Least Risky Industries in the US in 2021

1. Medical & Recreational Marijuana Growing

2021 Overall Risk Score: 2.40

The Medical and Recreational Marijuana Growing industry, which includes both employer and nonemployer establishments that grow marijuana for medical and recreational use, flourished over the five years to 2019. Watershed legalization victories over recent years, most notably during the 2016 election cycle, proved that the cannabis industry is one of the fastest growing industries in the US. In 2016 alone, eight states passed initiatives to legalize marijuana. Consumer attitudes are also accelerating legalization efforts at the state level. Gallup reports that an estimated 80.0% of US citizens approve of legal access to medical marijuana, while 60.0% approve of full adult... Learn More

2. Medical & Recreational Marijuana Stores

2021 Overall Risk Score: 2.69

The Medical and Recreational Marijuana Stores industry, which includes stores that retail medical marijuana (by prescription only) and recreational marijuana, expanded dramatically over the five years to 2019. The 2016 election cycle, in particular, provided landslide victories for both medical and recreational cannabis retailers. Consequently, the legalization of marijuana for medical and/or recreational purposes and the growing acceptance of medical marijuana provided operators and investors with unprecedented opportunities. There has been no shortage of demand over recent years, and the cannabis industry has become one of the fastest-growing in the United States.

More recently, the legalization of recreational marijuana sales in... Learn More

3. Community Colleges in the US

2021 Overall Risk Score: 2.91

The Community Colleges industry, which primarily offers associate degrees, certificates or diplomas below the baccalaureate level, has been on a downward trajectory over the majority of the five years to 2020. Prior to the COVID-19 (coronavirus) pandemic, which has temporarily reversed the trend, the national employment rate grew strongly, hampering demand for community colleges. When students perceive that there are job prospects in the labor market, they may forgo industry services to seize employment opportunities. However, in 2020, the pandemic caused the national unemployment rate to spike, boosting demand for community colleges. Consequently, industry revenue has declined modestly at an... Learn More

4. Residential Senior Care Franchises

2021 Overall Risk Score: 3.34

The Residential Senior Care Franchises industry has experienced strong revenue growth over the five years to 2020. The industry, which provides residential and personal-care services for elderly individuals that are unable to fully care for themselves, has boomed on account of the aging population and the growing need for dementia care. As a result, IBISWorld expects industry revenue to grow at an annualized rate of 9.3% to $4.6 billion over the five years to 2020, including an increase of 6.8% in 2020 alone. However, the COVID-19 (coronavirus) pandemic is expected to challenge revenue growth in 2020. Profit, measured as earnings... Learn More

5. Space Vehicle & Missile Manufacturing in the US

2021 Overall Risk Score: 3.50

The Space Vehicle and Missile Manufacturing industry has been moderately volatile over the five years to 2020. Industry players develop and manufacture missiles, rockets, spacecraft and related equipment and components. Since the US government, particularly the Department of Defense (DoD), accounts for the majority of spending on missile and space products and programs, industry performance is highly correlated with government spending levels. Consequently, when Congress attempted to rein in spending, funding for industry products dropped. However, an elevated level of missile exports compared with performance during the previous five-year period helped industry players offset weaker demand at home. Moreover, recent... Learn More

6. Video Streaming Services in the US

2021 Overall Risk Score: 3.56

The Video Streaming Services industry is booming as entertainment is being delivered to consumers in new and innovative ways. Industry operators provide infrastructure for customers to watch videos via the internet. Video streaming services generate revenue through paid subscriptions, video-on-demand transactions and paid advertising. Demand for industry services hinges upon the quality and variety of content available on a streaming platform, in addition to its price and accessibility. The number of consumers that have cut the cable and transitioned to use of one or more industry services has increased sharply over the five years to 2020. In 2020, more households... Learn More

7. Online Event Ticket Sales

2021 Overall Risk Score: 3.65

The Online Event Ticket Sales industry has experienced strong revenue growth amid a major shift from physical tickets and at-home printing to a fully digitized mobile ticketing experience. Over the five years to 2020, disposable income has grown alongside the music industry's continued shift toward live performance. Furthermore, major growth in the percentage of services conducted online, particularly among younger demographic groups that typically favor live performances and music festivals, has given the industry a substantial boost. IBISWorld anticipates industry revenue will expand at an annualized rate of 10.8% to $13.2 billion over the five years to 2020, including an... Learn More

8. Cigar Lounges

2021 Overall Risk Score: 3.66

The Cigar Lounges industry has made a strong comeback in the United States over the five years to 2020. According to the US Alcohol and Tobacco Tax and Trade Bureau, cigar consumption in the United States has been increasing drastically recently, and demand for premium cigars continues to outpace demand for other tobacco products. In line with favorable shifts in consumer tastes and macroeconomic factors, cigar lounges have performed well over the past five years. However, industry operators are likely to take a hit during the first quarter of 2020 following the introduction of COVID-19 (coronavirus) in the United States.... Learn More

9. Drug & Alcohol Rehabilitation Clinics

2021 Overall Risk Score: 3.67

The Drug and Alcohol Rehabilitation Clinics industry treats substance use disorders. Treatments provided by industry operators range from counseling to medication-assisted interventions in severe cases of chemical dependence. These treatments can be provided on either an inpatient or outpatient basis, and the industry includes commercial clinics and nonprofit organizations. Increased instances of substance use disorder over the five years to 2020, including an epidemic of opioid addiction, has raised demand for industry services. Meanwhile, access to rehabilitation programs has expanded with increased enrollment in health insurance programs. Over the five years to 2020, industry revenue is expected to increase at... Learn More

10. Pet Insurance

2021 Overall Risk Score: 3.69

Over the past five years, rapidly increasing consumer awareness and acceptance of industry offerings has benefited the Pet Insurance industry. According to the latest available data from the Department of Clinical Veterinary Science and the Pet Food Institute, 30.0% of pets in Sweden and 23.0% of pets in the United Kingdom are covered by pet insurance policies. Alternatively, less than 3.0% of pets in the United States are insured. However, this figure continues to rise and provides the basis for sustained industry growth. Thus, IBISWorld expects total industry revenue to increase at an annualized rate of 16.8% over the past... Learn More