Table of Contents
Executive Summary
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- The People
- Where the Money Comes From
- Where the Money Goes
- The Consumer
- Spend on Home Acquisition and Household Services
- Spend on Household Durables and Consumables
- Spend on Food, Drink and Tobacco
- Spend on Entertainment
- Spend on Travel
- Spend on Personal Goods
- Spend on Health
- Spend on Financial Services
- The Future
The People
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- Census reveals we number under 60 million
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- UK population trends, 1982-2007
- Awaiting the final census results
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- Population trends, by age, 1997-2007
- Major work/life balance reorientation
- A few milestones in an ageing population
- ‘Get ‘em while they’re young’ still a good strategy
- The beanpole family concept
- Dependency rate stable…
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- Dependency ratio of population, 1997-2007
- ...but in 2007
- The start towards the flexible retirement age
- Fewer births – and to older parents
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- Number of births in England and Wales, by age of mother, 1981-2001
- More retired grandparents increase the pool of childminders
- Families to decline
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- Structure of the adult population, by lifestage, 1997-2007
- Household population
- Households becoming smaller, but slowly
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- Changing structure of UK households, 1991-2007
- One-person households not a uniform target
- Millennium effect soon dissipated
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- Marriage and divorce trends in the UK, 1992-2007
- Household working patterns
- Less traditional lifestyles?
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- Household working patterns, 1999-2002
- Employment
- Workforce expanding – but so is unemployment
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- The changing structure of UK employment, 1992-2007
- Trends in full-time and part-time employment, by gender, 1992-2007*
- Growth in part-time work creates new work/life balances
- Enforced part-time working more prevalent among men
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- Working women by age of youngest dependent child, 1991 and 2001
- Majority of mothers with pre-school children now work
- Mothers of children aged under 15 just as likely to work as other women
- Unemployment
- Unemployment numbers to rise
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- UK unemployment, by gender, 1992-2007
Where the Money Comes From
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- Definitions
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- Gross incomes, 1992-2002
- The Treasury shares in growing affluence
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- Household personal gross income, 1992-2002
- Rising incomes promote housing boom
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- Sources of personal gross income, 1992-2002
- Wages and salaries remain chief source of income
- Personal wealth
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- Distribution of personal wealth, 1991-2002
- Property regains importance…
- …but liquidity is not necessarily lost
- Credit
- Double-digit growth
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- Consumer credit outstanding*, 1992-2002
- Credit becomes established as part of household budgeting
- The young more inclined to use credit
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- Consumer credit net transactions*, 1992-2002
- Credit adds 10% to incomes
Where the Money Goes
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- Consumer expenditure trends, 1992-2002
- Consumers becoming more cautious
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- Annual growth rates for consumer expenditure and PDI, 1992-2002
- Long-term trends
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- Gross discretionary spend, 1992-2002
- Housing goes from strength to strength
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- Percentage change in main categories of GDS, 1992-2002
- Main areas of growth and decline in GDS, 1992-2002
- Areas of relative growth, 1992-2002
- Areas where relative shares have remained static, 1992-2002
- Areas of relative decline, 1992-2002
- Individual sub-sectors showing growth, 1992-2002
- Static individual sub-sectors, 1992-2002
- Individual sub-sectors showing decline, 1992-2002
- Fastest-growing individual sub-sectors, 1992-2002
- Short-term trends
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- Gross discretionary spend, 2001-02
- Star performers in the last 12 months, 2001-02
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The Consumer
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- The UK work/life balance
- Work, money and future concerns
- Motivations for work
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- Motivations for work, October 2002
- Main work motivations, by gender, age, socio-economic group and lifestage, October 2002
- Attitudes towards work and money
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- Attitudes towards work and money, October 2002
- Attitudes towards work and money, by gender, age, socio-economic group and lifestage, October 2002
- Current security and lifestyle priorities
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- Security priorities, October 2002
- Selected financial/security priorities, by gender, age, socio-economic group, lifestage and working status, October 2002
- Lifestyle choices, October 2002
- Top five lifestyle priorities, by gender, age, socio-economic category, lifestage and work status, October 2002
- Next nine lifestyle priorities, by gender, age, socio-economic category, lifestage and work status, October 2002
- Consumer typologies for security/lifestyle choices
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- Cluster groupings of current consumer priorities, October 2002
- The security conscious (24% of the sample)
- The revellers (18% of the sample)
- The convenience seekers (21% of the sample)
- The easily pleased (37% of the sample)
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- Cluster groupings, by gender, age, socio-economic groups, lifestage and work status, October 2002
- Future concerns
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- Future concerns, October 2002
- Lifestyle priorities cluster groups, by future concerns, October 2002
- Achieving the right balance
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- The most important ways of achieving the best balance/contentment, October 2002
- Top five ways of achieving best balance/contentment, by gender, age, socio-economic group and lifestage, October 2002
- Next five ways of achieving best balance/contentment, by gender, age, socio-economic group and lifestage, October 2002
- Lifestyle priorities cluster groups, by ways of achieving best balance/contentment, October 2002
- Markets of the future
Spend on Home Acquisition and Household Services
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- Housing
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- Expenditure on housing, 1992-2002
- Owner-occupier versus house renting
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- Housing tenure trends, 1992-2002
- House buying and selling
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- Number of housing transactions, 1992-2002
- Mortgage arrears and repossessions, 1992-2002
- House prices
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- Ratio of house prices to income, 1992-2002
- House prices by region
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- Analysis of regions with the highest average house prices, August 2001* and August 2002**
- The importance of owning one’s own home by social demographics
- A pervasive desire
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- Importance of home ownership, by key socio-demographic group, October 2002
- Importance of home ownership, by social circumstances, October 2002
- Importance of home ownership, by lifestage and ACORN categories October 2002
- Competing priorities for those whose main priority was home ownership
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- Main priorities to compete with owning own home, October 2002
- Heating, power and light
- Expenditure on domestic fuel and power
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- Ependiture on domestic fuel and power, 1992-2002
- Household and other services
- Expenditure on household services
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- Expenditure on household services, 1992-2002
- DIY and the home
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- Agreement with attitudinal statements concerning DIY and the home, 1992-2002
- Agreement with attitudinal statements concerning DIY and the home, by demographic sub-group, 2002
- Importance of having help with the housework, by work status
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- Importance of having domestic help, by key demographic sub-group, October 2002
- Importance of having domestic help, by social characteristics, October 2002
- Importance of having domestic help, by lifestage and ACORN categories, October 2002
- Main priorities to compete with having help with the housework
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- Main priorities to compete with household help, 2002
Spend on Household Durables and Consumables
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- Striking the balance
- Domestic appliances
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- Expenditure on domestic appliances, 1992-2002
- Home computers
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- Ownership of personal computers, 1995-2002
- Percentage of UK consumer with Internet access, 1998-2002
- Broadband
- White goods
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- Expenditure on major white goods, 1997-2002
- Disposal of refrigerators
- Brown goods
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- Expenditure on major brown goods, 1997-2002
- TV market
- Hi-fi and stereo market
- DVD market
- In-car entertainment
- Mobile phone market
- Television ownership
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- Ownership of TV sets, 1995-2002
- Ownership of VCRs
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- Ownership of VCRs, 1995-2002
- DVD ownership
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- Ownership of DVDs, by socio-economic group, 2002
- Attitudes towards new technology
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- Consumer profiles of those agreeing and disagreeing with the statement ‘I love to buy new gadgets and appliances, by demographic sub-group, 2002
- Remote access shopping and banking
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- Importance of shopping from home/Internet shopping, by key socio-demographic groups, October 2002
- Importance of shopping from home/Internet shopping, by social characteristics, October 2002
- Importance of shopping from home/Internet shopping, by lifestage and ACORN categories, October 2002
- Importance of managing finance over the telephone/via Internet, by socio-demographic groups, October 2002
- Importance of managing finance over the telephone/via Internet, by social characteristics, October 2002
- Importance of managing finance over the telephone/via Internet, by lifestage and ACORN categories, October 2002
- Furniture and furnishings
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- Expenditure on furniture and furnishings, 1992-2002
- Household and garden products
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- Expenditure on household and garden products, 1992-2002
Spend on Food, Drink and Tobacco
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- Household food
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- Expenditure on food for in-house consumption, 1992-2002
- Meat and fish
- Fruit and vegetables
- Milk, cheese and eggs
- Flours, bread and cereals
- Confectionery, sugar, sweeteners, oils and fats
- Convenience foods
- Attitudes towards food and meal preparation
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- Agreement with attitudes towards food and meal preparation, 1992-2002
- The convenience food market
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- Expenditure on convenience foods, 1992-2002
- Ethnic and related foods
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- The ethnic and related food sector, 1992-2002
- Importance of buying takeaway food/ready meals
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- Importance of buying takeaway food/ready meals, by key socio-demographic variables, October 2002
- Non-alcoholic drinks in and out of home
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- Expenditure on non-alcoholic drinks in and out of home, 1997-2002
- Alcoholic drinks in and out of home
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- Expenditure on alcoholic drinks in and out of the home, 1997-2002
- Trends in alcohol consumption, in and out of home
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- GB adults' frequency of drinking alcoholic beverages in and out of home, 1996 and 2001
- Cigarette smokers, by demographic sub-group, 1994-2002
- Attitudes towards smoking among smokers, January 2002
- Expenditure on takeaways and eating out, 1992-2002
- Most popular attitudes towards eating out, by demographic sub-group, November 2001
- Most popular restaurants or cafés dined in, by demographic sub-group, November 2001
Spend on Entertainment
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- Expenditure on main areas of out-of-home entertainment, 1992-2002
- Frequency and days when leisure venues are visited, 1997-2002
- Expenditure on other areas of out-of-home entertainment, 1992-2002
- Expenditure on leisure goods
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- Expenditure on leisure goods, 1992-2002
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Spend on Travel
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- Holidays
- Some troubling developments
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- Expenditure on holidays, 1992-2002
- A robust market
- Attitudes towards holidays/travel
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- Attitudes towards holidays, 1992-2002
- Shorter, multiple holidays
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- Trends in holiday-taking (taken in the last 12 months), 1997-2002
- Main type of holiday taken in the last 12 months, 1997-2002
- Leading overseas destinations
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- Top 12 holiday destinations for the British, 1992-2001
- Travel insurance
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- Expenditure on travel insurance, 1992-2002
- Personal mobility
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- Modes of transport used during a normal week, 1992-2002
- Expenditure on cars
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- Expenditure on cars, 1992-2002
- UK car parc, new registrations and vehicle excise duty, 1997-2002
- Motorcycles, cycles and other vehicles
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- Expenditure on motorcyles, cycles and other vehicles, 1992-2002
- Ownership of motorcycles, scooters and mopeds, 1992-2002
- The importance of having a car
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- Importance of having a car, by key social characteristics, October 2002
- Importance of having a car, by lifestage and ACORN categories, October 2002
- Competing priorities
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- Main priorities to compete with having a car, October 2002
Spend on Personal Goods
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- Clothing, footwear and accessories
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- Expenditure on clothing, footwear and accessories, 1992-2002
- Womenswear
- Menswear
- Childrenswear
- Accessories
- Footwear
- Jewellery and watches
- The consequences of polarisation
- The trend towards casualisation in menswear
- Attitudes towards fashion over the decade
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- Agreement with the statement ‘It is important to me to look well dressed’, by gender, 1992-2002
- Agreement with the statement ‘I like to keep up with the latest fashions’, by gender, 1992-2002, 1992-2002
- Youth-oriented fashion
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- Importance of buying fashionable clothes, by key socio-demographic groups, October 2002
- Importance of buying fashionable clothes, by social characteristics, October 2002
- Importance of buying fashionable clothes, by lifestage and ACORN categories, October 2002
- Main priorities that compete with buying fashionable clothes, October 2002
- Quality very important
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- Female attitudes towards clothes shopping, June 2002
- Male attitudes towards clothes shopping, May 2002
- Toiletries
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- Expenditure on toiletries, 1992-2002
- Men’s toiletries
- Grooming products
- Cleansing
- Personal hygiene
- Appearance matters to both young and old
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- Importance of appearance/looking good, by key socio-demographic groups, October 2002
- Importance of appearance/looking good, by social characteristics, 2002
- Importance of appearance/looking good, by lifestage and ACORN categories, October 2002
- Similar competing priorities across work category
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- Main priorities that compete with appearance/looking good, October 2002
- Attitudes towards skincare and buying toiletries and cosmetics
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- Agreement with the statement ‘skincare products are for women, not men’, by gender, 1997-2002
- Attitudes towards skincare & buying toiletries and cosmetics, by key demographic groups, 2002
Spend on Health
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- Expenditure on medicine products
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- Expenditure on medicine products, 1992-2002
- Analgesics
- Vitamins and dietary supplements
- Cold and cough remedies
- Minor ailment remedies and self-diagnostics
- Other medicines
- Determinants of future expansion
- Asking for advice
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- Consumers who consulted on complaints suffered in the last 12 months, 1992-2002
- Attitudes towards health and healthy lifestyles
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- Agreement with statements relating to health and lifestyles, 2002
- Attitudes towards healthy lifestyles, by key demographic sub-groups, 2002
- Attitudes towards treating illness, by demographic sub-group, 2002
- Usage of medicine products
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- Trends in the use of medicines, 1992-2002
- Trends in the use of vitamins, cod liver oil and supplements, by demographic sub-group, 1992-2002
- The role of stress
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- Agreement with the statement ‘My life is quite stressful’, by demographic sub-group, 1997-2002
- The relationship between stress and exercise, December 2002
- The relationship between stress and use of alternative medicine, December 2002
- Expenditure on medical services
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- Expenditure on medical services, 1992-2002
- Private medical insurance
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- Penetration levels of health/medical insurance 1994-2002
- mportance of having private medical insurance, by key socio-demographic sub-groups, October 2002
- Importance of having private medical insurance, by social characteristics, October 2002
- Importance of having private medical insurance, by lifestage and ACORN categories, October 2002
- Main priorities which compete with having private medical insurance, by working status, 2002
Spend on Financial Services
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- Total life and pension product expenditure was £136 billion in 2002
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- Household expenditure on all life insurance and personal pensions, 1992-2002
- New life business declined in 2001
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- New regular- and single-premium life business, 1997-2001
- Personal pension contributions rise since the launch of stakeholder
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- New individual pensions business, 1994-2002
- Employees paid some £49 billion into occupational pension schemes last year
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- Individual and employer expenditure on occupational pension schemes, 1993-2002
- New income drawdown business was worth £2.1 billion in 2001
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- New income drawdown premiums, 1996-2001
- Spending on accident and health products nears £4.4 billion
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- Illustration of average annual medical insurance premiums per household, 1990-2000/01
- Charitable donations increased marginally in 2002
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- Expenditure on education fees and charitable donations, 1992-2002
- School fees cost individuals some £8.9 billion each year
- Consumers spent £12.7 billion on financial services in 2002
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- Expenditure on other financial services and charges, 1992-2002
- Savings ratio increases in 2002
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- Trends in savings, personal disposable income and the savings ratio, 1992-2002
- Household income nears £900 billion
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- Trends in income, expenditure and savings, 1992-2002
- Taxation on income is in excess of £120 billion
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- Trends in income from taxes and NI, 1992-2002
- The development of employee benefits
- There are now over 2.5 million company PMI subscriptions
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- PMI subscriptions, by company and individual purchase, 1990-2002
- Group income protection is also a growing market
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- Group IP, estimated number of lives covered and premiums collected, 1991-2001
- Workplace marketing offers providers a potentially lucrative sales channel
- Changing working patterns demand product flexibility and innovation
- Internet banking allows people to arrange finances whenever suits them best
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- Customer base of the pure-play Internet banks, March 2002
- Product flexibility is increasing in financial services
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- Number of self-employed and temporary workers in the UK, 1994-2002
- All-in-one accounts grow in popularity
Retail
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- Retail sales keep the economy afloat for 2002
- UK characterised by two-tier economy
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- Retail sales trends, November 2001-November 2002
- Retail sales are representing a declining proportion of consumer expenditure
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- All retail sales, at current and constant 1997 prices, 1997-2002
- Positive trends in economic prosperity
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- Trends in real PDI, at constant 1997 prices, 1997-2002
- Total consumer expenditure, at current and constant 1997 prices, 1997-2002
- Retail sales as percentage of consumer expenditure, 1997-2002
- Greater competition for consumer spend
- Retail sales growth by sector over the last five years
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- Retail industry sales growth, by trading category, 1998-2002
- Retail industry proportion of retail sales, by trading category, 1998 and 2002
- Retail implications of economic and demographic change
- Increased fragmentation in social groupings
- Greater polarity in society
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- UK population, by socio-demographic profile, 1997-2006
- Population profile, by age group, 1997-2007
- Impact of work vs life balance on retailers
- Home is where the heart is
- Mobile nation
- Financial concerns
- Key lifestyle factors
- Future concerns
- Back to basics
- More to life than money
- Road to contentment
- Conclusions and implications
- Retail forecast 2002 and beyond
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- All retail sales, at current and constant 2002 prices, 2002-06
- Total consumer expenditure, at current and constant 2002 prices, 2002-06
- Retail sales as a percentage of consumer expenditure, 2002-06
- Forecast of retail sector growth
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- Retail industry sales growth, by trading category, 2003-05
- Retail industry proportion of retail sales, by trading category, 2002 and 2005
- Retail outlook
- Economic issues for the future
- Retail categories lose out
- Non-food expansion for grocery multiples
- The multichannel approach is the way ahead
- High street vs out-of-town shopping
- Leisure shopping
- Use of new technology
- Renaissance in loyalty cards
- Greater concentration
- Overseas expansion
The Future and Forecast
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- Days of rampant consumerism over…
- … but nevertheless will continue to grow
- Interest rates critical, but unlikely to rise
- The government will give and take…and more of the latter
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- Trends and forecasts of major independent factors, 1997-2007
- Housing market and incomes to steady
- Housing
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- Forecast of spend on housing at current prices, 2002-07
- Factors used: PDI, household transactions, number of households, household tenure, employed population, socio-economic group
- Domestic fuel and power
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- Forecast of spend on domestic fuel and power at current prices, 2002-07
- Forecast of spend on domestic fuel and power at constant 2002 prices, 2002-07
- Factors used: PDI, number of households, age groups
- Household services
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- Forecast of spend on household services at current prices , 2002-07
- Forecast of spend on household services at constant 2002 prices , 2002-07
- Factors used: PDI, socio-economic groups, number of households, age groups, number of deaths, women in paid employment
- Domestic appliances
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- Forecast of spend on domestic appliances at current prices, 2002-07
- Forecast of spend on domestic appliances at constant 2002 prices, 2002-07
- Factors used: PDI, number of households, socio-economic groups, age groups
- Furniture and furnishings
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- Forecast of spend on furniture and furnishings at current prices, 2002-07
- Forecast of spend on furniture and furnishings at constant 2002 prices, 2002-07
- Factors used: PDI, number of households, household tenure, age groups, socio-economic groups
- Household and garden products
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- Forecast of spend on household and garden products at current prices, 2002-07
- Forecast of spend on household and garden products at constant 2002 prices, 2002-07
- Factors used: PDI, number of households, socio-economic groups, age groups
- In-home food
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- Forecast of expenditure on in-home food at current prices, 2002-07
- Forecast of expenditure on in-home food at constant 2002 prices, 2002-07
- Factors used: PDI, lifestages, women in paid employment, socio-economic groups
- In- and out-of-home drinks
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- Forecast of spend on in- and out-of-home drinks at current prices, 2002-07
- Forecast of spend on in- and out-of-home drinks at constant 2002 prices, 2002-07
- Factors used: PDI, age group, socio-economic groups, lifestage
- Tobacco
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- Forecast of spend on tobacco at current prices, 2002-07
- Forecast of spend on tobacco at constant 2002 prices, 2002-07
- Factors used: PDI, age group, socio-economic group
- Eating out
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- Forecast of spend on eating out at current prices, 2002-07
- Forecast of spend on eating out at current prices, 2002-07
- Factors used: PDI, lifestages, age groups, socio-economic groups, women in paid employment
- Entertainment
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- Forecast of spend on entertainment at current prices, 2002-07
- Forecast of spend on entertainment at constant 2002 prices, 2002-07
- Factors used: PDI, lifestages, age groups, socio-economic groups
- Leisure goods
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- Forecast of spend on leisure goods at current prices, 2002-07
- Forecast of spend on leisure goods at constant 2002 prices, 2002-07
- Factors used: PDI, lifestages, socio-economic groups, lifestages, age groups
- Holidays
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- Forecast of spend of holidays at current prices , 2002-07
- Forecast of spend of holidays at constant 2002 prices, 2002-07
- Factors used: PDI, socio-economic groups, age groups
- Cars
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- Forecast of expenditure on cars at current prices, 2002-07
- Forecast of expenditure on cars at constant 2002 prices, 2002-07
- Factors used: PDI, socio-economic groups, age groups, number of cars on the road, new registrations
- Motorcycles, cycles and other vehicles
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- Forecast of spend on motorcycles, cycles and other vehicles at current prices, 2002-07
- Forecast of spend on motorcycles, cycles and other vehicles at current prices, 2002-07
- Factors used: PDI, socio-economic groups, age groups
- Other personal mobility
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- Forecast of spend on other personal mobility at current prices, 2002-07
- Forecast of spend on other personal mobility at constant 2002 prices, 2002-07
- Factors used: PDI, socio-economic groups, age groups, number of cars on the road
- Clothing and accessories
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- Forecast of spend on clothing and accessories at current prices, 2002-07
- Forecast of spend on clothing and accessories at constant 2002 prices, 2002-07
- Factors used: PDI, socio-economic groups, age groups, women in paid employment
- Toiletries
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- Forecast of spend on toiletries at current prices, 2002-07
- Forecast of spend on toiletries at constant 2002 prices, 2002-07
- Factors used: PDI, women in employment, socio-economic groups, age groups
- Medicines
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- Forecast of spend on medicines at current prices, 2002-07
- Forecast of spend on medicines at constant 2002 prices, 2002-07
- Factors used: PDI, lifestages, socio-economic groups, age groups
- Medical services
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- Forecast of spend on medical services at current prices, 2002-07
- Forecast of spend on medical services at current prices, 2002-07
- Factors used: PDI, lifestages, socio-economic groups, age groups
- Life and pensions
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- Forecast of spend in life and pensions at current prices, 2002-07
- Forecast of spend in life and pensions at constant 2002 prices, 2002-07
- Factors used: PDI, age groups, socio-economic groups, employment levels, lifestages, household transactions
- Educational fees and charitable donations
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- Forecast of spend on educational fees and charitable donations at current prices, 2002-07
- Forecast of spend on educational fees and charitable donations at current prices, 2002-07
- Factors used: PDI, socio-economic groups, age groups
- Financial services and other charges
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- Forecast of spend on financial services and other charges at current prices, 2002-07
- Forecast of spend on financial services and other charges at constant 2002 prices, 2002-07
- Factors used: PDI, socio-economic groups, age groups
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