Leisure Review - UK - December 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Leisure market continues rising
Figure 1: Market value forecast of UK leisure industry*, 2014-2024
Gambling and eating out in online transition
Consumer confidence at all-time high
Experiences the new social currency
Live music fastest-growing sector
Private fitness clubs dominate
Pubs forecast to grow moderately
Figure 2: Value growth rates, by leisure segment, 2018-19
Companies and brands
Boutique studios continue expansion
Big Tech strengthens position in health tracking
Indoor cycling players battle uphill
Online gambling and gaming a natural pairing
Bar and game format revival continues
Live music sector goes green
UK cinemas in the middle of the streaming wars
Delivery players continue to disrupt
The consumer
Brits love to dine out
Health club attendance spikes…
Figure 3: Participation in leisure activities, September 2019
…while competition rises from at-home fitness
Figure 4: At-home exercise participation, September 2019
Cinemas in the streaming service era
Figure 5: At-home video content consumption, September 2019
Home delivery a family affair
Figure 6: At-home food takeaway/delivery companions, September 2019
Website still primary point of contact…
…while app use grows the fastest
Figure 7: Researching leisure activities, 2016 and 2019
Live entertainment seen as most expensive
Figure 8: Correspondence analysis of leisure activity perceptions, September 2019
Escape rooms capture interest
Figure 9: Future interest in leisure activities, September 2019
What we think
ISSUES AND INSIGHTS
Go where the people are
The facts
The implications
Multi-dimensional leisure concepts are now the norm, not the exception
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Leisure market continues rising
Gambling and eating out in online transition
Live music fastest-growing sector
Private fitness clubs dominate
Pubs expected to grow moderately
Consumer confidence at all-time high
Experiences the new social currency
MARKET SIZE AND FORECAST
Leisure market continues to grow
Figure 10: Value of the UK leisure industry*, 2014-19
A sector in transition
Leisure market forecast to reach £124 billion
Figure 11: Market value forecast of UK leisure industry*, 2014-2024
Forecast methodology
MARKET SEGMENTATION
Live entertainment and arts reach new heights
Live music fastest-growing sector
Visitor attractions benefit from ‘staycations’
Figure 12: Value growth rates, by leisure segment, 2018-19
Fitness market in two minds
Private fitness club membership at all-time high
First signs that leisure centres may recover
Pubs the pick of the night
Pub revenues climb despite site decline
Nightclubs struggling the most
Gambling propped up by online
As punters opt for online…
…betting shops take the hit
Figure 13: Market share of leisure industry, by segment, 2019
Eating out growth driven by delivery
Third-party apps crucial to sector…
…although news isn’t great for all
Figure 14: Value of the leisure industry, by segment, 2014-19
MARKET DRIVERS
Britain's economic woes not all bad
Low Pound keeps British spend at home
Figure 15: Pound versus euro and US Dollar, May 2016-November 2019
Wages rise while unemployment drops to record lows
Figure 16: UK unemployment rate (aged 16 and over), Q3 2009-Q3 2019
Consumer confidence continues to grow
Financial wellbeing at all-time high
Figure 17: The financial wellbeing index, January 2015-August 2019
Brexit fatigue turns consumers inwards
Experiences the new social currency
Millennials have changed the game
Social media like fuel to the fire
Figure 18: Leisure activity participation, by generation, September 2019
Holistic health impacts lifestyle choices
Fitness no longer foreign from fun
Time-poor consumers opt for convenience
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Boutique studios continue expansion
Big Tech strengthens position in health tracking
Indoor cycling players battle uphill
Online gambling and gaming a natural pairing
Bar and game format revival continues
Live music sector goes green
UK cinemas in the middle of the streaming wars
Delivery players continue to disrupt
LAUNCH ACTIVITY AND INNOVATION
Boutique studios continue expansion
F45 joins forces with Everyone Active
East London cross-training Blok heads to Manchester
Big Tech strengthens position in health tracking
Apple releases Apple Watch Series 5
Google announces Fitbit acquisition
Indoor cycling players battle uphill
1Rebel takes on Peloton in the UK
SoulCycle debuts travel Retreats with Black Tomato
Online gambling and gaming a natural pairing
Sky Sports broadcasts first ePremier League tournament
William Hill launches esports product
Bar and game format revival continues
Social Entertainment Ventures announces bingo concept
Flight Club team open shuffleboard venue
Live music sector adapting to the times
Glastonbury and Live Nation go plastic-free
Amazon takes the lead with concert streaming
UK cinemas in the middle of the streaming wars
Netflix cuts the theatrical window (again)…
…while Apple TV+ takes a different strategy
Arts venues do it differently
London’s first museum ‘Lates’ festival debuts
The O2 welcomes Mamma Mia! The Party immersive experience
Delivery players continue to disrupt
Deliveroo launches click-and-collect service
Just Eat v Takeaway.com merger in the works
THE CONSUMER – WHAT YOU NEED TO KNOW
Brits love to dine out
Health club attendance spikes…
…while competition rises from at-home fitness
Website still primary point of contact…
…while app use grows the fastest
Live entertainment seen as most expensive
Escape rooms capture interest
OUT-OF-HOME LEISURE ACTIVITY PARTICIPATION
A nation of diners and drinkers
Eating out most common but broadly stable
Figure 19: Participation in leisure activities, September 2019
Eating out propped up by affluent regulars
Restaurants should avoid delivery dependence
Figure 20: Change in leisure activity participation, 2017-19
Punters play frequently
Online is the channel of choice
Lotteries account for weekly participation
Competitive socialising continues revamp
Tenpin bowling still hitting strikes
Innovative operators target the Millennial demographic
Health club attendance spikes
Clubs challenged to hit both convenience and price
New competition from the at-home sector
AT-HOME LEISURE ACTIVITY PARTICIPATION
‘Hometainment’ trend here to stay
Home workouts make rapid progress
Figure 21: At-home exercise participation, September 2019
Where at-home already wins
Where at-home must aim to win
Media landscape increasingly crowded
Younger consumers driving on-demand content
Cinemas can be all-in-one entertainment hubs
Sports viewing habits evolving
Pay-TV premiums lead sports supporters out of home
Sports viewing gets a feminine touch
Figure 22: At-home video content consumption, September 2019
Home delivery a family affair
Figure 23: At-home food takeaway/delivery companions, September 2019
RESEARCHING LEISURE ACTIVITIES
Website still primary point of contact
Figure 24: Researching leisure activities, 2016 and 2019
App use grows the fastest
Over half use multiple research methods
Figure 25: Repertoire analysis of research methods for leisure activities, September 2019
PERCEPTIONS OF LEISURE ACTIVITIES
Live entertainment most expensive
Opportunity to attract women’s game supporters
Live music seen as worth the investment
Figure 26: Correspondence analysis of leisure activity perceptions, September 2019
Inclusivity key to family-friendly
Child play areas boost attractions’ attendance
Leisure centres have inclusive edge over private sector
Figure 27: Perceptions of leisure activities, September 2019
FUTURE INTEREST IN LEISURE ACTIVITIES
Escape rooms: game of 2019
Gaming realities go virtual
Figure 28: Future interest in leisure activities, September 2019
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Market forecast
Figure 29: UK leisure industry, value forecast scenarios, 2019-24
Forecast methodology