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Brits Buy More Premium Goods
British shoppers are buying more premium foods, drinks and toiletries than ever according to a new report from Datamonitor. Spend on speciality products such as hand-made, origin-specific food, drink and personal care products is expected to exceed £4.5bn in the UK by 2009, up from £3.4bn in 2004.
Interest in premium products is being spurred by rising incomes and the growth of key demographic groups such as older consumers and singles. Datamonitor's Consumer Analyst Daniel Bone also cites 'the growing taste for luxury... as consumers continue to experiment, self-reward and seek out satisfying experiences with rich flavours, textures, and variety'.
Datamonitor also suggests that Britons' adventure-seeking and risk-taking attitudes are influencing their premium purchases. It found that 83% of UK consumers feel it is important 'to be open-minded about trying new products and experiences' and that 73% think that finding new excitement and sensations was 'important' or 'very important'.
The report points out that luxury is costing less than it used to, thanks to an increase in 'accessible premium' brands such as Walkers Sensations - one of the most successful FMCG launches in recent years. The growth of discount chains has also been crucial in providing the opportunity to sample luxury at discount prices.
The willingness to pay premium prices is not always just about style or taste, however: 50% of European and US citizens (41% of those in the UK) are willing to pay up to 10% more for products and services that promise to save them time. And, when it comes to cosmetics and toiletries, 36% of people in the UK are willing to pay up to 10% more for products containing active ingredients, and 19% are willing to pay more still.
The company is online at www.datamonitor.com
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