Industries with Least Risky Business Environments in the UK in 2025

1. Renewable Electricity Generation in the UK

Business Environment Risk for 2025: 2.66

Increased awareness about the effects of climate change has driven an aggressive decarbonising strategy, spearheaded by renewables. Government targets and incentives spur major investment in renewable assets among UK energy giants, while technology developments boost potential generating capacity, particularly in offshore wind, which has grown the fastest of all renewable energy sources. Government data shows that the share of electricity generated from renewables surged from 29.2% in 2017 to 39.6% in 2021.

Renewable generators' revenue has increased at a compound annual rate of 6.9% over the five years through 2022-23, reaching £8.5 billion. Growth has been underpinned by the unrelenting expansion... Learn More

2. Non-Alcoholic Beer Production in the UK

Business Environment Risk for 2025: 3.10

Per-capita alcohol consumption, income, price, health consciousness and consumer preferences drive non-alcoholic beer producers' performance. Over the five years through 2022-23, revenue is set to grow at a compound annual rate of 30% to £807.6 million, including growth of 34.2% in 2022-23, with the average industry profit margin hitting 19.7%.

Shrinking alcohol consumption per capita alongside growing health consciousness is paving the way for industry growth. Popular craft beer producers are rapidly introducing no-alcohol and sustainable beer varieties, driving growth in the non-alcoholic beer industry. During the COVID-19 pandemic, many consumers stuck at home cut out booze, dabbing into non-alcoholic beer... Learn More

3. Medical & Orthopaedic Supplies Retailers in the UK

Business Environment Risk for 2025: 3.16

The Medical and Orthopaedic Supplies Retailers industry has endured tough operating conditions. The NHS is a significant opponent, offering free treatments and products to qualifying patients. Competitive threats from the private sector, pharmacy chains and dispensing chemists have persisted. Additionally, online-only operators have expanded their product offerings and captured market share from specialist retailers. Despite this, over the five years through 2023-24 revenue is expected to expand at an overall compound annual rate of 3.6%, reaching £1.4 billion.

While the NHS is the industry's biggest competitor, this threat has somewhat subsided due to long waiting times, limited product offerings and budgetary... Learn More

4. Precision Agriculture Systems & Services in the UK

Business Environment Risk for 2025: 3.16

Revenue is forecast to climb at a compound annual rate of 2.2% over the five years through 2023-24 to £135.7 million. The primary driver of revenue growth is agricultural income, business capital expenditure and the depreciation of the pound. Despite the onset of economic uncertainty following the Brexit vote, the pound's depreciation increased the relative value of payments from the Common Agricultural Policy as it is paid to UK farmers in euros. This contributed to rising agricultural income, helping farmers afford pricey precision agricultural systems and services.

Significant inflationary pressures since the pandemic have actually aided farmers, as rising output prices... Learn More

5. Waste-to-Energy Plant Operation in the UK

Business Environment Risk for 2025: 3.32

The Waste-to-Energy Plant Operation industry is growing. The industry focuses on the disposal and recovery of municipal waste and energy generation. This energy comes in the form of electricity exported to the national grid and consumers along private wires. The industry also exports its heat, usually in the form of steam that can be used in industrial processes or to heat homes. It also collects and sells recyclates from the waste, which is often metals recovered from sorting and bottom ash processing. Revenue is expected to expand at a compound annual rate of 4.6% to reach £1.5 billion over the... Learn More

6. Wind Power Generation in the UK

Business Environment Risk for 2025: 3.33

Wind power is a rapidly growing force in UK electricity generation, with the number and size of UK wind farms increasing in recent years. As the UK strives for net-zero emissions, abundant natural resources make wind energy the highest yielding option. Government support for renewables has boosted investment in wind-generating assets, with most of the capacity expansion coming from offshore wind. According to government data, the share of electricity generated from wind power increased from 17.1% in 2018 to 24.7% in 2022.

Revenue is forecast to increase at a compound annual rate of 9.6% to £4.9 billion over the five years... Learn More

7. Kitchen Furniture Manufacturing in the UK

Business Environment Risk for 2025: 3.40

The range of products churned out by kitchen furniture manufacturers is fairly wide, covering flat-packs or bespoke kitchens, upholstered and un-upholstered chairs, among other things. Industry revenue is forecast to grow at a compound annual rate of 1.2% over the five years through 2022-23 to reach £2.8 billion. Growing residential construction activity propped up kitchen furniture sales prior to the COVID-19 pandemic, but then housebuilding activity came to a temporary standstill. Kitchen renovation were also halted, with builders unable to enter people's homes to carry out work – these factors ate into kitchen furniture sales in 2020-21. Alongside this, after... Learn More

8. Fruit Drink & Functional Beverage Production in the UK

Business Environment Risk for 2025: 3.47

The UK Fruit Drink and Functional Beverage Production industry is undergoing a lot of change, while facing some pandemic and inflation related turbulence. Increasingly health and sustainability conscious shoppers and new regulatory frameworks are shaping innovation efforts, altering the industry's competition DNA.

Industry revenue is expected to contract at a compound annual rate of 0.3% over the five years through 2022-23 to approximately £1.4 billion, including a forecast decline of 1.2% in 2022-23. The pandemic-driven closures of the hospitality sector removed a big chuck of industry revenue currently recovering. The introduction of plastic-free packaging and low- to zero-sugar fruit drinks is... Learn More

9. Pest Control in the UK

Business Environment Risk for 2025: 3.48

Revenue is forecast to climb at a compound annual rate of 7% over the five years through 2023-24 to £1 billion. Councils have increasingly outsourced pest control services owing to government spending cuts, driving demand for private pest control services. Most local authorities now use private firms to fulfil their public health obligations. Firms that manufacture, store or sell food have been forced to maintain anti-pest measures because of their legal obligation to protect public health. This, coupled with growth in the number of food-related businesses operating in the United Kingdom, also enhanced industry demand.

Rising international travel has supported the... Learn More

10. Actuarial Consulting Services in the UK

Business Environment Risk for 2025: 3.49

Actuarial consulting firms provide various services to businesses, including pension, insurance, enterprise risk, financial advice and organisational design consulting. Actuarial consulting services are sought after by businesses across all sectors of the economy, providing firms with a steady demand and limiting revenue volatility. Revenue in the Actuarial Consulting Services is expected to swell at a compound annual rate of 4.1% over the five years through 2023-24, including a 3.3% rise in 2023-24 to reach £4.5 billion.

Continued pension enrolment through the Automatic Enrolment Scheme and other regulatory pension reforms have benefited demand for actuarial services. However, this has been somewhat dampened... Learn More