niche

market segment

Also known as: subsegment

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The Information Architects of Encyclopaedia Britannica

Last updated

July 1, 2026

Quick Summary

A niche refers to a specialized segment of a market or a specific role. In a business context, a niche is a small, distinct target group with unique requirements. Larger companies often focus on broader market segments, leaving these specialized niches for smaller businesses that can cater to their specific needs.1

The term "niche" can also describe a suitable position, activity, or status for which a person or thing is best fitted, or a habitat that provides the necessary elements for an organism's existence. It can also refer to the ecological role an organism plays within a community.2

Summary created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

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Segments can be divided into even smaller groups, called subsegments or niches. A niche is defined as a small target group that has special requirements. For example, a bank may specialize in serving the investment needs of not only senior citizens but also senior…
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Segments can be divided into even smaller groups, called subsegments or niches. A niche is defined as a small target group that has special requirements. For example, a bank may specialize in serving the investment needs of not only senior citizens but also senior…
Read More