Riskiest Industries in the UK in 2022

1. Wired Telecommunications Carriers in the UK

2022 Overall Risk Score: 6.8

The Wired Telecommunications Carriers industry operates, maintains and provides access to wired telecommunications infrastructure that transmits sound, data, text and video. Over the five years through 2021-22, revenue is expected to decline at a compound annual rate of 4% to £16 billion, including an anticipated fall of 2.4% in the current year. Declining revenue can be attributed to rising demand for substitute products, as the improved quality of wireless telecommunications has encouraged clients to move away from traditional wired telecommunications and towards advanced wireless technologies. This shift in consumer preferences has weighed on industry demand. In 2020-21, the COVID-19 (coronavirus)... Learn More

2. Direct Selling & Marketing in the UK

2022 Overall Risk Score: 6.8

The Direct Selling and Marketing industry provides services to consumers away from a fixed retailing location and exclusively through personal contact. The industry markets and retails a wide variety of products, such as cosmetics, wellness products and clothing. However, the sale of fuel and food for immediate consumption do not fall under this industry. The industry markets itself through two methods, single-level marketing (SLM), where representatives earn money solely from commission, and multi-level marketing (MLM), where representatives earn commission from both their sales and those that they have recruited. Over the past five years, the industry has reshaped so that... Learn More

3. Video & Game Rental in the UK

2022 Overall Risk Score: 6.6

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 34.2%. The industry structure has also changed... Learn More

4. Convenience Stores in the UK

2022 Overall Risk Score: 6.5

The Convenience Stores industry sells an extensive selection of products, including tobacco, chilled food, frozen products, toiletries and other household goods. Industry establishments typically fall into three categories: non-affiliated independent retailers, convenience multiples and symbol group-affiliated franchises. Over the five years through 2021-22, industry revenue is anticipated to increase at a compound annual rate of 2.9% to reach £44.3 billion, with trends in local top-up shopping supporting growth. The COVID-19 (coronavirus) pandemic further encouraged customers to shop closer to home and increase their purchase volumes, to the benefit of convenience stores. However, increasing competitive pressure from discount chains and supermarkets... Learn More

5. Hard Coal Mining in the UK

2022 Overall Risk Score: 6.5

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 accounted for less than 1.6% of the UK's electricity generation during 2020, according to the Department for Business, Energy and Industrial Strategy. The industry has been in decline over the past five years, with only four mines currently operating in the United Kingdom. Revenue is forecast to fall at a compound annual rate of... Learn More

6. Cosmetics & Toiletries Retailers in the UK

2022 Overall Risk Score: 6.5

The Cosmetics and Toiletries Retailers industry is estimated to account for approximately 40% of the total cosmetics market at the retail level. Over the past five years, it has faced growing competitive pressure from supermarkets and pharmacies, which have broadened their product lines to attract budget-conscious consumers. Competition has intensified as e-commerce mass merchandisers have expanded into the market and online beauty subscription services like Beauty Pie have emerged. Many retailers responded to this pressure by expanding instore beauty offerings. Nevertheless, demographic and social trends, such as a focus on gender neural and green products, and the rise in popularity... Learn More

7. Fruit & Vegetable Retailers in the UK

2022 Overall Risk Score: 6.4

Firms in the industry sell fresh and preserved fruits and vegetables in specialised stores. Rising health consciousness has boosted consumption of fruit and vegetables over the past decade. However, supermarkets have accounted for the majority of sales, as they have been able to undercut the prices offered by specialised retailers, using strong bargaining power and wide access to economies of scale. Over the five years through 2021-22, industry revenue is forecast to increase at a compound annual rate of 1.8% to reach £1.2 billion.

The industry is in the decline stage of its life cycle, despite its an expected strong performance... Learn More

8. Jewellery & Watch Stores in the UK

2022 Overall Risk Score: 6.4

Operators in the Jewellery and Watch Stores industry sell jewellery, watches, clocks, silverware and gift items across various price points. Jewellery and watches are considered to be discretionary items and demand is therefore linked to consumer confidence and disposable income. Uncertainty surrounding near-term economic prospects has weighed on demand over the past five years, as consumers have reduced their spending on luxury goods. However, resilient demand from higher-income consumers, who tend to be less susceptible to economic conditions, is expected to have supported revenue growth at the start of the period.

The depreciation of the pound since the EU referendum has... Learn More

9. Security & Commodity Contracts Brokerage in the UK

2022 Overall Risk Score: 6.4

Brokers in the Security and Commodity Contracts Brokerage industry deal in financial markets on the behalf of others. Industry operators do not deal in markets on their own account or manage portfolios. Volatility in financial markets has been high over the past five years, which has at times benefited the industry. Most significantly, the COVID-19 (coronavirus) pandemic and the recent Ukraine-Russia conflict have generated extreme volatility over the final two years of the period, increasing trading volumes and thus fees generated by industry operators. Industry revenue is expected to grow at a compound annual rate of 2.4% over the five... Learn More

10. Butter & Cheese Production in the UK

2022 Overall Risk Score: 6.3

The Butter and Cheese Production industry has grown over the past five years, supported by increasing farm-gate milk prices over the period. Fluctuations in global milk supply cause volatility in the domestic price of milk, which contribute to revenue volatility. In 2017-18, revenue grew strongly, supported by rising milk prices and export growth, driven by the weak pound. The persistent popularity of cheddar cheese and ongoing product innovation have extended the industry's shelf life. The provenance of food has played an important factor in consumer purchasing habits, with artisan cheese producers growing in popularity. The number of enterprises operating in... Learn More