Fastest Declining Industries in the UK by Revenue Growth (%) in 2024

1. Hard Coal Mining in the UK

2024-2025 Revenue Growth: -36.0%

Over the five years through 2022-23, hard coal mining revenue is forecast to fall at a compound annual rate of 26.2%. Before COVID-19 hit, coal prices were inching downwards as demand for coal from electricity generators fell. The drop in sales and revenue has contributed to a sharp drop in the number of UK coal mines in the UK, with numerous mining licences expiring.

The COVID-19 outbreak accelerated the closure of coal mines in the UK; however, as the pandemic started to wind down, coal prices rose in response to supply chain disruptions. Russia's invasion of Ukraine has also played a... Learn More

2. Fertiliser & Nitrogen Compound Manufacturing in the UK

2024-2025 Revenue Growth: -28.3%

Over the five years through 2022-23, the Fertiliser and Nitrogen Compound Manufacturing industry's revenue is set to swell at a compound annual rate of 10.6% to £2.7 billion. The Russian invasion of Ukraine has inflated natural gas prices, a key feedstock in fertiliser production, significantly disrupting operations. High fertiliser prices have forced farmers to adapt by increasing their spreading efficiency, reducing the amount of fertiliser farmers need. Even though output has been slashed, high fertiliser prices have still boosted industry revenue.

Despite soaring natural gas prices eating into profit, manufacturers have begun optimising output to reduce costs, meet lower demand and... Learn More

3. Online Book Retailers in the UK

2024-2025 Revenue Growth: -28.3%

Despite a potentially challenging retail landscape, the Online Book Retailers industry has recorded a strong performance. This success can be attributed to the rise in internet access, which has changed consumers' spending habits towards online retail. Online book retailers have offered a broader range of titles and more competitive prices than traditional bricks-and-mortar stores because of their vast supply networks and lower fixed costs. Larger online book retailers have enjoyed healthy profit margins.

Revenue is forecast to decline at a compound annual rate of 1.3% over five years through 2023-24 to £666.5 million. This is mainly owing to the exit of... Learn More

4. Live Animal Wholesaling in the UK

2024-2025 Revenue Growth: -24.0%

The price and demand for cattle, sheep, pigs, poultry and horses strongly influence live animal wholesalers' revenue. Abattoirs, a major market for wholesalers, have contended with labour shortages after they lost access to the EU labour pool following Brexit. Abattoirs had to operate substantially below capacity during parts of 2021, prompting the government to issue temporary visas for 800 foreign butchers, helping to ease shortages. However, abattoir numbers are tumbling because of high operating costs, tightening regulations regarding animal welfare and low profitability – constraining the potential market for wholesalers. Teething issues regarding new trade certifications at EU-UK borders led... Learn More

5. Waste & Scrap Wholesaling in the UK

2024-2025 Revenue Growth: -21.4%

Waste and scrap wholesalers are mostly smaller companies that collect and buy materials before reselling them to larger processors. Some larger businesses sort and process recyclable products before wholesaling them to metal, plastic and glass manufacturers. Scrap metal makes up the bulk of industry sales, but plastic and glass are also key.

Waste and scrap wholesaling revenue is set to contract at a compound annual rate of 0.5% over the five years through 2023-24 to £4 billion – but this disguises a lot of volatility. Global metal prices drive wholesalers' performance, dictating the prices at which they can buy and sell... Learn More

6. Electricity Production in the UK

2024-2025 Revenue Growth: -21.3%

In recent years, the UK government has encouraged a shift towards low-carbon electricity generation to meet emissions targets. Rapid growth in renewable generating capacity has culminated in renewables accounting for more than 40% of electricity generation in 2022, up from 29.2% in 2017. Increased investment in renewables has boosted revenue in recent years, with government-initiated schemes presenting lucrative growth opportunities in the face of fluctuating electricity consumption trends. Electricity generators' revenue is forecast to increase at a compound annual rate of 3.1% to reach £30.9 billion over the five years through 2023-24.

Falling wholesale prices and a notable decline in electricity... Learn More

7. Iron & Steel Manufacturing in the UK

2024-2025 Revenue Growth: -20.8%

Over the five years through 2022-23, revenue is expected to fall at a compound annual rate of 4.1%. Large amounts of cheap steel on the global market have undercut British prices and caused major trade partners like the EU to institute import quotas. Unable to lower prices because of high labour costs and environmental charges, industry giants like British Steel and Tata Steel have stated a need for government intervention to continue operating. The industry is also wracked by volatility as overproduction followed by strict pandemic restrictions in China have caused global steel prices to fluctuate.

The Russian invasion of Ukraine... Learn More

8. Other Non-Ferrous Metal Production in the UK

2024-2025 Revenue Growth: -20.8%

The Other Non-Ferrous Metal Production industry's revenue is expected to contract at a compound annual rate of 1.4% over the five years through 2023-24. The pandemic significantly affected producers of other non-ferrous metals as downstream manufacturing industries significantly reduced purchases of metals to match much lower production capacity. Supply chain disruptions caused by the pandemic also inflated the costs of ores. Aircraft manufacturers were hit especially hard by low aircraft purchases from struggling airlines.

The industry's revenue is estimated to shrink by 4.4% in 2023-24 to £1.8 billion, with the average industry profit margin set to be 2.7%. The Russian invasion... Learn More

9. Dairy Cattle Raising in the UK

2024-2025 Revenue Growth: -20.3%

The dairy cattle farming industry's revenue has expanded at a projected compound annual rate of 1.1% over the five years through 2023-24. Dairy cattle farmers struggled before the pandemic as dairy processors were forced to lower prices paid for raw milk because of strong global competition. While smaller farmers have occasionally been forced out of the industry, there has been little consolidation activity, as collective bargaining has prevented larger farms from gaining a competitive edge. The pandemic did little favour for the industry as the volume of milk and dairy sold to hospitality and food processors fell, denting revenue.

The Russian... Learn More

10. Tobacconists in the UK

2024-2025 Revenue Growth: -17.7%

Tobacconists sell tobacco products like cigarettes, cigars, pipes and accessories. Over the five years through 2023-24, their revenue is expected to decline at a compound annual rate of 3.4% to £521.9 million. Rising public awareness of the health risks of smoking, driven by intense anti-smoking campaigns by the government and activist groups, has caused smoking rates and sales to plummet for tobacco retailers. Strong legislation has hit sales hard, while stiff competition from supermarkets and convenience stores has stolen revenue away from specialist tobacco retailers. A stubborn illegal tobacco market and an increase in cross-border smuggling of illegal tobacco products... Learn More