Top 11 industries that make the most money in the world

Have you ever wondered which industries generate the most revenue? In this article, we’ll explore the top 11 industries that generate the highest revenue and discuss investment opportunities within them.

It’s important to note that some illegal industries generate substantial profits. Below, we’ll also briefly touch upon these sectors. However, it’s challenging to determine their exact revenue due to the lack of transparent data available on a global scale.

Let’s find out more about the top 11 industries that make the most money in the world.

Top 11 industries that make the most money in the world

Based on thorough research, these are the top 11 industries that make the most money in the world:

• Drugs
• Prostitution
• Banking
• Arms
• Pornography
• Alcohol
• Casinos and betting
• Oil
• Human trafficking
• Pharmaceuticals
• Counterfeiting

Drugs

The illegal drug trade, which includes activities like cultivation, manufacturing, distribution, and sales, is believed to be one of the most lucrative industries globally. It’s nearly impossible to know its exact revenue.

According to the United Nations (UN), this industry is estimated to exceed $300 billion. However, experts suggest that the actual figure is likely much higher.

A report titled “Transnational Crime and the Developing World” by Global Financial Integrity estimated that the global drug market’s size ranges from $426 billion to $652 billion annually, accounting for potentially 1% of global trade.

It’s important to note that investing in illegal businesses is not possible. Nonetheless, in some regions, marijuana has been legalised. In the past years, several marijuana and cannabis exchange-traded funds (ETFs) have become available.

If you want to invest in ETFs, check our best ETF brokers article.

Prostitution

Prostitution is another lucrative industry, despite being illegal in most parts of the world. The UN estimates that this industry’s capital reaches approximately $108 billion.

Banking

The banking industry is one of the most profitable globally, and its legality provides access to more precise data. As of December 2022, the market capitalisation of the banking sector stood at $7.101 trillion, while the total capital invested in the industry amounted to $16.271 trillion.

However, when it comes to assets, the figures held by banks can be significantly higher. Below, we present the top 10 largest banks in the world ranked by market capitalisation:

Arms

In 2021, before the war, arms companies reported record sales of €564 billion. This remarkable achievement occurred despite the challenges posed by the pandemic, supply chain bottlenecks, and other potential factors that could have affected their income. Here are the seven largest arms companies in the world, ranked by their sales:

Aerospace and Defense ETFs:

Pornography

The pornography industry operates with many unregulated internet companies, making it challenging to pinpoint exact revenue figures. However, experts estimate that the industry’s global revenue can reach approximately $100 billion.

Investing in the pornography industry is relatively uncommon, and there are limited options. Nevertheless, it is possible to purchase shares in some production companies like Beate Uhse, DNXcorp, or the well-known Playboy.

Alcohol

The alcohol industry is known for generating a substantial amount of revenue. In recent years, two Chinese liquor brands have emerged as market leaders, boasting a combined market capitalisation of $470 billion. Here are the top five companies in the alcohol industry:

ETFs of the alcoholic beverage industry:

ETF holdings:

Casinos and betting

The gaming and betting industry is highly lucrative, generating over $50 billion in annual revenue in the US. Here are the top five companies in the casino and betting sector:

Gaming industry ETF:

Oil

At the beginning of the last decade, the six largest oil companies in the world collectively earned approximately $2.5 billion in profits. In 2008, their profits surged to around $156 billion.

Currently, the largest oil company globally is Saudi Aramco, which became publicly listed on the stock exchange at the end of 2019.

Here are the top five largest oil companies:

Oil industry ETFs:

Have a look at the following articles if you are interested in investing in oil:

• Investing in oil
• Investing in commodities

Human trafficking

The human trafficking industry, including migrant trafficking, is estimated to generate nearly as much revenue as the drug or weapons industry. It’s believed that the total revenue could amount to a staggering €39,000 trillion. This criminal activity is concentrated in Asian countries like Myanmar, China, Cambodia, and Thailand, as well as in regions of South America and Africa.

Pharmaceutical industry

Experts estimate that the pharmaceutical industry, one of the most financially significant in the world, can generate approximately $700 billion in revenue annually.

Since the COVID-19 pandemic, there is an expectation that the fear of new pandemics will further boost these figures.

Here are the top five largest pharmaceutical companies by market capitalisation:

Pharmaceutical industry ETF

Counterfeiting

The counterfeiting industry, particularly related to technology, generates around €500 billion in revenue annually worldwide. Some studies, such as the one conducted by Euromonitor, attribute at least 10% of global trade to counterfeiting.

According to the OECD, the most affected brands include Nike, followed by Rolex, Ray Ban, Louis Vuitton, Adidas, Apple, and Samsung.

How to invest in these industries?

Investing in illegal industries is not a viable option. These sectors are not open to legitimate investments.

In contrast, in legal industries such as pharmaceuticals, oil, arms, and others, the most common approach is through publicly traded companies listed on stock exchanges.

You can consider buying shares of these companies via one of the best commission-free brokers, or investing in ETFs (Exchange-Traded Funds) after choosing one of the best ETF brokers. Index funds tracking industry-specific indices are also an option – to find out more, check out this index fund guide.

Interactive Brokers

Interactive Brokers is one of the most comprehensive brokerage firms on the market. Thoroughly regulated by reputable authorities like the FCA, this broker allows you to invest in stocks, funds, options, bonds, and many other assets, so it’s a great choice for creating a high-return, diversified portfolio.

In terms of the top 11 industries discussed above, you won’t be able to invest in any illegal ones, but Interactive Brokers has a wide offering of assets in many other industries, including oil, pharmaceutical industry, banking, and many more. In fact, you can access stocks from over 50 markets around the world.

Have a look at our Interactive Brokers review for more information.

What is the performance of these sectors?

The profitability of these sectors varies depending on the prevailing economic conditions. For instance, the banking sector has experienced several years of negative performance due to factors like interest rate policies and crisis periods, such as the COVID-19 pandemic. It currently faces uncertainty due to the global economic situation.

The casino and betting industry has also seen negative performances in recent years, as evidenced by the two mentioned ETFs.

On the other hand, the oil industry has performed notably well, benefitting from price increases driven by decisions made by organisations like OPEC and geopolitical conflicts, such as the one in Ukraine.

Similarly, the pharmaceutical industry has thrived due to the increased demand for drugs and vaccines in response to the COVID-19 pandemic.

The arms industry has also realised positive returns, fueled by heightened defence spending by numerous countries and ongoing military conflicts worldwide.

Summary

In conclusion, this ranking highlights the 11 most profitable industries globally. The decision to invest in them ultimately rests on your personal choices and investment goals.

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