Thanks to lightning-fast advancements in financial technology and the ever-evolving landscape of investment apps, the world of investing has undergone tremendous changes in recent years, becoming almost unrecognizable due to niche investments.
However, it’s not just our investment methods that have been rapidly transforming; the choices we have in allocating our funds have also expanded, extending far beyond the traditional realm of blue-chip stocks.
Diversity in investment options can lead to profitability. From cutting-edge technologies to unconventional beverages, here are ten niche investments from 2023 that have witnessed skyrocketing growth and shown promising returns.
Theme Parks – Niche Investments options
In 2023, theme parks became a hot topic of interest, which actually took off and gain popularity in the year 2019.
The much-anticipated Star Wars: Galaxy’s Edge attractions at Disneyland in California and Walt Disney World in Florida led to an increase in ticket prices.
A single day at Disney World now costs a staggering $219, transporting visitors to a whole new dimension.
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Galaxy’s Edge has already debuted in California, with the Florida version scheduled to launch in late August. As a result, Disney’s stock price has soared, surging by more than 25% since the beginning of 2023.
Amusement park companies such as Six Flags and Cedar Fair have experienced remarkable growth, offering high dividends exceeding 6%. Six Flags, boasting nine consecutive years of record revenue, plans to expand its presence in China. Cedar Fair, on the other hand, aims to expand by acquiring two water parks in Texas.
Electric Vehicle (EV)
After several unsuccessful attempts (does anyone remember the GM EV1?), electric cars are finally gaining traction in the U.S., largely thanks to Tesla’s extraordinary success. Even Warren Buffett has recognized the potential of electric vehicles.
Buffett recently expressed his belief in the future of electric cars, stating, “I think electric cars are destined to be a major part of America’s automotive landscape. You’ll see American companies becoming quite aggressive in this field.”
In fact, both Ford and General Motors have made substantial investments in new electric models.
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Currently, only 2% of vehicles in the U.S. run on electricity, indicating significant room for growth. The International Energy Agency predicts that within the next decade, the number of electric vehicles on the road worldwide will reach 125 million, a considerable increase from the 3.1 million recorded in 2017.
Fintech – Nicehe Investment Options
Technology companies are revolutionizing the financial landscape through the introduction of mobile payment services, peer-to-peer lending, and automated investing. Both investors and consumers are eagerly embracing these innovations.
Online payment giant PayPal has witnessed its stock price more than triple since its separation from eBay in 2015. Earnings, transactions, and user numbers have all experienced impressive growth at PayPal, which also owns the popular payments app Venmo.
Other fintech powerhouses include Intuit, the company behind the ever-expanding TurboTax, and Square, the ubiquitous mobile payments processor known for its card readers.
Several celebrities have recognized the investment potential in fintech. For instance, Shaquille O’Neal has invested in Steady, an app that connects workers with gig opportunities, while Ashton Kutcher has made multiple investments in fintech startups.
Virtual Reality (VR)
The rise of virtual and augmented reality (VR and AR) technologies is becoming increasingly apparent.
Immersive virtual reality headsets, such as those produced by Facebook’s Oculus division, have long been popular among gamers. However, they are now being used by Walmart for employee training purposes.
Microsoft’s HoloLens technology has been deployed by the U.S. military for tactical training, while Audi, Tesla, Toyota, and other automakers are planning to incorporate Nvidia’s DriveAR hazard-sensing platform into their vehicles.
When exploring virtual reality investments, it’s important not to overlook Sony. The company announced earlier this year that it has sold over 4.2 million PlayStation VR headsets.
Vegan Stocks – Niche Investments
With a global population of 7.5 billion people, the potential for vegan foods to sustainably and profitably feed the world is gaining recognition among investors.
Beyond Meat, the creator of the plant-based Beyond Burger, made its debut in the stock market this year, and Wall Street responded with enthusiasm.
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On its first day of trading, the stock skyrocketed by an astonishing 163%, and its price has continued to climb since then, more than doubling.
While Burger King tests Impossible Foods’ meatless Impossible Burger, traditional food and beverage companies like Nestle, Tyson Foods, and Conagra are also looking to expand their vegan and vegetarian offerings.
Professional Wrestling
In a post-cable era, one thing remains unchanged: the excitement of live sports programming. This includes professional wrestling.
World Wrestling Entertainment (WWE) reported revenue of $930 million in 2018, and according to analysts at Morgan Stanley, the company’s profits could double by 2025.
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WWE has increased content rights fees, expanded its international events, and extended the reach of its highly popular WWE Network.
The company’s stock price has experienced substantial growth, quadrupling over the past three years.
Renewable Green Energy
Change is sweeping through the energy industry, carried by the wind and the sun.
The share of U.S. electricity generated from wind and solar sources increased from 7% in 2017 to 8% in 2018, despite the imposition of tariffs on solar cells, aluminum, and steel, as reported by Deloitte.
Solar stocks are soaring, with the share price of Sunrun, a residential solar panel provider, surging from around $5 in 2018 to approximately $20 in 2019, and expected to grow $40 untill 2024.
Even major oil and gas companies like Royal Dutch Shell, BP, and Total S.A. have invested in solar developers. Notably, substantial investments are being made in onshore and offshore wind energy production in the U.S., Europe, and Asia. The demand for renewable sources is expected to rise as manufacturers and industrial players seek to reduce their energy costs and emissions.
Pet Products and Merchandise
With over 60 million households owning dogs and 47 million households owning cats, according to the American Pet Products Association’s National Pet Owners Survey, the market for pet products is thriving.
The association forecasts that Americans will spend more than $75 billion on pet products in 2019 alone. This includes $31.7 billion on food and $16.4 billion on over-the-counter medicines and other supplies.
The industry’s success can be attributed to the growth of online shopping and the introduction of innovative products, such as Cytopoint, an anti-itch medication for pets offered by leading pet meds company Zoetis, and Clorox’s new cat litter that minimizes tracking within the house.
Cannabis – Niche Investment of 2023
The cannabis industry is experiencing a fiery surge of investment, propelled by the expansion of legalization and high-profile endorsements.
Martha Stewart, for example, has partnered with Canopy Growth to develop non-psychoactive CBD-based products for pets. Meanwhile, Mike Tyson is establishing a 40-acre cannabis farm and cultivation school.
Global spending on legal cannabis rose from $9.5 billion in 2017 to $16.2 billion in the year 2019 and is projected to reach $26.9 billion in 2024, according to Arcview Market Research and BDS Analytics.
These firms assert that the marijuana industry has become one of the most significant growth phenomena in history, largely due to the legalization of cannabis in the U.S. and other regions. Medical use of marijuana has been approved in 33 states, while recreational use is allowed in 10 states and counting.
Real Estate Investment
Diversify your portfolio by venturing into commercial real estate investments, renowned for their high returns over a 25-year period, outperforming the S&P 500. First National Realty Partners offers an ideal opportunity for accredited investors seeking superior risk-adjusted returns in the grocery-anchored necessity-based retail sector.
While commercial real estate has traditionally been limited to a select few elite investors, First National Realty Partners enables you to access institutional-quality commercial real estate investments without the need for extensive deal sourcing.
FAQ – Niche Investments Options
Question 1: What are niche investments?
Answer: Niche investments refer to specific investment opportunities that are outside the realm of traditional investments like stocks and bonds. These are often focused on unique industries, emerging trends, or specialized markets.
Question 2: Why would someone consider investing in niche investments?
Answer: Investing in niche investments can provide diversification and the potential for higher returns. These investments often cater to specific interests or industries that have the potential for significant growth. Some investors also find niche investments more exciting or align with their personal values.
Question 3: Are niche investments risky?
Answer: Like any investment, niche investments carry their own risks. Investing in emerging or unconventional markets can be more volatile and less liquid compared to mainstream investments. It’s important to conduct thorough research and consider the potential risks before investing in any niche opportunity.
Question 4: What are some examples of niche investments?
Answer: Examples of niche investments can include theme park stocks, electric vehicle companies, fintech startups, virtual reality technologies, vegan food producers, professional wrestling companies, renewable energy projects, pet product manufacturers, cannabis-related businesses, and kombucha producers, among others.
Question 4: How can I research and evaluate niche investment opportunities?
To research and evaluate niche investment opportunities, you can start by staying informed about industry trends and developments. Read news articles, follow industry-specific websites, and explore financial research platforms. It’s also essential to analyze the company’s financials, management team, market potential, and competitive landscape before making any investment decisions.
Question 5: Should I invest solely in niche investments?
Diversification is generally recommended in investment portfolios to spread risk. While niche investments can be attractive, it’s crucial to have a well-balanced portfolio that includes a mix of different asset classes and investment types.
Note: Please consult with a financial advisor to determine the appropriate allocation for your specific investment goals and risk tolerance.
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