How to find gaps in the market – 8 important steps

New products are constantly being launched to consumers, and often we find ourselves wondering: who really needed that? Some innovations might seem unnecessary, but they highlight an essential lesson about finding gaps in the market.

Brands often look at the market from their own perspective, seeing uncharted territory as a chance for first-mover advantage, without figuring out if there’s a real demand. This approach can lead to unnecessary products that fail to meet consumer needs.

Identifying gaps in the market should always focus on the consumer’s perspective. Understanding what your target customers genuinely need, rather than just aiming to be first, ensures you create a viable business that meets real market demands.

Here we’ll explore how to find a market gap that’s worth filling. From analyzing industry trends to decoding consumer behavior, we’ll show you how to develop a brand-new product that taps into the unmet needs of your customers.

TL;DR: how to find gaps in your market

1. Conduct a complete competitor analysis
2. Analyze your own business and consumer feedback
3. Tune into consumer trends
4. Get feedback from your target audience
5. Monitor consumer sentiment on social media
6. Keep track of industry laws and compliance
7. Consider international market expansion
8. Attend industry events and webinars
9. Validate your ideas through research & concept testing

How to identify market gaps

Let’s talk about market spotting before we jump in. If you want to identify opportunities for your business and fill a potential gap in the market, there are a couple of things to keep in mind.

First of all: why is there a gap in the market in the first place? If it were worth it to tap into it, why is nobody taking advantage of it yet?

This question isn’t an answer in itself: sometimes other businesses may have spotted the gap, but simply lack the resources to stay ahead.

Second of all: is filling this gap in line with something your business is already good at? Aka: do you need to make any major changes to jump into this new market, and is that viable – and worth it?

Once you’ve looked at these two elements, you can start taking a closer look at the gap in the market you’re interested in.

Here are some important steps to follow.

1. Conduct a complete competitor analysis

Start by analyzing your competitors’ strategies and their business models. Identify their strengths, weaknesses, opportunities, and threats (SWOT). Look for what they’re missing to give you the competitive edge.

A SWOT analysis can reveal gaps in their product offerings or areas where customer satisfaction is low, which helps identify opportunities for you. This competitive analysis is essential in spotting market gaps where new features could provide a unique advantage.

Just make sure it’s always based on real user needs, not simply on the capabilities of the market. Just because you and your competitors can, doesn’t mean you should jump on those new ideas.

If you want to hit the ground running, start with our market analysis template and make it your own.

• Include imagery: how to do SWOT analysis of competitors (e.g. https://images.app.goo.gl/uySayBsAZ3ZvMn1j7)

2. Analyze your own business and consumer feedback

The gap is not always in the market itself. Sometimes, it’s in your business. Using a thorough market analysis and self assessment on your business performance, you can gather consumer feedback on existing products and your service as a whole.

Because finding business gaps often starts with understanding your current strengths and weaknesses. Analyze customer demand and identify areas where you can improve or innovate. Using top market research services can provide valuable insights into what your existing customers need, helping you to identify potential market gaps that can be addressed with deliberate improvements.

3. Tune into consumer trends

Don’t just start looking for gaps in the market when business is slow, or you feel like a new product would boost revenue. Constantly staying updated with the latest market trends is essential if you want to stay ahead. Make sure you always have a toolbox on hand that enables you to quickly recognize trends, and act on it.

Platforms like Attest’s help you monitor trends in your industry and in consumer behavior. By examining what your target audience is talking about, what your competitors are doing and how your customers feel about your current offering, you’ll be the first one to know if there are any gaps in the market that your existing products or new features can address.

Want a quick start? Check out our industry report on 2024 consumer trends.

Practical tips for tuning into trends

There are, of course, countless trends out there. Some will stick around, but a lot are just fleeting. So how do you determine from your data whether something is a viable commercial opportunity?

• Lean into AI and machine learning: Use advanced analytics to predict trends based on large datasets. This approach helps you identify subtle shifts in consumer preferences early on and look into the future, rather than just focusing on what’s happening now.
• Combine multiple data sources: Integrate and cross-check data from different tools and reports to get a comprehensive view of market trends to make sure you’re not missing any critical insights or misinterpreting any data. And make sure to use a mixture of primary and secondary data, not just secondary data – using primary data that is tailored to your objectives will make it exponentially more valuable to you.

4. Get feedback from your target audience

Often, the best ideas for features and product improvements come straight from your customers. Make them an integrated part of your innovation strategy, and regularly turn to them for advice. With a tool like Attest, you can gather detailed user insights on the regular. Their feedback allows you to meet market demands and drive business success.

As a best practice, use a combination of surveys, focus groups, and direct interactions to get the best insights. In those interactions, focus on what your target audience really wants, so you can design products that truly resonate with them, and turn customer feedback into a roadmap for success. If you’re looking for inspiration, check out these examples of consumer research done right.

5. Monitor consumer sentiment on social media

Social media is a goldmine for understanding consumer sentiment, especially in niche markets. With social listening tools you can monitor discussions to identify viable business opportunities and user pain points. This method can highlight gaps in the market that might not come up in surveys or interviews with customers, but rather reveal themselves in unprompted discussions with other consumers. Make sure to always dig deeper on what you find in social listening tools by following it up with surveys and interviews. Engaging with your existing customers on social media can also highlight areas where new features might be appreciated.

6. Keep track of industry laws and compliance

It’s often overlooked because it’s not necessarily the most exciting type of market research, but sometimes the law is simply the best place to start looking for gaps in the market. If you monitor legal news and are the first to know if any new legislation is coming up, you can ensure compliance by preparing your products quickly.

Make sure your team stays updated with industry knowledge, federal legislation, and pending legislation to spot opportunities for innovative solutions.

7. Consider international market expansion

If there’s no gap in your current market, have a look at expanding into international markets. You could deliver your existing product to fill a gap abroad, meeting new customer needs and expanding your customer base.

When you take your brand abroad, make sure you fully understand the nuances of international markets. This allows you to spot market gaps that might not be evident in domestic markets, and could make your product a viable business on a global scale. Check out our guide on international market analysis to start it off on the right foot.

8. Keep an eye on industry events, webinars and online communities

Talking to other people in your industry is often a great way to find out what gaps are being explored by others. Industry events, webinars and online communities are great for keeping up with market trends and spotting new business opportunities.

Networking with industry professionals can give you fresh ideas and insights into potential gaps in the market. Do make sure to validate your findings with solid market research, and don’t just act on hearsay.

9. Validate your ideas through research and concept testing

Before launching a new product or feature, validate your ideas through thorough research and concept testing. This ensures that your solutions meet market demands and are set up for success. Creative testing helps you refine your product ideas and gather feedback from potential customers, making sure that your new features are well-received by your target market. Get started with our product research survey template.

Examples of gaps in the market you might find

When looking for a market gap, keep your eyes open to the different types of gaps that can exist.

They might not always seem super obvious, and people tend to go into this type of market research with some bias or assumptions. Knowing that there are different types of opportunities to look out for gives you a competitive edge. Here are some to consider.

1. Simplified versions of complex products

It’s not your lack of skills: tech products are getting increasingly complicated. Which also means there’s a growing demand for simplified versions. Consumers often look for products that strip away unnecessary features and focus on core functionality.

For instance, some users might want a smartwatch that only tracks steps and doesn’t include advanced health metrics like heart rate or stress levels. Another example could be clothing items, where customers prefer a simple design without extra frills or complicated elements.

Filling this type of gap addresses user pain points and offers a straightforward, user-friendly alternative to over-engineered products.

2. Sustainable alternatives

With the increasing focus on sustainability, there’s a significant opportunity to create eco-friendly versions of products that are traditionally seen as unsustainable. Or in some cases: products or services that people are just finding out are harmful to the environment.

For instance, a green web hosting service caters to businesses and individuals looking to reduce their carbon footprint. Other examples include biodegradable phone cases or eco-friendly office supplies.

These sustainable alternatives meet customer demand for greener products and enhance your brand’s image as environmentally conscious.

3. Business versions of consumer products (and vice versa)

Sometimes, there’s a clear gap for a business-oriented version of a consumer product, or a consumer version of a traditionally B2B product.

For example, project management software often designed for businesses could be simplified and marketed for personal use, helping individuals manage their tasks and schedules more effectively.

Conversely, a consumer product like a smart home security system could be adapted for small business use, offering features tailored to business security needs. Identifying these cross-market opportunities can open up new customer bases and increase your market reach.

4. Products for emerging demographics

As demographics shift, new market gaps emerge, and so do new target customers. Products designed specifically for the needs of aging populations, such as user-friendly tech gadgets for seniors, or products aimed at the growing market of young urban professionals, like compact, space-saving furniture, can meet specific needs.

5. Customizable and personalized solutions

There’s an increasing demand for products that offer customization and personalization. Consumers want products that can be tailored to their preferences, such as customizable meal plans in subscription boxes or personalized skincare products based on individual skin types. Take a look at products you use daily and think about what personalization would

Find a market gap with the right tools

Finding a gap in the market is the first step to business success. The second one is validating it with consumer research for a new product. With Attest, you get access to the tools that help you do just that, plus a dedicated research expert to turn your project into a success. Curious to see where market research can lead your business? Get in touch today.