Riskiest Industries in the UK in 2021

1. Video & Game Rental in the UK

2021 Overall Risk Score: 7.7

Industry operators rent physical copies of films, TV programmes and games in stores or over the internet to be delivered by post. The industry does not include the provision of media through streaming services, such as through Subscription Video on Demand providers (IBISWorld report SP0.017), or downloadable games. Following the shift in consumer preference towards streaming services and the subsequent exit of major industry players, the industry has undergone massive structural change and is now highly fragmented.

Over the five years through 2020-21, industry revenue is expected to fall at compound annual rate of 35.7%, although this is distorted by the... Learn More

2. Paper Stationery Manufacturing in the UK

2021 Overall Risk Score: 6.7

Industry revenue is expected to decline at a compound annual rate of 13.8% over the five years through 2020-21 to £227.3 million. Operators in the Paper Stationery Manufacturing industry have endured tough conditions during the past five years due to the continued proliferation of electronic communication, data transfer and storage at the expense of traditional paper stationery products. Weak economic conditions have provided further complications for the industry, as businesses and households have reduced their spending on stationery products. Rising import penetration has negatively influenced the industry's revenue performance. Many retailers have reported rising demand for luxury notebooks and planners,... Learn More

3. Electricity Production in the UK

2021 Overall Risk Score: 6.6

Electricity production is the first phase in the process of delivering electricity to consumers, and is followed by transmission, distribution and trade. The composition of UK electricity generation has undergone substantial change in recent years, as government initiatives have incentivised a shift to renewable electricity generation in pursuit of emissions targets. A slump in electricity demand and a significant increase in renewable capacity has facilitated accelerated growth in renewable generation during the current year. According to the Department for Business, Energy and Industrial Strategy, renewables overtook fossil fuels in the UK's energy mix for the first time in 2020, accounting... Learn More

4. Newsagents & Stationery Stores in the UK

2021 Overall Risk Score: 6.6

In the five years through 2020-21, operating conditions in the Newsagents and Stationary Stores industry have proven difficult, largely due to increasing IT and telecommunications adoption, which has occurred globally, largely in the form of smartphone technology. Online retailing of stationery has grown dramatically, while the circulation of newspapers has plummeted. Struggling to compete, the industry has been left in a state of decline. These trends have been accentuated in 2020-21, as the outbreak of COVID-19 (coronavirus) led to the temporary closure of non-essential stores and industry operators have fallen behind in the competition against online shopping, digitalisation and supermarkets.... Learn More

5. Hard Coal Mining in the UK

2021 Overall Risk Score: 6.4

In global terms, the United Kingdom is a minor producer of coal. Production has fallen sharply since the early 1970s, plunging when a large number of mines were closed in the mid-1980s. Coal was responsible for over two-thirds of electricity generation in the 1990s, but it is now expected to only generate less than 5% of the UK's electricity. Over the five years through 2020-21, industry revenue is anticipated to fall at a compound annual rate of 29.2% as a result of government efforts to phase out the use of coal and lower prices. In the current year, revenue is... Learn More

6. Property Unit Trusts in the UK

2021 Overall Risk Score: 6.4

The Property Unit Trusts industry generates revenue primarily from the fees that industry operators charge for managing property portfolios, which are calculated as a percentage of net asset value. Firms also charge entry and exit fees when investors purchase or sell units, which are also included in industry revenue. Therefore, revenue is directly affected by changes in net asset value. In 2016-17, investor panic caused by Britain's decision to leave the European Union resulted in many investors pulling funds from property unit trusts, forcing several funds to temporarily suspend redemptions. Since then, investors have become extremely reluctant to put their... Learn More

7. Executive Search Recruiters in the UK

2021 Overall Risk Score: 6.3

Executive search recruiters, known informally as headhunters, specialise in the recruitment of senior or executive personnel on behalf of clients. Demand for the industry's services is largely influenced by the health of the wider economy; weak business confidence weighs on demand for industry services to fill high-level positions. Revenue growth was recorded year-on-year over the three years through 2018-19, though the COVID-19 (coronavirus) pandemic is anticipated to reverse this trend over the two years through 2020-21. Over the five years through 2020-21, industry revenue is expected to fall at a compound annual rate of 5.1%, including a contraction of 21.5%... Learn More

8. Electricity Supply in the UK

2021 Overall Risk Score: 6.2

The Electricity Supply industry has developed considerably since its liberalisation in 1999. The market is regulated by Ofgem in Britain and by NIAUR in Northern Ireland. Electricity consumption has decreased over the past five years as increased adoption of energy-efficient appliances and practises, spurred by the roll-out of smart metering, have encouraged lower energy consumption to reduce bills. This is expected to be exacerbated by the COVID-19 (coronavirus) outbreak during the current year, as strict public health restrictions lead to an significant decline in demand for electricity.

Industry revenue is expected to fall at a compound annual rate of 2.8% over... Learn More

9. Chocolate & Confectionery Production in the UK

2021 Overall Risk Score: 6.2

The industry is broken down into three subclasses: cocoa product production, sugar confectionery manufacturing and chewing gum production. Factors such as increasing health consciousness, volatile input prices, and increasing competition from imported products have contributed towards downward pressure on industry revenue over much of the past five-year period. The organic and fair-trade movements have gathered momentum over the past decade, which has created niche segments and contributed to vegan and reduced-sugar products being produced more widely by industry operators. Industry revenue is expected to be negatively affected by the COVID-19 (coronavirus) pandemic in the current year, as demand from food-service... Learn More

10. Audio & Video Equipment Retailers in the UK

2021 Overall Risk Score: 6.2

The Audio and Video Equipment Retailers industry is comprised of businesses that sell products such as TVs, audio and video players and recorders, portable players, and audio and video accessories. Over the past five years, retailers have been adversely affected by several factors. Weak consumer confidence at the start of the period resulted in consumers reducing their spending on discretionary goods. This change in consumer behaviour affected retailers, and industry revenue subsequently slumped on account of the decline in demand. Over the five years through 2020-21, IBISWorld estimates that industry revenue will decrease at a compound annual rate of 2.4%... Learn More