Riskiest Industries in the UK in 2021

1. Video & Game Rental in the UK

2021 Overall Risk Score: 6.9

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

2. Pharmaceutical Preparations Manufacturing in the UK

2021 Overall Risk Score: 6.6

Companies in the Pharmaceutical Preparations Manufacturing industry produce medications, chemical contraceptive products, medical diagnostic preparations, radioactive in-vivo diagnostic substances and biotech pharmaceuticals. The United Kingdom is one of the largest pharmaceutical markets in the world, so the industry commands an important position in both the global pharmaceutical market and the UK economy. A large proportion of revenue is derived from export sales, but the value of exports has declined since 2018-19.

Industry revenue is expected to grow at a compound annual rate of 3.8% over the five years through 2021-22, including revenue growth of 8.2% in the current year, to reach... Learn More

3. Wired Telecommunications Carriers in the UK

2021 Overall Risk Score: 6.3

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 2020-21, revenue is expected to decline at a compound annual rate of 4.2% to £15.1 billion, including an anticipated fall of 6.2% 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, although the COVID-19... Learn More

4. Child Day-Care Centres in the UK

2021 Overall Risk Score: 6.3

Operators in the Child Day-Care Centres industry provide childcare services, primarily to children aged 12 and under, in a non-domestic setting. The industry has been greatly affected by the COVID-19 (coronavirus) pandemic. The coronavirus lockdowns, and falling disable incomes and rising unemployment is expected to contribute to low demand for services over the two years through 2021-22. In addition to this, a falling number of children aged 10 and under has limited growth in recent years. Over the five years through 2021-22, industry revenue is projected to fall at a compound annual rate of 5%, despite an expected 29.7% growth... Learn More

5. Hard Coal Mining in the UK

2021 Overall Risk Score: 6.2

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% of the UK's electricity generation for the whole of 2020. The industry has been in decline over the past five years with only three mines operating in the United Kingdom. Industry revenue is forecast to fall at a compound annual rate of 39.2% reaching £33.5 million over the five... Learn More

6. Basic Pharmaceutical Product Manufacturing in the UK

2021 Overall Risk Score: 6.2

Companies in the Basic Pharmaceutical Product Manufacturing industry manufacture medicinal active substances that are used for their pharmacological properties to make medications, including antibiotics, basic vitamins and aspirin. The industry is an integral part of the pharmaceutical supply chain and the pharmaceutical sector's research and development process. The industry is heavily reliant on healthcare expenditure levels and has benefited from growth in the number of people aged 65 and over in the United Kingdom, who tend to require more medication than younger consumers. However, large operators have increasingly offshored production to developing countries with lower costs, which has limited industry... Learn More

7. Medical & Dental Instrument Manufacturing in the UK

2021 Overall Risk Score: 6.2

Operators in the Medical and Dental Instrument Manufacturing industry manufacture apparatus and equipment for use in downstream healthcare industries. Consequently, demand is driven by levels of healthcare expenditure and demand for medical and dental services. International trade has a significant bearing on industry performance, with increased access to healthcare services in developing countries supporting export demand over the past five years. A number of operators have undertaken merger and acquisition activity in recent years, as they have aimed to expand their presence in emerging markets and benefit from efficiency gains. Industry revenue is expected to increase at a compound annual... Learn More

8. Butter & Cheese Production in the UK

2021 Overall Risk Score: 6.2

The Butter and Cheese Production industry has grown over the past five years, supported by increasing farm-gate milk prices over the period. The persistent popularity of cheddar cheese and ongoing product innovation have extended the industry's shelf life. Industry revenue is forecast to rise at a compound annual rate of 1.6% over the five years through 2020-21 to £2.9 billion, including forecast growth of £ % in the current year. The provenance of food has played an important factor in consumer purchasing habits, with artisan cheese producers growing in popularity. This is highlighted by the number of enterprises operating in... Learn More

9. Cosmetics & Toiletries Retailers in the UK

2021 Overall Risk Score: 6.1

The Cosmetics and Toiletries Retailers industry is anticipated to account for approximately 40% of the total cosmetics market at the retail level. Over the past five years, it has faced 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 competitive pressure by lowering product prices, while some invested in high-quality offerings to reach premium markets. A growing focus on anti-ageing, male friendly and green products has helped sustain... Learn More

10. Meat Product Manufacturing in the UK

2021 Overall Risk Score: 6.1

The Meat Product Manufacturing industry consists of firms engaged in the production of dried, salted or smoked meats, and also includes the production of other meat-based goods. The industry has a handful of large players operating alongside many small businesses. It is characterised by a moderate level of imports, which are forecast to satisfy 34.1% of domestic demand in the current year, and a low level of exports, accounting for an estimated 5.8% of revenue.

Industry performance is expected to be weak over the five years through 2021-22 as a result of tough operating conditions. Revenue is expected to decline at... Learn More