10 Best Recession-Proof Businesses of 2025

What makes a business recession-proof?

Recession-proof businesses have the ability to survive even without the steady cash flow of a strong economy. They typically have at least one of the following characteristics:

• Sell essential services or mandatory goods, like food, diapers, or hardware supplies
• Offer necessary public services, like shipping or toll-road servicing
• Provide crucial repairs, like plumbing or electrical repairs
• Serve high-net-worth individuals or customers otherwise insulated from a recession
• Have low overhead costs
• Have the ability to change prices as per fluctuating market conditions
• Have multiple revenue streams

Top 10 recession-proof business ideas

Here is a list of 10 recession-proof sectors to consider so you can start a business on more solid ground.

1. Health care

Even during an economic downturn, when other businesses are laying off workers, people need comprehensive treatment and preventative healthcare services. The following real world examples demonstrate how the healthcare industry remains stable during an economic downturn:

• Seniors and sick patients will still require care, regardless of the state of the economy.
• Pharmacies will continue to fill orders.
• New and expectant mothers will require care and guidance.
• Young children will still need pediatric care.

What makes it recession-proof?

The healthcare industry has survived many economic downturns, including the Great Recession of 2008, and healthcare and medical research is an essential service. The increasing number of Americans hitting the age of 65 further heightens the need for healthcare companies and services. Another fact that insulates the healthcare sector from financial stress is that over 90% of Americans have health insurance.

2. Grocery

The food and beverage industry can be very resilient during times of economic hardship. Not only do people need sustenance to survive, but food can also offer comfort and familiarity during times of stress.

For instance, convenience and dollar stores provide sustenance to people who might not have larger grocery chains nearby. And, vending machine servicing keeps cheap food stocked in schools and offices.

Whether the business is related to food manufacturing, distribution, delivery, or retail, there are many options in this industry for businesses that stand a chance of weathering a recession. This doesn't always hold true for restaurants, however, as they charge a premium for service and convenience that can be out of reach for many during a recession.

What makes it recession-proof?

Everyone needs food. Therefore, the demand for groceries stays relatively constant during recessions. While spending at restaurants may decrease, the spend on fresh food and packaged food usually increases, leading to stable business for the grocery stores.

3. Tax and accounting services

Taxes are inevitable, even during a recession. While the Internal Revenue Service (IRS) has granted extensions in the past, the agency is not known to grant wide exemptions from filing taxes in the face of a recession.

• Small businesses will still need bookkeeping services to help them manage their books, or, in some cases, prepare for bankruptcy.
• Individuals will still need accounting services to help them through tax season.

Many small business owners and individuals struggle with bookkeeping and are tempted to do it themselves during a recession. But, this can actually end up doing more harm than good if records get disorganized or filed incorrectly, as it can result in costly fees or tax penalties. 

What makes it recession-proof?

The IRS does not stop collecting taxes during economic recessions. You will still be required to create and submit financial statements and file your annual income tax return. Tax accountants provide a valuable service that gains importance as people try to hold on to their money. For example, they may be able to get you a tax deduction you may not even be aware about. They are not only looking out for your bottom line, but can also help you avoid costly fines and penalties during tax season.

4. Financial advisory services

During a recession, money management can be a touchy subject. Many people aren't able to afford expenses that they usually incur, forcing them to make choices about what to keep and what to cut. These financial challenges increase the need for financial planners and advisors.

Advisers and planners can offer tips for individuals and families struggling to redo their budgets, plan for retirement, tax preparation, or save money during a slowdown. And the need is not only driven by families and individuals. Investors and high-net-worth individuals look at financial advisors for reassurance that they're covered in a recession.

While financial planning services aren't within reach of everyone, for many, they are an essential part of their future planning.

What makes it recession-proof?

An economic recession puts an immediate focus on personal funds. Individuals go-to financial advisors to understand how to protect their hard-earned money during the changing economic conditions. Similarly, financial advisers can help investors gain a better understanding of how their portfolios perform well through recessions and how they can minimize risks.

5. Supply chain and delivery businesses

Delivery services continue to be more and more in demand, and this trend isn't subsiding during economic downturns. Experts at Cognitive Market Research project the global delivery on demand industry, which includes food and essential products delivery, to continue to grow at a rate of 4.30% from 2024 to 2031.

Furthermore, most businesses still need to make and receive shipments of goods through a recession, and in the global economy, supply chain logistics continue to have major importance.

Virtual ordering, which encompasses online food delivery and shopping, is being driven by busy lifestyles—with no signs of slowing down. This again indicates that the consumer demand for shipping businesses will only get larger.

What makes it recession-proof?

Just as taxes don't halt because of a recession, neither does the mail! Shipment of goods, raw materials, and essential supplies in a global economy persists even in a recession, leading to a wealth of business for many delivery companies when other businesses might be struggling.

Another notable shift in consumer behavior since the pandemic is that even when things get tight, and overall spending decreases, consumers tend to prefer convenience. Therefore, it's safe to assume that even during a recession, many will continue to order things online.

6. Day care and childcare needs

Childcare, which includes day care centers, after-school programs, and babysitting agencies, is one of the top recession-resistant business ideas. As per Dr. Lori Esposito Murray, president of The Committee for Economic Development (CED), "Access to high-quality child care is vital for parents' participation in the workforce."

The need for childcare doesn't subside in a downturn: Parents need more assistance for children of all ages as they go back to work at the office and want to hold on to their jobs during a recession. Grand View Research, a leading market research firm, estimates the childcare market to increase by another 5.86% between 2024 and 2030. There is also a growing amount of governmental support for childcare services through policies that aim to provide tax breaks.

What makes it recession-proof?

Childcare is not as much of a luxury as it is a necessity. Children need supervision, no matter the economic climate, and parents need to be able to put their best foot forward at work.

7. Auto maintenance businesses

Economic downturns can certainly steer one away from getting a brand new Audi, but they also make the idea of repairing your Kia a lot more attractive. Machines aren't impervious to failure. Vehicles will still need servicing throughout a recession as people continue to commute for their jobs, drive to the doctor, or go to the store.

Shipping and delivery vehicles will continue to see high mileage and require frequent maintenance as businesses need to keep their products moving. Taxis, rideshare services, and other forms of mass-transit, will likely continue to operate, creating more opportunities for auto repairs.

When things break down and money is on the line, it's more important than ever to have qualified professionals ready to assess and repair the problems.

What makes it recession-proof?

Auto repair market is considered to one of the recession proof industries because the essential nature of vehicles is that they require maintenance and upkeep, otherwise even small issues can cascade into something bigger and more fatal.

We agree that some people will try to cut their driving to save money on fuel and maintenance, while others will choose to tackle the repairs themselves. However, there is only so much auto repair one can handle on their own. Most people will still need a mechanic to assess and repair their vehicles.

Also, during a recession, people tend to hold on to their vehicles for longer. Therefore, the average "age" of the vehicle increases. This in-turn leads to an increase for maintenance and repair services.

8. Home improvement and hardware stores

Any store offering the tools to help people repair things themselves is likely to see sustained business. During tough times, house calls become less affordable, leading people to tackle some repairs or improvement projects on their own. This usually leads to them purchasing supplies necessary for repairing the damages or completing an improvement. According to the Home Improvement Research Institute, Americans spent an average of 29% more on home improvements projects in 2023 than they did in 2015.

Also, those responsible for repairing critical functions like refrigeration, plumbing, and air conditioning still need the tools to get the job done.

While some people might neglect repairs during a recession to save money, this won't be the case for everyone. And other recession-proof businesses will also require occasional repairs. This opens doors for stores that sell small appliances, stoves, or coolers back to life.

What makes it recession-proof?

During a recession, studies show that people are more likely to tackle home improvements because not only are they more likely to spend time at home to save money, but also because the idea of buying a new home often feels out of reach.

Costly improvements like digging swimming pools, breaking down a wall, or buying new appliances might not be under consideration, but DIY renovations like changing curtain rods or bedding can offer people a chance to improve their quality of life and make necessary repairs while avoiding large bills.

9. Plumbing and utility services

Similar to auto mechanic services, essential and more complicated home repairs like sump pump failure or gas leaks can't wait—making plumbing and utility services a recession-resistant business. With people spending more time at time, it's natural that they will require utility services. 

Plumbing and electrical repairs aren't familiar to most Americans. Licensed plumbers and electricians provide valuable work that continues through almost any type of downturn.

What makes it recession-proof?

Flickering lights, clogged drains, or heating problems can pop up anytime, regardless of the economic situation. Leaks and electrical failures are not only inconvenient but can actually be hazardous or even life-threatening. Delaying some repairs can make these complex issues worse. Many home repairs in these domains require extensive knowledge, tools, and skills, if not an actual license from the state, creating a consistent demand for professionals.

10. Tech and IT support services

We live in a technology driven world where even our home security locks and appliances are connected to an app via Wi-Fi. While the technology today is pretty user-friendly, it's not infallible. A minor issue with a router or broadband cable can be tricky to fix. This makes providers of tech and IT services a recession-proof business.

Also, more people than ever are working from home. Another Statista study reveals that the number of people working remotely increased from 20%-28% between 2020 and 2023. And, even with some companies enforcing return-to-office policies, a far larger percentage of businesses are adopting a hybrid work model. This shift also demonstrates a greater reliance on technology.

What makes it recession-proof?

The tech industry is considered recession-proof because it plays a vital role in modern society. A greater number of businesses are now relying on digital infrastructure to operate, from communication tools and ecommerce platforms to project management programs. We also rely on IT to protect data from cyber-attacks.

Our lives are also intertwined with technology, aren't they? Individuals and families use on phones, computers, iPads, and other tech for education, entertainment, and to even communicate with each other. Maintaining essential technology, like fixing software bugs, device repair, or resolving internet connectivity issues, is central to the smooth operation of our current lifestyle.

Other recession-proof businesses to consider

The business ideas listed above are definitely known to be smart business choices in recession-proof industries. But that doesn't mean you can't start a business in anything else. Here are a few more ventures that have a recession-proof nature.

1. Cleaning services

Residential cleaning businesses are also fairly recession-proof. Mike Walsh, the CEO of CloudMyBiz, which offers cloud-based solutions for businesses, says that cleaning is an essential service. "Senior citizens always require care regardless of the economic situation," he says. "Caring or cleaning for those unable to do it themselves will always be needed, so create a business that offers those services."

Industrial cleaning services have also taken on a new urgency. The rising awareness about hygiene standards and the need to meet the stringent compliance measures set by the Occupational Safety and Health Administration (OSHA) make this a recession-proof business.

2. Beauty products and services

The truth is that people want to continue to look good and feel confident even when the going gets tough. There’s a tendency to spend on affordable luxury goods—a phenomenon known as the “lipstick effect.” According to global consulting firm, McKinsey & Company, the beauty business has always remained unfazed during recessions. 

Also, beauty treatments like threading and waxing require a professional. During times of uncertainty, people consider beauty products or services as a budgeted way to treat themselves.

3. Business service freelancing

Freelancing, being an independent contractor, or providing consulting services are all solid options for recession-proof work. Steve Wilson, financial expert and founder of Bankdash, a financial review website, says, "By contracting with independent contractors for certain jobs and activities, businesses can save a lot of money. Instead of hiring permanent staff, this enables them to pay for those duties separately as and when they are required."

Few examples of freelancing services that are in recession-resistant are:

• Freelance writers, especially for marketing copy. Wilson says, "Being a writer can conjure up ideas of someone writing editorials for the New York Times or the contents page of a book, but it has more to do with producing material for all the business websites that require consistent new content to stay relevant and raise their search engine rating."
• Digital marketing businesses that offer SEO optimization, email marketing, or social media marketing continue to be sought after due to our greater reliance on online marketing for visibility. Their low startup and overhead costs make them adaptable businesses that can weather an economic slowdown.

4. Rental agency and property management

According to Doug Greene, the owner of Signature Properties, in times of economic crisis, people still need three basics—food, healthcare, and housing. During a recession, renting a place is more appealing and pocket-friendly than it is to buy a house. Also, those who are forced to sell their home still need a place to live. For those with interest in the housing market, opening up a rental or property management company is optimal. Greene says. "You get all the benefits of rising valuations/rents without the risk of actually owning the property."It’s also a business model with low overhead that could easily scale. 

5. Pet related services

During tough economic times many turn to pets for joy and comfort. During the pandemic, one in five American households adopted a pet. This resulted in an increase in demand for pet-related products such as pet food, treats, and insurance, as well as services like dog-walking and pet-sitting.

Although the enthusiasm for new-pet ownership has dipped from the pandemic high, Americans continue to spend a lot on keeping their pet companions happy and healthy. According to the American Pet Products Association, the year-on-year spending on pet care has steadily increased and reached a high of $150 billion in 2024.

Not all businesses can be considered recession-proof. Stable consumer demand, agility, and financial prowess are characteristics that help businesses survive tough economic times.

Meet consumer demand

It's natural for customers to tighten their purse strings and hold on to money during economic downturns. But they can't do without essential products or services. Any business that provides goods or services related to everyday living and survival tends to fare better as they don't experience any fluctuation in demand.

Agile and adaptable

Market conditions are bound to change, and only businesses that are able to adapt to the changing tides tend to survive and succeed. One way to remain adaptable is to consistently listen to your target customer's wants. Also, build processes and pricing strategies that will allow you to make the necessary shifts. This could be via investing in tech stacks that can automate workflows while giving you the flexibility to scale up or down as per demand.

Financially savvy

Recession and pandemic-proof businesses know their numbers. They are masters at making a budget, sticking to it, and keeping the monthly costs low. A good way to make your business recession-resistant is to work with a bookkeeper or accountant to gain a crystal-clear picture on your financials—what's the income, what are profits, and how much cash do you have? Being prepared financially can help you ride out economic troubles.

Plan ahead to help weather the storm

Recessions are uncomfortable for most, and the added financial uncertainty and stress can create heightened tensions. We understand you may feel tempted to "wait it out." But, the good news is that with the right financial planning, legal advice, and mindset, there are many business opportunities that can weather a recession.

A good place to start is by speaking with a qualified startup professional who can help you form your business in the right manner—with the proper business structure, name, funding, and permits. LegalZoom's Formation Services can be your trusted partner as you embark on your entrepreneurial journey.

FAQs

How do recessions impact businesses?

Recessions can affect businesses in a multitude of ways. It can cause a dip in sales, make it harder to secure funding, or cause supply-chain challenges. Even one of these factors can significantly deplete a company's cash reserves.

What products sell the most during a recession?

During economic uncertainty, essential products and household staples like food and beverages, toiletries, cleaning products, or any item that is essential to survive continue to be in high demand. Also, cheaper products tend to do better. For instance, getting a Chalupa from Taco Bell is cheaper and more budget-friendly than going out for a sit-down dinner during an economic recession. 

What is the most recession-proof industry?

Technically, there is no “most” recession-proof business. Each and every industry can be affected by an economic downturn. However, providers of essential services and products and the recession-proof business ideas listed above are generally less impacted by economic slumps. 

Jen Morson also contributed to this article.