The latter part of the first decade of the 21st century saw the world’s economy crumble due to the Great Recession. When this financial meltdown happened, many industries were thrown out of business. Today, the Covid-19 pandemic is plunging thousands of businesses into chaos in a way similar to the Great Depression. Although there’s no such thing as a 100% recession-proof industry, some business sectors are more resistant to economic hardships than others. Here are the top four recession-resistant industries to watch out for in 2021 and beyond.
- Food and beverage
Irrespective of the state of the global economy, people will always need to eat to live. Whether they are searching for healthy food options to nourish their systems or just to sustain themselves through the day, consumers will always patronize food and beverage service. This explains why candy consumption reached record highs during the 2008 recession. According to the New York Times, Cadbury’s confectionery brand reported a 30% increase in profits during that turbulent season. In any case, that was not the first time the food and beverage industry thrived better in the age of a crisis. Grocery stores are doing well in the Coronavirus era because they provide the basic needs of consumers.
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- Information technology
New opportunities consistently emerge in the IT sector. The Wall Street Journal reported that information technology was the fastest growing industry in the United States during the Great Recession. This means that the IT industry is resistant to economic uncertainties, such as the Coronavirus era. The world simply cannot afford to live without smartphones, computers, and internet connectivity. Thanks to advancements in IT, people can stay safe at home and work remotely amidst the pandemic. Newer and better IT tools built in the last few decades have made the world more reliant on digital devices.
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- Cosmetics
Whether there is a global pandemic or not, people will always want to look good when they are stepping out. Top cosmetic companies like Estee Lauder and Coty Inc produce non-cyclical products that sell well even in harsh economic conditions. If you are an entrepreneur who has experience with makeup or cosmetic solutions, the beauty industry is a great place to launch a recession-resistant business. The big question is: what about the Hospitality Industry? Well, current trends suggest that the global hotel and lodging industry has been heavily impacted by the Covid-19 pandemic. However, the demand for hotel rooms may soar post-COVID when the tourism industry recovers.
- Death and funeral
As long as you are a mortal being, there is one ugly reality you will have to face at a point in time. The death and funeral industry is highly resistant to economic downturns. Covid-19 has now killed over 1.8 million people worldwide, pumping money to the death and funeral industry. Want to profit from life’s inescapable end? Then consider investing in the funeral industry. Running a pandemic-resistant business is a good idea if you want a more stable and reliable income source even during economic uncertainties such as Covid-19.