Millennials and Gen Z drinking cocktails instead of beer will heat up the opportunities in this … [+]
If you are restless and have startup ambitions, it’s easier to create a startup in a marketplace that is growing due to changing trends. The trends could be due to the industry changing, a large demographic driving changes or due to socio-economic or legal changes. Whatever the reason, these trends will open up opportunities in certain industries for the resourceful entrepreneur.
Also, after two years of health restrictions, social distancing measures, and extreme lockdowns as a result of the COVID-19 pandemic, we are now finally recovering from this catastrophe, with people returning to work and businesses being able to grow once again. Throughout history, the world has seen various recessions and depressions that have impacted the economy, but this also presents opportunities.
And there are a few industries where the largest opportunities might still lie ahead. Review them below to evaluate your interest in perhaps growing or disrupting one of these industries.
Cannabis. According to Investopedia, the legalization and sale of cannabis is advancing rapidly not only in the U.S., but globally. Global cannabis sales are expected to increase from $13.4 billion in 2020 to $33.6 billion by 2025. That growth opportunity has spawned a long list of startups, IPOs and also a wave of cannabis-related mergers and acquisitions (M&A) involving companies in production, distribution, real estate, retailing and other areas. While there will be challenges, the explosive growth projections ensure a whole new generation of startups will enter this marketplace.
Online investing. Well, the financial investment world (perhaps the venture capitalists) thought companies like Robinhood, Webull, Stash and a few others would set the investment world on fire for young investors. Not so much. Even after a few years in the market, according to a MorningStar article, they only have about.02% market share. What is the total size of the marketplace in the USA? A little over $20 TRILLION. So, there is significant opportunity to grow in this marketplace for a company who can simplify investing for the next generation.
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Marketing. Marketing has been around forever and will continue to evolve. Will it be AI based marketing, data analytic marketing, new auto-driven tools or will we return to simpler local based marketing? No one actually seems to know. However, the dollars available are staggering. Based on a Statista report, 2020 dollars for just advertising was over $240 billion. As much as this industry continues to evolve and age, there always seems to be room for improvement and growth.
Remote hybrid impact on culture. The great “quit” that is going on right now is driven by several factors and perhaps no one really knows why so many employees are quitting their companies in record numbers. However, the one downside of all this upheaval will be company work culture. How do you build a company culture when the majority of employees are in different places? Is this actually driving the “quit” mentality we are seeing right now? Look for opportunities in new employee activities, software, regional hubs, etc. to try and address company culture and loyalty.
Entertainment. Disney launches a new service. Microsoft buys Activision to perhaps push cloud gaming. Watching video in social media. This industry is at the vortex of perhaps a content explosion and as industry giants and startups expand products and services and they all need the same thing. Content.
Manufacturing (Back in the USA). COVID-19 for the most part, is not a good thing. However, it has exposed weak and fragile supply chains and started a drive to re-invest in the USA. Note Intel’s recent decision to locate a new chip facility in Ohio. There will be quite a few opportunities for small businesses and startups to leverage this trend. Keep your eye on Mexico and Canada for near shore opportunities for certain products or services.
Spirits vs beer. Somewhere, the denizens of cool in former Las Vegas stars like Dean Martin and Sammy Davis Jr. must be rolling over in their graves to see the 20-30 somethings embracing the cocktail drink. Sprits based drinks and companies have exploded in recent years with everything from carbonated “mocktails’ to small batch whiskey to unique versions of Tequila. Depending on which source you follow, the beer industry is over $100 billion in size and the spirits industry companies and new startups have their eyes firmly on taking a share of that market.
