Key Takeaways
- Many businesses are still recovering from the massive disruption brought about by COVID-19 and the cost-of-living crisis has slowed their recovery.
- London dominates the UK economy and many of the best-performing industries in the UK have a heavy presence in the capital.
- The growing international recognition of UK-produced wine means the Wine Production industry is thriving, especially in the south of England with its more favourable climate.
The UK economy is still reeling from the COVID-19 pandemic, and the impact of global inflationary pressures and shrinking household disposable incomes aren’t doing it any favours. However, a few industries are thriving despite these challenges. New technologies, climatic conditions, infostructure and changing consumer behaviours are all playing their part in determining which industries fare best.
Let’s unpack which UK industries are growing fastest in the current economic climate and what that means for the UK’s regional economies.
What are the fastest growing industries in the UK, and where are they most concentrated?
Wine Production
Major regions
- South East
- South West
English wines are experiencing a renaissance as their reputation improves, while more favourable weather conditions for grape growing has boosted output.
British wines won a massive 143 awards at the Decanter World Wine Awards 2023, including six gold medals, a platinum medal and a best in show, almost exclusively for sparkling wines. On the back of the growing reputation of British sparkling in particular, exports of local wine have soared to a record £51.7 million in 2022-23.
More vineyards are opening and existing sites are expanding to meet swelling demand for British sparkling wines both domestically and abroad. Trade body WineGB reports that there are now 943 vineyards across the UK, while government statistics reveal that Viticulture is the fastest growing agricultural sector in the UK – and it shows no signs of slowing. Major UK vineyards like Chapel Down, Nyetimber and Ridgeview have all announced expansion plans in recent years.
With climates well suited to wine-growing, the South East and South West dominate UK wine production. Most of the UK’s wine pours out of the counties of East Sussex, West Sussex, Surrey and Kent, while the South West houses many smaller producers.
Non-Alcoholic Beer Production
Major regions
- South East
- South West
- Wales
- Yorkshire
Given the UK is usually regarded as a nation of drink lovers, it may seem counterintuitive that non-alcoholic beer is growing in popularity. However, Brits are becoming more health conscious and many are cutting down on their alcohol consumption, while teetotalism is popular among Gen Z. The number of alcohol-free beer breweries is surging to meet this rising demand.
Non-alcoholic beer production is still a relatively new industry, so revenue is expanding at a rapid rate. Major breweries like AB InBev and BrewDog have poured massive amounts of money into non-alcoholic beers to protect their revenue streams as alcohol consumption drops, but the market’s growth is also being driven by an influx of small independent breweries offering unique flavours.
Despite holding low shares of the population, Wales and Yorkshire have thriving local independent brewery scenes, so they were always well-suited to becoming major regions in the alcohol-free beer market. The regions have many breweries producing both alcoholic and non-alcoholic beers, as well as a handful of speciality non-alcoholic beer breweries – like Drop Bear, based in Swansea.
3D Printing & Rapid Prototyping Services
Major regions
- East of England
- East Midlands
- South East
- West Midlands
3D printing is becoming a key part of industrial manufacturing sectors, particularly automobile and aircraft manufacturing. This adoption has led to massive investment and demand from multinational manufacturers like BMW, Nissan and BAE Systems, boosting 3D printing capabilities in the UK.
While domestic companies can struggle to remain competitive in the international market, overseas clients are vital for 3D printing businesses. A significant portion of revenue comes from sales to the EU and emerging markets like the Middle East, making location key.
So where is best for 3D printers to set up shop?
The East of England has a thriving 3D printing market; its strong trade links through the Port of Felixstowe give printers easy access to overseas markets, while big investment from technology institutions like Cambridge University helps drive growth in the local market. 3D printers also cluster in the East and West Midlands, where they’re well-placed for nationwide delivery and access to key inputs.
Budget Airlines
Major regions
- East of England
- North West
- Scotland
Budget airlines are still recovering from the shutdown of international travel during the pandemic. EasyJet makes up the majority of the domestic market, as rival airlines like Ryanair and Wizz Air are principally based abroad. The cost-of-living crisis has hampered the aviation sector’s recovery, but budget airlines have been able to tap into mounting demand for cheap getaways closer to home to drive up their revenue.
The return of international tourism has driven budget airlines’ growth post-COVID-19. The Office for National Statistics reports that UK residents made 71 million visits abroad in 2022, up from 19.1 million in 2021, but still behind the 93.1 million trips recorded in 2019. Overseas residents made 31.2 million visits to the UK in 2022, with this number continuing to mount in 2023-24.
Naturally, budget airlines base themselves near international travel hubs. Growing international travel has upped the pressure on airports serving major urban areas like London, Manchester, Liverpool and Birmingham.
Airlines in Scotland are seeing traffic soar as Scotland has seen an influx of international visitors, thanks to its popularity as a tourist destination. Britain’s two largest budget airlines, easyJet and Jet2, have operating bases in the airports close to Edinburgh and Glasgow. Ryanair has also recently opened an operating base in Edinburgh.
Serviced Offices
Major regions
- London
- West Midlands
COVID-19 dealt a huge blow to the Serviced Offices industry – after all, why would companies shell out on office space when staff were working from home? The industry has started to bounce back, but the continued popularity of work-from-home arrangements is limiting their growth.
Serviced offices have fared better than more traditional office leasing, as they offer their clients much more flexibility. Many businesses in the UK are reluctant to enter long-term leases in the post-pandemic landscape, with many choosing to let these expire and use short-term co-working spaces instead. Companies looking to accommodate their workers’ desire for more flexible working options are flocking to serviced offices.
So, where are serviced offices the most in demand?
As the heart of the UK economy, London holds the bulk of the country’s serviced office space. The industry's popularity in the capital is partly fuelled by its high concentration of tech start-ups – these are a key market for serviced offices and London has more of them than any other city in Europe.
Birmingham also has a burgeoning tech sector, backed by a record-breaking level of VC investment in the West Midlands, which has propelled demand for serviced offices in the region.
The top three fastest growing industries in each UK region
Final Word
Geographic, economic and social differences exist across the UK, which means that various industries thrive in separate areas and regions. London being an economic powerhouse means that the most modern and fast-growing industries almost always have a significant presence there. However, there are still solid opportunities for growth outside the capital and South East.
Expanding into different UK regions helps businesses establish new revenue streams, with new customers to serve. For businesses looking to set up new branches or locations, finding the regions where complementary industries or similar companies are thriving can help drive collaboration and business partnerships that support longer-term success.
The events of the past five years have changed the landscape of the British economy. Some markets are still reeling from the consequences of the pandemic, while others are feeling the bite of the cost-of-living crisis. Industries that can withstand these challenges show resilience and indicate they have the strength to meet future troubles.
