The global economy has always been subject to ups and downs, it is not uncommon to witness a downturn in certain sectors during economic crises.
Despite this, some markets continue to flourish even during tough times. These industries are often considered to be recession-proof, as they tend to remain stable and even see growth during periods of economic uncertainty.
With the increasing number of layoffs and job losses, people are looking for safe investments that will always flourish, regardless of economic downturns. Hence, not limited to these, they are:
1. Healthcare
Healthcare is an essential sector that remains resilient during economic downturns. Projected to be worth $75.1 billion by 2026, from $27.4 billion in 2022 according to MarketsandMarkets, people will always require medical attention, regardless of the state of the economy.
In fact, during tough times, people may become more cautious about their health and seek medical attention more often. This increased demand for healthcare services makes it a recession-proof industry. Additionally, advances in technology and medicine continue to create new opportunities in healthcare, making it a constantly evolving and growing sector.
2. Food and Beverage
With Statista revealing that this industry is expected to show an annual growth rate – CAGR 2022-2027 – of 7.14%, resulting in a projected market volume of $1.10 billion by 2027, and The Business Research Company projecting $9,225.37 billion market size in the same year, the food and beverage industry is another sector that is considered recession-proof.
The need to eat is an ever-increasing one, and this demand remains relatively stable during economic downturns. While people may cut back on luxury items, they will still need to purchase basic necessities like food and beverages. In fact, during tough times, people may even choose to eat out less and cook more at home, leading to increased demand for groceries and cooking supplies.
3. Education
Education is an industry that remains stable even during times of economic uncertainty. In fact, during a recession, many people may choose to go back to school to improve their job prospects or to learn new skills. This increased demand for education leads to job growth in the education sector and Statista’s research revealed a projected market volume of $10.50 billion by 2027.
Additionally, advances in technology have created new opportunities in online education, making it more accessible and convenient for people to pursue their educational goals.
4. Utilities
ResearchAndMarkets disclosed that the global utilities market is expected to grow from $4230.3 billion in 2020 to $4534.38 billion in 2021 at a compound annual growth rate (CAGR) of 7.2%. While The International Energy Agency estimates that $7.2 trillion will be invested in the sector in the decade to 2025, The Business Research Company projected the market to reach $8,314.78 billion by 2027.
Utilities such as electricity, gas, and water are essential services that people cannot do without, regardless of the state of the economy. These services are typically provided by government-regulated companies, making them a stable and reliable source of income. Additionally, many utility companies offer essential services to businesses, making them even more recession-proof.
5. Pharmaceuticals
The pharmaceutical industry is another market that remains relatively stable during economic downturns. Statista’s research agrees that individuals will always require medication for various health conditions, and this demand remains relatively constant, with results showing that the market is projected to reach $1,163.00 billion in 2023 and revenue expected to show yearly growth rate – CAGR 2023-2027 – of 5.39%, resulting in a market volume of $1,435.00 billion by 2027.
Again, advances in medicine and technology continue to create new opportunities in pharmaceuticals, making it a constantly evolving and growing sector.
6. Renewable Energy
Globally, renewable energy has been on steady growth for several years now and the market size by 2025 has been projected to reach $2.15 trillion worldwide.
Renewable energy is a growing industry that is already proving to be recession-proof. As the world becomes increasingly focused on sustainability, the demand for renewable energy sources like wind and solar power will only continue to grow. In addition, renewable energy projects often create jobs, making them a valuable investment for local economies.
7. Technology
Technology is constantly evolving, and people will always seek to adopt new technologies that improve their lives and businesses.
Oberlo explains that statistics on smart homes showed approximately 29.5 million households were utilizing smart home gadgets in 2018, this is only half of the current number. However, this trend is anticipated to persist and escalate in the forthcoming years, with an estimated 64.1 million households expected to use these gadgets by 2025. Similarly, the percentage of households using smart home devices is predicted to rise in the same period, more than doubling from 23.1% in 2018 to 48.4% in 2025.
In Statista’s opinion, revenue is expected to show an annual growth rate – CAGR 2023-2027 – of 6.86%, resulting in a market volume of $1,570.00 billion by 2027.
In fact, during times of economic downturns, people may even prioritize technology expenditures as a means of increasing efficiency and productivity. This is why the technology industry remains stable and continues to thrive, regardless of the economic climate.
In conclusion, while economic downturns can have a significant impact on certain industries, some markets remain relatively stable and even see growth during tough times. These industries provide essential services that people cannot do without. If you are looking to invest in a stable and secure industry, these top 7 markets are an excellent place to start.
