Shark Tank has seen numerous innovative and out-of-the-box business ideas. However, not all of the businesses compelled the Sharks enough to get an investment. Assessing the success and failure patterns of different businesses is impossible without grouping them into prominent and independent markets.
I have discussed the most common industries in which to pitch ideas on Shark Tank. Compiling the statistical data and grouping different companies in similar industries was a challenging thing to do. However, once the businesses were grouped, the pattern became visible.
I have explained the pattern of the success rate of popular markets on Shark Tank. The grouping is based on several assumptions and judgments, so the result might vary if a different assumption is applied. This article is equally insightful for Shark Tank fans and prospective participants on the show.
Overall Industries’ Performance on Shark Tank
The most prominent and successful industries on Shark Tank have been food & beverage and health & wellness. Both of these markets had a 60% success rate throughout the show’s timeline. Moreover, the fashion and apparel industry had a mixed experience where niche products were rejected until the Sharks saw potential in the idea and the ability to scale. The fashion industry had a 50% success rate.
Other than these major markets, consumer goods were the most consistent on the show. The consumer industry had a 50% success rate. These products rarely disappoint the Sharks or the audience because the scalability and adaptability of such businesses are never a problem. However, the service businesses performed miserably over the years but gained Sharks’ trust in the last two seasons. The service industry had a 30% success rate.
Technology businesses never led the success charts on Shark Tank, mainly because of three reasons. The technology goods required heavy investment, had high failure risk, or had no working prototype. The technology industries had a 40% success rate and never went past the 50% mark.
Shark Tank Industries Wise Analysis
Season 1
Shark Tank Season 1 was the first instance when American television aired a reality show relating to business investments. The Sharks were prudent and rarely trusted the entrepreneurs. The equity demands were high, but several industries successfully secured funds.
Health products were the most successful type of business in Season 1, alongside the food and beverage industry. These industries had a success rate of 50%. The technology businesses performed miserably, with only 10% securing a deal. Moreover, the consumer products were moderately successful, with a 40% deal striking ratio. Sharks did not trust the services businesses as much as products.
Season 2
The food and beverage industry continued to blossom in Shark Tank Season 2. The success percentage rose from 50% to 70%, which reflects the expectations investors had for unique and tasty food. The childcare industry surged as a successful sector during this season, with an impressive success ratio of 60%.
The fashion industry and consumer product businesses shared an even-steven success rate of 50%. Sharks had a more diversified investment portfolio in Shark Tank Season 2. High-tech and novelty products did not perform well during this season. However, unique features and value addition were preferred.
Season 3
Pet products were on a roll in Shark Tank Season 3 as they attained a success rate of 80%, the highest for any industry. The food and beverage industry dropped down to 60%, but the overall performance was encouraging. The fashion and apparel industry also secured deals on 70% of occasions. The major sectors had an impressive run during the season, as Sharks trusted the niche and differentiated products. The consumer products had a 50-50 success ratio, while the technology sector secured deals only 40 times out of 100.
Season 4
The health and wellness industry managed to strike deals on 70% of occasions. This high rate showed that Sharks had confidence in products that improve fitness, health, and mortality. The food and beverage industry received investments at 60% instances because the differentiated flavors were the way to go.
The fashion and apparel businesses had a 50% success rate during Shark Tank Season 5, which was a surprise because they surpassed the consumer products with a 45% success rate. Technology and the gadget industry failed again. Sharks have scalability concerns and failure risks, especially during the development phase.
Season 5
Consumer products were the winner in Shark Tank Season 5, with 65% of businesses managing to strike a deal. The health and wellness industry maintained a decent success rate of 60%. The same thing happened to the food and beverage industry, which had an impressive run, as 55% of start-ups managed to get investment.
However, the technology industry had a 40% success rate, which was in line with the global shift towards high-end and advanced products. The service industry performed miserably, but the results were better than the previous seasons. Sharks refrained from investing in businesses that needed heavy capital investment and scalability concerns.
Season 6
Education and toy businesses enjoyed a decent run on Shark Tank Season 6, where 60% of entrepreneurs struck deals. The trend shifted from health and wellness to traditional child development in the modern way. The food and beverage industry continued its impressive record with a 50% success rate. Meanwhile, Health & Wellness had 60% success, Fashion with 50%, Consumer Goods with 50% and Services with 30% success.
Technology-based businesses dipped a little to a 30% success rate. The overall trend depicted a rise in children’s development products after the prominent rise of childcare products in Season 2. The technology industry could have performed better, but the business ideas were not up to the mark.
Season 7
With more movies and television personalities on the panel as guest Sharks, the fashion and apparel industry saw a drastic improvement in the success rate. Fashion and apparel businesses secured deals on 70% of occasions. The success rate of the food and beverage industry increased to 65%, while the health and wellness industry made a comeback with a 60% success rate.
The consumer products continued to make waves with a 50% success rate, while technology businesses maintained a 30% success rate. The technology industry remained stable despite its low fundraising ratio. The fashion industry became the new trend on Shark Tank.
Season 8
Shark Tank Season 8 was almost a statistical mixture of the previous two editions. The fashion and apparel businesses along with the health and fitness industry, maintained success rates of 70% and 60%, respectively. Food and beverage products continue to outperform the majority sectors, as they secure deals on 60% of occasions.
Almost half of the consumer product businesses were successful on Shark Tank Season 8, so the success rate was 50%. The investment ratio of the technology businesses improved to 40%, which was encouraging. The fashion and fitness industries had high market demand and value addition, which was crucial to helping them succeed.
Season 9
The food and beverage businesses peaked the Shark Tank history, with 75% of entrepreneurs succeeding on the show. The health and wellness products continued to surge, as 70% of businesses secured deals. The consumer products recorded their most successful season record, where they struck a deal on 60% of occasions.
The technology industry had a stable run because half the pitches (50%) got investments from the Sharks. The service businesses and mobile app-based companies saw a low success rate. The technology industry scored the highest numbers, compared to previous seasons, because the businesses had sustainable ideas & business plans.
Season 10
Shark Tank Season 10 was statistically similar to the previous season. The food industry struck a deal on 70% of instances, while the health and wellness industry maintained a decent 60% success rate. The mass market factor continued to play its part in Shark Tank, as Sharks continued to trust industries with low market failure risk.
The technology and consumer product businesses had a 50% and 55% success rate, which was impressive. However, the service and entertainment businesses failed miserably in Shark Tank Season 10 because the Sharks could not invest in intangible value for customers.
Season 11
This season repeated the same story. Food & beverage and health & wellness industries continued to rule the success stats on Shark Tank with 70% and 60% deal striking rates, respectively. The food and health sectors drew investors’ interest because of high market demand.
The consumer products maintained a decent 50% success rate. 50% of technology businesses appearing during the season got a deal. However, the overall performance of technology-based products was better than any of the previous seasons. Entrepreneurs failed to strike a deal because valuations were unrealistic, and Sharks were selective. Moreover, the fashion and apparel industry had a forgettable 30% success rate.
Season 12
Food and beverage continued the stable and impressive journey with a 70% success rate during Season 12. The health and wellness industry saw a slight risk in success rate and scored 65%. The consumer goods maintained 50% success, which shows the trust investors had in such products. The service industry performed well compared to the previous seasons. However, the improvement was not enough to get it amongst the top spots.
The technology industry had a disappointing season because the success rate fell to 25% from the 50% recorded in the last season. The investment demands from the entrepreneurs owning technology products were too high. Moreover, the risk was too high for products that have no predefined market.
Season 13
Season 13 had similar statistics as the recent seasons. The food and beverage industry impressed the Sharks again with the defined market and the possibility to scale. The food industry had a 70% success rate, while the same figure clocked at 60% for health and wellness businesses. The fashion and apparel industry had a miserable run, as it had a 30% success rate.
The fashion products failed in Season 13 because they were too niche to get the Sharks interested. However, the technology businesses had a disappointing run in the Shark Tank Season 13 with a success rate of under 30%. Despite technology businesses booming in the USA, Sharks were reluctant to invest in risky ventures.
Season 14
The fashion and apparel industry saw a surge in success rates as 60% of the businesses got investment from the Sharks. Despite being niche, the fashion products pitched on the show convinced the Sharks to invest. Moreover, 40% of the technology businesses succeeded in Shark Tank Season 14. However, product market and uniqueness varied throughout the season. The food industry had 55% success. Meanwhile, Health & Wellness had 60%, Consumer Products had 50%, Technology had 40%, and Services had 30% success.
Season 15
In the recently concluded Shark Tank Season 15, the food and beverage industry equaled its own best success score of 75%. The health and wellness industry played the catching game throughout the season, with 60% of businesses successfully striking deals.
The consumer products continued their consistent run on Shark Tank, with 50% of entrepreneurs getting funds from the Sharks. The fashion industry had 50% success. Service-based businesses made a prominent mark on Shark Tank during Season 15, which showed that the Sharks started trusting people besides products. The services-based businesses had 50% success.
Unlike the proven food and health industries, the technology industry had a miserable 20% success rate because it was subject to strict scrutiny from the Sharks. Sharks did not put their trust in risky products that had an undefined market.
Conclusion
Explaining the success and failure of businesses on Shark Tank is difficult because hundreds of companies have appeared on the show for over 15 years. Investment trends change every year depending mainly on the market situation.
Categorizing businesses based on industries has helped us understand the patterns effectively. The season-wise analysis can help you depict the change in investment patterns and the change in favored industries over the years. The overall analysis contains a summarized account.
This statistical analysis is meant for those Shark Tank fans who are curious to know the minute details regarding the show or the business owners who are planning to appear on the show. No matter the type of reader, the assumptions and statistical judgments must be considered while evaluating the accuracy of this research.
Hi. I’m Daniyal Durrani. A CA-finalist, CPA-UK, and Master in Economics, with a decade-long business studies experience. I work as an Audit and Business Advisory Manager in a globally recognized accounting firm. I have been watching Shark Tank for a long time and have always admired the innovative business ideas. The revolutionary solutions to unaddressed day-to-day problems presented on the show used to impress me like no other thing on TV. Read more About me.
