 pandemic, many people are understandably worried about the stability of their income and employment. While no industry is completely immune to economic downturns, there are certain sectors that tend to be more resilient during times of crisis. In this blog post, we will take a look at six industries that have historically proven to be recession-proof: Liquor & Tobacco, Cannabis, Health & Wellness, Pets, Auto Repair, and Fast Food Quick Serve Restaurants.
Liquor & Tobacco: These industries often do well during recessions because they are considered necessities by many consumers. People may be more likely to cut back on discretionary spending, but they are still going to buy cigarettes and alcohol. In fact, during the economic downturn from 2008-2014, the tobacco industry saw its profits increase by more than 50%. Similarly, the liquor industry experienced steady growth during this period, with sales increasing by more than 20%.
Cannabis: The legal cannabis industry is still relatively new, but it has already proven to be remarkably resilient in the face of economic challenges. During the COVID-19 pandemic, the cannabis industry saw a surge in demand as consumers turned to it as a way to cope with stress and anxiety. In addition, the cannabis industry has consistently shown strong growth even during times of economic downturn. In fact, during the recession from 2008-2014, the legal cannabis industry grew by more than 200%.
Health & Wellness: The health and wellness industry is another sector that tends to do well during recessions. People may be more likely to cut back on non-essential expenses, but they are still going to prioritize their health. This is especially true for items like over-the-counter medication, vitamins, and personal care products. During the recession from 2008-2014, the health and wellness industry saw steady growth, with sales increasing by more than 15%.
Pets: The pet industry is another sector that tends to be relatively recession-proof. Consumers may be more likely to cut back on discretionary spending, but they are still going to prioritize the well-being of their pets. This is especially true for items like food, toys, and grooming supplies. During the recession from 2008-2014, the pet industry saw steady growth, with sales increasing by more than 10%.
Auto Repair: While people may be more likely to cut back on buying new cars during a recession, they are still going to need to maintain and repair their vehicles. This is especially true for those who rely on their cars for essential transportation. During the recession from 2008-2014, the auto repair industry saw steady growth, with sales increasing by more than 5%.
Fast Food Quick Serve Restaurants: While consumers tend to cut back on dining out during a recession, they are still going to need to eat. This is especially true for fast food and quick serve restaurants, which tend to offer affordable options for those looking to stretch their budgets. During the recession from 2008-2014, the fast food industry saw steady growth, with sales increasing by more than 5%.
If you are looking for opportunities to start a business or invest in a stable industry in 2023, these sectors may be worth considering. As a result, they may provide a stable source of income for owner operators.
Of course, it is important to do your own research and due diligence before making any business decisions. This blog post is intended to provide general information and should not be taken as financial or legal advice.
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