Industry analysis: how a sector works, who earns the money and where it is heading

Questions this report answers

• How many firms operate in the sector, how large are they, and is it consolidating?
• Where in the value chain is the margin made?
• Which of the five competitive forces limits profitability most?
• What do the leaders' financial statements reveal about their strategies?
• Which regulations, standards or licences shape entry and costs?
• How do structure and productivity compare across EU countries?
• What will change in the sector's economics within five years?

When you need it

An industry analysis is the starting point when the unit of the decision is a sector rather than a product. Investors use it before an acquisition, to check whether a target's margins belong to the business or simply to the industry it operates in. Banks and credit insurers use it to rate sector risk. Companies diversifying into an adjacent activity need it to see who controls the value chain they are joining — a packaging manufacturer moving into contract filling will meet different customers, suppliers and regulators. Public bodies use it to prepare sector strategies, funding programmes or competition assessments.

It is equally useful when you know your own position well but suspect the ground is moving: entrants with a different business model, a regulation that alters cost structures, or consolidation among your customers that shifts bargaining power.

It is less helpful when the question concerns consumers — what they want, how they choose, what they would pay. Consumer research or a segmentation study answers that better. And if you need a close profile of five named rivals, a competitor analysis goes deeper than any sector-wide view can.

Sample table of contents

1. Executive summary
   attractiveness verdict and the structural facts behind it
2. Industry definition
   NACE codes, product scope, adjacent activities excluded
3. Size and structure
   enterprises, employment, turnover and value added over time
4. Value chain
   stages from inputs to end customer, with the margin pool at each
5. Five forces
   supplier power, buyer power, rivalry, substitutes, threat of entry
6. Key players
   profiles, positions, financial ratios, recent strategic moves
7. Regulation and standards
   licences, compliance costs, pending legislation
8. Cross-country comparison
   structure and productivity in selected EU markets
9. Drivers and outlook
   demand, technology, cost and policy factors
10. Implications
    what the findings mean for your decision

Methodology and sources

Official statistics by NACE code

The work begins by mapping the sector to its codes in NACE Rev. 2, the EU's statistical classification of economic activities, which makes official data comparable across member states. Eurostat's structural business statistics then supply enterprises, persons employed, turnover and value added by country. Take market research and opinion polling (NACE M73.2), covered in our research industry data: in 2024 the EU counted 35,223 such enterprises with net turnover of €17,046.9 million. Turnover per person employed reached €214.2 thousand in the Netherlands, against €136.0 thousand for the EU and €49.8 thousand in Bulgaria — differences that point to business models, not just scale.

Company-level data

Annual accounts filed with national business registers show margins, growth and balance-sheet strength for the main players. We calculate comparable ratios and flag where consolidated or late filings distort the picture.

Expert interviews

Statistics and other secondary data describe structure but rarely explain it. Interviews with suppliers, distributors, former executives and trade associations reveal pricing power, contract terms and the reasons behind the trends.

Frameworks backed by evidence

Each of Porter's five forces is scored on evidence — concentration, switching costs, contract length — not adjectives. Findings can feed a SWOT and PESTEL analysis.

What you receive

• Industry report (PDF) covering structure, value chain, five forces and outlook
• Data workbook with Eurostat and registry series by country and year
• Financial benchmark of the main players
• Value-chain diagram showing margin pools
• Anonymised interview summary grouped by theme
• Presentation for an investment committee or management team

How the project runs

1. Scoping and NACE mapping — 2–3 days
2. Statistical and registry data collection — 1–2 weeks
3. Expert interviews — 1–2 weeks, partly in parallel
4. Financial analysis of key players — 3–5 days
5. Five forces scoring, synthesis and outlook — 1 week
6. Draft review and final report — 3–5 days

Common mistakes and how to avoid them

• Using a NACE code that does not match the business. Official classes mix activities, so check which firms sit in a code before using its totals.
• Mistaking size for attractiveness. A large sector with fierce rivalry can earn less than a small one; let the forces, not turnover, drive the verdict.
• Filling frameworks with adjectives. Each force needs evidence such as concentration ratios or switching costs.
• Comparing countries on raw totals. Employment and turnover track population and price levels; compare ratios such as turnover per person employed.
• Ignoring publication lags. Official statistics and accounts arrive a year or two late; fill the gap with interviews.

Who it suits

Updated: 5 Nov 2026