A niche market refers to a specific segment of a larger market that focuses on a particular product or service tailored to a distinct group of consumers. This group often has unique preferences, needs, or interests that are not fully addressed by mainstream offerings. Businesses targeting a niche market can benefit from reduced competition and the ability to build strong customer loyalty. Companies operating in niche markets often develop specialized products or services that cater to the unique demands of their audience. Examples of niche markets include vegan skincare, eco-friendly products, and handmade crafts. By concentrating on these specific areas, businesses can effectively meet the needs of their target customers.