In this modern era, the IT industry is flourishing worldwide. Among others, it is most definitely the fastest growing industry which is why it provides various job opportunities for professional success.

A person with an IT degree or skill will find employment quickly because every company, regardless of the industry it belongs to, needs IT personnel. The Information Technology sector offers numerous career paths, each of which is high in demand and thus is highly paid.

When Covid-19 hit the world, many industries saw a considerable downfall. In these trying times, the IT sector didn’t only manage to make profits but also kept others afloat. In terms of profitable margins, other industries can't compete with the IT industry. However, this article sheds light on the top five sectors with similar margins as IT.

Household Goods

Now this entry might be unexpected for some of our readers. Household items may not be costly, but they are literal necessities. Believe it or not, these products belong to one of the most profitable industries. Procter & Gamble, Unilever, Reckitt Benckiser, Colgate -Palmolive, and Estee Lauder are just a few company names that contribute to the industry’s profitability.

In 2021, the household and personal care industry had a $40 billion net income with a 24.6% capital return rate. The gross profit in the same year was more than 200 billion dollars. Covid-19 may have had a negative impact on other industries, but this sector flourished and gained profits even at that time. 

The primary reason behind these profits was the increased demand for household cleaning products. Moreover, people started to stock up on these necessities so they won’t have to go on grocery runs often.

Between 2022 and 2029, the market’s gross profit is expected to grow up to 334 billion dollars. The increased demand urged leading companies to launch new home hygiene products like disinfectants, surface cleaners, etc.

Real Estate Industry

When you think about investing your money, the first option that pops into your mind is property. That’s because it is the most tangible asset. It is also the reason behind the booming real estate industry. In 2021, the gross profit of the industry stood at 264 billion dollars, with a net income of $85 billion. 

In the last 50 years, the value of property has increased by a multiple of 100, and people expect history to repeat itself. This belief has urged people to invest in the industry. Another reason behind people investing in real estate is that they can purchase land by submitting the fixed downpayment and pay the rest in installments.

Even on slow days, people continue to benefit from the fluctuating market rates and can create good cash flow whether they invest in short or long-term projects. Building a rental home or an Airbnb can give you monthly profits. As a result, you can earn way more than what you invested in the first place.

Drugs and Pharmaceuticals

If you have recently paid for a prescription, may it be yours or a close family member’s, you would know why this industry is in the top five profitable sectors. If you think about it, drugs and pharmaceutical products were never cheap, which is why the industry has profited in billions every year.

Last year, the pharmaceutical industry earned a net income of 95.8 billion dollars, and the gross profit reached $643 billion. This industry attained a 17.06% return on capital which is quite decent.

Patents are the main reason behind such a significant profit. When a pharma company puts a patented drug on the market, other competing companies cannot undercut them. That’s why their product bears a price tag of their choice so they can make big bucks.  

Novartis, Pfizer, and J&J are the three most profitable pharma companies with a net income of $24 billion, $22 billion, and $ 21 billion, respectively. The net income of these three alone is a considerable amount.

Food Processing Industry

While fancy restaurants and fast food chains couldn't host us during the pandemic, food processing companies have kept us going. Pandemic or no pandemic, this industry keeps on flourishing. In 2021, the industry’s profit summed up to $390 billion, with a capital return of 14.35%.

Processed food, like canned goods, offers an extended shelf life and takes minimum cooking time. With growing awareness, people have started questioning processed food, opting for organic and nutritious meals instead. Nonetheless, a significant percentage of the working class still relies on frozen products and processed foods.     

No matter how health conscious we all get, everyone enjoys ramen noodles, canned corn, or chicken nuggets occasionally. Cargill, Archer Daniels Midland (ADM) Company, and Nestle are some of the highest-earning food companies.

Oil and Gas Industry

Many people believe that the oil and gas industry is endangering the planet. However, the world’s economy continues to benefit from it. Oil and natural gas are the world’s primary fuel sources.

Extracting and distributing them involves complex processes, capital, and advanced technology.  In terms of dollar value, it is one of the most significant sectors worldwide as it’s generating a global revenue of $5 trillion this year.

Transportation, heating systems, electricity, and industrial production of goods are dependent upon this industry. From exploring reservoirs to distribution, the process is divided into three parts; upstream, midstream, and downstream. Understanding this procedure is not a piece of cake.

Significant funds are used to extract these resources, so the return on capital investment is 4.6%. The net income of this industry lies around $31 billion, whereas the gross profit stands at 833 billion dollars. Moreover, considering the recent inflation, the profit will probably increase this year. Some leading companies in the industry are Chevron Corporation, Exxon Mobil Corporation, and Shell.

Conclusion

Besides the IT industry, the world’s economy has profited from the abovementioned industries in past decades. Are you wondering what would be our sixth pick? Computer peripherals. Since the pandemic, working from home has increased the demand for computer accessories.