Table of Contents
Executive Summary
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- The Consumer
- The People
- Where the Money Comes From
- Where the Money Goes
- 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
Population
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- 60 million in 2007
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- Figure 1: UK population trends, by gender, 1983-2009
- Growth faster than previous decade
- More elderly couples create new marketing opportunities
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- Figure 2: Population trends, by age, 1998-2008
- Ageing not a simple process
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- Figure 3: Population structure by major age groups, 1998 and 2008
- Figure 4: The fastest-growing and declining five-year population segments, 2003-08
- New retirees on the increase
- Young third agers have a boost
- Fewer children not necessarily detrimental to sales
- Recent rises in the dependency ratio now drawing to an end…
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- Figure 5: Dependency ratio of population, 1998-2009
- …but will fall more rapidly in the next decade
- A flexible retirement age already accepted by many workers
- Ageing parents
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- Figure 6: Number of births in England and Wales, by age of mother, 1981-2003
- Almost as many third agers as families
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- Figure 7: Structure of the adult population, by lifestage, 1998-2008
- Third agers an affluent target group
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- Figure 8: lifestage changes, 1998-2008
- Household population
- 8 million to live alone by 2008
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- Figure 9: Changing structure of UK households, 1993-2008
- OPHs not a uniform target
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- Figure 10: Age and marital status of OPHs, January 2004
- Growing diversity among OPHs
- Living alone leads to less stress
- Marriage becoming less fashionable
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- Figure 11: Marriage and divorce trends in the UK, 1993-2008
- Marriages resume their downward trend
- Number of divorces set to rise to 60% of marriages
- Household working patterns
- A complicated society
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- Figure 12: Household working patterns, 1999-2003
- Households with working women more prominent in Time Short typology
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- Figure 13: Time typologies, by household working patterns, January 2004
- Employment
- Workforce to stabilise at just under 30 million
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- Figure 14: The changing structure of UK employment, 1993-2009
- Time for leisure will become more important to workforce
- Growth in employment for every year of last decade
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- Figure 15: Trends in full-time and part-time employment, by gender, 1993-2009*
- Growth in employment spearheaded by part-time positions
- Part- or full-time makes little difference to time pressure
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- Figure 16: Working women, by age of youngest dependent child, 1992 and 2003
- Rate of increase of working mothers greater than for all women
- Greatest rate of increase among mothers of youngest child
- Unemployment
- Unemployment remains quite steady
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- Figure 17: UK unemployment, by gender, 1993-2009
Household Income
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- Definitions
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- Figure 18: Gross incomes, 1993-2003
- A period of increasing incomes
- The Chancellor takes his share of growing affluence
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- Figure 19: Household personal gross income, 1993-2003
- PDI per household rises by £10,000 in last decade
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- Figure 20: Sources of personal gross income, 1993-2003
- Majority of income still from wages
- Investments record best long-term gains
- Personal wealth
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- Figure 21: Distribution of personal wealth, 1991-2003
- Interplay between property and investments over the decade
- Credit
- Debt approaching £1 trillion
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- Figure 22: Consumer credit outstanding*, 1993-2003
- Boundary between housing and other credit markets blurring
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- Figure 23: Outstanding credit by type*, 1993-2003
- Non-mortgage debt now £3,500 per adult
- The growth of plastic
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- Figure 24: Consumer credit net transactions, 1993-2003
- Net credit for house purchases now 10% of income
- Non-housing credit slowing
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- Figure 25: Changing consumer credit net transactions by type, 1993-2003
- Credit card owners are more likely to be sensible than reckless
Where the Money Goes
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- Figure 26: Consumer expenditure trends, 1993-2003
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- Figure 27: Annual growth rates for consumer expenditure and PDI, 1993-2003
- Long-term trends
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- Figure 28: Gross discretionary spend, 1993 and 2003
- Spend on housing continues to increase
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- Figure 29: Percentage change in main categories of GDS, 1993 and 2003
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- Figure 30: Main areas of growth and decline in GDS, 1993 and 2003
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- Figure 31: Areas of relative growth, 1993 and 2003
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- Figure 32: Areas where relative shares have remained static, 1993 and 2003
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- Figure 33: Areas of relative decline, 1993 and 2003
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- Figure 34: Individual sub-sectors showing growth, 1993-2003
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- Figure 35: Static individual sub-sectors, 1993-2003
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- Figure 36: Individual sub-sectors showing decline, 1993-2003
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- Figure 37: Fastest-growing individual sub-sectors, 1993-2003
- Short-term trends
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- Figure 38: Gross discretionary spend, 2002 and 2003
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- Figure 39: Star performance in the last 12 months, 2002-03
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The Consumer
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- Cash Rich Time For
- How much time do people think they have?
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- Figure 40: Respondent perceptions of time available, by gender, January 2004
- Frenzied lifestyle not widespread
- Women keep traditional family role even though they may be working
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- Figure 41: Respondent perceptions of time available, by working status, January 2004
- Similar responses whatever the hours worked
- Time Typologies
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- Figure 42: Time typologies, by demographic sub-group and region, January 2004
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- Figure 43: Time typologies, by marital status, lifestage, presence of children and TV viewing, January 2004
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- Figure 44: Time typologies, by gender and working status, January 2004
- Asda and Tesco shoppers akin to Time Short
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- Figure 45: Similarities of respondents: Time typologies with supermarekt shoppers, January 2004
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- Figure 46: Time typologies – lifestage profiles, January 2004
- What takes up all their time?
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- Figure 47: Time-consuming activities, by gender, January 2004
- Traditional roles for household chores
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- Figure 48: Time-consuming activities, by working status, January 2004
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- Figure 49: Time-consuming activities, by time typologies, January 2004
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- Figure 50: Time-consuming activities, by time typologies (% point difference from average), January 2004
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- Figure 51: Similarity of respondents: Selectrd time consuming activities & supermarket usage, January 2004
- How to make life easier?
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- Figure 52: Most important things to make life easier, by gender, January 2004
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- Figure 53: Most important things to make life easier, by working status, January 2004
- Shorter working hours and longer shop opening hours wanted from full time workers…
- …and Internet banking
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- Figure 54: Most important things to make life easier, by time typologies, January 2004
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- Figure 55: Most important things to make life easier, by time typologies (% point difference from average), January 2004
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- Figure 56: Grocery shopping-related factors which make life easier, by stores used regularly, January 2004
- How would they like to use their time?
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- Figure 57: How extra free time would be used, by gender, January 2004
- Family and home come tops
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- Figure 58: How extra free time would be used, by working status, January 2004
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- Figure 59: How extra free time would be used, by time typologies, January 2004
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- Figure 60: How extra free time would be used, by time typologies (% point difference from average), January 2004
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- Figure 61: Number of ways in which respondents would use extra free time, by time typology, January 2004
- Marketing conclusions
- Time Short
- Time Rich
- Chilled
- Busy Enough
- Leisure Constrained
Spend On Home Acquisition and Household Services
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- Housing boom dominates market trends
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- Figure 62: Expenditure on housing, 1993-2003
- 2002 a good year for owner-occupation
- Rented sector boosted by buy-to-let
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- Figure 63: Housing tenure trends, 1993-2003
- House moving
- A quieter year in 2003
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- Figure 64: Number of housing transactions, 1993-2003
- No indications of housing crash
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- Figure 65: Mortgage arrears and repossessions, 1993-2003
- House prices
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- Figure 66: Ratio of house prices to income, 1993-2003
- The ripple effect – regional trends in house prices
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- Figure 67: Analysis of regions with the highest average house prices, 2002 and 2003
- House boom now moves west and northwards
- Heating, power and light
- Price wars drawing to an end
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- Figure 68: Expenditure on domestic fuel and power, 1993-2003
- Household and other services
- Expenditure on household services
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- Figure 69: Expenditure on household services, 1993-2003
- Internet and communications market – good and bad news
- Armchair decorators in the ascendancy
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- Figure 70: Agreement with attitudinal statements concerning DIY and the home, 1993-2003
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- Figure 71: Attitudes towards home decorating and gardening, by demographic sub-group and lifestage, 2003
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- Figure 72: Attitudes towards home decorating and gardening, by additional socio-demographic groups, 2003
- Tie-up between kitchen and garden lovers
- Identifying like-minded consumers
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- Figure 73: Similarities of respondents, by attitude towards DIY and gardening, 2003
Expenditure on Household Durables and Consumables
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- Convenience and ‘Time-efficiency’
- Expenditure on domestic appliances
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- Figure 74: Expenditure on domestic appliances, 1993-2003
- Small office/home office computing
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- Figure 75: PC and Internet usage, 1996-2003
- Broadband access
- White goods
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- Figure 76: Expenditure on major white goods, 1998-2003
- Brown goods
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- Figure 77: Expenditure on major brown goods, 1998-2003
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- Figure 78: Ownership of TV sets (% of households), 1997-2003
- TV and video rental, repairs and licences
- Furniture and furnishings
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- Figure 79: Expenditure on furniture and furnishings, 1993-2003
- Household and garden products
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- Figure 80: Expenditure on household and garden products, 1993-2003
Spend on Food
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- Convenience – a major method of adding value
- Convenience foods provide major driver of in-home food sector
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- Figure 81: Expenditure on food for in-home consumption, 1993-2003
- Busy lifestyles only part of success for convenience foods
- Fruit and vegetables – sales keep up with the market
- Meat and fish – move towards ready-to-cook
- Health also a factor
- Fruit and vegetables – ready-prepared adds value
- Milk, cheese and eggs – indulgence the flip-side to health
- Flour, bread and cereals – some revival
- Confectionery, sugar, sweeteners, oils and fats – shift to consumption in prepared foods
- Convenience foods – the focus of expansion
- Time not necessarily an issue
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- Figure 82: Agreement with attitudes towards food and meal preparation, 1993-2003
- Takeaways firmly established in British eating habits
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- Figure 83: Expenditure on convenience foods, 1993-2003
- Ready meals sales show no sign of slowing
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- Figure 84: real growth rates for convenience foods, 1993-2003
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- Figure 85: The ethnic and related food sector, 1993-2003
- Ethnic foods – the new staples
- Noodles the new star
- Alcoholic and non-alcoholic drinks
- Turnaround in spirits boosts sector’s second-half performance
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- Figure 86: Expenditure on drinks in and out of home, 1993-2003
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- Figure 87: Expenditure on non-alcoholic drinks in and out of home, 1998-2003
- Soft drinks replace hot beverages among the young
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- Figure 88: Expenditure on alcoholic drinks in and out of the home, 1998-2003
- In-home steals the show
- FABs spearhead revival in spirits
- New occasional drinkers boost consumer base
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- Figure 89: Frequency of drinking alcoholic beverages in and out of home, 1998 and 2003
- Spend per drinker at home increases by over 30%
- Tobacco
- Personal imports blur true trends
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- Figure 90: Expenditure on tobacco, 1993-2003
- No sign of reduction in smoker numbers…
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- Figure 91: Shifting habits among cigarette smokers, 1993-2003
- …indeed, slight increase in heavy smoking
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- Figure 92: Cigarette smokers, by demographic sub-group, region, lifestage and presence of children, 1993-2003
- Children have increasing influence on parents’ smoking habits
- Women smokers catch up with men
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- Figure 93: Attitudes towards giving up smoking, by adults who would like to give up smoking, February 2004
- Willpower perceived as ultimate ‘cessation aid’
Spend on Entertainment
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- Eating out
- Expenditure
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- Figure 94: Expenditure on eating out, 1993-2003
- Steady growth in sector
- Fast food delivers growth
- Food increasingly a necessity for pubs
- Takeaways increasing faster
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- Figure 95: Expenditure on takeaway versus eating out, 1993-2003
- Figure 96: Food market Eating in versus eating out, 1993-2003
- A wider consumer base with more frequent consumption
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- Figure 97: Use and frequency of takeaway food, 1993-2003
- Eat-in fast food
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- Figure 98: Use and frequency of fast food eaten in the restaurant, 1993-2003
- Coffee/sandwich bar usage
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- Figure 99: Coffee/sandwich bar usage, 2001-03
- Lunchtime eating out
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- Figure 100: Eating out at lunchtime, 2001-03
- Daytime restaurant usage
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- Figure 101: Eating out at restaurants during the day, 1993-2003
- Evening restaurant usage
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- Figure 102: Eating out at restaurants during the evening, 1993-2003
- Pub/nightclub visiting
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- Figure 103: Social life – trends in main activities, 2001-03
- Expenditure on entertainment
- Spend doubles in a decade
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- Figure 104: Expenditure on main areas of out-of-home entertainment, 1993-2003
- National Lottery slows growth in whole sector
- Gambling remains largest sector
- Cinema continues to grow…
- …but more slowly
- Bingo is profitable for suppliers
- Health & fitness increasingly competitive
- Nightclubs face more competition from outside the area
- Mixed fortunes for leisure venues
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- Figure 105: Expenditure on other areas of out-of-home entertainment, 1993-2003
- Expenditure on leisure goods
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- Figure 106: Expenditure on leisure goods, 1993-2003
- Removal of NBA proved beneficial for total sales
- Toys & sports goods booming despite falling numbers of children
- Technology places big role in photography market
- Buoyant holiday sector boosts luggage sales
Spend on Travel
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- Holidays
- Recovery and resilience of the holiday market
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- Figure 107: Expenditure on holidays, 1993-2003
- Demand for short breaks and more flexible travel products on the increase
- Attitudes towards holidays
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- Figure 108: Attitudes towards holidays, 1993-2003
- Trends in holiday-taking between 1997 and 2003
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- Figure 109: Main type of holiday taken in the last 12 months, 1997-2003
- Multiple holidays abroad fuels market growth
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- Figure 110: Trends in holiday-taking (taken in the last 12 months), 1997-2003
- Figure 111: The holiday mix, 1997 and 2003
- Leading overseas holiday destinations for the British
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- Figure 112: Top 12 holiday destinations for the British, 1992-2002
- Expenditure on travel Insurance
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- Figure 113: Expenditure on travel insurance by gross written premiums, 1993-2003
- Personal mobility
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- Figure 114: Modes of transport used during a normal week, 1993-2003
- Expenditure on cars
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- Figure 115: Expenditure on cars, 1993-2003
- Number of cars on the road
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- Figure 116: UK car parc, new resgistrations and vehicle excise duty, 1998-2003
- Motorcycles, cycles and other vehicles
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- Figure 117: Expenditure on motorcyles, cycles and other vehicles, 1993-2003
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- Figure 118: Ownership of motorcycles, scooters and mopeds, 1993-2003
- Other personal mobility costs
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- Figure 119: Other personal mobility costs, 1993-2003
Spend on Personal Goods
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- Clothing, footwear and accessories
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- Figure 120: Expenditure on clothing, footwear and accessories, 1993-2003
- Intense competition drives down prices
- Menswear and womenswear
- Childrenswear
- Footwear and accessories
- Jewellery and watches
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- Figure 121: Women’s attitudes towards dress, 1993-2003
- Figure 122: Men’s attitudes towards dress, 1993-2003
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- Figure 123: Attitudes towards dress, by demographic sub-group, working status and region, 2003
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- Figure 124: Attitudes towards dress, by lifestage, Mintel’s Special Groups, presence of children and household size, 2003
- Toiletries
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- Figure 125: Expenditure on toiletries, 1993-2003
- Men’s toiletries
- Grooming
- Cleansing
- Personal hygiene
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- Figure 126: Women’s attitudes towards skincare and buying toiletries and cosmetics, 1993-2003
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- Figure 127: Men’s attitudes towards skincare and buying toiletries and cosmetics, 1993-2003
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- Figure 128: Attitudes towards skincare and buying toiletries and cosmetics, by demographic sub-group, working status and region, 2003
- Figure 129: Attitudes towards skincare and buying toiletries and cosmetics, by lifestage, Mintel’s Special Groups, presence of children and household size, 2003
Spend on Health
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- Convenience in the form of self-medication
- Expenditure on medicine products
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- Figure 130: Expenditure on medicine products, 1993-2003
- Convenience a means of adding value
- Removal of price maintenance has limited effect
- Self-medication being encouraged
- Analgesics have the widest franchise
- ‘Carry on working‘ the message from cold and flu remedy suppliers
- Self-medication helps other sectors too
- Vitamins and supplements sold on wider platform
- Asking for advice – the bedrock of the OTC sector
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- Figure 131: Consumers who consulted on complaints suffered in the last 12 months, 1993-2003
- Doctors gradually losing their influence
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- Figure 132: Changing sources of advice for ailments, 1993-2003
- Alternative medicine becoming more mainstream
- Attitudes towards health and healthy lifestyle
- Opportunities and threats for OTC medicines
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- Figure 133: Agreement with statements relating to health and lifestyles, 2003
- A large target market
- Three in ten adults are prime targets for convenient OTC medicines
- Still untapped potential
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- Figure 134: Attitudes towards healthy lifestyles, by demographic sub-group, region, lifestage and working status, 2003
- Time saving and guilt two motivations
- Sport and exercise not necessarily related to health
- Men hold much potential
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- Figure 135: Attitudes towards ill health, by demographic sub-group, region, lifestage and working status, 2003
- GP avoiders should be good targets for OTC…
- …but more choose to do nothing
- Usage of medicine products
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- Figure 136: Use of medicines, 1993-2003
- Long-term trend to prevention/non-treatment rather than cure
- Narrowing consumer base spending more on remedies...
- …but not necessarily on prevention
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- Figure 137: Use of medicines, by demographic sub-group, region, working status, lifestage and Mintel’s Special Groups, 2003
- Analgesics have wide consumer base
- Cold and flu remedies bought by the more socially interactive
- Cough remedies have slightly older profile
- Older consumers more important to other remedies…
- …and this extends to vitamins and supplements
- Expenditure on medical services
- Second half of decade favours services but not optical goods
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- Figure 138: Expenditure on medical services, 1993-2003
- Affluence helps medical services sector
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- Figure 139: Trends in ownership of PMI and other selected general insurance products, May 2001 to April 2003
- Optical goods increasingly competitive
Life and Pensions Expenditure
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- Increasing affluence – increasing personal finance
- Household expenditure on life and pensions nears £142 billion in 2003
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- Figure 140: Household expenditure on all life insurance and personal pensions, 1993-2003
- New life insurance premiums declined again in 2003
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- Figure 141: New regular- and single-premium life business, 1999-2003
- Ongoing doubts beset the pensions industry
- Property preferred to pensions – at the moment
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- Figure 142: New individual pension business, 1994-2003
- Income drawdown business decreases in 2003
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- Figure 143: New income drawdown premiums, 1999-2003
- Education fees are on the rise again
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- Figure 144: Expenditure on education fees and charitable donations, 1993-2003
- People contribute £2.4 billion towards charities
- Consumers are becoming more used to paying for financial services
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- Figure 145: Expenditure on other financial services and charges, 1993-2003
- Savings ratio may have reached a low
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- Figure 146: Trends in saving, personal disposable income and the savings ratio, 1993-2003
- Personal income surpasses £900 billion in 2003
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- Figure 147: Trends in income, expenditure and savings, 1993-2003
- Tax and NI income rise
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- Figure 148: Trends in income from taxes and NI, 1993-2003
- Convenience and financial services
- Telephone and Internet banking are now well established
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- Figure 149: Proportion of personal bank accounts accessible by telephone and via the Internet (MBBG only), 1998-2003
- Motor insurance drives forward online sales
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- Figure 150: Proportion of people arranging their motor insurance online, 2000-03
- Retailers and finances: development of a real one-stop shop
- Online sharedealing and financial supermarkets utilise the convenience of the Internet
- Workplace marketing will appeal to some employees as a convenient distribution option
The Future
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- Figure 151: Trends and forecasts of the major independent factors, 1998-2009
- Housing
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- Figure 152: Forecast of expenditure on housing, 2003-09
- Domestic fuel and power
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- Figure 153: Forecast of expenditure on domestic fuel and power, 2003-09
- Household services
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- Figure 154: Forecast of expenditure on household services, 2003-09
- Domestic appliances
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- Figure 155: Forecast of expenditure on domestic appliances, 2003-09
- Furniture and furnishings
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- Figure 156: Forecast of expenditure on furniture and furnishings, 2003-09
- Household and garden products
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- Figure 157: Forecast of expenditure on household and garden products, 2003-09
- In-home food
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- Figure 158: Forecast of expenditure on in-home food, 2003-09
- In- and out-of-home drinks
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- Figure 159: Forecast of expenditure on in- and out-of-home drinks, 2003-09
- Tobacco
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- Figure 160: Forecast of expenditure on tobacco, 2003-09
- Eating out
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- Figure 161: Forecast of expenditure on eating out, 2003-09
- Entertainment
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- Figure 162: Forecast of expenditure on entertainment, 2003-09
- Leisure Goods
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- Figure 163: Forecast of expenditure on leisure goods, 2003-09
- Holidays
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- Figure 164: Forecast of expenditure on holidays, 2003-09
- Cars
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- Figure 165: Forecast of expenditure on cars, 2003-09
- Motorcycles, cycles and other vehicles
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- Figure 166: Forecast of expenditure on motorcycles, cycles, and other vehicles, 2003-09
- Other personal mobility
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- Figure 167: Forecast of expenditure on other personal mobility, 2003-09
- Clothing and accessories
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- Figure 168: Forecast of expenditure on clothing and accessories, 2003-09
- Toiletries
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- Figure 169: Forecast of expenditure on toiletries, 2003-09
- Medicines
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- Figure 170: Forecast of expenditure on medicines, 2003-09
- Medical services
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- Figure 171: Forecast expenditure on medical services, 2003-09
- Life and pensions
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- Figure 172: Forecast of expenditure on life and pensions, 2003-09
- Educational fees and charitable donations
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- Figure 173: Forecast of expenditure on educational fees and charitable donations, 2003-09
- Financial services and other charges
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- Figure 174: Forecast of expenditure on financial services and other charges, 2003-09
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