Largest Research Market in the World

The US marketing and opinion research sector now represents the largest single research market worldwide. According to ESOMAR's global market research study, turnover of the US research industry reached about US$6159 million and accounted for 39% of the total world market in 2001. This compares to the EU which accounted for 37% of the world market.

The sector grew by 4% over the previous year, a slower growth rate than the previous three years. As determined by the market research newsletter, Inside Research, the highest US growth in the past decade was in 1997 at 12.6%. It declined each year thereafter, with 1998 at +11.6%, 1999 at +10.1% and 9% in 2000. The recession has meant that most corporate market research departments are not increasing their spending and growth is projected to be flat.

Over the past several years the research industry has experienced a major consolidation, driven by both globalisation and the stability of research as a business. In America as well as abroad, many research companies have become research conglomerates via acquisitions, driven by the need to offer similar services across borders which corporate customers demand.

Of the 50 largest US market research firms in 2001, the majority derived some of their revenue from work conducted outside the US which represents 39% of their total revenue. US-based businesses authorise a major share of worldwide spending. This fact makes the US even more important as the centre for buying and selling of research worldwide than its world spending share would indicate.

The Internet has transformed research in America and will continue to do so. In 2002 nearly 20% of the US survey research market will be conducted on line, reaching 35% within two years. Getting close to and better understanding what motivates the consumer may be a worldwide issue but has taken more importance in America as its markets become saturated and new ones are increasingly hard to find. In 2001, 42% of research was syndicated research, representing mostly large syndicated service firms where clients are under contract. Qualitative research grew by 5% on the previous year, and in 2001 was estimated to account for 18% of total research spend.

Who is buying research? According to Inside Research, packaged goods companies account for 28% of research spend, followed by media and advertising agencies, which account for 21%. Pharmaceutical and healthcare companies are also large clients accounting for 21% of research spend. Other key sectors that commission and use research in the USA are automotive companies and financial services.

Some of the largest global research organisations are headquartered in the U.S. These include IMS Health, Information Resources, VNU Inc, NFO WorldGroup Inc., Westat Inc, NOP World and Arbitron.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.