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Grey Consumer Market Assessment 2006

Published by: Key Note Publications Ltd

Published: Jun. 1, 2006 - 130 Pages


Table of Contents



1. Introduction

REPORT COVERAGE

DEFINITION

2. Strategic Overview

POPULATION STATISTICS

Table 1: The UK Population by Age Group (000), 1976-2004

Figure 1: The UK Population by Age Group (000), 2004

Table 2: The UK Population of Adults Aged Over 45 by Age Group (000), 1976-2004

Table 3: Life Expectancy at Birth in the UK by Sex (years), 1981-2005

DEMOGRAPHIC PROFILE

Table 4: Demographic Profile of Adults Aged Over 45 (% of respondents), 2006

INCOME

Table 5: Income and Source of Income by Age of Head of Household Reference Person† in the UK, 2004/2005

Figure 2: Income by Age of Head of Household Reference Person† in the UK, 2004/2005

Table 6: Changes in Disposable and Gross Household Income by Age of Head of Household Reference Person† in the UK, 2002/2003 and 2004/2005

HOUSEHOL EXPENDITURE

Table 7: Average Weekly Household Expenditure by Age of Household Reference Person† (£), 2004/2005

Table 8: Average Weekly Household Expenditure by Age of Household Reference Person† (%), 2004/2005

CAR OWNERSHIP

Table 9: Car Ownership Among Adults Over 45 by Age Group (%), 2005

Figure 3: Car Ownership Among Adults Over 45 by Age Group (%), 2005

SAVINGS AND INSURANCE

Table 10: Those Who Regularly Spend Money on Insurance Policies and on Savings and Investments (% of respondents), 2006

ADVERTISING AND MARKETING

3. Home and Garden

INTRODUCTION

Table 11: Home Ownership Among Adults Aged Over 45 (% of respondents), 2004

EXPENDITURE ON HOUSING

Table 12: Average Annual Household Expenditure on Housing by Age of Household Reference Person† (£), 2004/2005

EXPENDITURE ON DIY AND HOME IMPROVEMENTS

Table 13: Average Annual Expenditure on Household Maintenance and Repair and Alterations/Improvements by Age of Household Reference Person† (£), 2004/2005

Table 14: Those Who Carry Out DIY in the Home (% of adults), 2005

Table 15: DIY Tasks Carried Out (% of adults), 2005

EXPENDITURE ON HOUSEHOLD GOODS AND SERVICES

Table 16: Average Annual Household Expenditure on Household Goods and Services by Households Headed by Adults Over 50 (£), 2004/2005

Figure 4: Average Annual Household Expenditure on Household Goods and Services by Households Headed by Adults Over 50 (£), 2004/2005

EXPENDITURE ON GARDENING

Table 17: Garden Ownership and Size (% of adults), 2005

Table 18: Average Annual Household Expenditure on Horticultural Goods, Garden Equipment and Plants by Households Headed by Adults Over 50 (£), 2004/2005

Table 19: Garden Items Respondents Have Spent Money on in the Last Year (% of adults), 2005

MARKETING AND SUPPLIER ACTIVITY

4. Looking Good and Staying Healthy

INTRODUCTION

EXPENDITURE ON CLOTHING AND PERSONAL APPEARANCE

Table 20: Those Who Regularly Spend Money on Clothes (% of respondents), 2006

Table 21: Average Annual Expenditure on Clothing and Footwear by Households Headed by Adults Over 50 (£), 2004/2005

Figure 5: Average Annual Expenditure on Clothing and Footwear by Households Headed by Adults Over 50 (£), 2004/2005

EXPENDITURE ON PERSONAL CARE

Table 22: Average Annual Expenditure on Personal Care by Households Headed by Adults Over 50 (£), 2004/2005

HEALTH AND WELL-BEING

Expenditure on Medications

Table 23: Those Who Regularly Spend Money on Medications (% of respondents), 2006

Vitamins and Supplements

Table 24: Those Who Regularly Take Vitamins, Minerals or Supplements (% of respondents), 2005

Table 25: Those Who Regularly or Occasionally Take Cod Liver Oil (% of respondents), 2005

Table 26: Where Those Taking Vitamins, Minerals and Supplements Purchase Them From (% of respondents), 2005

Smoking

Table 27: Those Who Have Smoked Cigarettes in the Last 12 Months (% of adults), 2005

Diet

Table 28: Heavy Users† of Fresh Fruit and Vegetables (% of adults), 2005

Table 29: Average Annual Household Expenditure on Fresh Fruit and Vegetables (Excluding Potatoes) by Households Headed by Adults Over 50 (£), 2004/2005

Table 30: Those Who Eat Crisps and/or Savoury Snacks (% of adults), 2005

Table 31: Snack Brands Purchased Regularly by Social Grade (% of respondents), February 2006

Exercise

Table 32: Those Who Have Visited a Leisure Centre, Health Club or Gym in the Last 12 Months (% of adults), 2005

MARKETING AND SUPPLIER ACTIVITY

5. Leisure and Holidays

INTRODUCTION

EXPENDITURE ON LEISURE GOODS AND SERVICES

Table 33: Average Annual Household Expenditure on Audio-Visual, Photographic and Information Processing Equipment by Households Headed by Adults Over 50 (£), 2004/2005

Table 34: Average Annual Household Expenditure on Other Recreational Items and Equipment and on Pets by Households Headed by Adults Over 50 (£), 2004/2005

Table 35: Average Annual Household Expenditure on Newspapers, Books and Stationery by Households Headed by Adults Over 50 (£), 2004/2005

Figure 6: Average Annual Household Expenditure on Newspapers, Magazines and Periodicals by Households Headed by Adults Over 50 (£), 2004/2005

Table 36: Average Annual Household Expenditure on Recreational and Cultural Services by Households Headed by Adults Over 50 (£), 2004/2005

PUBS AND EATING OUT

Table 37: Those Who Visit a Pub for a Drink or Meal (% of adults), 2005

HOLIDAYS AND TRAVEL

Table 38: Average Weekly Household Expenditure on Package Holidays by Households Headed by Adults Over 50 (£), 2004/2005

Table 39: Those Who Have Had Any Holiday in the Last 12 Months (% of adults), 2005

Table 40: Number of Family Members Who Went on Last Holiday Based on Those Who Have Had Any Holidays in the Last 12 Months (% of adults), 2005

MARKETING AND SUPPLIER ACTIVITY

6. International Perspective

Table 41: Proportion of Men and Women Aged Over 60 Living Alone (%), 2005

Table 42: Living Arrangements of Population Aged Over 60 in Africa, Asia, Latin America/Caribbean and Europe (%), 2005

7. PEST Analysis

POLITICAL FACTORS

ECONOMIC FACTORS

SOCIAL FACTORS

TECHNOLOGICAL FACTORS

Table 43: Those With a Personal Computer in Their Household (% of adults), 2005

Table 44: Main User(s) of the Household Personal Computer (% of adults), 2005

Table 45: How the Household Personal Computer is Used (% of adults), 2005

8. Consumer Dynamics

Overall Findings

Table 46: Regular Purchases by Those Aged Over 45 (% of respondents), February 2006

SPENDING ON LEISURE

Books and Magazines

Table 47: Those Regularly Spending Money on Books and Magazines (% of respondents), 2006

Music

Table 48: Those Regularly Spending Money on Compact Discs, Records or Tapes (% of respondents), 2006

Cinema and Theatre

Table 49: Those Regularly Spending Money on Going to the Cinema or Theatre (% of respondents), 2006

Eating and Drinking Out

Table 50: Those Regularly Spending Money on Eating Out and Drinking in Pubs (% of respondents), 2006

SPENDING ON CLOTHES

Table 51: Those Regularly Spending Money on Clothes (% of respondents), 2006

SPENDING ON OTHERS

Table 52: Those Regularly Spending Money on Presents for Other People (% of respondents), 2006

SPENDING ON HOME AND GARDEN

Table 53: Those Regularly Spending Money on Gardening and Home Improvements (% of respondents), 2006

Home Furnishings

Table 54: Those Regularly Spending Money on Things for the Home (% of respondents), 2006

SPENDING ON MORTGAGE OR RENT

Table 55: Those Regularly Spending Money on Mortgage and Rent (% of respondents), 2006

SPENDING ON FINANCIAL PRODUCTS

Table 56: Those Regularly Spending Money on Insurance and Savings (% of respondents), 2006

SPENDING ON MEDICATIONS

Table 57: Those Regularly Spending Money on Medications (% of respondents), 2006

9. Company Profiles

AGE CONCERN

Corporate Strategy

Profitability

Table 58: Financial Results for Age Concern Enterprises Ltd (£000), Years Ending 31st March 2003-2005

Recent and Future Developments

HELP THE AGED

Corporate Strategy

Profitability

Table 59: Financial Results for Help the Aged (£000), Years Ending 30th April 2003-2005

Recent and Future Developments

SAGA GROUP LTD

Corporate Strategy

Profitability

Table 60: Financial Results for Saga Group Ltd (£000), Years Ending 31st January 2003-2005

Recent and Future Developments

10. The Future

Table 61: Projected UK Population by Age Group (000), 2005-2010

Table 62: Projected UK Population by Age Group (%), 2005-2010
Table 63: Projected UK Population Over 45 by Age Group (000), 2005-2010
11. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

A Slow Start to 2006

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2005, May 2005, August 2005, November 2005 and February 2006

The Desire to Borrow Stays Strong

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2005, May 2005, August 2005, November 2005 and February 2006

THE WILLINGNESS TO SPEND FROM SAVINGS

Spending From Savings Declines

Table C: The Proportion of Adults Without Any Savings (%), February 2005, May 2005, August 2005, November 2005 and February 2006

Table D: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2005, May 2005, August 2005, November 2005 and February 2006

Consumers Increasingly Cautious

Table E: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and %), February 2005, May 2005, August 2005, November 2005 and February 2006

12. Further Sources

General Sources

Government Sources

Other Sources

Bisnode Sources

Abstract

In 2004 there were over 3 million more adults over the age of 45 than there were in 1976, with the population of over-45 year-olds increasing by 15% from 21 million to 24.1 million. This can be attributed to two principal factors. Adults in this age group were part of the post-war `Baby Boom' population — an increase in the birth rate which took place during the late 1940s and the 1950s. This has led to a `population bulge' at each successive age group reached by this cohort. The other contributory factor is the increase in life expectancy, as a result of improved living conditions and advances in healthcare. This has led to an increase of nearly 20% in the population aged over 65 between 1976 and 2004.

As well as becoming more numerous, there is evidence to show that older adults are becoming more affluent. Government figures show that households headed by adults aged 50 to 64 years have experienced larger increases in both gross and disposable incomes over the past 2 years than has been the case for any other age group.

Key Note's original consumer research, commissioned specifically for this report and carried out by NEMS Market Research highlighted a number of differences between the spending patterns of adults over 45 and those of the population as a whole.

For example, people in this age group are considerably more likely than average to spend money on gardening, and are slightly more likely to have insurance policies. They are also less likely to be paying a mortgage or rent, thus leaving them with a higher disposable income.

There are a number of areas in which the over-45s are less likely than average to spend money. These include leisure activities (eating out, recorded music, drinking in pubs and going to the theatre), and personal/household spending, such as clothes and purchases for the home. However, the over-45 age group covers a very wide spectrum, including those over 75 years old, and there are considerable variations in spending among different age groups within this span.

Spending areas in which there is little or no difference between the over-45 age group and the population as a whole include gifts for friends and family, books and magazines, savings and investments, DIY and home improvements and medications.

The over-45 population will go on increasing over the next 5 years. The most recent government population projections suggest that there will be 26.2 million adults in this age group in the UK by 2010 — a 7.3% increase on the 2005 figure. During the same period, there will be a 1% decrease in the number of adults aged under 45.

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