Entrepreneurs and people looking to invest in businesses have never had it better than they do today. Businesses nowadays, are not only claiming a niche for themselves, solving numerous user problems and ushering in the future of the modern era, but they are also attracting huge wealth. Stock markets are expanding each day and the values of the shares of the companies are ever-expanding, setting new records with each passing day. Such investments are all coming from venture capitalists (VCs), angel investors, and other startup enthusiasts or businessmen.
Though investing in growing businesses can seem to be a shortcut to making a huge amount of wealth in a short time without much brainstorming, it is not exactly what it looks like. Churning out a good amount of money by investing in startups and businesses is a tough nut to crack even for the investing giants, who also incur huge losses in the process. However, there are processes to follow, much experience to gather, and a good amount of knowledge to grasp, which will lead you towards becoming one with the successful investors.
Yes, if you’re planning to jump on this bandwagon and grow your money with short-term investments in a business, now is the time. However, the first step is to decide which industry you should invest in.
To start with this process, here we’ve put together a list of the fastest-growing sectors to help you with this decision of investment.
Here are the top 5 industries that are currently growing at a quick pace in India:
Food Industry
With continuously higher annual contributions to the international food trade, this is one of the fast-growing businesses, which makes it a good bet for investors and business people alike.
The food market and its survival is essential for mankind. Besides, the latest trends that are fuelled by the research and development in the market are making foods healthier and more appetising than ever. Food choices are increasing and conveniences to procure food are decreasing, and all of that is happening due to the ever-increasing potential of the food market. The revenue in the food market of the US amounts to $8.77 tn in 2022. Food market is growing all across the globe really. Even in India, we see a huge rise of food and foodtech startups that are innovating the purchase and delivery of food products. From food processing giants like Nestle, Parle, Britannia, Amul, and Haldiram’s, to food delivery startups like Zomato, Swiggy, to the new-age meat startups like Licious and TenderCuts, vegan foods and plant-based meat startups, everyone is contributing largely to the food industry of the country and exploring new possibilities for themselves and their investors to grow.
Restaurants and food delivery businesses throughout the nation are seeing rapid growth as well. Consumers in the country are also spending far more on specialty gourmet and healthy foods than they did in the past, which makes food retail an attractive option. This sector offers an unlimited potential for high profits and ROI, particularly in segments such as food processing, packaging, and value addition. The Indian gourmet food market has been valued at $1.3 bn, which is growing at a CAGR of 20%.
Himaya Presthitha
Tourism Industry
India offers an endless variety of attractions for both foreign and domestic tourists, from historic monuments to lush natural reserves, quiet hill stations to bustling markets, and more. In recent years, the tourism sector has picked up tremendously and is one of the fast-growing businesses, especially with a rise in disposable income among young professionals. Rather than heading to international locations for vacation, Indians are spending more time and money exploring different parts of the country. This makes the tourism and hospitality industry a great choice for investors.
The travel and tourism industry’s contribution to the overall GDP of the nation was estimated at $121.9 bn in 2020. This will further rise, according to the latest reports, and would reportedly be reaching nearly $512 bn by 2028. MakeMyTrip, Yatra, Goibibo, EaseMyTrip, ClearTrip, and more such players are widening opportunities for the Indians to travel at their ease anywhere they want.
Piyush Mishra
Healthcare Industry
Along with an increase in the average life expectancy and income levels, growing awareness about health and wellness has contributed to the rapid growth of India’s healthcare sector. This has also brought the medical sector into the category of fast-growing businesses.
In addition to the evolution of hospitals, clinics, and healthcare centers, research and development have significantly increased in segments like medicines, their delivery, alternative therapy, health insurance, medical devices, and infrastructure, and more. Don’t forget that India is also a leading medical tourism destination, with people from around the world heading here for dental treatment, cosmetic surgery, and other healthcare aids.
Looking at the growth of the healthcare sector in India, while the hospital industry in India is growing at a CAGR of 16-17% and will soon reach $132.84 bn, the pharmaceutical sector of India is worth $42 bn, courtesy of the pharmaceutical giants operating in India. The pharmaceutical sector of India is positioned 3rd in terms of volume and enjoys the 13th place in terms of value as per the recent surveys.
This growing healthcare sector is now flooded with numerous startups like 1Mg, HealthKart, mFine, Netmeds, Practo, PharmEasy, MediBuddy, HealthifyMe and more, which are strengthening healthcare across various segments and beefing up its offerings.
Avinash kumar mahato
Retail Sector
The retail sector in India has seen immense changes and growth in the last few years, especially after the emergence of the e-commerce and online shopping space. With the world’s second-largest middle class that also has a high disposable income, competitive pricing, and rapid digitalization of the retail space, India currently ranks 5th on the list of global retail destinations. From small-scale startups to well-established giants, the retail industry offers something for every investor so much so that the would-be entrepreneurs are also practically spoilt for choice in this industry!
Though the retail market was identified as a largely unorganised sector earlier, it is fast bringing an organised structure in place. The organised portion of the retail sector is now more than 50% of the industry, and this growth has manifested in just teh period between 2012-present. The modern retail industry is now expected to grow at a CAGR of 15% and will even estimated to increase to 18% by the end of 2025.
So, if you are looking for investment in the fast-growing businesses of now, then the retail industry is definitely one of them. Besides, with the retail giants like the Tata Group, Reliance Group, Aditya Birla Group, D-Mart and more, and the growing talks of superapps like TataNeu and that of the ONDC and how it will change the retail sector, the retail industry is definitely a dream pick for the investors.
Avantika Bhardwaj
Personal Care
The range of products and services offered by India’s personal care industry has undergone tremendous changes over the years. Today, almost everyone is willing to spend more money on a variety of organic, handmade, and natural alternatives for their daily use. These include soaps, shampoos, makeup, hair styling products, and intimate hygiene solutions.
The beauty and personal care market in India has been estimated at $24.53 bn in 2022, and is expected to scale to $33.33 bn by 2027, the growth of which is estimated at 6.32%.
Selling through online portals surely opened up more opportunities for small business owners and the larger ones. Besides, quality beauty and personal care brands and their products are made available easily online by the D2C beauty and personal care brands like Nykaa, Plum, Tattva, Mamaearth, Wow Skin Science, Purplle, and more. Also, the personal care giants like ITC, HUL, Dabur, Godrej and its subsidiaries, Colgate, etc., are always renovating their products and revisiting their quality and effectiveness to give the startups a fight. Moreover, scopes are always increasing in wedding planning, tattoos, and piercings, spas, massage therapy, and other related sectors.
If you’re seeking funds to launch your dream business, grow your existing business or take advantage of a time-bound investment opportunity with high returns, consider using a personal loan. An unsecured loan or personal line of credit can be repaid over time, which makes sense if returns from your investment will be higher than the loan interest!
Rishita Jain
FAQs
What is the fastest-growing retail store?
Retailers Rising to the Top – Based on these metrics, activewear brand lululemon is the world’s fastest-growing retail brand for the second year running. Famous for its culture of accountability and global community events, the brand has struck the perfect balance between a seamless online and offline experience.
What is the role of the food industry?
The role of the manufacturing food industry in relation to the provision of foods for the weanling encompasses 4 main objectives viz. customer satisfaction, safety, providing product information, and the maintenance of commercial viability.
What is the meaning of the tourism industry?
In its broadest sense, the tourism industry is the total of all businesses that directly provide goods or services to facilitate business, pleasure, and leisure activities away from the home environment.