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. Audio & Video Equipment Manufacturing in the US

Percentage Point Increase for 2025: 4.2pp

Volatile returns for audio and video equipment manufacturing are in part due to supply chain inefficiencies, global chip shortages and poor macroeconomic conditions associated with COVID-19. These have all challenged the industry's growth during the period. Despite this situation, industry-wide revenue has taken a step forward at a CAGR of 0.6% to $4.0 billion over the past five years, including a 4.3% decrease in 2023.

Domestic operators have focused on cost-cutting strategies and product differentiation to better compete with competitors. For example, Samsung holds the majority of its manufacturing operations in countries with lower labor costs, resulting in sustained profit. Due... Learn More

5. 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

6. Tool & Hardware Wholesaling in the US

Percentage Point Increase for 2025: 3.0pp

The industry distributes hardware products, including hand tools, power tools and fasteners, to retailers, wholesalers and businesses for end use. Tools and hardware are distributed and used in construction, manufacturing and home improvement projects. As a result, sales from wholesalers rely on consumer spending, construction activity and the strength of the manufacturing sector. The 2020 pandemic was a catalyst for the residential construction sector, as work-from-home capabilities and increasing disposable income resulted in more people building and buying homes. But increasing inflation and interest rates slowed growth due to growing uncertainty. This resulted in revenue growing at a CAGR of... Learn More

7. Tax Preparation Services in the US

Percentage Point Increase for 2025: 2.3pp

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

8. Battery Manufacturing in the US

Percentage Point Increase for 2025: 2.2pp

Battery manufacturers produce storage batteries, which are also known as secondary or rechargeable batteries; and primary batteries, which are nonrechargeable. Battery products have a variety of uses in cell phones, medical equipment, households and the automotive and transport sectors. Substantial research and development expenditure has dampened revenue expansion despite boosting exports and consumer spending between 2017 and 2019. COVID-19, however, has hurt consumer spending, pressured exports and disrupted supply chains, resulting in revenue dipping 8.0% in 2020. As demand for electric vehicles (EV) has strengthened, demand for lithium-ion battery packs has swelled in tandem. In response, battery manufacturers have accepted... Learn More

9. 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

10. Lighting Fixtures Manufacturing in the US

Percentage Point Increase for 2025: 2.0pp

The Lighting Fixtures Manufacturing industry manufactures various lighting fixtures for residential and nonresidential buildings, including lampshades, street lights, lighting components and other products. Over recent years, manufacturers have experienced heightened volatility. The early stages of the pandemic supported residential construction activity, boosting lighting fixtures sales. These trends reversed quickly because of rising inflation and increasing interest rates. The pandemic also affected nonresidential construction activity, as work-from-home capabilities stopped companies from investing in new infrastructure. This resulted in lighting fixture manufacturing revenue dropping at an estimated CAGR of 4.1% to $12.2 billion over the past five years, including a lag of... Learn More