Table of Contents
Executive Summary
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- Impact of COVID-19 on leisure
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- Figure 1: Short, medium and long-term impact of COVID-19 on out-of-home leisure, 6 January 2021
- The market
- Market will lose more than half its value in 2020
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- Figure 2: Market value forecast of UK leisure industry^, 2015-25 (prepared on 21 December 2020)
- Long-term picture positive, recovery to begin in mid-2021
- Sectors that rely on mass gatherings worst hit in 2020
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- Figure 3: Value growth rates, by leisure segment, 2019-20
- Youth unemployment presents major threat
- Reaching those staying at home will remain important post-pandemic
- Government support aims to limit the damage
- Companies and brands
- Home gyms
- Streamed events
- Social distancing technologies
- The consumer
- Consumers are least comfortable about taking part in leisure and travel activities
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- Figure 4: Activity comfort levels, 10-19 November 2020
- Spending prioritised for the home
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- Figure 5: Anticipated spending in next month compared to usual spending habits, 10-19 November 2020
- Eating and drinking out most popular options since first lockdown…
- … but non-food and drink leisure will need vaccine to fully recover
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- Figure 6: Participation in out-of-home leisure activities since COVID-19, 17-29 September 2020
- Leisure operators have left a positive impression
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- Figure 7: Satisfaction with out-of-home leisure activity, 17-29 September 2020
- Promote customer satisfaction figures to attract new customers
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- Figure 8: Willingness to repeat participation in out-of-home leisure activities, 17-29 September 2020
- Venues’ role as ‘third places’ more needed than ever
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- Figure 9: Most missed features of out-of-home leisure venues during COVID-19, 17-29 September 2020
- Pent-up demand for out-of-home experiences will drive recovery
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- Figure 10: Attitudes towards COVID-19’s impact on leisure behaviours, 17-29 September 2020
Issues and Insights
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- Reaching consumers at home
- ‘Third places’ critical to communities
The Market – Key Takeaways
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- COVID-19 causes market value to plummet in 2020
- Sectors that rely on mass gatherings worst hit in 2020
- Reaching those staying at home will remain important post-pandemic
- Youth unemployment presents major threat
- Recovery will begin in mid-2021
Market Size and Forecast
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- Closures and cancellations devastate the leisure industry
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- Figure 11: Short, medium and long-term impact of COVID-19 on out-of-home leisure, 6 January 2021
- Market will lose more than half its value in 2020
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- Figure 12: Market value of UK leisure industry^, 2015-25 (prepared on 21 December 2020)
- Long-term picture positive, recovery to begin in mid-2021
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- Figure 13: Market value forecast of UK leisure industry^, 2015-25 (prepared on 21 December 2020)
- Market drivers and assumptions
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- Figure 14: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 21 December 2020)
- Learnings from the last recession
- What happened
- What’s different
- What it means
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- Figure 15: Market value of UK leisure industry, 2007-12
- Forecast methodology
Market Segmentation
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- Sectors that rely on mass gatherings worst hit in 2020
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- Figure 16: Value growth rates, by leisure segment, 2019-20
- Live entertainment halted for majority of 2020
- Nightclubs
- Music concerts and festivals
- Spectator sports
- Huge blow to arts and culture venues
- Cinemas
- Performing arts
- Visitor attractions
- Health and fitness challenged by online shift
- Gyms and leisure centres
- Sports participation
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- Figure 17: Market share of leisure industry, by segment, 2020
- Pandemic solidifies online gaming’s dominance
- Online gaming and retail gambling
- Restaurant takeaways overtake in-venue eating for first time
- Home delivery and takeaway
- Eating out
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- Figure 18: Value of the leisure industry, by segment, 2015-20
Market Drivers
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- Latest lockdown presents a further blow
- Whilst the government has announced fresh grants for leisure and hospitality venues up to a value of £9,000 per property, this won’t be enough to prevent more businesses from going under in the first few months of 2021.…But vaccine rollout offers new hope
- Youth unemployment presents major threat
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- Figure 19: Unemployment rate, aged 16 and over, seasonally adjusted, Q1 2008-Q3 2020
- Reaching those staying at home will remain important post-pandemic
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- Figure 20: Changes in financial situation, October 2019-October 2020
- Home habits cemented by lockdowns
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- Figure 21: Attitudes towards COVID-19 and future leisure time, 6-21 August 2020
- Operators welcome additional government support
- VAT cuts critical to survival
- Eat Out to Help Out scheme encourages diners back to restaurants
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- Figure 22: Participation in ‘Eat Out to Help Out’ scheme, 27 August-4 September 2020
- Culture Recovery Fund aids the arts
- Leisure habits highly seasonal
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- Figure 23: Total quarterly participation in out-of-home leisure activities, May 2019-January 2020
Companies and Brands – Key Takeaways
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- Hybrid leisure
- COVID-19 will spur on greater usage of technology in leisure
- Outdoor activities come to the fore, even in colder months
Launch Activity and Innovation
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- Home gyms
- Apple launches Fitness+ platform
- Peloton releases updated home bike
- Gyms such as David Lloyd and 1Rebel expand digital class offer
- Streamed events
- Dice.fm prioritises livestreaming
- Old Vic stages livestreamed events
- RHS Chelsea Flower Show reaches international audience
- Outdoors
- Restaurants and pubs invest in outdoor dining
- Archaeological Trust reveals plans for a central York outdoor attraction
- Social distancing technology
- London Marathon uses social distancing technology
- Paulton’s Park launches virtual queuing functionality
The Consumer – Key Takeaways
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- Priorities for brands during COVID-19…and beyond
- Safety
- Outdoors
- Localism
- Third places
- Premiumisation
- Digital
- Home
Impact of COVID-19 on Consumer Behaviour
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- Demonstrating COVID-19-safe measures critical as exposure fears spike
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- Figure 24: Perceived risk of exposure to COVID-19, February-November 2020
- Leisure and travel activities perceived as most uncomfortable
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- Figure 25: Activity comfort levels, 10-19 November 2020
- Consumers with tighter budgets are reducing discretionary spend
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- Figure 26: Changes in spending behaviour since COVID-19, by financial situation, 10-19 November 2020
- Spending prioritised for the home
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- Figure 27: Anticipated spending in next month compared to usual spending habits, 10-19 November 2020
Out-of-home Leisure Activity Participation
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- The ‘next normal’ will see pent-up demand for special-occasion dining
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- Figure 28: Participation in out-of-home leisure activities before COVID-19, 17-29 September 2020
- Consumers slow to return to cultural venues and attractions
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- Figure 29: Participation in out-of-home leisure activities since COVID-19, 17-29 September 2020
- Only a third of those who typically attended gyms prior to the pandemic have returned
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- Figure 30: Participation in out-of-home leisure activities since COVID-19, by participation in out-of-home leisure activities before COVID-19, 17-29 September 2020
Activity Satisfaction
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- Leisure operators have left a positive impression
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- Figure 31: Satisfaction with out-of-home leisure activity, 17-29 September 2020
- Promote customer satisfaction figures to attract new customers
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- Figure 32: Willingness to repeat participation in out-of-home leisure activities, 17-29 September 2020
Missed Features
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- Venues’ role as ‘third places’ more needed than ever
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- Figure 33: Most missed features of out-of-home leisure venues during COVID-19, 17-29 September 2020
- Activities meet different consumer needs
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- Figure 34: Most missed features of out-of-home leisure venues during COVID-19, by participation in out-of-home leisure activities since COVID-19, 17-29 September 2020
Attitudes towards COVID-19 and Leisure
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- Pent-up demand for out-of-home experiences will drive recovery
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- Figure 35: Attitudes towards COVID-19’s impact on leisure behaviours, 17-29 September 2020
- Many consumers are prioritising the essentials…
- …but there are opportunities for premiumisation
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- Figure 36: Attitudes towards COVID-19 and premiumisation, by demographics, 17-29 September 2020
- The appeal of the outdoors
- Local venues serving local communities
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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