Daily Research News Online no. 2151 - Portrait of the British Consumer

Portrait of the British Consumer

February 5 2003

Latest research from Mintel for the British Lifestyles 2003 survey questioning 2,005 adults paints a picture of a surprisingly balanced British consumer, with around 50% of adults enjoying a good balance between work and life.

Nevertheless, there remains a core element in the population who feel that their family and social life suffers as a result of work. Lack of time means these consumers avoid consulting a doctor, preferring a trip to the chemist or pharmacist. Such consumers have helped drive the trend towards more holidays which are shorter in length, as pressures at work and fears over job security have moved consumers away from the traditional two weeks away.

Around half of British workers thought they had achieved a good balance between work and life while almost three in ten feel that it is becoming harder to juggle a satisfying career with a satisfying personal life. In fact, one in five feels that their social life suffers because of their work, and a further 18% agree that their family life is also suffering because of work - this feeling is particularly prevalent among men who are parents.

Almost seven in ten British workers agree that they work to provide basic needs such as housing and food for themselves and their partners/families. British women are happier than men at work, with over a third enjoying being with/meeting other people at work.

Around the same number of working consumers agreed that there is more to life than making money. Only just over one in ten still thinks that success is measured by how much money you make. Keeping in close touch with family was the most important lifestyle priority, with 70% of consumers of this opinion.

The grey market was previously very much associated with single women, mainly widows outliving their partners: now the elderly comprises more couples. In terms of expenditure, couples have quite different spending patterns to those living alone. This is partly due to the fact that there is likely to be more pension to go around, but also to the fact that couples are more likely to go on holiday or do other leisure activities than singles.

With pensions likely to be less generous in the future, the current batch of retirees may have some of the highest proportions of those who can enjoy early retirement with a relatively high level of income. In the future, more people will opt to work longer to top up their 'pensions pot'.

The number of people in their sixties will surpass the number of under fives for the first time in recorded history over the next five years. It is not all bad news for the children's market as smaller families are generally more affluent, and more resources can be devoted per child.

Caring for the old is going to fall on a lower number of the middle aged; the numbers aged between 30 and 60 will start to fall over the next five years, after years of rises. Caring for the young will increasingly be the role of grandparents. This is a result of parents increasingly having children in their late thirties and forties. Grandparents are likely to be approaching retirement age, making them ideal baby sitters.

The average Briton can now buy 35% more goods or services than he or she could in 1992. This is one of the best uninterrupted rises in affluence since the 'you've never had it so good' era of Harold Macmillan. During this 10 year period, some notable areas to have seen falls in shares of spend, include the basic essentials of food, drink and clothing accessories. This is very much a sign of a buoyant economy in which basic essentials take a lower proportion of consumers' spending, as consumers are able to look towards non-essential areas.

Over the past decade, overall consumer expenditure rose 72.5% at current prices to reach some £674 billion. There are now signs that consumer expenditure is slowing. Consumers are becoming slightly more cautious in the face of global, political and economic uncertainty. Despite buoyant retail sales over the last two years, retailers face challenging times ahead. The retail sector is facing more intense competition within the industry as concentration among fewer, larger players becomes an increasing trend across many sectors. The electricals and DIY/hardware sectors have enjoyed the highest levels of growth.

Just under half of UK women now work, as well as take care of their home and family, and with time at a premium, consumers are increasingly looking towards easier and quick meal options. Convenience food continues to be fastest growing sector in the total food market, increasing by 43% in real value over the last 10 years.

The fastest-growing out-of home entertainment market over the past ten years has been health & fitness. By contrast, nightclubs have not fared as well, being hit by the fact that they no longer have a monopoly on late-night drinking.

Fast food has demonstrated the strongest growth in the eating out sector in the past five years, despite the fact that the fast food sector is approaching maturity. In 2002, growth has been slower than in the past ten years, due to the increasingly saturated market.