Description
The UK Lotteries report identifies consumer attitudes towards draw games, instant-win games, rapid digital growth, and the role of smartphones in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Lotteries market in the UK.
Current Market Landscape
The lotteries market has remained resilient throughout the second year of the pandemic, generating record sales in 2020/21 and the first half of 2021/22. The large increase in digital revenues for the National Lottery looks to be sustainable rather than a pandemic spike, with the resulting new level of online sales now a baseline for the market’s next normal.
- The National Lottery saw a 43% increase in digital revenues during 2020/21
- 68% of online adults are now open to playing games that offer non-cash prizes
Money may not be everything in the next generation of lotteries, with non-cash prizes and experiential and life-enhancing (rather than life-changing) jackpots particularly popular among younger people.
Future Market Trends in Lotteries
The principal threat to current performance is not the continued impact of the COVID-19 pandemic, but rather an inflation-led reduction in consumer spending power that would likely to reduce players’ willingness to buy.
The market’s biggest immediate opportunities is growing smartphone use, which can not only attract younger players but looks to have major potential to strengthen the engagement and participation of people who play this way too.
Read on to discover more details or take a look at all of our UK Leisure market research.
Quickly understand
- The continuing impact of the COVID-19 pandemic on the lotteries market.
- Performance of draw games versus instant-wins.
- The implications for retail of rapid digital growth.
- The threat of prize draws to the society lottery model.
- The role of smartphones in the channel mix.
- The potential of experiential and other non-cash prizes.
Covered in this report
Brands: The National Lottery, Camelot Group, Sisal, Allwyn, Northern & Shell, The People’s Postcode Lottery, The Health Lottery, STV ELM, Guide Dogs For The Blind Association, Age UK, Royal National Institute of Blind, Cats Protection, Royal British Legion, Football Pools.
Expert analysis from a specialist in the field
This report, written by David Walmsley, a leading analyst in the Leisure sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Lottery play has remained resilient throughout the pandemic and can grow into the medium term through new opportunities for innovation in game formats, distribution channels and non-cash prize structures.
David Walmsley
Senior Leisure Analyst
Table of Contents
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Overview
- Key issues covered in this Report
- COVID-19: market context
- Economic and other assumptions
- Products covered in this Report
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Executive Summary
- The five year outlook for lotteries
- Figure 1: Category Outlook, 2022-27
- The market
- Lottery play powers through pandemic
- Figure 2: Forecast of consumer expenditure on lotteries, 2016/17-2026/27
- Draw sales bounce back
- Figure 3: National lottery sales, by segment, 2016/17-2020/21*
- Retail restrictions speed up digital switch
- Figure 4: National Lottery sales, by channel, 2016/17-2020/21*
- Changing habits can create new opportunities online and in-store
- Figure 5: People shopping more online, April 2020-December 2021
- Winning operator’s number about to be drawn
- Companies and brands
- Digital switch limits society lotteries’ losses
- Figure 6: Lottery sales, by operator share, 2016/17-2020/21*
- Societies eye switch to prize draw sector
- The consumer
- Participation rates remain pandemic-proof
- Figure 7: Lottery games played, 2020 and 2021
- EuroMillions closes gap on Lotto
- Figure 8: Lottery draw games played, 2020 and 2021
- Lottery play is strongly digital-first
- Figure 9: Methods of purchasing National Lottery draw tickets, 2021
- Smartphones offer immediate access to instant-wins
- Figure 10: Participation in lottery games online, by device, 2021
- Small screens hold big appeal
- Figure 11: Experience of playing lottery games via smartphones, 2021
- Changing consumer preferences open new prize potential
- Figure 12: Interest in non-cash lottery prizes, 2021
- The five year outlook for lotteries
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Issues and Insights
- It’s not about the money, money, money?
- What would a lottery for Gen Z look like?
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Market Size and Performance
- The five year outlook for lotteries
- Figure 13: Category Outlook, 2022-27
- Digital switch keeps market in growth
- Figure 14: Lottery sales and consumer expenditure*, 2016/17-2020/21**
- The five year outlook for lotteries
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Market Forecast
- Record sales figures demonstrate COVID resistance
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- Figure 15: Forecast of consumer expenditure on lotteries, 2016/17-2026/27
- Market drivers and assumptions
- Figure 16: Key drivers affecting Mintel’s market forecast, 2015-26
- Forecast methodology
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Market Segmentation
- Draw sales growing faster than IWGs
- Figure 17: National lottery sales, by segment, 2016/17-2020/21*
- Retail restrictions accelerate shift to digital
- Figure 18: National Lottery sales, by channel, 2016/17-2020/21*
- Draw sales growing faster than IWGs
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Market Drivers
- Post-COVID preferences can create new sales opportunities
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- Figure 19: People shopping more online, April 2020-December 2021
- Digital revolution reaches all channels
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- Figure 20: Digital channels’ share of National Lottery sales, 2016/17-2020/21*
- National Lottery licence race nears finish
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- Figure 21: National Lottery sales, 1994/95-2020/21*
- Good causes set for more support
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- Figure 22: National Lottery Distribution Fund income, 2016/17-2020/21*
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Market Share
- Digital switch limits society lotteries’ losses
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- Figure 23: Lottery sales, by operator share, 2016/17-2020/21*
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Launch Activity and Innovation
- Lottery tickets added to supermarket shopping list
- Prize draws attracting more entrants
- Experience economy opens new niche
- Lottery terminals’ cash-out potential
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Advertising and Marketing Activity
- Charities turn to advertising as retail channels shut down
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- Figure 24: Total above-the-line, online display and direct mail advertising expenditure of UK lottery operators, 2018-20
- Advertising stays indoors during COVID-19 restrictions
- Figure 25: Above-the-line, online display and direct mail advertising expenditure of leading UK lottery operators, by media, 2018-20
- Nielsen Ad Intel coverage
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Lottery Players
- Playing on through pandemic
- Figure 26: Lottery games played, 2020 and 2021
- No instant-wins in selling to Gen Z
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- Figure 27: Lottery games played, by age, 2021
- Playing on through pandemic
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Lottery Draws
- Younger players care for Health
- Figure 28: Lottery draw games played, 2020 and 2021
- Spreading their bets
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- Figure 29: Repertoires of draw games played, 2021
- Younger players care for Health
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Methods of Play
- Nearly three quarters of National Lottery players buy online
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- Figure 30: Methods of purchasing National Lottery draw tickets, 2021
- Society lotteries enjoy growth across channels
- Figure 31: Methods of purchasing other lottery draw tickets, 2021
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Smartphone Play
- Instant access to instant-wins
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- Figure 32: Participation in lottery games online, by device, 2021
- Smartphones strengthen playing habits
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- Figure 33: Experience of playing lottery games via smartphones, 2021
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Alternative Prizes
- There’s now more to lottery life than money
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- Figure 34: Interest in non-cash lottery prizes, 2021
- Smartphone set dialled in to experiences
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- Figure 35: Interest in non-cash lottery prizes, by method of play, 2021
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
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Appendix – Forecast Methodology
- Market forecast and prediction intervals
- Figure 36: Forecast of consumer expenditure on lotteries, 2021/22-2026/27
- Market drivers and assumptions
- Figure 37: Key drivers affecting Mintel’s market forecast, 2020-26
- Forecast methodology
- Market forecast and prediction intervals
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Market
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Consumer
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Data
Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
*databooks not available with UK B2B Industry reports.
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