The COVID-19 (coronavirus) pandemic has caused massive disruption to the British economy since March 2020.
According to the Office for National Statistics, monthly GDP remained 0.5% below February 2020 levels in October 2021, despite CPI inflation reaching 4.2% over the year.
However, not all UK industries have suffered during the pandemic. Enforced social restrictions caused rapid changes consumer behaviours and needs, generating demand for innovative online and digital industries. The following industries are the five best performing UK industries during the coronavirus pandemic, according to IBISWorld data.
5. Language Learning Software Developers in the UK
Revenue growth over the two years through 2021-22: 56.6%
The Language Learning Software Development industry is expected to be the fifth best performing industry in the UK over the two years through 2021-22, with industry revenue forecast to surge by 56% over the period.
The industry was in the growth stage prior to the pandemic, with revenue growing at a compound annual rate of 17.5% over the five years through 2019-20. These services have been especially popular in overseas markets such as China and the EU for people seeking to improve their English language skills.
Over the past two years, the most significant driver of industry revenue growth has been disruption to primary and secondary schools during the pandemic, which has encouraged many parents to find alternative ways to help children catch up with their learning.
According to a survey by the British Council, language teaching was suspended at one in five primary schools in January 2021, while two in five pupils in Key Stage 3 did not engage with language learning during the first national lockdown in the spring of 2020.
Children that have fallen behind in their learning may take a long time to fully catch up, offering sustained demand for industry operators in to the medium term.
4. Precious Metals Production in the UK
Revenue growth over the two years through 2021-22: 65.1%
Over the two years through 2021-22, the Precious Metals Production industry is forecast to grow by 65.1%. In times of economic uncertainty, many investors choose to store their wealth in low-risk commodities such as precious metals including gold and silver. As the coronavirus pandemic spread across the world in March 2020, global stock markets began to falter. As a result, the price of precious metals surged as investors looked for safety amid the volatile trading environment.
Gold prices reached an all-time high of US$2,000 (£1,526) per ounce in July 2020.
Demand for gold reprocessing services tends to follow trends in the price of gold. Higher prices usually lead to more gold being brought into the market for reprocessing and sale as profit margins increase.
This industry was also supported by a surge in online jewellery sales. While disposable incomes fell in 2020-21, consumer spending choices were also limited. Restrictions meant that spending on leisure activities such as eating out and overseas holidays were reduced, meaning consumers had more to spend on luxury items such as jewellery.
3. Online Greetings Card Retailers in the UK
Revenue growth over the two years through 2021-22: 75.5%
The Online Greetings Card Retailers industry is anticipated to be the third best performing industry. Industry revenue is expected to grow by 75.5% over the two years through 2021-22. Competition from traditional bricks-and-mortar card retailers was limited in 2020-21, as shops were forced to shut during lockdown periods, which meant online retailers were often the only viable alternative.
In addition, demand for greeting cards rocketed during the year. Since people were forced to stay away from loved ones for much of 2020-21, greeting cards became an increasingly popular choice to send good wishes to friends and family.
The industry’s dominant player, Moonpig.com Ltd, reported revenue growth of 122% over the year through April 2021, highlighting the robust performance of the industry.
2. Online Food Ordering & Delivery Platforms in the UK
Revenue growth over the two years through 2021-22: 80.2%
Over the two years through 2021-22, the Online Food Ordering and Delivery Platforms industry’s revenue is expected to rise by 80.2%, making it the second best performing industry. The industry grew rapidly prior to the pandemic, with busy lifestyles and rising working hours prompting consumers to swap home-cooked meals for ordering in.
The coronavirus pandemic accelerated growth, as trading restrictions on restaurants and other food-service firms made industry operators one of only a few options for consumers seeking restaurant-quality food during lockdown periods. Food delivery also became many restaurants’ only source of income while restrictions were in place, which drove more restaurants and takeaways to join online delivery platforms.
According to a March 2021 survey by Compare the Market, 42% of respondents had increased their takeaway consumption since the first lockdown in March 2020, while over 45% of respondents also stated that they had celebrated a life milestone with a takeaway, bumping up the average food order value.
Industry players also took advantage of rising demand for grocery deliveries by extending their offerings to include deliveries from supermarkets and convenience stores, expanding their revenue potential. Revenue growth is expected to continue into the future, albeit at a slower rate, as consumers have become accustomed to restaurant-quality food at home.
1. Telehealth Services in the UK
Revenue growth over the two years through 2021-22: 82%
It is perhaps unsurprising that in the midst of the coronavirus pandemic that forced people to remain at home, the best performing UK industry was the digital Telehealth Services industry. The industry’s revenue is expected to grow by 82% over two years through 2021-22.
This growth is the result of a massive rise in demand for remote healthcare check-ups following the outbreak of the coronavirus. The NHS is the industry’s largest individual buyer; as a result, the industry has benefited from government policy to limit social contact and encourage online or over the phone appointments for all non-essential check-ups.
Remote appointments have remained popular even past the end of stringent social distancing measures, with just 64.4% of GP appointments being face to face in October 2021, compared with 81.1% in October 2019, according to the British Medical Association.
Following fears that the NHS could be overwhelmed by the spread of the new Omicron variant in the winter of 2021, GPs have been told to postpone routine and non-emergency checks, and instead focus on delivering booster jabs. This could lead to another rise in remote appointments in early 2022.
The industry has also benefited from a general rise in public and private healthcare spending since the coronavirus outbreak.
Funding for the Department of Health and Social Care in England increased by over £60 billion in 2020-21.
This included extending the use of the independent sector to reduce waits for care, and improving the discharge process for hospital patients both of which included industry services. As NHS waiting lists have soared during the pandemic, many private providers have started to offer virtual consultations, boosting demand for telehealth services. Telehealth services are expected to remain popular in the future.
In a July 2021 survey by McKinsey & Company, 40% of respondents stated that they would continue to use telehealth going forward.
Additionally, the NHS Long Term Plan, which was set out prior to the pandemic, includes a digital-first primary care initiative that includes telephone and video consultations, guaranteeing continued demand for industry services.
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