A subset of a larger market, where it (the niche) is characterized by its customers’ unique preferences and needs that distinguish it from the broader/ main market. A niche market is not necessarily a small market, but rather a segment of a larger market, focusing on a specific target audience with a specialized product/ service. The market niche defines the offering features aimed at meeting specific needs of a group of customers, in addition to other key criteria including the price range, product quality and the demographics of the target customer group.

For instance, the “market painting” sector is broad, but within that market, there’s also special-purpose painting (protective layering, glass-coating, etc.)