The household services sector will present the most promising business opportunities in the coming decades as time-poor, cashed-up Australians continue to outsource household duties, according to IBISWorld.
IBISWorld used a compilation of its business and industry reports to forecast Australian demographics in 2020, revealing higher levels of household debt will force more people to either join or remain in the workforce.
As a result, IBISWorld expects leisure time to fall, also driven by low forecast unemployment and employers’ demand for more working hours.
“In the precious spare time we do have, popular leisure activities include using the internet, playing video games, shopping, eating out and playing or watching sport,” the report states.
“Perhaps unsurprisingly, internet use – including social networking, web browsing, watching TV and movies online, and online shopping – will continue to soak up more of our time as we head towards 2020.”
According to IBISWorld analysts Katie Hill and Ian MacGowan, a decrease in leisure time will see a surge in Australians’ outsourcing their household chores, as people spend less time at home and more time at work.
“Everything we traditionally did for ourselves – including cleaning, childcare and even beauty – will be increasingly outsourced,” Hill told StartupSmart.
“The higher skilled household tasks will be the most lucrative, so anything requiring trade skills. There will also be growth in non-essential items such as pet insurance and doggy day care.”
According to MacGowan, Australian parents will be more prepared to pay for things like tutoring as work demands prevent them from helping their children with their homework.
MacGowan says there is a lack of major players in these areas, which means it is an “open field” for someone looking to start up in the services sector.
“Everyday things that we do for ourselves will increasingly be done by other people so there are fantastic opportunities all the way through,” he says.
IBISWorld also expects the hospitality sector to benefit as Australians earn more money but spend less time at home.
“Eating out continues to be a popular pastime, with spending on restaurants, hotels and cafes up from $35.3 billion in 2000 to $44.8 billion in 2010. Stronger growth is expected until 2020 due to higher incomes and time-poor households on the rise,” it says.
Not surprisingly, the growth of online retail will also open doors for entrepreneurs.
“In 2010-11, IBISWorld expects online retail sales to grow by 5% to $12.9 billion to account for about 3.4% of Australia’s overall retail spending,” it says.
“By 2020, IBISWorld believes this could be in the range of 6% to 10%, with growth spurred by increasing computer literacy, greater focus by e-tailers on the layout, efficiency, security and reliability of their websites, and continued shift towards online shopping by time-poor, cashed-up consumers.”