Popular US business sectors in 2023
Explore the most promising U.S. business sectors for growth in 2023, including technology, e-commerce, real estate, and food and leisure. Learn about key trends and opportunities for businesses and investors.
There is no doubt that the past couple of years have been particularly challenging for many people. Yet, while there have been forecasts of an economic downturn in the U.S. in the coming year, there is also significant evidence to suggest positive growth. As we move into 2023, businesses and investors need to stay informed about the sectors that are poised for growth. For those wanting to buy a business, it is important to have access to the right information to make an informed decision.
In this article, we will take a closer look at three promising business sectors in the United States. We will explore the opportunities that each sector presents and some of the key trends for these U.S. business sectors in 2023.
Sectors to consider in 2023
Although headlines of layoffs in some of the largest tech companies may give an impression of future woes for the tech sector, technology has become embedded in virtually every industry in the world and is expected to continue its strong growth in 2023. Advancements in artificial intelligence (AI) and machine learning (ML), cloud computing, and 5G networks are just several areas that are expected to drive growth in the market.
Advancements in AI are being used to automate systems, making the business process more efficient and more effective. Cloud computing will also continue to drive growth as more businesses move their data and applications to the cloud. 5G networks will unlock ultra-fast internet speeds and more reliable connections, creating new opportunities for businesses in areas such as IoT, telehealth, virtual reality, and augmented reality.
One of the fastest-growing business sectors in the U.S. is eCommerce. According to the Department of Congress, U.S. e-commerce grew 10.8% in Q3 2022, with online shopping accounting for over 20% of consumer spending during that period. Convenience, choice, and competitive pricing are said to be some of the key drivers for online shopping, with consumers increasingly turning to eCommerce for everyday items, as well as big-ticket items.
E-commerce is also expected to be a major source of job creation, as more businesses are shifting to e-commerce platforms to sell their products. However, businesses and investors need to be aware that e-commerce also presents challenges such as high competition, the need for a strong online presence, and the need to adapt to the rapidly changing digital landscape. They also need to ensure their online platforms are secure to protect the customer’s data.
While many buyers and investors were locked out of the housing market last year, the Federal Reserve has indicated that increases in interest rates will slow down, and inflation will level off. Not only will this be a prime opportunity for first-time buyers to get on the housing market, but also for buyers looking to invest in real estate.
While there is a demand for housing due to population growth, urbanization, and the desire for homeownership, the real estate industry also includes commercial properties, such as offices, retail and industrial buildings. Commercial properties are likewise expected to see an increase in demand, as the economy continues to recover following the pandemic.
However, the potential for interest rate increases and affordability could be challenges that investors may face in the real estate market, and therefore, investors should seek advice from professionals to make informed decisions prior to investing.
Food and Leisure
The food and leisure industry in the U.S. has seen significant growth in recent years, and this trend is expected to continue in 2023. One of the key drivers of this growth has been the increasing demand for convenience as people lead increasingly hectic lives leading to more people turning to the food industry for quick and easy meals.
Delivery and take-out services have become increasingly popular, spurred on by the pandemic when lockdowns limited people’s movements. One of the significant areas that could see growth is in offering healthy and sustainable food options delivered to your door, as more people look for organic, locally-sourced, and plant-based options.
The leisure industry has also seen a significant increase in popularity, as people look for ways to escape the stress of everyday life. Traditional entertainment venues such as movie theaters, concert venues, and theme parks continue to draw visitors. However, outdoor recreational activities in particular have seen significant growth during the pandemic with almost half of adults from across the U.S. now participating in outdoor recreation on at least a monthly basis.
With numerous sectors in the U.S. poised for growth, 2023 is set to be an optimal time for investing or starting a business. Furthermore, investing in businesses is becoming more accessible for people, even for those lacking the funding or resources to do so on their own. Financial support such as small business grants in the U.S. can provide an alternative to traditional loans, and often come with less stringent terms and conditions. However, It is important for investors to keep an open mind and do their due diligence before investing and it may prove beneficial to seek professional advice before investing.