Industries with the Biggest Increase in Profit Margin in the US in 2025

1. Meat Alternatives Production in the US

Percentage Point Increase for 2025: 25.6pp

Producers of meat alternatives enjoyed growth as producers capitalized on growing consumer trends, like health consciousness and moving away from meat products in general, accounting for environmental- and cost-based decisions. Perhaps most notably, producers have exhibited substantial growth as new companies began operating and competing with one another to satisfy growing consumer demand. Industry-wide revenue has been growing at a CAGR of 16.2% over the past five years and is expected to total $8.5 billion in 2023, when revenue will jump by an estimated 9.4%.

Retailers remain the primary source of growth for producers of meat alternatives. Nonetheless, producers... Learn More

2. Video Conferencing Software Developers in the US

Percentage Point Increase for 2025: 5.8pp

The Video Conferencing Software Developers industry has become indispensable over the past five years, transformed extensively by extreme digitization pressures during the COVID-19 pandemic, particularly at large corporations. This trend has been encouraged by several key factors shaping the corporate landscape, including highly globalized workforces, work-from-home policies and flatter organizational structures. The functionality and accessibility of video conferencing software were also forced to improve dramatically during the pandemic, as consumers spent more on webcams, microphones and laptops than ever. Seamless functionality and greater integration have popularized the unified communications as a service (UCaaS) designation for more robust, enterprise-level platforms serviced... Learn More

3. Credit Bureaus & Rating Agencies in the US

Percentage Point Increase for 2025: 5.4pp

Credit bureaus and credit rating agents faced much volatility from downstream markets during the period as COVID-19 disruptions hung over the US Economy. The diverse nature of downstream clients helped to shield the industry from more significant troubles. Throughout 2020, only a few credit reporters and CRA's downstream clients were greatly affected; consumers and non-banking businesses took a big hit as unemployment skyrocketed and business closures spiked. Banking institutions and federal and state governments stopped any other falling demand. The strong demand from select downstream markets caused revenue to grow at a CAGR of 2.9% to $14.0 billion over the... Learn More

4. Cotton Farming in the US

Percentage Point Increase for 2025: 3.7pp

The Cotton Farming industry has experienced extremely volatile operating conditions over the past five years. COVID-19 caused states and localities to enact quarantines, reducing consumer spending and demand for products made by textile mills and clothing manufacturers. Since these industries are critical cotton buyers, the pandemic caused industry revenue to decline. Plunging cotton prices worsened the industry's performance, as they reduced the value of sales. Surging commodity prices immediately following the pandemic contributed to a partial resurgence, but they also made substitutes more attractive. Trade wars and an appreciating dollar caused exports to fall. Since exports constitute a significant source... Learn More

5. Brand Name Pharmaceutical Manufacturing in the US

Percentage Point Increase for 2025: 3.1pp

Over the past five years, the Brand Name Pharmaceutical Manufacturing industry has experienced several new drug launches, with over 28 novel drugs approved in 2022 (latest data available). Given increasing price scrutiny, competition from generics, intensifying market competition among brand-name producers and rising research and development expenses, many manufacturers have shifted their strategic focus to more lucrative therapy areas, such as rare diseases and oncology. As a result, many companies pivoted their pipelines to rare diseases, in which low prescription volumes can be offset by high per-unit costs and benefit from orphan drug exclusivity, which grants longer patent exclusivity in... Learn More

6. Tobacco Growing in the US

Percentage Point Increase for 2025: 2.2pp

The 2005 deregulation of the Tobacco Growing industry continues to linger over tobacco farmers. The removal of federal production quotas and price supports initiated an exodus that has continued into recent years. Without government support, small and otherwise unprofitable farmers have switched crops, dropping out of the industry entirely. With a consistent and downward annualized trend in the percentage of smokers and with the rise in substitute products such as electronic nicotine delivery systems (ENDS), the industry has been facing declining demand for a significant period. Amid the COVID-19 pandemic, tobacco farmers received some federal assistance as a part of... Learn More

7. Nuclear Power in the US

Percentage Point Increase for 2025: 1.9pp

Nuclear power companies produce electricity by heating water in a reactor via nuclear fission and using the produced steam to spin large turbines. The United States has more nuclear electricity generation capacity than any other country, generating more than 778.2 billion kilowatt-hours of electricity alone, according to the Energy Information Administration's (EIA) most recent Electric Power Monthly report. Even so, public concerns about the safety of nuclear power have increased. Nuclear power producers have also faced rising competition from renewable and traditional energy sources. In response, nuclear capacity additions have slowed and older facilities have steadily closed.

Government tax credits have... Learn More

8. Stock & Commodity Exchanges in the US

Percentage Point Increase for 2025: 1.9pp

Stock and commodity exchanges have remained a vital part of the Finance and Insurance sector (IBISWorld report 52). Exchanges act as intermediaries and provide physical trading floors or electronic marketplaces where buyers and sellers arrange trades in securities, commodities and related contracts. Exchanges facilitate the transfer of assets between market participants in different locations and with various timeframes.

The industry has performed well over the past five years. Wage growth was high and unemployment was low in the years preceding the COVID-19 pandemic, increasing corporate profit and the savings rate. Higher corporate profit encouraged companies to invest in the stock market,... Learn More

9. Tax Preparation Services in the US

Percentage Point Increase for 2025: 1.7pp

Tax preparation service providers assist individuals and businesses with filing their tax returns, but don't provide accounting, bookkeeping, billing or payroll process services. During the beginning of the current period, per capita disposable income grew and more consumers had the resources to afford bringing their taxes to professionals. When individuals earn more income, they have greater buying power and are more willing to find tax preparers that will maximize their refunds.

In 2020, this trend reversed as the COVID-19 pandemic generated economic turmoil and restrained demand for in-person tax preparation services. The use of free online filing became more popular... Learn More

10. Food Processor & Blender Manufacturing in the US

Percentage Point Increase for 2025: 1.7pp

Food processor and blender manufacturers make electric- and motor-driven appliances used in food preparation. More specifically, companies manufacture blenders, food processors, stand mixers, slicers, whippers, tenderizers, molders and several other appliances (e.g., ice crushers) used in slicing, chopping, grinding, shredding, pureeing, crushing and mixing food items. The strong economy in the years before the COVID-19 pandemic caused per capita disposable income to rise, enabling consumers to spend more on the industry's products, which raised revenue.

Social distancing and mask-wearing rules made industrial production more difficult when the pandemic hit. The supply of many of the industry's key inputs fell, constraining... Learn More