Least Risky Industries in the US in 2021

1. Medical & Recreational Marijuana Growing

2021 Overall Risk Score: 2.08

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 2021. Watershed legalization victories over recent years, most notably during the 2016 and 2020 election cycles, proved that the cannabis industry is one of the fastest growing industries in the US. In 2020 alone, Arizona, Montana, New Jersey and South Dakota passed legislation to legalize recreational 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... Learn More

2. Medical & Recreational Marijuana Stores

2021 Overall Risk Score: 2.48

The Medical and Recreational Marijuana Stores industry, which includes stores that retail medical marijuana (by prescription only) and recreational marijuana, has expanded dramatically over the five years to 2021. The legalization of marijuana for medical and/or recreational purposes and the growing acceptance of legal marijuana use 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.

The legalization of recreational marijuana sales in several states has fueled revenue growth. Furthermore, the licensing of commercial recreational marijuana retailers has caused new... Learn More

3. Community Colleges in the US

2021 Overall Risk Score: 2.98

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. Cigar Lounges

2021 Overall Risk Score: 3.25

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

5. Gun & Ammunition Stores

2021 Overall Risk Score: 3.25

Revenue from the Gun and Ammunition Stores industry has risen significantly over the five years to 2021 as ongoing social, political and economic unrest has sparked an unprecedented increase in firearms and complimentary goods for outdoor sport and personal defense purposes. Revenue has also surged on the expectation of stricter firearm regulations under the Biden administration, which has vowed to help end gun violence and mass shootings through multiple avenues. Consumers have sought to purchase firearms and ammunition ahead of the more stringent regulatory environment. Overall, industry revenue has increased an annualized 5.5% to $15.0 billion over the five years... Learn More

6. 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

7. Space Vehicle & Missile Manufacturing in the US

2021 Overall Risk Score: 3.35

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

8. Online Event Ticket Sales

2021 Overall Risk Score: 3.37

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

9. Hydroponic Growing Equipment Stores

2021 Overall Risk Score: 3.41

The Hydroponic Growing Equipment Stores industry has exhibited strong growth over the five years to 2021. Increased consumer focus on healthy eating and the benefits of organic produce have aided hydroponic food crop farmers that use this industry's equipment for small-scale, regional growing operations. Produce that is grown hydroponically often meets organic standards, and its contained indoor process reduces the need for genetically modified pesticides. Consequently, industry retailers experienced a spike in demand due to small farms and individuals seeking to set up hydroponic greenhouses to grow organic foods early in the period. Later in the period, demand for industry... Learn More

10. Millwork Product Wholesaling

2021 Overall Risk Score: 3.43

The Millwork Product Wholesaling industry distributes a range of wood windows, doors, flooring and other wood and metal millwork products. This industry is heavily tied to the overall level of construction activity, particularly residential construction. Over the five years to 2019, the industry has benefited from consistent growth in housing starts and the overall level of residential construction. Additionally, increased private spending on home improvements has also bolstered industry revenue during the period. Over the five years to 2019, industry revenue is expected to increase at an annualized rate of 2.7% to $60.6 billion, despite a slight contraction of 0.3%... Learn More