Top Industries that are Thriving and Making Money in the UK

COVID-19 has changed daily life for those in the UK by rocking economies, altering the face of the workplace, changing our perception of healthcare, and drastically transforming the prosperity of various industries. While recent statistics report just under 200,000 redundancies in the UK following the outbreak of COVID-19, some industries are still hiring, and business is booming. 

Businesses that are thriving during the pandemic

As expected, thriving businesses in the UK are ones that have been in high demand since the start of the pandemic. According to recent figures, pharmaceutical and biotech industries, food and drug retailers, and tobacco have been the best performing FTSE 350 sectors this year.

Tobacco has mostly been unaffected by the pandemic. Smoking is a habit that is incredibly difficult to quit, helping sales be fairly consistent. While tobacco volumes have steadily fallen over the years, tobacco groups have risen prices to account for this and make even more revenue. 

Unsurprisingly, the pharmaceutical industry in the UK has been unaffected by the crisis and continues to be a profitable industry. British food retailers saw a big boom in sales as well, particularly in March when the government first initiated lockdown measures. During this month, UK grocery sales were the highest to ever be recorded. Tesco also enjoyed a 30% increase in sales due to panic buying, leading them to hire 45,000 new employees to cope with the demand. Aldi also hired 1,200 new employees during this time and is planning on opening a new store each week for the rest of the year. Moreover, to cope with the increase in online shopping, companies like Morrisons have hired 20,000 additional people.

Industries that have been negatively impacted by COVID-19

However, not all industries were as lucky. Motor vehicle repair, accommodation & food services, manufacturing, business administration & support services, and construction industries all saw a drop in sales in 2020. In fact, according to IBISWorld, British farmers are suffering from the decline in prices of global food crops and a drastic fall in demand for fresh milk (between 50 and 60%). In just two months, these farmers have lost more than 25% of their income, with agriculture output falling by 4.8% from April to June. The oil price has fallen as well, and many jobs in the mining sector have been cut to compensate for the lower prices and reduced demand.

A hopeful future

While many industries have suffered from the pandemic, experts still believe the impact may be reversible. As restrictions ease and companies begin operations once again, there is hope for sales to recover.

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In the world of international trade, it’s vital to stay on top of current events. For more information on how countries are doing during the pandemic, make sure to check out the rest of our blog!