Discover 8 profitable businesses to think about in 2020

Are you looking for profitable business ideas to undertake in 2020?

So you’ve come to the right place. In this article, we gather paths, trends and tips for those who want to open a company in this economic scenario of uncertainties and fluctuations.

We know that the situation in 2019 was not easy for entrepreneurs, but there are reasons to renew expectations: inflation under control, historical drop in interest rates and advances in reforms.

So, this is the time to project profitable ideas for 2020 and take advantage of the economy’s first momentum of recovery. 

After all, those who undertake need to take the best advantage of the current scenario, and the moment is to see opportunities where others do not. 

Profitable business insight in 2020

A quick search is enough to identify profitable businesses insight into the country, even in a scenario of uncertainty

At this point, the best way to prepare for the recovery of the economy is to start with a good business plan.

First, it is necessary to analyze the current situation as a whole.

In November 2019, the GDP growth forecast for 2020 reached 2.32%, thanks to the improvement in financial results in July and August, according to data from the Economic Policy Secretariat (SPE) published in Exam. 

According to the SPE’s Macrofiscal Bulletin, the Brazilian economy is already showing signs of recovery, with a decrease in country risk, a fall in inflation, expansion of credit and a resumption of confidence. 

In other words: 2020 is likely to bring a new lease of life to entrepreneurship.

To take advantage of this turnaround, you can build on what is already working in 2019 and add to market projections. 

Want an example?

Think of fintech: the technology startups for finance that are revolutionizing the Brazilian market.

During an economic and political crisis, these companies realized that traditional banks and institutions no longer met the needs of consumers – and found the perfect opportunity to innovate.

Thus, solutions were born, such as credit cards with no annual fee, digital accounts, easy and fast online credit, among other products that have been conquering their space.

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Another perspective for seeing opportunities is to analyze what you do better than others and how you could apply that skill or talent to new businesses.

Maybe you have a background in technology, know an accountant and create a fully digital accounting company in society, which uses automation to speed up routines and shoot ahead of the competition.

These examples are intended to remember that, whether in 2020 or 2022, creating profitable businesses means finding ways to meet untapped market demands – delivering superior value to the competition.

Now we can move on to the most promising ideas and trends for next year.

Eight profitable businesses for 2020

The following are eight profitable businesses that were successful in 2020 and have growth prospects for the coming year:

1. Healthy and gourmet food

Two trends deserve to be highlighted in the Brazilian food market: healthy and gourmet foods.

According to the Brasil Food Trends 2020 report, sensoriality and pleasure are still one of the main consumption criteria in the country (prioritized by 23% of the population, in the same measure of product quality).

Therefore, one of the trends for the coming year is to innovate with higher added value foods – the famous “gourmetized”

In this case, it is worth the premium version of traditional foods, as in the gourmet burger fever, or the creation of new categories of super-premium products. 

Second, there is the trend towards healthiness and well-being, which includes organic foods, diet/light and recent versions without gluten and lactose. 

According to Euromonitor data, published in Estadao, the healthy food and beverage sector has grown 12.3% per year for the past five years, and it is expected to close 2019 with a 50% growth (R $ 110 million). 

The fact is that this type of business finds space because there are people interested in maintaining quality food.

The trend is that, with the improvement of the economy, these products will be even more in demand. Health food stores and health food brands, therefore, tend to achieve good results.

Why the investment is worth: the numbers from Brasil Food Trends and Euromonitor show that there are excellent business prospects, especially in terms of sensoriality and healthiness.

2. Subscription clubs

The signing of clubs still in full swing and increasingly expanding its segments – from books to erotic products.

According to the Brazilian Association of Subscription Clubs, in 2017, there were already 350 companies in the country. Every month, these clubs send subscribers products from the segment in which they operate: pet items, healthy food, beer, wine, cheese, and clothing are some of them.

According to data from the Brazilian Electronic Commerce Association (ABCom), published in 2019 in the State of Minas, the number of projects of this type has increased by 167% in the last four years. 

In the analysis of Lidiane Oliveira, a specialist in subscription clubs on the Vindi platform, Brazilians are feeling safer with this business model, and membership should increase. 

In an interview with the State of Minas, she highlights 2018 revenue: about R $ 1 billion, totalling 800 active subscription clubs. 

Why the investment is worth: the subscription club market keeps growing, and the advantage is that the entrepreneur has a variety of segmented audiences to bet on.

3. Pet market

In 2018, Brazil advanced from the fourth position to second place in the ranking of the largest pet markets in the world. The sector should close 2019 with revenues of R $ 36.2 billion, according to data from the Pet Brasil Institute published in Epoca Negocios.

Various types of businesses enter this market: pet shops, Speciality stores, veterinary clinics, product brands and animal feed.

One of the growing segments is pet food, which brings trends such as natural and homemade food for dogs and cats.

Why the investment is worth: the reality is that there will always be demand for these products and services since Brazil is one of the countries with the largest population of pets: they total 139.3 million, according to data from 2019 from Abinpet.

4. Constructs

After the fintech, it is the turn of the constructs to stand out in the Brazilian startups market. This is because, with the resumption of the sector, investments in technology are urgent to boost the enterprises.

The perspective is that Brazilian civil construction will end the year with a 2% growth, in its first positive result after several consecutive falls, according to data from the Construction Industry Union of the State of São Paulo (Sinduscon-SP) published in Aloe.

Despite the weak recovery, expectations for 2020 are encouraging, thanks to the return on investments in the real estate market, infrastructure and domestic works.

In this scenario, there are already 562 constructs in operation (5% of the national ecosystem), and the number is expected to increase to 8% of the total of Brazilian startups in 2020, according to data from the accelerator Construtech Ventures published in Grandes Construcoes. 

Why the investment is worth: the civil construction sector is a fertile ground for investments in new technologies and will urgently need to increase its productivity next year. 

5. Cloud Computing and Artificial Intelligence

The Brazilian IT market grew above the global average in 2018: 9.8%, exceeding the global 6.7% and exceeding the expectation of 4.1%, according to data from ABES ((Brazilian Association of Software Companies) published in Computer World.

The highlight was the micro and small software companies, which account for 95.5% of the SaaS (Software as a Service) market.

For 2020, the projection is that the use of artificial intelligence (AI) will grow 46.2% and that the cloud computing market will continue to grow 35.5% per year. 

Why the investment is worth: The cloud and AI software market is the future of technology, and whoever takes the lead will have a better chance of gaining leadership in their segment. 

6. Shared economy

Big companies like Uber and Airbnb show that business models based on the sharing economy can be profitable. 

Through the sharing of goods and services and, generally, the internet, these companies have a different structure and bet on the peer-to-peer connection to boost business. 

For 2020, the great opportunity is to diversify the sector, which started with the sharing of hitchhikers and today already has applications aimed at animal care services, bicycle rental, thrift stores and several other niches.

Why the investment is worth: according to estimates by the consultancy PwC, the sharing economy will generate around 335 billion dollars in 2025 around the globe – 20 times more than in 2014.

7. Beauty and cosmetics

Even in times of crisis, the beauty segment tends to achieve good results, as consumers see high added value in these products. Therefore, in 2020, this will continue to be a good business option.

Between 2013 and 2018, the sector quintupled its revenue: it grew 567%, closing 2018 with an amount of R $ 47.5 billion

Regarding product trends, specialists from the company Beauty Streams point out some news that promise to be successful in 2020, in contribution to Folha:

  • Liquid and anti-ageing serum, which leaves the face more natural
  • Products free of synthetic pigments 
  • Natural ingredients from vegetables
  • Prebiotic care in lotions, soaps and scrubs
  • Vegan formulas (free of animal ingredients and not tested on animals) for hair and skin
  • Electronic skincare (facial massagers).

Why the investment is worth: the beauty sector is one of the most resistant to the crisis. It has been showing signs of rapid recovery, in addition to having numerous niches and possibilities to be explored by entrepreneurs.  

8. Coaching

The coaching is accessible in Brazil in recent years, as more and more people seek to develop skills and improve the way they deal with the challenges of everyday life. Whether in the personal or professional areas, coaching is a training tool that awakens the potential of each one. 

So setting up your own business, opening a coaching micro -the company can be a good alternative for 2020. 

The advantage is that you can offer guidance in the area you already know: people management, administration, psychology – there are many possibilities.

But remember: you need training in coaching for this.

Why the investment is worth: between 2015 and 2019 alone, coaching grew more than 300%, moving more than R $ 50 million in recent years, according to data from the International Coach Federation published in Exame – and there is still a lot of space to create new niches. 

So, do you already have any insight regarding your future venture? It’s time to roll up your sleeves and get your ideas off the ground to make a profit in 2020 from your own business.

If you liked these tips, share them on your social networks and don’t forget to leave a comment below with your questions and suggestions.

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