30 Best Niche Industries for Startups


15 Best Niche Industries for Startups

Statistics tell us thousands of entrepreneurs start businesses every year.  After four years, more than 50 percent are gone. Getting a good start is important to success, and one way to do so is by selecting from among the right niche industries.

The Best Niche Industries

Here are 30 of the best niche industries for startups:

1. Bottled Water

best niche industries

This is a money-making niche thanks to high resource availability and profit margins. However, there’s more to it than just finding a source and bottling the water.  Steps you need to take include sanitizing the bottles and filtering the product. Sell directly to customers or look for grocery store contracts.

2. Organic Skincare

Natural products that don’t harm the environment are on the rise. That includes skincare products for women, which have high market demand and room for growth. These products are so popular now, there’s even a best of list for 2019. A lot of the niche products here are corralled into lines including facial masks and cleansers.

3. Self Improvement

There’s a product for most everything you want to improve about yourself. Courses for everything from improving self esteem to building up your career. There are some obvious ones to start in like how to make money and personal finance. There’s low barrier to entry in this niche, and plenty of room for adaptability.

4. SaaS Software

Selling software as a service to small businesses is big.

One of the most profitable niches right now is SaaS software products targeted towards legal and medical professionals,” writes Nishank Khanna, VP, Growth Utility NYC. “Both niche segments have plenty of cash to spend on products that can streamline their workflows and save them time.”

5. Inbound Leads from SaaS Software

This is a subcategory of the SaaS software niche. Start ups can make a decent living supplying the software and generating leads for clients. Khanna explains.

“Lawyers and doctors spend a lot of money on getting more inbound customers and often spend thousands each year on existing platforms for growth.”

6. Travel Writer

best niche industries

You can monetize your vacations and maybe even turn travelling into a full time gig. Here’s a tip to start selling blogs. Write personal descriptions/ accounts backed up with facts.

7. Wellness

This one has lots of room to branch out.

“Wellness is one of the biggest industries in North America right now.  Entrepreneurs can branch off into any and all directions that are relevant to what they want to do. You may start up as a personal trainer, open up a yoga studio, or create a nutrition product.”– Deborah Sweeney, CEO, MyCorporation.com

8. Online Dating

What better way is there to get people together than use the Internet to setup an online dating company? There’s good money in this niche thanks to high consumer demand and adaptability. If you live in a big city, you might want to target local singles at first.

9. Home Organizing

Melisa Celikel is the CEO of Let’s Get You Organized! She supplied a quick run down of how she got her business started.

“I created a Wix website, a FB business page, IG business account, and Pinterest business account,” she writes. “Accepting payments through Venmo, Square, and PayPal since there’s no barrier to entry with these free apps was easy.”

Celikel formed an LLC on LegalZoom and got business licensing and insurance within a week.

10. Natural Dog Food

best niche industries

Fido’s health is important to everyone who owns a dog. This is a great twist on the health market that’s worth $21 billion. You’ll need to be familiar with some Food and Drug Administration regulations to start.

11. Private Label Products

“Find a product that is in high demand on Amazon or eBay. One where the top sellers are currently lacking in some area,” writes Patricia Russel from FinanceMarvel. “Drop shipping a similar product with your own private label can set you up for serious long-term success when done properly.”

Here’s some further information on starting a private label business:

Starting a Private Label BusinessDescription
Why Private Label?Private labeling allows a unique branding opportunity and higher profit margins by selling another's product under your own brand.
Product SelectionUse tools like Jungle Scout to identify high-demand products on Amazon or eBay.
Identifying GapsStudy top sellers to find weaknesses in branding or feedback as your market entry points.
Dropshipping Vs. StockingDropshipping reduces initial investment by selling directly from the manufacturer, while stocking might offer higher profits.
BrandingCreate a distinct logo, packaging, and promotional materials to make your product stand out.
Legal ConsiderationsResearch intellectual property rights to ensure no infringements and protect your brand.
Supplier RelationshipsFoster strong relationships with suppliers to ensure quality and fair pricing.
Feedback LoopActively gather customer feedback to refine your offerings and stay competitive.
ScalingConsider diversifying products or expanding into new markets as demand grows.

12. Monthly Gift Basket Subscriptions

“These have been popularized on Reddit by the Dollar Shave Club,” Russel says.  “The monthly subscription business is incredible because it has a low cost of entry.”

She suggests a collection as-is items from Alibaba, AliExpress, or JD.com to start. Then add your own private label items.

13. Personal Finance

If you’ve got some education and training in this area, this is a great niche business. You can start building up a client base through public speaking engagements.

14. Eco-Friendly Packaging

With increasing awareness of environmental issues, the demand for sustainable packaging solutions is on the rise. Startups can explore biodegradable, compostable, or recyclable packaging options that appeal to eco-conscious businesses and consumers. This niche is marked by its high market growth potential and positive environmental impact.

15. Virtual Event Planning

The shift towards virtual gatherings has opened a new avenue for event planning. From corporate meetings to online weddings, the possibilities are vast. Offering specialized services in virtual event planning, including tech support and creative virtual engagement ideas, could set a startup apart in this burgeoning field.

16. Specialty Teas

The global tea market continues to grow, with a shift towards health-conscious and premium varieties. Startups can explore niche segments like artisanal blends, wellness teas, or culturally unique teas. This industry offers room for creativity and caters to a growing segment of health-aware and experiential consumers.

17. Animal Rescue

best niche industries

You’ll need to have the proper permits and licences to start this business. You’ll also need to hire a staff right away to make an animal rescue work.

18. Digital Health Solutions

The health sector is ripe for digital innovation, from telehealth services to mobile health apps and wearable technology. Startups can develop solutions that improve patient care, enhance health monitoring, and provide personalized health insights. This niche not only has a high growth potential but also contributes positively to societal well-being.

19. Renewable Energy Solutions

With the push for sustainable energy sources, startups in the renewable energy sector have a significant opportunity. Innovations in solar, wind, hydro, or biomass energy can meet the increasing demand for clean energy solutions. This industry is characterized by its long-term sustainability and high barrier to entry, but with substantial rewards for innovation.

20. Niche Tourism

Specializing in unique travel experiences, such as eco-tourism, adventure travel, or cultural immersion trips, can set a startup apart in the crowded tourism industry. Offering bespoke packages or focusing on lesser-known destinations can attract travelers looking for something beyond the conventional tourist path.

21. Urban Farming Technologies

As cities seek sustainable food production methods, urban farming becomes increasingly vital. Startups can offer innovative solutions like vertical farms, hydroponics, or aquaponics systems to enable efficient food production in limited spaces. This niche not only has a strong market growth potential but also supports urban sustainability.

22. Educational Toys and Games

Developing educational toys and games that combine learning with fun represents a growing niche. Products can range from STEM toys to interactive learning apps, catering to parents and educators seeking innovative educational solutions for children. This market is marked by its adaptability and potential for positive social impact.

23. Specialty Fitness Classes

Offering unique fitness experiences, such as aerial yoga, underwater spinning, or virtual reality workouts, can carve out a niche in the fitness industry. Tailoring classes to specific demographics or interests helps build a dedicated community and stand out in a competitive market.

24. Personalized Nutrition

With growing interest in personalized health, offering tailored nutrition advice and customized meal plans can meet this niche demand. Incorporating genetic testing or AI-based analysis to provide personalized dietary recommendations could be a game-changer in the nutrition and wellness sector.

25. Sustainable Fashion

Creating a brand that focuses on eco-friendly, ethical, and sustainable fashion practices can attract environmentally conscious consumers. This can include using sustainable materials, promoting fair labor practices, and implementing recycling programs. The sustainable fashion niche is marked by its high consumer demand and social impact.

26. Cybersecurity for Small Businesses

Small businesses are increasingly targeted by cyber threats but often lack the resources for comprehensive cybersecurity solutions. Providing affordable, scalable cybersecurity services tailored to small businesses could fill this critical gap, combining profitability with a high barrier to entry due to the technical expertise required.

27. Craft Brewing

The craft beer industry continues to grow, with consumers seeking unique and locally produced options. Starting a microbrewery or offering brewing workshops can tap into this trend, especially if focusing on unique flavors or sustainable brewing practices.

28. Home Automation Solutions

Developing smart home technologies that enhance convenience, security, and energy efficiency can cater to the increasing demand for connected homes. Startups can focus on niche segments like eldercare automation or eco-friendly smart home systems.

29. Plant-Based Foods

With the rising trend in veganism and plant-based diets, there’s a growing market for plant-based alternatives to meat, dairy, and other animal products. Innovations in taste, texture, and nutritional content can set new entrants apart in this rapidly expanding industry.

30. App Development

best niche industries

Almost anything that has to do with IT is startup gold. App development is no exception. Give away one version for free and then charge for more features. This leads to high profitability and adaptability.

Identifying the Best Niche Industries for Startups: Our Methodology

Identifying the best niche industries for startups is a multifaceted process, one that requires us to consider current market trends, growth potential, and the unique opportunities each niche presents. Here’s our methodology and the criteria we used, rated on a scale of 1 to 5, with 5 being of utmost importance:

  • Market Growth Potential (5/5):
    • Predicted growth rate of the industry
    • Emerging trends and consumer behaviors
    • Long-term sustainability and scalability
  • Barrier to Entry (4/5):
    • Initial capital investment required
    • Level of competition in the niche
    • Regulatory or legal barriers
  • Innovation Opportunities (5/5):
    • Potential for technological or service innovation
    • Openness to disruption or new business models
    • Availability of untapped markets or customer needs
  • Profitability (5/5):
    • Historical and projected profit margins
    • Revenue diversification possibilities
    • Scalability of business models
  • Resource Availability (3/5):
    • Access to necessary materials or skills
    • Availability of industry-specific support or networks
    • Dependency on scarce or nonrenewable resources
  • Consumer Demand (4/5):
    • Evidence of existing or latent consumer demand
    • Responsiveness to changing consumer preferences
    • Brand loyalty or customer retention potential
  • Social and Environmental Impact (3/5):
    • Potential for positive social or environmental contributions
    • Alignment with global sustainability goals
    • Consumer perception of ethical practices
  • Adaptability and Resilience (4/5):
    • Industry’s resilience to economic fluctuations
    • Flexibility to adapt to technological advancements
    • Capacity to withstand regulatory changes

By evaluating each potential niche industry against these criteria, we aim to provide startups with insights into not only the most lucrative sectors but also those that align with broader social, economic, and environmental trends.

Why You Should Start a Niche Industry Business

When starting a new business, standing out can be challenging. Yet, finding and targeting a niche market can offer an array of benefits for budding entrepreneurs.

Specializing in a niche industry allows businesses to focus on a specific segment of the market, leading to enhanced growth opportunities and improved brand recognition. Here are five compelling reasons to consider diving into a niche industry:

  • Focused Target Audience: With a niche business, your marketing efforts are honed in on a specific audience, allowing for tailored messaging and campaigns. This focus often results in higher engagement rates and a more dedicated customer base.
  • Reduced Competition: In niche markets, there are typically fewer competitors, allowing your business to quickly become a recognized authority in your specific area of expertise.
  • Higher Profit Margins: Due to the specialized nature of niche products or services, businesses can often command higher prices. Customers are generally willing to pay more for products that cater specifically to their unique needs or interests.
  • Increased Customer Loyalty: Niche businesses often attract passionate consumers who value and appreciate the specialized offerings. This can lead to increased customer retention, loyalty, and referrals.
  • Easier Branding and Positioning: With a clear focus, it becomes easier to position your brand and communicate its value proposition. Your branding can be more distinct and memorable, helping you stand out in the marketplace.

For more, check out these 51 business ideas and these most profitable niches.

Image: Depositphotos.com


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Rob Starr Rob Starr is a staff writer for Small Business Trends and a graduate of Ryerson University in Toronto with a Bachelor of Journalism degree. His print credentials include employment with various Toronto area newspapers and three works of fiction: The Apple Lady (2004), Creekwater (2006) and Sophistry By Degrees (2008) published by Stonegarden Press In California.

2 Reactions
  1. Software is amazing. It can start small but the profits are huge.

  2. Useful information you have shared here for those who want to start their business. You are right, good start is important to success.

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