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Some industries are considered by economists as recession-proof industries. Goods and services produced by these industries have a low income elasticity of demand and thus business involving these goods remains relatively stable despite the fall in discretionary income that occurs during an economic recession. These industries are in contrast to those that produce high priced durable goods and luxury goods such as automobiles and jewelery. Most recession proof industries produce soft goods which are necessities. Corporations historically associated recession-proof industries have included Kraft, Procter & Gamble, and Gillette.
The reason these types of companies are often called recession-proof is because the produce and sell products that consumers use regardless of their economic status or level of income. Men and women need to shave no matter what happens in the economy, families need to wash their clothes and feed their children.
The following is a non-definitive list of recession-proof industries:
- Medical Services / Health care
- Pharmaceuticals
- Necessities: food/grocery stores/chains
- Cosmetics
- Education
- Entertainment
- Home & vehicle repair & maintenance
- Home renovation / improvement
- Debt collection
- Tax preparation / simplification
- Career/Job search/Life coaching
- Energy
- Electric
- Oil
- gas
- Security/Alarm services companies
- Weapons industry
- Vices
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