Is opening a franchise on your list of new year’s resolutions? If not, now might be the time to consider it, as the franchise industry boom that we’ve seen throughout 2021 is set to continue well into 2022.
The State of Franchising
When the COVID-19 pandemic hit, many franchise businesses experienced negative impacts. For instance, in August 2020, over 30,000 franchised businesses closed in the US, with thousands that closed permanently. Because of this, the idea of opening a franchise in certain industries during this time was unthinkable for many.
However, in 2021, we saw a major shift in trajectory, as the industries that prospered during the pandemic continued to do so, while several others that were struggling adopted new techniques to serve customers. As well, pandemic restrictions began to ease in most respects, which gave many industries a much-needed boost.
Combined, this resulted in a surge of employment and franchise success, and it is projected that by the end of 2021 the franchise industry will have recovered to levels that were evident back in 2019 and contribute approximately $477 Billion to the US GDP.
What does that mean for 2022? More franchise growth and more consumer spending! Deloitte’s consumer spending forecasts estimates that consumer spending will rise by 3.0% in 2022, after already expanding by 8.1% in 2021. After taking the time to pick up the pieces this year within the franchise industry, the new year should be full steam ahead with promising prospects.
With an increased interest in making the career switch to franchising, there are several industries to look out for in 2022. A good way to consider which popular industry to enter as a franchisee is to reflect on the industries that were most used in the previous year or that gained mass interest. Below we have listed some of the industries that are expected to continue to thrive in 2022.
The Fitness Industry
To date, there are approximately 504 gym and fitness franchises brands in the US, including over 32,000 health clubs. This industry has seen, on average, a 1.1% growth each year for the last five years. However, the pandemic caused a major hiccup in the industry, as revenue significantly dipped in 2020 when pandemic restrictions forced closures of gyms and congregate indoor settings.
The resilience and popularity of this industry has been evident ever since gyms have opened back up. During the quarantine/lockdown periods, many individuals have put more attention on their health and wellbeing, and as a result, gyms and fitness centers have seen attendance rates rebound quickly.
As well, many businesses in the fitness industry have adapted different digital technology to provide their customers with new ways of fitness services. With an increase in popularity of at-home fitness, providing virtual fitness services has proven to be quite effective. However, there is still a large demand for gyms and fitness centers, as there are many benefits such as equipment and support that many do not have at home.
By 2050, almost 21% of the US population will be 65+ years old, and at least 10,000 baby boomers will turn 65 years old every day until 2029. Accordingly, 27 million are expected to use senior care services. As our population ages, this demand for at-home care, both medical and non-medical, is needed and this has been increasingly evident throughout the pandemic.
By 2060, there will be 95 million Americans over the age of 65 years old, making this an industry that will maintain use and success. However, seniors are not the only ones that make up the market for in-home care. In fact, there are currently 30% of people using at-home health care that are under 65 years old, and these individuals will require care on an ongoing basis.
Franchise businesses that offer support services, such as to maintain mobility or improve health, have seen growing popularity in the last decade, largely because many want to feel comfortable at home as they need care. This is especially true for the older demographic, which makes this industry a popular choice for franchisees.
The Pet Industry
The pet industry has seen great success throughout the pandemic for a variety of reasons, including higher adoption rates and more people staying home to be with their furry family member. Because of this continued success, the pet industry, which is currently sitting at $100 billion, is expected to almost triple by 2030 to $275 billion.
Millennials and Generation Z are much to thank for this continued success, as 65% of 18–34-year-olds plan on bringing a pet into their lives within the next five years. This is, in part, what’s keeping the industry pushing forward, as there is an expected 14% increase in pet ownership by 2030.
As well, younger pet owners are more likely to spend money on their pets, with an average of $1,292/year by 2025. Animal wellness is a growing concern among pet parents, which has contributed largely to the increase spending and is reflected in increases in wellness-related services, like daycare, and pet care products.
As more pet parents are going back to offices, this industry, including dog daycare, will maintain its rate of popularity. If you are interested in a franchise opportunity with Dogtopia, be sure to check out our online FAQ page for more franchise information.