Based on the expert analysis and our database of 440+ UK industries, IBISWorld presents a list of the Riskiest Industries in the UK in 2020
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View a list of the Top 25 riskiest industries2020 Overall Risk Score: 7.3
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. Additionally, rising import penetration has negatively influenced the industry's performance. Industry revenue is projected to decline at a compound annual rate of 8.2% over the five years through 2019-20. Industry profitability is also expected to decline due to falling demand, strong pricing pressure... Learn More
2020 Overall Risk Score: 7.2
The Hotels industry has performed well over the past five years. The weak pound has made the United Kingdom an affordable destination for international tourists, while weak consumer confidence has led to a rise in domestic tourism over the past five years. Families are increasingly forgoing overseas holidays, instead favouring staycations, benefiting domestic hotel occupancy rates. Over the five years through 2019-20, revenue is forecast to grow at a compound annual rate of 2.3% to £21.1 billion.Although the low value of the pound is expected to attract more international and domestic tourists, falling consumer and business confidence is likely to limit expenditure on industry... Learn More
2020 Overall Risk Score: 7.2
Operators in the Holiday Accommodation industry provide accommodation for domestic and international holidaymakers in the form of cottages, lodges and self-catered apartments, and operate hostels, guesthouses, and holiday centres and villages. Industry performance has benefited from favourable conditions over the past five years, and has broadly followed trends in inbound and outbound tourism and fluctuations in weather conditions. Industry revenue is expected to grow at a compound annual rate of 5.1% over the five years through 2019-20, including forecast growth of 2.4% in the current year, to reach £2.6 billion.The staycation trend that emerged following the UK’s vote to leave the European... Learn More
2020 Overall Risk Score: 6.9
The Chocolate and Confectionery Production 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 the past five years. 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. Chocolate with a high cocoa content has also risen in popularity over the period, as it is perceived as healthier... Learn More
2020 Overall Risk Score: 6.9
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 2019-20, industry revenue is anticipated to fall at a compound annual rate of 27.7%, as a result of government efforts to phase out the use of coal and volatile coal prices. In the current year, revenue is expected to decline by 20.9% to £140.9 million.Coal releases... Learn More
2020 Overall Risk Score: 6.8
The Tour Operators industry includes operators that arrange, assemble and conduct tours both domestically and internationally. Tours may incorporate transportation, accommodation, food, and visits to select locations or special events. Niche tour operators specialise in certain destinations, activities or experiences. Economic conditions in the United Kingdom have a significant effect on industry demand, as spending on travel and tourism is considered to be a luxury and therefore consumers cut back on this type of spending when their finances are constrained.As a result of consumer confidence declining for the majority of the past five-year period, industry revenue is also expected to decline year-on-year from 2016-17. Falling confidence and the... Learn More
2020 Overall Risk Score: 6.8
The Gyms and Fitness Centres industry covers the operation of gyms and health and fitness clubs, including personal training services offered through a gym but not the activities of independent personal trainers. Revenue is predominantly derived from membership fees, which are typically based on a contract basis. Gyms can be broadly classified as low-market, mid-market and high-market based on their membership fees and the facilities they offer. Despite the presence of several large players, there are still many small independent gyms operating across the United Kingdom. However, mergers and acquisitions have occurred in recent years, indicating that the structure of... Learn More
2020 Overall Risk Score: 6.8
Clothing and footwear wholesalers purchase goods from domestic and foreign manufacturers and distribute them to downstream retailers and department stores. Over the five years through 2019-20, IBISWorld expects industry revenue to decline at a compound annual rate of 1.3%. Industry players have contended with numerous competitive pressures over the past five years and have had to adapt to a changing retail landscape. The growth of online integration has made transactions between domestic and foreign parties increasingly simple. As a result, many vertically integrated high-street stores purchase directly from foreign manufacturing facilities. In addition, weak performance on the British high street... Learn More
2020 Overall Risk Score: 6.8
Operators in the Catering Services industry provide catering for one-off events such as weddings, corporate functions and private parties. Operators have felt the effects of increased uncertainty surrounding the UK’s departure from the European Union in recent years. Demand for corporate functions has been supported by growing business expenditure and is expected to account for 50.7% of industry revenue in 2019-20. Although consumer confidence has fallen, an increase in real household disposable income has supported demand for private events. However, despite a rising UK marriage rate, demand for catering services for weddings has fallen. Weak consumer confidence meant that consumers... Learn More
2020 Overall Risk Score: 6.8
In the five years through 2019-20, operating conditions have been difficult, largely due to increasing levels of IT and telecommunications adoption which have occurred globally, mostly in the form of smartphone technology. Online retailing of stationery has grown dramatically in this time, while the circulation of newspapers has plummeted. Other external players have increased the variety of produce on offer and reduced their prices. As the Newsagent and Stationery Stores industry has been unable to compete with such prices, it has been left in a state of decline. Industry revenue is forecast to decline at a compound annual rate of 3.7% over the five years through 2019-20. In the current year, revenue is expected to... Learn More
Based on the expert analysis and our database of 440+ UK industries, IBISWorld presents a list of the Fastest Declining Industries in the UK by Revenue Growth (%) in 2020
VIEW ARTICLEBased on the expert analysis and our database of 440+ UK industries, IBISWorld presents a list of the Least Risky Industries in the UK in 2020
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