Industries with the Biggest Increase in Profit Margin in United Kingdom in 2026

• 1. Pension Funding in the UK

  Percentage Point Increase for 2026: 116.9pp

  Pension funds are undergoing a period of change. The past decade has marked a shift from defined benefit (DB) to defined contribution (DC) schemes dominating the industry, due to the financial burden DB schemes place on employers. Growing longevity risk, stemming from rising life expectancy has also been a contributing factor. Revenue is expected to fall by 8.5% over the five years through 2024-25 to £125 billion, including estimated growth of 3.1% in 2024-25, while the average industry profi...

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• 2. Pipeline Transport in the UK

  Percentage Point Increase for 2026: 15.6pp

  Pipeline transport revenue is expected to grow at a compound annual rate of 3.8% over the five years through 2025-26, reaching £1.7 billion. A sharp spike in demand for UK natural gas surged following Russia’s invasion of Ukraine in 2022, with Europe seeking alternatives to Russian supplies, increased throughput in UK pipelines and boosted revenue. Higher gas wholesale prices from supply chain disruptions also ratcheted up revenue, as companies were able to recover higher shrinkage costs. How...

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• 3. Urban Passenger Rail Operations in the UK

  Percentage Point Increase for 2026: 15.0pp

  Over the five years through 2025-26, revenue is projected to soar at a compound annual rate of 31% to £5.1 billion. TfL dominates the urban rail industry, accounting for around 90% of total passenger income, largely due to London’s substantial urban population, which requires an expansive transport system to meet its varied travel needs. All urban passenger rail companies are publicly owned, meaning their growth and expansion heavily depend on government funding, which is crucial for implemen...

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• 4. Electricity Transmission in the UK

  Percentage Point Increase for 2026: 13.1pp

  The UK's electricity transmission network is made up of four high-voltage onshore transmission networks owned by the National Grid Electricity Transmission plc, SP Transmission plc, Scottish Hydro Electric Transmission plc and Northern Ireland Electricity Networks Ltd. Each company operates a regional monopoly on different transmission networks and is heavily regulated through price controls. Efforts by the government to decarbonise the electricity supply chain have necessitated substantial i...

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• 5. Electricity Supply in the UK

  Percentage Point Increase for 2026: 9.7pp

  The Electricity Supply industry has developed considerably since its liberalisation in 1999. Following a period in which the Big Six suppliers dominated, energy regulator Ofgem endeavoured to introduce greater competition to the market as part of attempts to drive down energy bills. Major mergers and acquisitions effectively brought the dominance of the former Big Six suppliers to an end at the end of 2019-20. Along with weakening electricity consumption, swelling competition has applied furt...

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• 6. Motion Picture Production in the UK

  Percentage Point Increase for 2026: 9.0pp

  The film production industry is volatile, as it relies on investments in the production of feature films, particularly from the US. This means external factors significantly sway the industry's success, like the USD-GBP exchange rate, film tax incentives and credit availability. Advances in film production and creative developments worldwide also affect the industry. The global film market has been curbed by the weak performance of cinemas since the pandemic, with UK attendance struggling at ...

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• 7. Medical Malpractice Insurance in the UK

  Percentage Point Increase for 2026: 6.8pp

  The private healthcare market heavily drives the medical malpractice insurance industry. Under the Medical Act 1883, all healthcare professionals practising in the UK must hold clinical negligence cover. Insurers' revenue has increased at a compound annual rate of 2.3% over the five years through 2025-26. Given the nature of medical practice insurance, it's no surprise insurers contend with intense competition from state indemnity cover, and stringent regulatory hurdles.

  A surge in pri...

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• 8. Sea & Coastal Passenger Water Transport in the UK

  Percentage Point Increase for 2026: 6.7pp

  Over the five years through 2024-25, sea and coastal passenger water transport revenue is anticipated to drop at a compound annual rate of 1% to £2.8 billion. The industry is heavily reliant on domestic and international tourism. Cruise ships have performed robustly over most of the period, with consumers increasingly attracted by the variety of entertainment and experiences on offer. However, demand for international ferry services has wavered as a result of intense competition from air and ...

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• 9. Game & Toy Manufacturing in the UK

  Percentage Point Increase for 2026: 6.0pp

  Game and toy manufacturers have performed resiliently in recent years in the face of rising import penetration and changing consumer tastes. Successful product developments to maintain interest from children and their parents have supported sales. Nevertheless, intense competition from imports has mitigated the effect of growing domestic demand. Revenue is expected to edge downwards at a compound annual rate of 0.4% over the five years through 2024-25 to £904.6 million. 

  The collapse o...

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• 10. Confectionery Wholesaling in the UK

  Percentage Point Increase for 2026: 5.7pp

  The Confectionery Wholesaling industry has navigated a challenging operating environment. Concerns over the health problems attributed to the consumption of confectionery, like obesity, have deterred demand for several products high in sugar and fat. Many small wholesalers and major confectionery producers' wholesale and distribution divisions operate in the industry, including Mondelez, Mars Wrigley Confectionery and Nestle. Revenue is expected to swell at a compound annual rate of 2.7% to £...

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