Are we in a recession?
Will inflation ever slow down?
It’s hard to say where the economy is headed in these trying times. Forbes experts and economists alike are scratching their heads and revealing, “these are unique times, in a very strange economy.”
While it’s difficult to see what's ahead, we can still note that many industries are finding stability in this volatile market. Below, we’ve outlined three growing industries in 2023.
The e-commerce industry continues to thrive. While numbers aren’t reaching nearly what they were in 2020, online shopping is predicted to account for 47% of retail growth by 2027.
Top categories for retail growth in 2023:
- Health & Wellness: The health and wellness sector is becoming more popular as trends push to meet consumer demand for healthier and more sustainable lifestyles. The sector is expected to be worth $7 trillion by 2025.
- Furniture and Decor: The 2020 home improvement trend is still driving growth in this category. Some experts predict e-commerce will outpace in-person sales of residential furniture by two to three times.
- Pet Care: Work-from-home has its advantages, including adopting an adorable new coworker. The online pet care space has seen explosive growth since remote work has taken off.
Drivers of E-commerce growth
Here are a few drivers for e-commerce’s consistent growth:
- Consumer demand: There is an ever-prevalent demand for online products. Projections reveal that e-commerce growth in 2023 will be 5% higher than in pre-pandemic times. The convenience of online shopping keeps customers coming back.
- Third-Party Logistics: Businesses that can keep up with the high order volumes usually partner with third-party logistics companies. Whether that's through efficient delivery, top tech, or other strategies, outsourcing these logistics makes it easier to focus on meeting the demand.
- E-customization: Finding ways to embed personalized options in online orders, utilizing AI tools to streamline personalization.
As for what’s ahead, keep your eyes out for growth in the healthcare and shipping and delivery industries.
Similar to e-commerce, healthcare is not seeing the same rapid growth spurred by the pandemic, but it is still actively growing as an industry. The areas for growth in healthcare are:
- Telehealth: Before 2020, telemedicine and virtual appointments were rarely used, but now they are a new normal thanks to their convenience. Congress continues to push for healthcare to expand beyond the doctor’s office, creating the Advancing Telehealth Beyond COVID-19 Act of 2022.
- Medical equipment & delivery: This growth goes alongside telehealth, with many patients asking for medical equipment to be delivered straight to their homes.
- Pharmaceutical: New medicine advancements and opportunities push for pharmaceutical growth, specifically in the immunology and oncology areas.
Drivers of healthcare growth
- Consumer demand: The aging U.S. population, the prevalence of chronic diseases, and the expansion of mental health opportunities fuel the need for healthcare. There is also a wider range of healthcare opportunities thanks to telehealth.
- Increased research and development: Consumer demand pushes for increased R&D, which aids in providing advanced medical equipment and technology.
Shipping & Delivery
Thanks to e-commerce, shipping, and delivery are growing as well. Many companies are partnering with third parties to establish convenient shipping:
- Traditional delivery: FedEx, UPS, and others saw incredible and unexpected growth during the pandemic, opening the door for other companies to bridge the gaps between supply and consumer demand.
- Crowdsourcing: Some may partner with companies such as Shipt, Uber Freight, and DoorDash to utilize gig labor to deliver products on their behalf. To learn more about delivery partnerships, check out our blog here.
- Share Economy: Sharing economy is similar to crowdsourcing. It is now easier than before to rent what you need exactly when you need it. Sharing economy features a wide array of products, including delivery vehicles. Stay ahead of the demand and ensure your customers don’t suffer the consequences of shortages by utilizing shared resources.
The driver here is the uptick in e-commerce sales and the boom in delivery services for many other industries. Here are more specifics on consumer preferences for shipping and delivery:
- Quick delivery: Online order turnarounds have rapidly increased, with consumers holding firm to their expectation of orders arriving within 3 business days. 62% of shoppers expect free delivery options to arrive within that same 3-day window.
- In-house delivery: Forbes saw a 74% growth in the transportation industry last year, and much of that is attributed to businesses establishing in-house delivery.
- Transparency: The shipping and delivery industry has grown exponentially in its tech to meet an important need of consumers – transparency. 90% of shoppers believe it’s important to track their orders.
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Delays to growth
Even though these industries are growing, there are still some roadblocks:
- Inflation: Record-high pricing and instability have caused consumers to be reluctant about where they spend their money. Inflation peaked at 7 percent in 2021 and has since lowered to 6 percent this year.
- Labor shortages: It’s challenging to meet demand when there aren’t enough workers in many industries. This is why outsourcing labor and resources is so popular among successful businesses.
- The cost of shipping: A culmination of the issues above has caused an overall increase in shipping prices. Many companies are adding surcharges to shipping prices before they even leave the warehouse.
- Mass Layoffs: Tech companies are in an uphill battle with inflation and high-interest rates, resulting in mass layoffs across Silicon Valley. The workforce is 10 percent smaller and recession remains on the horizon.
Meet the demand with Fluid Truck
Consumer demand is a driver in all these industries, regardless of the unpredictability of the economy. Are you seeing growth in your industry? Meet consumer demand with Fluid Truck -- your partner in fleet logistics and delivery. Fluid Truck offers trucks 24/7, 365, and we’re here for you so that you can be there for your customers. We champion growth and work alongside businesses big and small to ensure they have what they need exactly when they need it. To learn more about Fluid Truck for business, click here.