Earlier this month I attended a week-long conference where I met with over 120 companies. I spent 12 hours a day researching and analyzing the best franchise concepts in the industry. All this studying and networking helps us to better understand the industry, , the owner profiles, and present you with franchise opportunities ripe for success.
One key takeaway from the conference was the franchise trends we can expect to see in 2023. These five industries are seeing impressive growth and offer great opportunities for franchise investors!
1. THE PET INDUSTRY
Americans are pet obsessed. The love people have for their pets is not restricted by age, gender, income, or any other demographic. Across the board, pets are treated as members of the family. As a result, the pet industry is booming.
70% of US households own at least one pet. Millennials make up 32% of pet owners, Baby Boomers make up 27%, Gen X 24%, and Gen Z 14%. Altogether pet owners spent $123.6 billion on their pets in 2021, and they’re not slowing down. The industry is expected to grow by 143% by 2030.
There are a ton of franchise options in the pet industry, including:
- Nutrition (natural/organic pet foods)
- Dog boarding, dog hotels, and dog daycare
- Pet walking and pet sitting
- Grooming
- Dog training
- Pet supply stores
In addition to the growing industry, there are many other reasons why buying a franchise in the pet industry is a good investment. Many pet franchises are relatively lower cost, lower risk, and quick to open. Pet businesses are also “recession proof” – even during tough economic times, people continue to spend money on their pets. Lastly, when it comes to staffing, you are likely to find “passion employees” in this industry who will help your business thrive.
2. POOL CARE
The pool cleaning and maintenance industry is currently experiencing the largest growth and highest demand in recent years. The rise in pool owners can be attributed to the COVID pandemic when people were spending significantly more time at home and installed pools for relaxation and entertainment. Post-COVID, there has been a huge demand for pool care services.
In 2022, the pool services and maintenance industry in the US reached $7.2 billion. The market is expected to grow by $ 3.56 billion by 2025.
In the franchising industry, most pool care businesses fall into these categories:
- Swimming pool retail
- Pool cleaning and maintenance
- Repair services
- Swimming lessons
It’s not just private residential pools that require these services. Places like hotels, gyms, and schools also have a demand for pool care services, especially cleaning. COVID emphasized the importance of cleanliness and hygiene particularly in public spaces.
A great thing about pool cleaning, maintenance, repair, and lessons is that they can be mobile businesses that require no storefront. This lowers the time and cost of opening the business.
3. FITNESS
The fitness industry is huge and has been seeing significant growth post-COVID. Many Americans reprioritized their health and fitness during the pandemic. Since the end of the pandemic, many people are looking for ways to continue pursuing fitness goals and stay healthy.
In 2021, the US fitness industry revenue was $33.25 billion. The industry is expected to grow 171.75% by 2028. Fitness franchises make up a significant portion of this industry with over 10,400 clubs that accounted for approximately $6 billion in revenues in 2022.
Types of fitness franchises:
- Big box gyms
- Strength and fitness coaching
- Boutique gyms
- Boxing and Kickboxing gyms
- Personal training studio
- Yoga, pilates, dance studios
Over 60 million Americans own fitness memberships and the industry engages people of all age groups. 33% of gym members are Millennials, 24% Gen X, 22% Baby Boomers, and 14% Gen Z.
Within the fitness industry, interest in personal training, small group training, and boutique gym experiences are on the rise. Boutique gyms offer a more personal fitness experience and are expected to grow 450% by 2028.
4. SELF CARE
We used to think of this industry as “beauty” focused, but it has evolved into something much bigger. The self-care industry has become synonymous with wellness. The self-care trend began during the pandemic as people became more aware of the need for self-care, wellness, and reducing stress.
In the U.S., the beauty and self-care industry has grown into an $85 billion market. Self-care makes up the largest share at $40.33 billion. The market is expected to grow annually at a rate of 3.93% from now until 2026.
Self-care businesses are moving away from the “one-stop-shop” model where you can get hair, nails, and a facial done in one place, to a more specialized model. People are looking for high-quality, personalized care. Businesses are adapting to focus on specializing in one service.
Self-care franchises that are trending include:
- Facials
- Massage
- Waxing
- Mental health services
- Chiropractic care
- Med spas featuring anti-aging and performance services
There is also a rise in recovery services that help people recoup from high stress and the day-to-day grind, such as hot/cold therapy, saunas, cryotherapy, and IV drips.
A major benefit of starting a business in the self-care industry is that the opportunities for growth are seemingly endless. We are always learning more about our bodies and technology is constantly advancing allowing businesses to provide new and improved self-care services.
5. HOME SERVICES
The home improvement industry experienced a boom in 2020 during the COVID-19 pandemic while so many people were spending more time at home. However, even since the pandemic the home services industry has been steadily growing. The home improvement market has a valuation of $457 billion and is expected to hit record-high revenues in 2023.
Where we are seeing the greatest trend is in quick remodel projects. These projects don’t have prohibitive costs and don’t take much time to finish, yet they significantly improve the home.
Some franchise businesses for the most in-demand services are:
- Kitchen cabinets
- Fences
- Landscaping
- Bathroom remodels
- Interior and exterior painting
The home service industry is also widely considered recession-proof. During economic downturns, people tend to go out less and take fewer vacations. This means they spend more time at home and give more attention to home improvement projects.
If you are interested in becoming a business owner this year, reach out to learn more about franchise trends and discuss what opportunities are best for you.
