Hot Sectors

IBIS recently published their hot sector outlook through to 2027. We have considered some of their statistics and included a few highlights and thoughts below:

Digital advertising agencies – revue growth in 2023 is expected to be up by 11.4% with an average of 9.44% annually out to 2027. This sector growth is reflecting the push from traditional forms of media to digital; we are seeing that specialist expertise in this area is in high demand by large corporate advertisers and large agencies. Larger agencies and marketing companies are actively seeking smaller agencies seeking to bolster their digital capabilities.

Organic farming, including livestock and poultry farming, is expected to be up between 11-13%. The organic farming and food sector has often taken a hit in leaner times. However, the organic food and “better for you” space is obviously here to stay, with consumers increasingly seeking healthy and natural options. We are seeing trade buyers with appetite for these sorts of assets, especially where there is a well-established and differentiated brand with good credentials in the health space.     

Battery Mineral Mining – producers of EV batteries and other green technologies are set to be up 25% annually on a compound growth basis out to 2027! The green sector has legs. We are working in this area and seeing this kind of growth year on year by a number of attractive private assets. The challenge here can be the capital to fund the rapid growth in the earlier stage businesses.      

Cloud Storage Services – expected to grow by 9.44% annually out to 2027. Technology, including storage and security, is hot. The need for companies to get across the risks and demands of protecting and securing data is driving this sector north. We are working in this space, and we like the long-term fundamentals as we see companies starting to evolve into more profitable business models and overcome resource shortages.

Online Travel Booking – set to grow by 17% out to 2027. The rapid switch in this sector, aided by COVID, has been huge. The demographics are also pushing more and more travel online, and younger consumers seem to prefer not to talk to people and simply jump online and figure it out, glitches and all. Businesses with this kind of technology solution in a valuable travel niche are in demand from larger trade buyers seeking specialist capability. It’s cheaper to buy than to build!

Watch this space

Above are only a few sectors that seem to be bucking the short-term interest rate gloom and talk of recession, and there are plenty of other sectors that we like and will report on in future blogs, watch this space. If you are in a sector that’s struggling, hang in there, be creative and remember it doesn’t stay winter forever.