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Leisure Industry Overview - UK - December 2009
Leisure: UK Price: £1500 / $2310 / €1793
Report sections
click here to read 'about this report' »
Contents
Issues in the Market
Market in Brief
Internal Market Environment
Broader Market Environment
Market Size and Segmentation
Companies and Products
Leisure Participation
The Impact of the Recession on Leisure
Factors Influencing Leisure Choice
Leisure Habits
Appendix – Leisure Participation – Detailed Demographics
Appendix – The Impact of the Recession on Leisure – Detailed Demographics
Appendix – Factors Influencing Leisure Choice – Detailed Demographics
Appendix – Leisure Habits – Detailed Demographics
Latest news updates to this report
(click here for all news updates »)
4-05-2010  People staying at home to watch more TV
22-03-2010  Seatwave rolls out TV ad
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About this report

This report provides an overview of the UK leisure industry, in terms of overall spending trends and the performance of individual sectors, as well as providing an insight into the UK leisure consumer, in terms of behaviour, response to the recession and attitudes and opinions.

  • The recession and higher prices caused by rocketing overheads have both contributed to a second successive year of declining leisure spending. In 2009, the leisure industry will be worth approaching £70 billion, a 9% increase over 2004 but 1.5% lower than in 2008.
  • The best-performing area of the industry during the past five years has been cultural leisure such as music concerts and festivals (+64.3%), theatre (+27.7%) and museums (+15.6%).
  • Music concerts and festivals (+8.3%) has shown the strongest growth in the past year while, benefiting from strong inbound tourism, theatre (+4.2%) also performed well, as did museums and galleries (+4%).
  • Eating out and drinking in pubs and bars – which together account for 70% of total leisure spend - have been experiencing contrasting fortunes during the past five years. Eating out (+16.6% by value) has seen growth (albeit with a greater focus on value since the recession began) whereas pub/ bar drinking (-2.8%) is on the wane as the sector reels from the ‘double-whammy’ of the smoking ban and competition from cut-price supermarket alcohol.
  • Drinking in pubs/bars and eating out (43% and 40% of adults respectively) are where people are most likely to have made cutbacks already, along with clubbing, cinema and traditional gaming such as betting and bingo.
  • Looking forward, non-Lottery gaming looks set to bear the brunt of future spending reductions, along with visits to theme parks, clubbing and health club memberships.
  • The family market has been particularly vulnerable. Consequently, sectors deriving an above-average proportion of custom from this source, such as tenpin bowling (-2.5%), theme parks (-3.6%) and zoos/wildlife parks (-4.5%) have seen some of the biggest declines in the past year.
If you want more details about this particular report, please contact the Mintel information team on  +1 312-932-0400 in the U.S.,  +44 028-90-241-849 in Northern Ireland,  +353 048-90-241-849 in the Republic of Ireland or  +44 (0)20-7606-6000 in the UK and the rest of the world, or email info@mintel.com.
Key words and phrases within this report

Tesco; Aldi; Asda; BSkyB; Freeview; Lidl; Marks & Spencer; Morrisons; Netto; Orange; Sainsbury's; Virgin Media; Vodafone; Waitrose; Virgin Mobile; LA Fitness; London Zoo; David Lloyd; Staff; Chester Zoo; London Aquarium; Virgin Active; Costa; Mecca Bingo; Whitbread; Merlin Entertainment; Coping with the recession; Financial results; Beefeater; Brewers Fayre; Odeon; Promotion; Lotto; Coffee; Company background; Luminar; Table Table; Wetherspoon; Bingo; Hilton; GAD; SOLT; Legoland; North West; Betting shops; Cinema-going; Pubs/bars; Video games; Target groups; Lloyds Banking Group; The Blackstone Group; Lottery; Full House; JD Wetherspoon; Liquid; London Eye; Rank; Rank Interactive; Taybarns; The Rank Group; Live sports events; Zoos and wildlife parks; Bridgepoint; Cinven; Fitness First; Food and utilities; NMW; Nomura; Permira; Planning; RPI; GDP; Belgium; Christmas; Grill; Grosvenor Casinos; Lava & Ignite; London Stock Exchange; Merlin; Midway; Oceana; Odeon Cinemas; Spain; Tate Modern; TBG; UCI; East/West Midlands; Music concerts/festivals; Nightclubs; Restaurant or pub; Tenpin bowling; Choosing a betting shop; Demographic profile; Marketing message; Mintel Inspire Trend; Admiral Taverns; BC Partners; Candover; Cannons; Center Parcs
Contents

Issues in the Market

Main issues:

Definition

Abbreviations

Market in Brief

Value slips in 2009 but still a near-£70 billion industry

Pubs/bars, restaurants and gambling dominate

Cultural leisure outperforms the rest of the market…

… while family leisure struggles as secondary spend takes a hit

GDP and consumer confidence recoveries falter?

The shadow of unemployment still looms

Recession increases emphasis on value

Population trends to benefit youth-oriented leisure most

Legislative burden grows…

… as overheads increase adds to operators’ worries

Private equity – the rise and fall…

… as pre-packs and debt-for-equity swaps become more prevalent

Internal Market Environment

Key points

Trends in leisure participation

Figure 1: Trends in leisure activities, 2005-09

Eating out retains appeal

Cinema prospers in recession

Pub/bar drinking on the wane

Theatres and concert-going boosted

Culture on the up

Theme parks continue to expand appeal

Clubbing loses its shine

Leisure centres serving youth and families

TV boosts zoos and wildlife parks

Live sports slide

Tenpin hit by downturn

Young affluent profile for health clubs

Legislation and regulation

Planning
Out-of-town developments slow to a trickle
Town centres greater efficiency…
… but don’t suit everybody

Overhead increases

Staff
Figure 2: Trends in the National Minimum Wage compared to the retail price index, 2004-09
Food and utilities
Figure 3: Trends in food prices compared to all retail prices*, 2004-09
Figure 4: Trends in utility prices* paid by non-domestic consumers, 2004-09

Business development trends

The rise of private equity
Figure 5: Examples of private equity ownership in the leisure industry, December 2009
Sale and leaseback popularity on the wane
The rise of the phoenix or ‘pre-pack’ from the ashes…
… while debt-for-equity swaps give lenders unwelcome exposure to the leisure industry

Broader Market Environment

Key points

The ‘R’ word

Figure 6: Trends in selected areas of discretionary expenditure, at current and constant prices, 1989-94
Figure 7: Trends in quarterly GDP change, 2004-09
Figure 8: GDP, PDI, consumer expenditure and savings, at constant 2004 prices, 2004-14

Consumer confidence dips again after recent increases

Figure 9: Trends in consumer confidence, 2008-09

Unemployment plays on consumers’ minds

Figure 10: UK unemployment rates (seasonally adjusted), 2004-09
Figure 11: UK unemployment rates, by age band (seasonally adjusted), June-August 2009
Figure 12: Agreement with statements about changes in employment situation in past year, July 2009

Recession increases emphasis on value but service quality still paramount

Figure 13: Agreement with statements about impact of recession on leisure behaviour, July 2009

Population trends set to benefit youth-oriented leisure most

Figure 14: Trends in the age structure of the UK population, by gender, 2004-14
Figure 15: Forecast adult population trends, by lifestage, 2004-14
Figure 16: Forecast adult population trends, by socio-economic group, 2004-14
Figure 17: UK household sizes, 2004-14

Market Size and Segmentation

Key points

Industry value slips in 2009

Figure 18: Value of the UK leisure* business, 2004-09
Figure 19: Trends in value of UK leisure business, 2004-09

Pubs and restaurants dominate

Figure 20: Value of the UK leisure* business, by segment, 2004-09

Gambling now part of mainstream

Figure 21: Value of the UK leisure* business, by segment, 2009

The winners and losers: long-term

Figure 22: Growth rates for leisure* industry sectors, 2004-09

The winners and losers: short-term

Figure 23: Growth rates for leisure* industry sectors, 2008-09

Companies and Products

Key points

Major players

Luminar Group Holdings plc

Figure 24: Luminar Group Holdings plc – financials, 2005-09
Figure 25: Luminar Group Holdings plc, sales by brands, 2007/08 and 2008/09

Merlin Entertainments Group Ltd

Figure 26: Merlin Entertainments – key financials 2007-08
Figure 27: Merlin Entertainments revenue and visits, by business segment, 2007 and 2008

Odeon Cinemas

Figure 28: Odeon and UCI cinemas group – key financials 2004-08

The Rank Group plc

Figure 29: The Rank Group – key financials 2004-08
Figure 30: Performance of The Rank Group’s businesses in the UK, 2008
Figure 31: Performance of The Rank Group and its businesses in the UK, H1 2009

Tate Gallery

Figure 32: Tate Gallery – key financials 2005-09

Virgin Active

Figure 33: Virgin Active – key financials 2004-08

JD Wetherspoon plc

Figure 34: JD Wetherspoon plc – key financials 2005-09^

Whitbread plc

Figure 35: Whitbread plc – pub restaurant key financials 2005/06-2008/09
Figure 36: Costa Coffee – key financials 2004/05-2008/09

Zoological Society of London

Figure 37: ZSL Group – key financials 2004-08

Leisure Participation

Key points

Figure 38: Frequency of activities at leisure time, July 2009

A nation of Lotto players

Eating and drinking feature heavily in leisure portfolios

Video games: An opportunity for leisure operators?

Cinema very popular but small proportion go regularly

Accessibility the key for public leisure centres

Cultural leisure is an occasional activity

Live sport like Yorkie: Not for girls?

Bingo’s narrow appeal

Age: as an influence on leisure participation

Figure 39: Regular participation in leisure activities, by age, July 2009
Figure 40: Most popular regular leisure activities, by other regular leisure activities, July 2009
Figure 41: Next most popular regular leisure activities, by regular leisure, July 2009
Figure 42: Other regular leisure, by regular leisure activities, July 2009

The Impact of the Recession on Leisure

Key points

Figure 43: Spending intentions towards leisure activities in coming year, July 2009
Pubs/bars
Restaurant or pub
Cinema-going
Public leisure centres
Private health and fitness clubs
Theatre-going
Bingo
Nightclubs
Museums and galleries
Live sports events
Betting shops
Lottery (Lotto)
Video games
Tenpin bowling
Music concerts/festivals
Zoos and wildlife parks
Theme parks

Factors Influencing Leisure Choice

Key points

Figure 44: Factors influencing the choice of leisure venues visit regularly or occasionally, July 2009
Choosing a restaurant or pub to eat in
Choosing a pub/bar to drink in
Choosing a cinema
Choosing a public leisure centre
Choosing a health and fitness club
Choosing a theatre
Choosing a bingo club
Choosing a nightclub
Choosing a cultural venue
Choosing a live sporting event
Choosing a betting shop
Choosing the Lottery (Lotto)
Choosing video games
Choosing tenpin bowling
Choosing music concert/festivals
Choosing zoo/wildlife parks
Choosing a theme park

Leisure Habits

Key points

Figure 45: Statements on leisure time and visiting leisure venues, July 2009
An eye for a deal…
… but customers still expect good service
Brand values important for a third
Spend, particularly secondary spend, being cut back
Other recession-driven behaviours impacting on leisure
Four in ten unaffected by recession

Appendix – Leisure Participation – Detailed Demographics

Figure 50: Most popular leisure activities, by demographics, 2009
Figure 51: Other leisure activities, by demographics, 2009
Figure 52: Most popular regularly participated in activities, by demographics, July 2009
Figure 53: Other regularly participated in activities, by demographics, July 2009
Figure 54: Least popular regularly participated in activities, by demographics, July 2009
Figure 55: Most popular occasionally participated in activities by demographics, July 2009
Figure 56: Other occasionally participated in activities, by demographics, July 2009
Figure 57: Least popular occasionally participated in activities, by demographics, July 2009
Figure 58: Least popular activities (not participated in during the last year), by demographics, July 2009
Figure 59: Second least popular activities (not participated in during the last year), by demographics, July 2009
Figure 60: Third least popular activities (not participated in during the last year), by demographics, July 2009
Figure 61: Leisure activities least likely to be participated in, by demographics, July 2009
Figure 62: Leisure activities second least likely to be participated in, by demographics, July 2009
Figure 63: Leisure activities third least likely to be participated in, by demographics, July 2009

Appendix – The Impact of the Recession on Leisure – Detailed Demographics

Figure 64: Spending intentions towards drinks in pubs/bar in the coming year, by demographic sub-group, July 2009
Figure 65: Spending intentions towards eating out at a restaurant or pub in the coming year, by demographic sub-group, July 2009
Figure 66: Spending intentions towards going to cinema in the coming year, by demographic sub-group, July 2009
Figure 67: Spending intentions towards using a public leisure centre in the coming year, by demographic sub-group, July 2009
Figure 68: Spending intentions towards using a private health and fitness club in the coming year, by demographic sub-group, July 2009
Figure 69: Spending intentions towards going to the theatre in coming year, by demographic sub-group, July 2009
Figure 70: Spending intentions towards going to a bingo hall in the coming year, by demographic sub-group, July 2009
Figure 71: Spending intentions towards going to night club in the coming year, by demographic sub-group, July 2009
Figure 72: Spending intentions towards visiting a cultural venue in the coming year, by demographic sub-group, July 2009
Figure 73: Spending intentions towards attending live sports events in coming year, by demographic sub-group, July 2009
Figure 74: Spending intentions towards going to a betting shop in the coming year, by demographic sub-group, July 2009
Figure 75: Spending intentions towards playing Lotto in the coming year, by demographic sub-group, July 2009
Figure 76: Spending intentions towards playing video games in the coming year, by demographic sub-group, July 2009
Figure 77: Spending intentions towards going to tenpin bowling in the coming year, by demographic sub-group, July 2009
Figure 78: Spending intentions towards going to music concerts/festivals in the coming year, by demographic sub-group, July 2009
Figure 79: Spending intentions towards visiting a zoo/wildlife park in UK in the coming year, by demographic sub-group, July 2009
Figure 80: Spending intentions towards going to a theme park in the coming year, by demographic sub-group, July 2009

Appendix – Factors Influencing Leisure Choice – Detailed Demographics

Figure 81: Factors influencing the choice of eating out at a restaurant or pub, by demographic sub-group, July 2009
Figure 82: Factors influencing the choice of drinking in pubs/bar, by demographic sub-group, July 2009
Figure 83: Factors influencing the choice of going to the cinema, by demographic sub-group, July 2009
Figure 84: Factors influencing the choice of using a public leisure centre, by demographic sub-group, July 2009
Figure 85: Factors influencing the choice of using a private health and fitness club, by demographic sub-group, July 2009
Figure 86: Factors influencing the choice of going to the theatre, by demographic sub-group, July 2009
Figure 87: Factors influencing the choice of going to a bingo hall, by demographic sub-group, July 2009
Figure 88: Factors influencing the choice of going to night club, by demographic sub-group, July 2009
Figure 89: Factors influencing the choice of visiting a cultural venue, by demographic sub-group, July 2009
Figure 90: Factors influencing the choice of attending live sports events, by demographic sub-group, July 2009
Figure 91: Factors influencing the choice of going to a betting shop, by demographic sub-group, July 2009
Figure 92: Factors influencing the choice of playing Lotto, by demographic sub-group, July 2009
Figure 93: Factors influencing the choice of playing video games, by demographic sub-group, July 2009
Figure 94: Factors influencing the choice of going to tenpin bowling, by demographic sub-group, July 2009
Figure 95: Factors influencing the choice of going to music concerts/festivals, by demographic sub-group, July 2009
Figure 96: Factors influencing the choice of visiting a zoo/wildlife park in the UK, by demographic sub-group, July 2009
Figure 97: Factors influencing the choice of going to a theme park, by demographic sub-group, July 2009

Appendix – Leisure Habits – Detailed Demographics

Figure 98: Most popular statements on leisure time and visiting leisure venues, by demographic sub-group, July 2009
Figure 99: Next most popular statements on leisure time and visiting leisure venues, by demographic sub-group, July 2009
Figure 100: Most popular statements on leisure time and visiting leisure venues, by regular leisure activities, July 2009
Figure 101: Next most popular statements on leisure time and visiting leisure venues, by regular leisure activities, July 2009
Figure 102: Other statements on leisure time and visiting leisure venues, by regular leisure activities, July 2009 (continued)
Figure 103: Most popular statements on leisure time and visiting leisure venues, by occasional leisure activities, July 2009 (continued)
Figure 104: Next most popular statements on leisure time and visiting leisure venues, by occasional leisure activities, July 2009 (continued)
Figure 105: Other statements on leisure time and visiting leisure venues, by occasional leisure activities, July 2009 (continued)
Figure 106: Most popular statements on leisure time and visiting leisure venues, by activities at leisure time – not in last year, July 2009 (continued)
Figure 107: Next most popular statements on leisure time and visiting leisure venues, by activities at leisure time – not in last year, July 2009 (continued)
Figure 108: Other statements on leisure time and visiting leisure venues, by activities at leisure time – not in last year, July 2009 (continued)
Figure 109: Number of activities already cut back on, by demographics, July 2009
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