The potential of a recession in 2023 has kept business leaders on their toes for months now. As markets react to things like the ongoing battle with inflation, strong consumer spending, and the re-emergence of China from three years of lockdown, the possibility of a recession firmly remains in the cards.
Even so, there are certain areas of business that shouldn’t be too worried at the prospect of a market downturn. For instance, larger industries like utilities, industrial supply chains, and food-based retailers tend to not only survive but thrive during recessions.
There are also many pockets of the business world that are uniquely equipped to ride out a recession. Here are a few niche businesses that are in a prime position to grow, no matter how external factors play out in the months ahead.
1. Niche Counselors Should Stay in Business
While physical health has been a priority for modern consumers for decades, mental health has only come into the spotlight in recent years. Since then, consumers have become more aware of the effects that things like stress, anxiety, and depression can have on their quality of life. The result has been a willingness to invest in protecting and maintaining their mental well-being.
The growing capabilities of modern tech have also made it easier for those in need of support to access professional help. The pandemic drove part of this as the crisis accelerated the adoption of telehealth solutions.
The ongoing political and cultural developments in the United States have also put an emphasis on providing targeted rather than generic support. Taken altogether, the importance, accessibility, and relevance of mental health solutions have given them plenty of momentum to survive a recession.
One good example of this is the niche mental health therapy brand Therapy for Black Girls. The service exists alongside a popular podcast by the same name run by a licensed psychologist. Similarly positioned mental health service brands exist for couples, families, and so on. Some help partner users with local services, while others operate over the Internet.
If a recession were to take place, these hyper-targeted companies will likely remain in business. In fact, they may even see an uptick in service. This is due to their customer base grappling with the stresses and strains of financial insecurity.
2. Niche Pet Services Will Remain in Vogue
From dog walking to solopreneurs selling hand-knit cat sweaters on Etsy, the popular world of pet ownership shouldn’t have too many issues in a recession.
Historically, this is an area that could come under pressure when consumers look to cut costs. However, the degree of lavish attention and expenses that younger generations are investing in their pets is unprecedented. Millennials and Gen Zers have elevated their pets to near-child-like status. This makes it much easier to justify spending money on them, even when times are tough.
CitizenShipper is a good example of a niche business set to thrive in this area. As the number one pet transport marketplace in the US, its Uber-like ability to move beloved animals safely from point A to point B is a popular service. And there’s no reason to believe that the growing company’s customer base will stop using the platform if and when they need to move their pets.
Whether it’s safe pet transportation, healthier dog food, or a snowsuit fitted for a four-legged friend, the need for pet care is growing. Modern pet companies shouldn’t have to worry about demand for their products and services much, even in the midst of a recession.
3. Niche Funeral Products Will Still Be in Demand
Financial insecurity marks a recession. It isn’t a pandemic where there is concern over a spike in fatalities in a short period of time. Nevertheless, time carries on no matter where the stock market stands or if the national GDP drops. That means people will continue to pass, and funeral services will remain in demand, just like any other time.
Of course, there isn’t anything unique about the need to provide coffins, make headstones, and organize memorial services. However, every industry has its unspoken support channels that operate behind the scenes. This even includes morticians and funeral home directors. Those niche businesses shouldn’t have to fear their ability to ride out a recession, either.
For example, Mark Thomas Co. is a family-owned company that has operated for over three decades. It provides a wide variety of funeral-related products to the industry. The company is particularly niche since it also incorporates a conscious sense of sustainability through its “Tree of Life” program. The program plants a tree with every urn it sells. This leads to over 162,000 inspiring arboreal births in the past fifteen years. The brand is also exclusively run on wind power, making it an attractive modern solution in an age-old industry.
Whether it’s mental health, providing quality pet care, or sustainably facilitating funeral services, there are many areas of the economy positioned to survive a recession without much trouble. The main question that continues to linger at this point is whether they’ll actually need to do so or if the economy will manage a soft landing, economically speaking. It’s something that only time will tell.