[Report] British Lifestyles - Winners & Losers in Changing Economic Times - UK

Issues in the Market
Definitions and abbreviations
Broader Market Environment
Demographics
Ageing comes of age
- Figure 1: Population breakdown, by age, 2003, 2008 and 2013
Half and half
Age -- The era of young greys
- Figure 2: Male population change, by age, 2003-08 and 2008-13
  - Figure 3: Female population change, by age, 2003-08 and 2008-13
- Figure 4: Total population change, by age, 2003-08 and 2008-13
Babies back in fashion
- Figure 5: Births and fertility, 2003-13
Mature mummies
- Figure 6: Births and fertility change, by age of mother, 2003-07
Reinvigorated population
- Figure 7: Population numbers and growth, 1997-2007
Immigration prevents population decline
- Figure 8: Births and fertility, 1997-2007
Time for the retired
- Figure 9: Lifestage changes, 2003-08 and 2008-13
Overseas marriages disguise statistics
- Figure 10: Marriages & Divorces, 1998-2013
Economic
Matching incomes to spend
- Figure 11: Spending within & outside means, annual real changes in PDI and consumer expenditure, 1998-2013
Spend exceeds income growth in seven years in past decade Per capita debt reaches £21,300
- Figure 12: Secured and unsecured debt, 1997-2007
- Figure 13: Cost of servicing debt, 1990-2007
Already some sensible borrowing
- Figure 14: Net unsecured credit, 2003-07
Consumers funded spending in 2007 from borrowing
A decade of increasing wealth
- Figure 15: Tax and incomes, 1997-2007
Incomes now under pressure
The future
Short-term belt tightening
Baton passes from consumer to corporate sector
- Figure 16: Past and future trends for main economic indicators, 2001-07 and 2007-13
In-home Food
Market size and trends
- Figure 17: In-home food sales value by sub-sector, 2007
- Figure 18: In-home food trends at current prices, 1997-2007
Healthy eating message continues to shape the market
Organics, fair trade and ethical yet to achieve scale
Convenience comes of age
5-a-day bites back
Forecast
Steady, if not dynamic
- Figure 19: In-home food market, at current prices, 2003-13
  - Figure 20: in-home food market, at 2008 prices, 2003-13
Health to remain crucial market driver
Increasing affluence drives growth
Factors used:
Consumer insight
Analysing the edible oils consumer
The Reducers (28% of sample)
What' s Oil the Fuss About? (WOFAs) (52% of sample)
It' s Oil Good (20% of sample)
Non-alcoholic Beverages
Market size and trends
- Figure 21: Non-alcoholic drinks sales value by sub-sector, 2007
- Figure 22: Non-alcoholic drinks trends at current prices, 1997-2007
In the frontline of health and nutritional trends
Innovate and segment
Carbonates go flat
Clear winner in fizzy drinks fallout
Hot beverages blow hot...and not so hot
5-A-Day is so good for market growth
Energy drinks punch well above their weight
Forecast
- Figure 23: Non-alcoholic drinks market, at current prices, 2003-13
- Figure 24: Non-alcoholic drinks market, at 2008 prices, 2003-13
Factors used:
Consumer insight
Seeing through the bottled water consumer
- Figure 25: Main reasons for drinking bottled water, March 2007
Alcoholic Drinks
Market size and trends
Boozing our way through £41 billion a year
- Figure 26: Alcoholic drinks sales value by sub-sector, 2007
  - Figure 27: Alcoholic drinks trends at current prices, 1997-2007
Tastes, fashion and attitudes shape direction
The deft hand of regulation and legislation
Lager losing its ' liquid gold' status
Dwindling ales and stouts sector
Wine the major contributor to alcohol sales growth
Cider -- a triumph of ice-cube marketing!
Spirits sectors take different growth tracks
Forecast
- Figure 28: Non-alcoholic drinks market, at current prices, 2003-13
- Figure 29: Non-alcoholic drinks market, at 2008 prices, 2003-13
Factors used:
Consumer insight
The wine consumer in more depth
Wine Chill-outs (21%)
Social Drinkers/Unconcerned (38%)
Wine Enthusiasts (16%)
Wine Novices (25%)
Personal Care
OTC pharmaceuticals market size and trends
A sector that shrugged off price deregulation
- Figure 30: OTC pharmaceutical product sales value by sub-sector, 2007
- Figure 31: OTC pharmaceutical product trends at current prices, 1997-2007
Grocery multiple interest boosts volumes and undercuts brands
Deregulation particularly favoured minor ailment sector
Alternatives become less alternative!
Self-diagnostics cash in on 21st Century consumer mood
Future OTC medicine prospects
Personal care market size and trends
Market performance
- Figure 32: Personal care sales value by sub-sector, 2007
- Figure 33: Personal care trends at current prices, 1997-2007
Haircare brings the salon into the bathroom
Innovation drives make-up
Men getting there, but slowly
Oral care goes beyond just the teeth
Anti-ageing the holy grail in skincare
Future
Forecast
- Figure 34: Personal care and otc pharmaceuticals market, at current prices, 2003-13
- Figure 35: Personal care and otc pharmaceuticals market, at 2008 prices, 2003-13
Factors used:
Consumer insight
Listen to me!
- Figure 36: Attitudes towards performance of cosmetics and toiletries, September 2007
Clothing and Adornment
Market size and trends
Overall trends
- Figure 37: Adornment sales value by sub-sector, 2007
- Figure 38: Adornment trends at current prices, 1997-2007
Volatile trading picture
Changing consumer sentiment
Womenswear
More retail exposure for women' s underwear
Menswear
Childrenswear
Kids growing older younger
Footwear
Shoe buying is so good for the sole
Jewellery and watches
Forecast
- Figure 39: Adornment market, at current prices, 2003-13Figure 40: Adornment market, at 2008 prices, 2003-13
Factors used:
Consumer insight
Battle of the sexes in the clothing market
- Figure 41: Attitudes towards clothes shopping, most popular statements -- women, June 2007
- Figure 42: Attitudes towards clothes shopping, most popular statements -- men, June 2007
Eating Out
Market size and trends
Eating out means piling on the £s
- Figure 43: Eating out and takeaways sales value by sub-sector, 2007
- Figure 44: Eating out & takeaways trends at current prices, 1997-2007
More outlets mean more demand
Looking forward to the next course
Fast food meant fast growth...
... but is now facing competition
Pubs remain the nation' s favourite
Other restaurants experience contrasting fortunes
Forecast
- Figure 45: Eating out and takeaways market, at current prices, 2003-13
- Figure 46: Eating out and takeaways market, at 2008 prices, 2003-13
Eating out will bear brunt of downturn
Factors used:
Consumer insight
Developing menus the key to growth
Non-adventurous (35% of the population)
Main Course only (25% of the population)
From the Specials Board (16% of the population)
Confident Diners (24% of the population)
Technology and Communications
Market size and trends
Technology innovation drives consumer desire
- Figure 47: Technology & communications sales value by sub-sector, 2007
- Figure 48: Technology & Communications trends at current prices, 1997-2007
Bringing applications together
Talk and text surge ahead
Mobile mania reduces fixed-line demand
Homes morph from narrowband to broadband
Sky-high performance from digital TV sector
Bigger and flatter ' must have' TVs power brown goods sector
Audio and DVD faces stronger competition from multifunction devices
SatNav sales guide strong in-car entertainment sector growth
Changing the way we use computers
Peripherals and software drive ahead
New order in music distribution continues to hit pre-recorded sales
Revolution in photography -- pixels give way to style
Forecast
- Figure 49: technology & communications market, at current prices, 2003-13
- Figure 50: Technology & communications market, at 2008 prices, 2003-13
Factors used:
Consumer insight
Unbundling the mobile user
Mobile-mad (28% of respondents)
Forever Turned On (12% of respondents)
A Necessary Burden (15% of respondents)
Unconcerned (45% of respondents)
Entertainment
Market size and trends
Facing competition from inside the home
- Figure 51: Entertainment sales value by sub-sector, 2007
- Figure 52: Entertainment trends at current prices, 1997-2007
Looking good is the biggest expenditure
More options competing for the ' on the town' pound
Marketing pays off for some of the days out sector
Sports participation scores with convenience and activity extension
Betting and gaming growth reflects softening of attitudes
Forecast
- Figure 53: Entertainment market, at current prices, 2003-13
- Figure 54: Entertainment market, at 2008 prices, 2003-13
Factors used:
Consumer insight
Ticking the boxes of the National Lottery player
Lottery Lovers (42% of the population or 20.7 million adults aged 16+)
In-betweens (29% of the adult population or 14.3 million adults aged 16+)
Lottery Avoiders (29% of the adult population or 14.3 million adults aged 16+)
News, Print and Tobacco
Market size and trends
- Figure 55: Newsagents' goods sales value by sub-sector, 2007
  - Figure 56: Newsagents' goods trends at current prices, 1997-2007
Stubbing out the cigarette market
Ever declining circulations
Still can' t beat a good book
The hallmark of greetings cards is sector maturity
Varying fortunes for magazines and comic publishers
Forecast
- Figure 57: Newsagents' goods market, at current prices, 2003-13
- Figure 58: Forecast of the value of newsagents' goods market, at 2008 prices, 2003-13
Factors used:
Home and Garden
Market size and trends
- Figure 59: Home & garden sales value by sub-sector, 2007
  - Figure 60: Home & garden trends at current prices, 1997-2007
Growing interest in home design doesn' t translate to spend
Changing uses of in-home spaces
Household furniture provides built-in growth
Domestic chores market fails to shine
Garden products struggle to reach full growth
In search of sanitary perfection
Upstairs, downstairs...
Price deflation knocks stuffing out of soft furnishings
Price pressure pans pots and plates
Forecasts
- Figure 61: home and garden goods market, at current prices, 2003-13
- Figure 62: home and garden goods market, at 2008 prices, 2003-13
Home becomes focus after difficult 2008
Factors used:
Consumer insight
And so to bed...
Group 1: Modest Needs (43% of sample)
Group 2: Practical Purposes (35% of sample)
Group 3: Design Desires (22% of sample)
Personal Transport
Market size and trends
Life on four wheels is getting expensive
- Figure 63: Personal transport sales value by sub-sector, 2007
- Figure 64: Personal transport trends at current prices, 1997-2007
It' s personal, not environmental, cost that matters
Don' t fill it up
New sales face much stronger competition from used cars
Changing car design means a substantial boost for after-care sector
Attractions of two wheels? ... it' s on trend, but a flat picture
Forecast
- Figure 65: Personal transport market, at current prices, 2003-13
- Figure 66: Forecast of personal transport expenditure, at 2008 prices, 2003-13
Challenging times ahead for the car market
Factors used:
Consumer insight
Car Enthusiasts (20% of the sample)
Safety Gamblers (31% of the sample)
Safety First (27% of the sample)
A to Bs (22% of the sample)
Housing
Market size and trends
- Figure 67: Housing value by sub-sector, 2007
- Figure 68: Housing trends at current prices, 1997-2007
Democratisation of home ownership
Smaller dwellings and a castle home and abroad
Rapid growth in personal balance sheets
Property caught in the slipstream of world credit crisis
Mortgage borrowing exceeds £1 trillion
The home as a financial tool
Changes in mortgagor profile
Credit crunch brings market to a halt
Renting gets more attractive
Householders aren' t doing it for themselves
Do it for me
Mood, sanctuary and ' instant' bring new approaches to DIY
Local taxes make bigger demands on household budgets
Stamp duty ensnares more home buyers
High energy inflation in fuel costs
Forecasts
- Figure 69: Housing market, at current prices, 2003-13
- Figure 70:Forecast of housing market, at 2008 prices, 2003-13
DIY to stage slight revival
Factors used:
Consumer insight
Attitudes towards property investment
- Figure 71: Attitudes towards property investment, June 2007
Holiday and Travel
Market size and trends
Holiday-taking trends
- Figure 72: Holiday & travel sales value, by sub-sector, 2007
- Figure 73: Holiday and travel trends at current prices, 1997-2007
More but shorter holidays...and we' re booking them ourselves
Internet adds new elements to travel booking
Long-duration holidays power the market...
...but short breaks enjoying dramatic growth
Spending begins at home? Not anymore
Travel -- prices going in two directions
Forecasts
- Figure 74: Holiday and travel market, at current prices, 2003-13
- Figure 75: Forecast of value of holiday and travel market, at 2008 prices, 2003-13
Holidays prone to economic conditions -- but will still expand
Factors used:Consumer insight
Understanding the no-frills flyer
No-frills thrilled (19% or 9.5 million adults aged 15+)
Thrifty Groaners (14% or 7 million adults aged 15+)
Disengaged (19% or 9.5 million adults 15+)
Personal Finance
Market size and trends
- Figure 76: Personal finance sales value by sub-sector, 2007
  - Figure 77: Personal finance trends at current prices, 1997-2007
How things have changed in six months
Changing face of distribution and technology
Planning for old age tops expenditure
Occupational schemes now a closed book
Private schemes taking up some of the slack
Private motor sector bows under pricing pressure
Domestic property insurance continues on an upward path
Creditor insurance -- making hay while the sun shines
Low claims ratio ensures solid performance from the accident sector
Lower premiums for life cover slow growth
Charities benefit from more effective marketing
Rapid growth in charges, fees and commissions
Forecasts
- Figure 78: Personal finance market, at current prices, 2003-13
  - Figure 79: Forecast of value of personal finance market, at 2008 prices, 2003-13
Post A-day personal pensions to slow finance sector
Factors used:
Consumer insight
A miscellany -- the remaining spend
Market size and trends
- Figure 80: Miscellaneous sales value by sub-sector, 2007
- Figure 81: Miscellaneous trends at current prices, 1997-2007
Education
Medical services spend
Funerals
Pets
Nappies and baby wipes
Other services
Forecast
- Figure 82: Miscellaneous market, at current prices, 2003-13
- Figure 83: Miscellaneous market, at constant prices, 2003-13
Factors used:
Market Sizes Appendix
In-home food
- Figure 84: Market value of in-home food products, 1997-2007
Non-alcoholic drinks
- Figure 85: Market value of non-alcoholic drinks, 1997-2007
Alcoholic drinks
- Figure 86: Market value of alcoholic drinks, 1997-2007
Adornment
- Figure 87: Market value of clothing products, 1997-2007
Personal care
- Figure 88: Market value of personal care products, 1997-2007
Eating out and takeaways
- Figure 89: Market value of eating out and takeaways products, 1997-2007
Technology
- Figure 90: Market value of technology products, 1997-2007
Entertainment
- Figure 91: Market value of entertainment products, 1997-2007
Newsagents goods
- Figure 92: Market value of newsagents goods, 1997-2007
Home and garden
- Figure 93: Market value of home and garden products, 1997-2007
Personal transport
- Figure 94: Market value of personal transport, 1997-2007
Housing
- Figure 95: Market value of housing, 1997-2007
Holidays & travel
- Figure 96: Market value of holidays, 1997-2007
Personal finance
- Figure 97: Market value of personal finance, 1997-2007
Miscellaneous
- Figure 98: Market value of miscellaneous products, 1997-2007
Winners and Losers -- The Consumer Angle
Consumer research analysis: spending plans, past and future
Those already feeling the pinch
- Figure 99: Spending plans cancelled, February 2008
Holidays feel the heat of domestic finance woes
- Figure 100: Vulnerable population sectors for main holidays, February 2008
- Figure 101: Vulnerable population sectors for weekend breaks, February 2008
Home improvements get shelved
- Figure 102: Vulnerable population sectors for DIY/home improvements, February 2008
Savings plans dashed
- Figure 103: Vulnerable population sectors for saving, February 2008
Car purchasing stalls
- Figure 104: Vulnerable population sectors for main cars, February 2008
Clothes left hanging
- Figure 105: Vulnerable population sectors for clothes, footwear/jewellery, February 2008
More resilient electricals and entertainment spending
Reasons for cancelling/postponing spending plans
- Figure 106: Reasons for cancelling spending plans, February 2008
General cost of living concerns
- Figure 107: Cost of day-to-day living, February 2008
Caution is a response to changing financial climate
- Figure 108: Just felt should be more careful, February 2008
Nasty shocks in brown envelopes
- Figure 109: Had some big household bills, February 2008
Downturn in income
- Figure 110: Incomes down for other reasons, February 2008
No more on the never-never
- Figure 111: Had to pay off debt, February 2008
Reasons for cancelling expenditure
- Figure 112: Spending plans cancelled and reasons for cancelling, February 2008
Future expenditure plans
- Figure 113: Categories held in pent-up demand, February 2008
Holidays continue to exert their grip on our spending plans
- Figure 114: Pent-up demand for holidays, February 2008
Putting money into the home
- Figure 115: Pent-up demand for home improvements, February 2008
Caution reigns in windfall
- Figure 116: Pent-up demand for saving (putting money aside/rainy day), February 2008
Granny' s charity
- Figure 117: Pent-up demand for giving away to family or friends, February 2008
Getting the debt monkey off our backs
- Figure 118: Pent-up demand for paying off debt/credit card, February 2008
Spending behavioural targets
Sensible Spenders (14% of respondents who cancelled spending plans)
What will affect their spending in the next year?
Average Joes (31% of respondents who cancelled spending plans)
What will affect their spending in the next year?
Cautious Affluents (45% of respondents who cancelled spending plans)
What will affect their spending in the next year?
Credit Generation (10% of respondents who cancelled spending plans)
What will affect their spending in the next year?
Tenure status main determinant of spending plans
- Figure 119: Adults who knew their housing status, February 2008
- Figure 120: Behavioural groups 2007, by household status, February 2008
Problems ahead for clothes, footwear, jewellery and travel
- Figure 121: Postpone expenditure by households
Renters less sensitive to market downturns
- Figure 122: House ownership type, by attitudes towards spending, February 2008
- Figure 123: House ownership type, by reasons cited for delaying or cutting back on spending plans in the past year, February 2008
Appendix to section
- Figure 124: Behavioural groups by socio-demograhic groups, February 2008
- Figure 125: Behavioural groups 2007, by attitudes towards spending, February 2008
- Figure 126: Behavioural groups by what they did not buy over the previous 12 months due to changes/uncertainty over household prices, February 2008
- Figure 127: Behavioural groups by main reasons for delaying or cancelling spending plans in the past 12 months, February 2008
- Figure 128: Behavioural groups by what they would buy if they came into money unexpectedly (around £31,000), February 2008
Winners and Losers -- The Markets
Evaluation in current terms
- Figure 129: Changing shares of main categories ofspend, at current prices, 1997-2007
- Figure 130: Changing shares of individual categories ofspend, at current prices, 1997-2007
Top 20 winners
- Figure 131: Top 20 individual share growth areas, 1997-2007
Top 20 losers
- Figure 132: Bottom 20 individual declining share areas, 1997-2007
Comparative growth rates
- Figure 133: Comparisons of risers and fallers over the decade,1997-2007, 1997-2002 and 2002-07
- Figure 134: Comparative risers and fallers of individual sectors, 1997-2007
Each sector has its story
The real picture
- Figure 135: Real growth, by main categories, 1997-2007
- Figure 136: Real growth, by individual categories, 1997-2007
Sensitivity to economic climate
- Figure 137: Sensitivity of main categories of spend to main economic factors, 1997-2007
Girls and their toys?

British Lifestyles - Winners & Losers in Changing Economic Times - UK - March 2008

Table of Contents