While Tech Investing Slows These 3 Growing Industries Are Getting Hot While the familiar tech sectors seem to be entering a down phase, the future is bright in other sectors you need to learn about.
By John Boitnott Edited by Dan Bova
Opinions expressed by Entrepreneur contributors are their own.
Right now we're experiencing a bit of a contraction in the tech ecosystem, as many companies announce layoffs and venture capitalists slow down their investing. In my opinion this is just a natural, appropriate reaction to a lack of strong business fundamentals among some companies and not a precursor to a major collapse of some sort. Even though investor enthusiasm seems to have waned, there are still industries with such an upside that they will probably be expanding for years to come.
Apart from providing new market opportunities for investors, industries set for lots of growth are also often favored by lending institutions, which want to provide affordable business loans to smart business people with their finger on the pulse of industry growth potential (and a detailed plan in place).
With technologies changing and introducing sectors across the globe, it's clear to see that the booming businesses of the next decade are likely to be quite different from what we've seen over the past 20 years. If you're keen to build a company that leads the pack, these three growing industries are worth considering investing your time, money, passion, and energy into today.
1. Online food purchasing.
You might already buy your music, books, clothes, accessories, gifts and other items online, but in the coming years you will likely also purchase more and more of your food that way too. Although online food sales have been growing consistently for the last few years, the trend is set to rapidly increase over the coming decade.
A number of different reasons are causing the growth in the amount of food sold online. Entrepreneurs that are aware of these changes in online shopping habits can be the first to benefit from new market growth. The first factor is that buyers are busier than ever and working longer hours, making the purchase of groceries online an easier, more feasible option. In addition, consumers are increasingly comfortable with purchasing items via e-commerce sites, so they have more trust in having them delivered straight to their door.
Related: Chili's Is Getting Into the Delivery Business -- For Orders $125 and Up
Telehealth.
Health services provided by companies that use digital technology to remotely administer education and different types of medical support are known as "telehealth." This strongly growing field is projected to become one of the biggest industries in coming years, driven largely by aging populations around the world. More and more people will need care, but it's not entirely sure there will be enough hospital beds and practitioners available to provide it. As a result, technology will be used to bridge the gap.
The growth in this area also stems from the rise in the number of people with chronic health conditions like heart disease and diabetes who can be advised and monitored remotely rather than in person. Many advances in technology are making telehealth services more cost effective and feasible to deliver in large numbers. Also, a big bump in support provided for health services in many countries may be used to set up telehealth programs.
The telehealth industry covers a wide range of different medical services. The most common types of services so far though are things like monitoring patients remotely for changes in health or lifestyle choices; video conference consultations; and the digital transmission and storage of medical data (such as X-rays, other scans, and patient files).
Related: How One Company Is Mining Big Data to Fight Diabetes
2. Relaxation beverages.
Over the years you have likely tried some sort of energy drink, or at least know a number of people who have. While these types of beverages have been popular for more than a decade, "relaxation beverages" are becoming more popular. This sector of the food and drink market is already on the rise and is likely to become a very familiar term soon.
As the name suggests, relaxation drinks are supposed to be the opposite of energy beverages. Instead of being full of caffeine to keep consumers alert and awake, relaxation drinks will be sold for their calming effect. These new types of beverages will be marketed for their sleep-promotion and relaxation benefits, as they can help consumers rest more thoroughly and switch off. The types of beverages created in the sector often contain active ingredients like melatonin or I-theanine, and come in the form of carbonated drinks, dairy-based beverages or ready-to-drink teas.
Related: 4 Healthy Alternatives to Energy Drinks
The new industry is still in early stages, but the consumer backlash against some commonly-reported side effects of energy drinks (such as gastrointestinal upsets, tremors, palpitations, dizziness, chest pain, and insomnia) will probably help move sentiment towards relaxation-based recipes instead. Research firm IBISWorld released a report that shows the relaxation drink market grew 23 percent in 2014, and is expected to increase to a value of over $260 million over the coming few years.
