Have you ever heard of the saying that everything is connected and everything is loose? It’s meant to mean that a generalist can do everything decently, while an expert can do one thing very well. The same is true when you are an online business owner.
Find a Niche for Your Online Store
Carving out a niche and positioning yourself as the go-to brand for a specific audience will not only give you more credibility than your competitors, but it will also make your business more focused. From your unique value proposition to content marketing, focusing on a niche can make it easier for the right customers to say, “This is made for me.”
If you’re racking your brains for your first product idea, coming up with a specific niche is a good place to start. There are countless niches you can follow, with opportunities for further segmentation. The key is to find a niche that you can grasp and that has a certain customer base.
Below we describe what a niche market is, how to identify it, and how to find products that meet the needs to serve that market. Plus, we’ll feature nine examples of niche markets for new players (including specific product recommendations ). Four easy home business ideas for women!
Discover your niche
- What is a niche market?
- 9 Niche Market Examples
- How to find your niche in 2022
- How to Evaluate Niche Market Ideas
- Move forward with a niche market strategy
- Niche Market FAQ
What is a niche market?
A niche market is a subdivision within a larger market that can be defined by its unique needs, preferences, or characteristics that differ from the overall market.
For example, there are many different segments or niches in the women’s footwear market. Vegan women’s shoes would be a niche market, as would plus-size women’s shoes or nurse shoes.
Almost every market can be further refined or segmented based on the specific needs and preferences of its components. Some of the most common ways to define a niche are based on:
- Price (luxury, mid-range, discount)
- Demographics (sex, age, income level, education level)
- Quality class (advanced, handmade, economical)
- Psychology (values, interests, attitudes)
- The geographical location (residents of a country, city, or even a community)
Choosing to focus on a niche market is a strategic business decision to serve a specific customer segment better than competitors who are targeting larger markets. Let’s look at some examples. List of PS5 games with 120 FPS support
9 Niche Market Examples (and Niche Products You Can Sell)
While you may already have specific hits in mind, you can increase your success rate by starting with a niche and then drilling down to find niches that fit the market. Below, we’ll explore nine larger markets and show you how they encompass different types of niche and product opportunities. How to sell jewelry online: A guide to success
Keep in mind that this 2022 list of niche and product ideas is just a starting point to start looking for potential niches, you can always explore in completely different directions or find other niche opportunities within each category:
- Environmentally conscious consumers
- Health and Wellness
- Pet owner
- LGBTQ+ community
- Game player
- Remote worker
1. Environmentally conscious consumers
Sustainability has become a hot topic among consumers in recent years. According to an IBM survey, nearly 60 percent of consumers are willing to change their shopping habits to reduce their environmental impact.
The rise of environmentally conscious consumers has paved the way for vegan, eco-friendly, and cruelty-free variants of traditional products. If there is a product that the general public buys frequently, a small percentage of environmentally conscious consumers may opt for greener alternatives.
In the past, companies looking to appeal to this niche might donate a portion of their proceeds to a cause, but today most consumers also care about where a product comes from and how it is produced.
For example, Bee’s Wrap is planning to replace plastic wrap with a material made from beeswax. This natural alternative for food storage is not only environmentally friendly but also more cost-effective for consumers because it can be reused. Creating a Personal Brand: A Step-by-Step Guide
More Niche Product Advice for Environmentally Conscious Consumers:
- Reusable straws
- Cruelty-free cosmetics (use of animal-free products in the purchase of beauty cosmetics, etc.)
- Vegan clothing
- Menstrual cup
2. Health and Wellness
In 2022, the global health and wellness market was valued at $ 3.31 trillion. As the Covid-19 pandemic raises health concerns, people are starting to take control of their health.
Health and wellness mean taking care of your mind, body, and spirit. Some segments of this market are personal care, nutritional, preventive medicine, and alternative medicine. If you buy gluten-free products from the grocery store, you are already contributing to the health and wellness market.
Happiness Abscissa found itself in the health and wellness niche by selling scents. Its products contain special scent combinations that can improve your state of health and well-being. Each scent developed by a neurologist is packaged as a soap jar, candle, or perfume that customers can enjoy whenever they want. Entrepreneurship Ideas for Young People
Product opportunities in this niche are endless: digital products such as food and beverages, beauty and personal care, skin health, immunity, e-books, and recipes. While you don’t have to be an expert to start a business in this niche, it’s a good idea to partner with professionals to develop safe products for customers.
More Niche Product Recommendations for Health & Wellness:
- Melatonin Capsules
- Mushroom Coffee
- Kombucha Brewing Appliances
- Essential oil sprayer
- Oat milk
3. Pet owners
Total spending by the U.S. pet industry alone is estimated to reach $99 billion in 2022. In this market, there are plenty of opportunities to develop niches for different types of pets, lifestyles, etc.
Only Natural Pet is a great example of a business in this market, which sells everything from natural foods to flea and tick repellents, outdoor gear, toys and beds, and more. Pet owners can find everything their dog needs on its website.
While most people keep fish, dogs, or cats, there are other special pets such as horses, lizards, turtles, and even chickens, each with potential opportunities.
More Niche Product Recommendations for Pet Owners:
- Pet camera for observing or interacting with pets while out and about
GPS Pet Tracker
- Personalized products with pet photos
- Organic Pet Food and Treats
- Pet Accessories and Apparel
4. LGBTQ+ community
The LGBTQ+ community is huge, and these consumers have enormous spending power. According to LGBT Capital, the estimated global purchasing power exceeds $3.7 trillion.
Brands that have a genuine connection to this market are best suited to serve this niche. Just ask lingerie brand TomboyX. Formerly a T-shirt brand, co-founder Fran Dunaway saw an opportunity to target specific consumer needs and sell underwear that “fits any body shape.”
More niche product recommendations for the LGBTQ+ community:
- Cosmetics designed for the LGBTQ+ subgroup
- Pride-inspired design
- Clothing for a specific body type
The way consumers travel is changing. Travelers are becoming more environmentally conscious. According to Booking.com, more than half of travelers are looking for sustainable travel options, but they are hard to find.
This vacancy presents a huge opportunity for brands to take action and support environmental initiatives through sustainable products. And travelers are looking for more than just green options. They are also looking for a truly local experience, convenience, and long-term travel.
Nomatic is a traveler-oriented luggage brand aimed specifically at functional digital nomads. You can see this audience focus throughout their business, from their products to their copywriting.
More Niche Product Suggestions for Avid Travelers:
- Smartphone accessories for traveling content creators
- Practical and comfortable athleisure for frequent flyers
- Scratch maps for people who love collecting travel experiences
- Smartphone accessories for travel content creators
- Practical and comfortable casual wear for frequent flyers
- Hand drawn maps for those who like to collect travel experiences
“Gamer” is an all-encompassing term that includes all subsets: mobile gamers, PC gamers, console gamers, desktop gamers, and the list goes on and on. There are more than 2.7 billion active gamers worldwide, nearly half of whom spend money on hobbies, and the industry is expected to be worth $200 billion by 2023.
Shazam Mohammad has launched his online store Glorious PC Gaming Race, offering products specifically aimed at PC gamers. It became a 7-figure business that ran automatically.
Mobile games, in particular, account for 91% of the market. Additionally, more women than ever are entering the market, a trend that shows no signs of slowing down.
Within this category, you can also segment by popular game genres (like first-person shooters) or consoles (like Nintendo Switch).
More Niche Product Suggestions for Gamers:
- Ergonomic products for long gaming sessions (controllers, chairs, blue light blocking glasses)
- Personalized consoles, controllers, and more
- T-shirts that draw on gamer culture
- Accessories for Mobile Gamers
Homeownership is changing. The normality of the past is gone, and the percentage of U.S. consumers who own a home is falling. There are many reasons for this, such as rising costs of living and wages not keeping up.
So not only is homeownership declining, but the definition of homeownership is changing. Thanks to the advent of Airbnb and VRBO home sharing, more and more homes are being converted into investment properties or shared spaces to generate additional passive income.
This paves the way for August to launch its line of keyless entry and home security products for homeowners. One of its main features is guest access, which allows the host to authorize the tenant for a specified period.
More Niche Product Advice for Homeowners:
- Home security cameras (indoors, doorbells, smart home devices, etc.)
- Small Apartment Furniture/Home Decor
- Home solutions for tenants (e.g. no-drilled blinds)
8. Remote workers
The rise of remote workers is mainly due to two factors: more self-employed contract workers and more companies open to the idea of remote teams after the shutdown due to the new crown epidemic.
There are many reasons for this. First, allowing employees to work remotely increases job satisfaction and productivity. These workers were also more engaged, three times more likely to be willing to work more than 40 hours a week. And those who choose the self-employment route are often looking for more freedom and better work-life harmony.
A recent Gartner survey of company leaders found that in the post-pandemic period, 80% of companies agree that employees will work remotely part-time, and 47% plan to allow employees to work from home full-time. According to a PwC survey of 669 CEOs, 78% believe that remote collaboration will be here in the long term.
Freelancer At Work is an example of a company serving the freelancer niche, and its products can help attract potential clients. They sell laptop stickers to advertise your work wherever you choose to work.
Remembering the motivations and lifestyles of these remote workers can help you identify product ideas that will help them and the companies that employ them achieve their goals.
More niche product recommendations for remote workers:
- Tabletop toys/decorations
- Home Office Decor
- Laptop accessories for those who like to work in coffee shops
Even the world’s largest brands are adopting a local approach through targeted marketing campaigns. And rightfully so: They’re competing with a consumer-driven movement to support local small businesses.
But if you’re only selling online, it’s hard to build a business locally. Fortunately, e-commerce sellers can get in on the movement by thinking of their city or country as a niche market.
For example, the apparel company Peace Collective was founded in Toronto around Toronto Pride. The brand has expanded to appeal to Canadians and fans of various NBA teams across the country.
More niche product recommendations for locals:
- T-shirts with slogans specific to a culture or city
- Apparel with local sports teams
- Prints/photobooks of a specific cityscape
- T-shirts with cultural or city slogans
- Clothing for local sports teams
- Prints/Photo Albums of Specific City Attractions
How to find your niche in 2022
Entrepreneurs and marketers, new and existing, looking for a niche market to exploit, first need to build an overview of the larger market and research in depth. Your niche will be a segment of that market and will help define the following:
- Product features for market needs
- Product pricing strategy
- Production quality
- Digital marketing strategy
Choosing a niche can give your online business a competitive advantage from the start. If you’re trying to launch an online store in a crowded product category or marketplace, you’re going to face an uphill battle with existing competitors. Focusing on one niche helps you compete, not necessarily by selling a different product, but by doubling down on a particular area of the market.
While there is no single way to choose a niche, you can use many. From a simple Google search to building a mind map to utilizing keyword research, there are many ways to build a list of possible niches and find product opportunities.
Start with a Google search
The best way to start a niche creative brainstorm is to see what other online retailers are selling in a product category or for a specific audience. Starting your niche selection with a basic Google search is a great way to get a feel for the status quo. Let’s start with Cruelty Free Cosmetics. From here, we can find a potential angle and inflection point, such as “vegan skincare” and “don’t experiment on animals”.
Through trial and error, you can explore different angles and trends until you find an underserved audience or market need. Remember, even if a competitor is targeting your niche, you can still compete by doubling down on a more granular audience. Remember: be an expert, not a generalist.
Create a mind map
Mind maps are a great way to discover a niche of business ideas. Because mind maps simulate the way our brains think, they are an intuitive way to organize our thoughts and expand them.
Building a mind map helps generate product ideas quickly, while also encouraging you to explore different niche paths. You can use a free online tool like Text2MindMap to create a simple but effective mind map.
Here’s what we’ve created for cruelty-free product ideas:
Use Google suggestions
Have you noticed that when you start typing in Google Search, it shows you suggestions before you finish typing your query? These are the most searched related queries on Google that you can leverage to find a niche for your product category.
Google will only show you a few suggestions, so you can use tools like Keyword Tool and Answer the Public to collect and organize all of Google’s suggested searches.
We typed in “cruelty-free” and it returned some suggestions from which we could tap potential niches. Here is a small sample of the results:
Drill down on keywords
The next way to discover a niche is to take advantage of Google’s Keyword Planner tool. The Keyword Planner is a resource of the Google Ads Platform. The Google Keyword Planner is similar to the Google suggestion tool we discussed above but more advanced and customizable.
To use this tool, you need a Google Ads account (signup is free). Sign in to your account and select Tools from the top menu bar (wrench icon), then Keyword Planner.
Enter your main niche idea and see the results. You can adjust your location settings on the left to make sure you target your target area. You can also add filters, remove branded keywords, and see other suggested word suggestions.
By searching these results, you can get a good idea of potential niches related to the original search term, and sometimes even specific popular product needs that you might consider. Don’t be afraid to dig deeper and try a variety of related search terms.
Alternatively, if you don’t have a Google Ads account, you can use the Keywords Everywhere browser extension to check search volume directly under Google Search.
Find passionate communities online
The internet is great at organizing into communities based on shared interests, passions, and hobbies, in other words, niches.
You can consider a specific community you belong to, or search for potential communities by:
- Filter visits to the most viewed Wikipedia pages under “Hobbies”
- Dig out the most active forums, find passionate audiences, and listen to their discussions
- “Listen” to community-driven hashtags like #vegansofig and #vegancommunity on Instagram and Twitter for segment opportunities.
How to Evaluate Niche Market Ideas
Now that you know what to sell online, you need to make sure the product has an audience. In the beginning, your niche and product are just ideas, a hypothesis that you think will resonate with your target audience.
While targeting a niche as a focus will make it easier to find potential customers and convince them to buy from you, you need to be sure that there are enough buyers in that niche. If you think your niche is too small to generate reasonable benefits and profits, consider pivoting to a different audience or marketing a different product within that niche. You won’t know what will resonate until you try it.
Even if you have early success, the niche is always changing and you need to follow your audience and adjust your positioning over time. You can even introduce new products to your product line when new opportunities arise.
Here are some ways to evaluate niche market ideas:
- Build your audience first. The Kickstarter campaign builds momentum long before the product is even developed. While this route may not be right for you, you can still join pages, social media campaigns, and other online tactics via email to introduce your idea and gain followers before it comes to fruition. This way, you will have a highly engaged group of potential customers waiting for your product to launch.
- Test before investing. Start with a small batch of dropshipping products to promote to your target audience. Ask for feedback from the first customers to buy, or send some free ones to influencers and ask them what they think. Getting feedback early is important, especially if you’re developing a new product, so you can refine it before it’s released around the world.
- Dig deep into a niche market. You’ve already done keyword searches to identify your niche, but you can dig a little deeper. Analyze blogs, social media, Amazon reviews, podcasts, influencers, and other key areas of your niche to gain insights. Can you fix a recurring problem?
- Research consumer trends in your market. It is important to stay up-to-date with the latest developments in your chosen niche. Consumer research resources like Facebook IQ, Think with Google, and Nielsen can help you understand consumer pain points, needs, and emerging trends. Set up Google alerts for relevant keywords and regularly monitor social media conversations to stay on top of what’s going on.
When it comes to pitching your product, remember to dig into the needs and commonalities of your specific audience. What makes this niche market different from the broader market? How can you specifically evoke its desires, needs, and preferences?
Knowing the unique needs of each niche allows you to communicate directly with them in your marketing campaigns, and you’ll have a better chance of getting buyers’ attention and winning business by making it clear that your product is designed for them.
Move forward with a niche market strategy
Now that you know how to pick a niche and generate product ideas that your target audience will buy, it’s time to make it happen.
Finding a Niche FAQ
What is a niche market?
A niche market is a segment of a larger market that can be defined by its unique needs, preferences, or characteristics that differ from the overall market. For example, there are many different segments or niches in the women’s footwear market. Plus size women’s shoes would be a niche market.
Which consumer groups are suitable for niche markets?
Environmental consumers, pet owners, travelers, and gamers are all suitable groups to cut in.
How do I find the niche that is right for me?
From a simple Google search to building a mind map to utilizing keyword research to help uncover huge niches, there are many ways to build a list of possible niches and find product ideas.
How to assess the potential of a niche market?
- Build an audience
- Test before investing
- Dig deep into a niche market
- Research consumer trends in your market