Industries with Least Riskiest Business Environments in United Kingdom in 2026

• 1. Renewable Electricity Generation in the UK

  Business Environment Risk for 2026: 3

  Greater awareness of climate risks has prompted a more aggressive decarbonisation drive, led by renewables. Government targets and incentives are encouraging substantial investment in renewable assets by the UK’s major energy companies, while advances in technology have lifted potential generating capacity, particularly in offshore wind, which has been the fastest-growing renewable source. Data from the Department for Energy Security and Net Zero show that renewables generated a record 50.8% ...

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• 2. Investment Trusts in the UK

  Business Environment Risk for 2026: 3

  Investment trusts have navigated a turbulent environment over recent years, characterised by regulatory changes and uncertain economic conditions. While demand for investment trusts has stayed fairly strong, alternative investment vehicles like open-ended investment companies have put pressure with their competitive prices, encouraging investment trusts to band together through consolidation to drive down fees charged thanks to economies of scale.

  Revenue is expected to grow at a compo...

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• 3. Private Equity in the UK

  Business Environment Risk for 2026: 3

  The UK is the largest European centre for the management of private equity (PE) investments and funds, second only to the US in terms of global importance. PE firms pool investment funds or use leverage to purchase other companies. Their goal is to improve a company's performance by introducing managerial and operational changes, before selling the company for a profit. More CEOs are wanting to retain control of their companies, increasing the number of minority stake buyouts. PE firms profit...

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• 4. Agricultural Insurance in the UK

  Business Environment Risk for 2026: 3

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• 5. Medical & Orthopaedic Supplies Retailers in the UK

  Business Environment Risk for 2026: 3

  Over the five years through 2025–26, industry revenue is projected to surge at a compound annual rate of 19.7% to reach £2.3 billion. The UK’s medical and orthopaedic supplies retailers have benefitted from a dramatic demographic shift, with the ONS data from June 2023 showing that 18.6% of the UK population were aged 65 or over. Major chains have responded by expanding their high-street and digital presence, investing in telehealth, home-monitoring technology and higher-margin own-brand prod...

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• 6. Non-Alcoholic Beer Production in the UK

  Business Environment Risk for 2026: 3

  Non-Alcoholic Beer Production in the UK is experiencing lift-off. Sales of alcohol-free beers are booming as Brits increasingly moderate their drinking, with health and financial pressures driving cutbacks in alcohol consumption. Younger consumers are leading the change, driven by wellness culture and a desire to avoid post-drinking anxiety as health awareness grows. Major brewers have moved quickly to cement their place, rolling out alcohol-free versions of favourites like Stella Artois, Per...

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• 7. Precision Agriculture Systems & Services in the UK

  Business Environment Risk for 2026: 3

  Over the five years through 2025-26, the precision agriculture industry's revenue is expected to rise at a compound annual growth rate (CAGR) of 5.9%. Revenue is projected to gain modestly by 10.1% in 2025-26 to £156.5 million. Several key trends are impacting revenue and profit in the present period, particularly the acute agricultural labour shortages in the UK. The farming sector, with workforce numbers declining again in 2025, faces recruitment difficulties, especially in dairy, despite s...

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• 8. Electricity Distribution in the UK

  Business Environment Risk for 2026: 3

  Electricity distribution network operators (DNOs) operate regional monopolies, so pricing in the industry is heavily regulated by Ofgem in Great Britain and the Northern Ireland Authority for Utility Regulation (NIAUR) in Northern Ireland. In the United Kingdom, there are currently 15 different DNOs managed by six operators and 19 independent distribution network operators (IDNOs) working primarily to connect new housing, commercial and industrial premises to existing networks.

  Revenue...

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• 9. Stock & Commodity Exchanges in the UK

  Business Environment Risk for 2026: 3

  Stock and commodity exchanges can benefit from various sources of revenue, ranging from fees charged through the purchasing and selling of stocks and commodities to the listing of companies on exchanges with IPOs. Yet, this hasn't meant exchanges have been free of challenges, with many companies looking to more attractive overseas markets in countries like the US that embrace stronger growth. The most notable culprits have been ARM and CRH, refusing to put up with the increasingly cheaper val...

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• 10. Toy Retailing in the UK

  Business Environment Risk for 2026: 3

  Over the five years through 2025-26, toy retailers' revenue is set to edge upwards at a compound annual rate of 0.9% to £2 billion. In recent years, toy retailers have faced significant challenges, with renowned retailers like Toys "R" Us and Mothercare exiting the market (in 2018 and 2019, respectively) thanks to intense competition from supermarkets, online-only retailers and video games (which pull away children's attention). At the same time, profit has been eroded by high competition. Wi...

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