I broke down the top 10 fastest growing eCom categories in 2021

Many digital-native DTC brands have benefited hugely from the commercial climate created by the pandemic 📈

But as vaccines begin to take effect in 2021, how long will this last? 💉

Here's where the growth will be in the next 12 months

1) Homeware 🏡

Those in cookware, furniture, DIY and gardening struck gold recently for obvious reasons. Throughout 2021, expect growth in this space to slow somewhat, but by no means will it collapse.

Online shopping adoption has been sticky - 73% of Americans said they will continue using the new purchasing channels and brands they’ve discovered this year.

2) Niche & Sustainable fashion 👗

Online DTC fashion brands should continue to benefit from the pandemic-driven shift to internet shopping in 2021, but challenges still remain.

More than 70% of legacy fashion retailers will increase new media spend in 2021, suggesting smaller players will face even stronger online competition this year.

3) Beverage 🍹

With supermarkets remaining open, DTC beverage hasn’t enjoyed the luxury of a struggling retail sector to aid growth.

On the one hand, subscription-based brands offering delivery have boomed. In other areas though, it’s largely non-pandemic trends - like sustainability and healthy living - that are defining the winners and losers in beverage.

Oat milk and low ABV drinks are set to grow big in 2021, for example.

4) Health Tech🩺

DTC brands in the health tech space attracted big investment dollars in 2020, and will continue to do so this year.

Investor interest is largely not pandemic-driven, but triggered by a worldwide wellness industry now worth $4.5 trillion and growing at twice the rate of the global economy.

5) Natural Pet Food 🐶

In the last year, five major pet-focused DTC brands have been founded - many offering healthier, natural alternatives to retail pet food. Online pet food orders rose 53% during 2020, with the DTC market now valued at $13.5bn - a 10% increase since 2019.

But Covid is only half the story here. Pet ownership, and in turn demand for petcare products, has long been on the increase - having grown 36% since 2009.

6) Home Fitness 🏃‍♂️

Globally, 66% of consumers say they prefer exercising at home since switching from gyms during lockdown.

The factors driving this shift - convenience, gym membership fees and crowded workout spaces - existed before the pandemic, but its onset has starkly emphasised the domestic alternative.

Whether home fitness can replicate the in-person communities offered by physical gyms long term remains to be seen.

7) Wellness Beauty & Skincare 🧴

Expect DTC brands offering naturally-made, wellness-enhancing beauty and skincare products to continue their success in 2021.

Although Covid has been a factor, DTC skincare is also finding success by tapping into key trends dominating the current consumer zeitgeist - personal wellness and sustainability.

8) Craft & Hobbies 🎨

Another DTC category loving lockdown life is the craft and hobby space. Whilst this unusual demand for craft supplies and at-home hobbies will surely slow in 2021, brands will be encouraged by pre-pandemic interest in the space.

In 2019, the market was forecast to grow 19% between 2020 and 2023 - suggesting even without the Covid windfall there is reason to be optimistic.

9) Meal kits 🥘

Supermarkets enjoyed a 10% growth in sales last year - many eCom brands seeing success are doing so at the expense of closed restaurants. A standout example is Pasta Evangelists, who boosted sales 300% in 2020, before being acquired by Italian food giant Barilla.

The popularity of such brands is not solely grounded in the pandemic, but in their ability to fulfil consumer demand for healthier food.

10) eLearning 👩‍🏫

The big mover here is Masterclass, which raised $100 million to develop its celeb-fronted educational courses.

They have undoubtedly benefited from the pandemic, but have also tapped into consumer demand for democratised, accessible education which existed prior.

Check out the full report for free 👇
Top 10 Fastest Growing DTC categories in 2021