It’s amazing how many different industries there are in the United States. Often, economists and analysts focus on the major sectors such as manufacturing, healthcare, technology, professional services, and retail, but there are several other industries that might not be the biggest but are rich in potential. Our analysts at DCR TrendLine are also guilty of paying closer attention to the large industries, which is why we wanted to take the opportunity to highlight some of the fastest growing industries today that many have either overlooked or may never even have heard of.
Due to the growing popularity of craft beer, drinkers are expanding their horizons by trying new beer flavors. And they are also expanding their preference for alcoholic beverages and looking at other drinks too, which is where hard cider comes in. Hard cider is currently one of the fastest-growing segments of the beer and flavored malt beverage landscape. According to market research firm IRI, cider sales were up 75.4 percent at the end of 2014 from the previous year.
IBISWorld says that the cider production industry today mostly consists of small-sized cider mills and cider houses. Current revenue in the industry is around $300 million, supporting 2,261 jobs. The expected annual growth rate for this industry is 27.3 percent in 2016.
Due to the rebounding housing market and the recent efforts to modernize the power grid, there is a growing demand for smart meters. Smart meters help to track real-time energy use and can help regulate use during peak periods. According to IBISWorld, the sector’s current revenue is approximately $2 billion, supporting 3,557 jobs. Over the next five years, IBISWorld expects the sector to grow by 11.3 percent.
The medical adhesives and sealant industry is expected to maintain its growth over the next five years, partly because technological advancements in the segment are increasing their applicability to new surgical procedures, particularly cosmetic surgery. The segment’s current revenue is around $2 billion, contributing 4,761 jobs to the economy. According to IBISWorld, the industry is projected to have an 11 percent annual growth rate.
Pet insurance is currently an $800 million industry, growing at 14 percent per year. Over the next five years, the numbers of pets is anticipated to rise, which when combined with rapidly growing consumer awareness and acceptance of industry offerings will increase industry revenue. Also driving this growth is increasing veterinary costs and American home ownership. Between 2015 and 2020, IBISWorld expects annual sales to be around $1 billion. Dog accident and illness policies bring in approximately 81 percent of the industry’s revenue, while cat and other pet policies and wellness programs make up the rest. In the United States today, only 1 percent of pets are insured, compared to 30 percent of pets in Sweden and 23 percent of pets in the United Kingdom.
“Pet insurers largely face the same regulatory trends as their broader property and casualty counterparts, given that pets are considered property in the view of government regulators. However, pet insurance risks and trends tend to be more similar to the health insurance market. The trend toward more sophisticated veterinary treatments has increased the financial incentive for pet owners to take out industry coverage. At the same time, extensive marketing efforts have expanded consumer awareness of pet insurance policy options.”” ~Stephen Hoopes, Analyst at IBISWorld
Online Art Sales
As consumers increasingly use the Internet to bid on art auctions, online art sales will continue to grow. The current value of the U.S. dollar against foreign currencies is also boosting demand through increases in overseas art sales. The industry is currently highly fragmented with a large number of small and independent players dominating the market. Current industry revenue is approximately $1 billion, supporting 1,206 jobs in the Untied States. According to IBISWorld, the forecasted annual growth rate for this industry is about 9 percent over the next five years. Paintings and drawings make up the bulk of the market.