UK Business Trends

 The past year has seen some of the most radical and fast-moving shifts in the economy for a generation. Entire markets have either become unviable or transformed with a suite of new products and delivery methods.

But what do these UK business trends mean for the future? 

In this blog, we're going to take a deep dive into just three markets that are leading today's biggest UK business trends. We'll assess how new consumer behavior and working patterns have affected these industries in 2021 and consider the scope of future opportunities based on financial expert Gary Hexley's predictions.

The Food-to-Go Market

The Food-to-go market had declined by as much as 45.5% in 2020 due to working-from-home trends and the inability of many restaurants to stay open during coronavirus lock-downs. 

As COVID-19 restrictions ease in 2021, the food-to-go market has enjoyed something of a strong comeback. However, the shape of that market has changed in the interim. In response to ongoing social distancing protocols, many businesses with food-to-go offerings are producing new lines of food tailored to outdoor consumption, such as boxed snacks and salads that people can easily enjoy on a park bench or at a picnic.

Looking ahead to 2022, it's expected that remote work patterns will subsist. A survey of executives found that companies plan to reduce their office space by 30% on average, suggesting that many businesses expect a considerable portion of their employee population to work remotely.

To accommodate this trend, many food-to-go businesses have begun to develop ‘makeaway’ food options — pre-prepared food that can be assembled and/or cooked in a home kitchen rather than be ready for consumption straight away. This allows remote workers to buy-in-bulk at the start of their working week rather than take a trip out each afternoon and still eat quickly.

According to financial expert Gary Hexley,the food-to-go market is entering a transformative phase where new types of customers and product offerings are being developed to adapt to changed social interactions and working patterns. This presents an ideal opportunity to invest in the food-to-go market, as young entrepreneurs can easily develop ‘makeaway’ products before the market becomes saturated.

The Subscription Box Market

When shops were closed, and people were unable to socialize outside their homes in 2020, many turned to subscription box services as both a form of entertainment and a means to accessing products they couldn't get in shops.

Whether it's home-cooked pasta boxes, flower arrangements, or beauty products, people across the UK have signed up for subscription services that meet their interests and tastes. An estimated 6.3 million adults in the U.K. are now users of subscription boxes.

This trend is only set to go higher. According to recent research, the subscription box market is set to be worth a staggering £1 billion by 2022 — that represents growth of as much as 77% in just 5 years.

However, while it's easy to set up a subscription box service, the market is no longer in its infancy. According to Gary Hexley, it may be difficult to launch a product that's different than others on the market.

The E-Learning Market

 

The UK's e-Learning Market is set to grow by $99.4 billion between 2021 and 2025. This sector of the education industry has become increasingly important in the last 18 months as more people work and learn from home.

The e-learning market is part of the wider consumer discretionary industry. As a whole, the consumer discretionary industry has seen a negative impact due to the coronavirus outbreak. Consequently, the 2021 growth rate for the industry is expected to be lower than the overall global GDP growth rate.

However, despite being part of the consumer discretionary industry, there has been a positive growth impact of the pandemic on the e-learning market, thanks to the increased use of e-learning alternatives in the absence of face-to-face education. As a result, the growth of the e-learning market in 2021 is expected to be 13.69% against the same period in 2020.

The U.K. has also transitioned to e-learning at a much faster rate than many other countries. For example, according to the OECD estimates, 71% of state school children in the U.K. had at least one online lesson per day in 2020 — compared to only 6% of students in Germany. This rapid growth suggests a much larger e-learning market to penetrate in the U.K., with the scope to identify further opportunities overseas.

The fragmented nature of the e-learning market suggests a strong level of competition. However, it shows that the barriers to entry into the market are relatively low, and there are ample opportunities for businesses who want to get involved in the market.

Conclusion

Markets have changed dramatically over the past year. However, as Gary relates, there has never been a better time for your business to enter the market with a new product. The extent of consumer spending in 2020 has provided pent-up demand in 2021, which can fuel a new successful business. Hopefully, it encourages UK entrepreneurs to develop products for these three trends above before they become oversaturated.