UK Consumer Trends : Market Research Report

UK Consumer Trends

Published by: Datamonitor

Published: Sep. 15, 2003 - 187 Pages

TABLE OF CONTENTS

CHAPTER 1 EXECUTIVE SUMMARY 3

The future decoded 3

Who - the people 3

Why - the need states 4

When - the occasions 5

Action points 6

CHAPTER 2 INTRODUCTION 23

What this report is about 23

Report structure 23

Executive Summary 23

Chapter 2 - Introduction 23

Chapter 3 - UK Overview 23

Chapter 4 - The UK Consumer 23

Chapter 5 - Consumer Groups 24

Chapter 6 - Consumer Need States 24

Chapter 7 - Consumer Occasions 24

Chapter 8 - Action Points 24

Chapter 9 - Appendix 24

CHAPTER 3 UK OVERVIEW 25

Macro-economic overview 25

Socio-demographic overview 26

Market data overview 28

Retail landscape overview 29

CHAPTER 4 THE UK CONSUMER 30

Who? 30

Why? 32

When? 35

Conclusion 37

CHAPTER 5 CONSUMER GROUPS 38

Introduction 38

Wealth Groups 39

Demographic Groups 40

0 - 24 41

25 - 49 41

50+ (Seniors) 41

Family Status Groups 43

Living Arrangements Groups 44

Young Adult Living Arrangements 45

Lifestage Groups 47

New Householders 48

New Family Units 48

Physical Change Types 49

Newly Employed 50

Students 51

Retirees 51

Lifestyle Groups 52

Health Status Groups 55

Body Mass Index Groups 55

Overweight and Obese Under 18s 57

Diabetic Sufferers 58

Conclusions 58

CHAPTER 6 CONSUMER NEED STATES 60

Introduction 60

Coolness 61

Convenience 64

Ethics & Values 66

Experimentation 69

Health, Wellness & Beauty 70

Total Well-being 70

Self-Medication 71

Health & Beauty Maintenance 73

Dieting 76

Appearance 77

Fear of Ageing 79

Coping With Stress 81

Indulgence 85

Increasing polarization of healthy and indulgent behavior 85

Everyday self-treating 85

Prestige 89

Quality 90

Safety 92

Service 95

Simplicity 98

Conclusions 101

CHAPTER 7 CONSUMER OCCASIONS 103

Introduction 103

Mealtimes and snacking trends 104

Defining “meals” and “snacks” 104

Mealtime displacement 105

Changing perceptions of mealtimes and snacking 106

Defining consumption-occasion locations 108

Breakfast occasions 109

Breakfast market size and forecast 110

Morning snack occasions 112

Morning snack market size and forecast 114

Lunch occasions 116

Lunch market size and forecast 118

Afternoon snack occasions 120

Afternoon snack market size and forecast 122

Dinner occasions 124

Dinner market size and forecast 125

Evening snack occasions 127

Evening snack market size and forecast 128

Evenings in 129

Evening at home snacking routines 130

Evening at home pampering routines 138

Entertaining at home occasions 139

Evenings out 142

Eating out in the evening 142

Drinking out in the evening 144

On-the-move 147

Trend: travel time is rising 147

Trend: eating on-the-move is rising 147

Trend: grooming on-the-move is rising 149

At work 150

Trend: consumers are eating more frequently at work 150

Staying away from home 153

Trend: consumers are taking more trips away from home 153

Top-up shopping occasions 156

Fragmentation of the weekly shop as people top-up shop more 156

Conclusions 158

CHAPTER 8 ACTION POINTS 159

Consumer groups 159

A reassessment of target groups and their needs is required 159

Identify the consumer groups of relevance to your brands 160

Develop greater understanding of groups’ needs 160

Determine NPD opportunities 161

Consumer need states 162

Use understated marketing when striving for cool 162

Use focused brand segmentation for developing cool products 163

Remain benefit-focused, not image-focused 163

When choosing to enter “green” markets its better to wait and see 164

Focus on product benefits to target mainstream green consumers 164

Capitalize on the trend for self-medication 165

Tap into consumer demand for adopting health & beauty regimes 166

Regain the trust of dieting consumers 166

Target body-shape consciousness by weight classification 167

Target consumers’ fear of ageing before key lifestages occur 168

Capitalize on fear of ageing through marketing 168

Relieve and ease consumers’ stress 169

Market to consumer emotions to capture everyday treating spend 169

Distinguish your brand proposition through good customer service 170

Associate products with prestige values for prestige status 170

Identify brands to reposition as “simple” 171

Focus “simple” products’ brand values 172

Work with retailers to develop simpler shelving systems 172

Develop simplicity in your packaging 173

Consumer occasions 174

Position snacks as a positive part of daily nutrition 174

Promote and teach ‘modular’ approaches to meal preparation 175

Develop meal-snack hybrids to target frequent eaters 175

Target staying-in ‘occasions’ with premium offerings 176

Target parties to tap direct and indirect branding opportunities 176

Facilitate consumers going out with in-home solutions 177

Use product positioning to capture on-the-move consumption 177

Use workplace consumption to help launch new products 178

Target health-consciousness in the workplace 179

Develop packaging to target away from home occasions 179

CHAPTER 9 APPENDIX 181

Definitions 181

Research methodology 187

How to contact experts in your industry 187

LIST OF TABLES

Table 1: UK macro-economic indicators, 1999-2002 25

Table 2: UK economic activity rates by gender (% population of working age), 1992-2002 26

Table 3: UK employee jobs by gender and industry (% working population), 1992-2002 26

Table 4: UK population by gender (m), 1997-2007 27

Table 5: UK births and deaths (m), 1992-2002 27

Table 6: Marital status of British consumers aged 16+ years by gender (%), 2000 27

Table 7: Average age of marriage and divorce in the UK by gender, 1981-2000 28

Table 8: UK sales of packaged food, drink and personal care markets (UK£m), 2002-2007 28

Table 9: Structure of the UK grocery and personal care retail (number of outlets), 2002 29

Table 10: UK wealth category overview (m), 1997-2007 40

Table 11: UK demographic category overview (m), 1997-2007 42

Table 12: UK family status category overview (m), 1997-2007 43

Table 13: UK living arrangements group overview (m), 1997-2007 45

Table 14: UK living arrangements of those aged 18-24 (m), 1997-2007 47

Table 15: UK lifestage groups overview - part 1 (thousands), 1997-2007 51

Table 16: UK lifestage groups overview - part 2 (millions), 1997-2007 52

Table 17: UK lifestyle groups overview (millions), 1997-2007 54

Table 18: UK Body Mass Index (BMI) distribution by gender (m), 1997-2007 56

Table 19: The number of Overweight and Obese under 18s in the UK (m), 2002-2007 57

Table 20: Prevalence of Type 2 diabetes in British adults aged 20+ (m), 2002-2007 58

Table 21: The number of Opinion Formers, Adopters and Regulars in the UK (m), 1997-2007 63

Table 22: The number of British consumers using home cleaning and laundry services (households millions), 1997-2007 65

Table 23: The number of British consumers using meal delivery, facial, manicure & pedicure services (millions), 1997-2007 65

Table 24: UK market value of convenience services (UK£m), 2002-2007 65

Table 25: The number of Organic, Vegetarian, Meat Reducer and Ethical Consumers in the UK (millions), 1997-2007 67

Table 26: UK sales of organic, vegetarian and ethical goods (UK£m), 2002-2007 68

Table 27: UK consumer expenditure on food and drink by diet type, (UK£bn) 2002-2007 and level of health belief 70

Table 28: British consumers’ self-medication actions for minor ailments (% respondents), 2002 72

Table 29: UK market value of over-the-counter medicines and vitamin, mineral & supplement sales (UK£m), 1997-2007 72

Table 30: The number of functional regime and cosmeceutical regime consumers in the UK (m), 1997-2007 74

Table 31: UK market value of skincare and haircare sales used as part of a ‘functional regime’ (UK£m), 1997-2007 75

Table 32: UK market value of food sales used as part of a ‘functional regime’ (UK£m), 1997-2007 75

Table 33: The number of diet watchers in the UK (millions), 1997-2007 76

Table 34: UK market value of diet food and drinks (UK£m), 2002-2007 77

Table 35: UK population split by hours of exercise per week, 1999 78

Table 36: British consumers’ participation in exercise by impact 1999 78

Table 37: Cost to the UK alcoholic drinks market of forgone sales due to appearance and exercise concerns (UK£m), 1997-2007 79

Table 38: Additional or foregone sales in the UK due to the fear of ageing on selected CPG categories (UK£m), 1997-2007 80

Table 39: Prevalence of stress, depression and anxiety among the UK population (m), 2002 83

Table 40: Prevalence of stress, depression and anxiety among the UK population (%), 2002 83

Table 41: Stress driven purchases (UK£m), 1997-2007 84

Table 42: The value of treating in the UK by category assuming no premium paid for treating (UK£m), 2002-2007 87

Table 43: The value of treating in the UK by category assuming a 9.9% premium* paid for treating (UK£m), 2002-2007 88

Table 44: UK market value of prestige and luxury goods (UK£m), 2002-2007 89

Table 45: Core consumers of specialty food, drinks and personal care products in the UK (m), 1997-2007 90

Table 46: UK specialty food, drinks and personal care sales by core specialty consumers and other consumers (UK£m), 2002-2007 91

Table 47: Safety-concerned consumers by sub-group in the UK (m), 1997-2007 94

Table 48: Net change in the value of safety-concern driven consumers’ spending in the UK, by category, (UK£m), 2002-2007 95

Table 49: Frequency and effects of poor customer service by channel in the UK, 2002 96

Table 50: Cost and value of customer service to retail channels in the UK (UK£m), 2002 96

Table 51: Cost and value of customer service to manufacturers in the UK (UK£m), 2002 97

Table 52: The number of downshifters in the UK (millions of households), 1997-2007 98

Table 53: Food, drink and personal care spend of British downshifters 2002-2007 99

Table 54: UK full-time ‘white-collar’ workers between 18-60 years (thousands) - the core group for potential switchers, 2002-2007 100

Table 55: The market opportunity in the UK to target ‘potential switchers’ with simplicity-orientated CPG offerings, (UK£m), 2002-2007 101

Table 56: Number of meal and snack occasions by daypart, 2002-2007 105

Table 57: UK breakfast occasions by consumer group and location (millions), 2002-2007 109

Table 58: Value of UK breakfast occasions by consumer group and location (UK£m), 2002 110

Table 59: Value of UK breakfast occasions by consumer group and location (UK£m), 2007 111

Table 60: CAGR of value of UK breakfast occasions by consumer group and location (%), 2002-2007 111

Table 61: UK morning snack occasions by consumer group and location (millions), 2002-2007 113

Table 62: Value of UK morning snack occasions by consumer group and location (UK£m), 2002 114

Table 63: Value of UK morning snack occasions by consumer group and location (UK£m), 2007 115

Table 64: CAGR of value of UK morning snack occasions by consumer group and location (%), 2002-2007 116

Table 65: UK lunch occasions by consumer group and location (millions), 2002-2007 117

Table 66: Value of UK lunch occasions by consumer group and location (UK£m), 2002 118

Table 67: Value of UK lunch occasions by consumer group and location (UK£m), 2007 119

Table 68: CAGR of value of UK lunch occasions by consumer group and location (%), 2002-2007 120

Table 69: UK afternoon snack occasions by consumer group and location (millions), 2002-2007 121

Table 70: Value of UK afternoon snack occasions by consumer group and location (UK£m), 2002 122

Table 71: Value of UK afternoon snack occasions by consumer group and location (UK£m), 2007 123

Table 72: CAGR of value of UK afternoon snack occasions by consumer group and location (%), 2002-2007 124

Table 73: UK dinner occasions by consumer group and location (millions), 2002-2007 125

Table 74: Value of UK dinner occasions by consumer group and location (UK£m), 2002 125

Table 75: Value of UK dinner occasions by consumer group and location (UK£m), 2007 126

Table 76: CAGR of value of UK dinner occasions by consumer group and location (%), 2002-2007 126

Table 77: UK evening snack occasions by consumer group and location (millions), 2002-2007 127

Table 78: Value of UK evening snack occasions by consumer group and location (UK£m), 2002 128

Table 79: Value of UK evening snack occasions by consumer group and location (UK£m), 2007 128

Table 80: CAGR of value of UK evening snack occasions by consumer group and location (%), 2002-2007 129

Table 81: When do you typically snack at home in the evenings? (% UK respondents) 130

Table 82: If you snack at any of these times what would you be most likely to snack on? (% UK respondents) 132

Table 83: What type of drink(s) do you snack on at these times (if any)? (% UK respondents) 134

Table 84: Proportion of adults that snack whilst watching TV (% UK respondents) 136

Table 85: Would any of the following prompt you to snack more in the evening? (% UK respondents) 137

Table 86: What type of things would a ‘staying-in’ pampering session involve? (% UK respondents that do pamper) 138

Table 87: What motivates you to have such a pampering session? (% UK respondents that do pamper) 139

Table 88: Total number of entertaining at home gatherings in the UK (m), 2002-2007 140

Table 89: Spend on entertaining at home in the UK (UK£m), 2002-2007 141

Table 90: Number of UK foodservice meals served (profit sector), by time of week, 1997-2007 143

Table 91: UK foodservice (profit sector) market value growth (UK£m) 1997-2007 143

Table 92: Segmentation of UK population by frequency of eating out (% population), 2002-2007 144

Table 93: UK drinking out occasions* by time of week, 1997-2007 145

Table 94: UK drinks on-trade value growth (UK£m), 1997-2007 145

Table 95: Segmentation of UK population by frequency of drinking out (% population), 2002-2007 146

Table 96: Frequency and length of journeys in the UK, 1997-2007 147

Table 97: Eating on-the-move occasions by daypart, 2002-2007 148

Table 98: Value of eating on-the-move occasions in the UK by daypart (UK£m), 2002-2007 149

Table 99: Value of personal care use while on-the-move in the UK (UK£m), 2002-07 150

Table 100: Eating at-work occasions by daypart, 2002-2007 151

Table 101: Value of eating at-work occasions by daypart (UK£m), 2002-2007 152

Table 102: The number of trips away from home by type (millions of trips), 1997-2007 154

Table 103: Average length of stay away from home by type (nights), 2002 154

Table 104: Spend on personal care when staying away from home by category (UK£m), 2002-2007 155

Table 105: C-store shopping behavior and sales data in the UK (UK£m), 2002-2007 156

Table 106: C-store spending by socio-economic group in the UK (UK£m), 2002-2007 157

Table 107: Need states beyond coolness 164

Table 108: Definitions for terms used in the Consumer Groups chapter 181

Table 109: Body Mass Index (BMI) group definitions as used in Consumer Groups chapter 183

Table 110: Definitions for terms used in the Consumer Need States chapter 184

Table 111: Definitions for terms used in the Consumer Occasions chapter 186

LIST OF FIGURES

Figure 1: Segmentation of Consumer Groups 38

Figure 2: Overview of Consumer Need States 60

Figure 3: Physical health, mental health and beauty are increasingly seen as being inter-related 71

Figure 4: Motivations for self-treating (% UK respondents) 86

Figure 5: Overview of Consumer Occasions 103

Figure 6: Responses to the question: What, for you, are the features that distinguish a meal from a snack? (% UK respondents), 2003 107

Figure 7: If you snack at any of these times what would you be most likely to snack on? (% UK respondents) 131

Figure 8: What type of drink(s) do you snack on at these times (if any)? (% UK respondents) 133

Figure 9: How often do you snack during any of these activities in the evening? (% UK all respondents) 135

Abstract

Introduction:
UK consumers are some of the most trend-led in Europe. UK Consumer Trends examines just exactly what the extent of trend adoption is in the UK and how much consumer packaged goods spending is influenced as a result. Over 30 consumer trends, 40 consumer occasions and 80 consumer segments are quantified - highlighting emerging consumer behaviors and needs relevant to the CPG industry.

Scope:
* 80 UK consumer segments sized and assessed since 1997 with forecasts to 2007

* Over 30 UK consumer trends pinpointing consumers’ specific needs are quantified by value over time with forecasts to 2007

* 40+ UK consumer occasions are measured and assessed for the future impact they will have on where and when consumers eat, drink and use personal care

* Actionable recommendations provide the practical knowledge for turning these trends into profits.

Report Highlights:
Rising body-shape consciousness is costing the UK alcoholic drinks industry UK£1.1 billion a year. Despite this, British consumers are getting fatter. 16.9 million men and women were overweight or obese in 2002. In 2007 a further 1.2 million consumers will be overweight or obese - bringing the total to 18.1 million - 30% of the population.

27.9 million UK consumers suffer from above normal levels of stress or depression. Less job security and busier lifestyles ensure that this is a growing trend, creating opportunities for CPG players. Consumers place more value on goods that provide simplicity, timeliness and familiarity when stressed but value pleasure and ease when de-stressing.

The mass adoption and use of mobile phones has driven consumers to treat public space as if it were private, hence increasing consumers’ willingness to consume on-the-move. Predictable commuter delays are driving more planned consumption on-the-go - in 2002 5% of consumers journeys involved the use of personal care items.

Reasons to Purchase:
* Identify new insights about UK consumers based on the analysis of 80 consumer segments, 40+ consumer occasions and 30+ consumer trends.

* Profit from the prescriptive action points that provide the practical knowledge for successfully exploiting these trends.

* Benefit from exhaustive research comprising 40 separate studies, 150 industry interviews, 100 retail storechecks, 20 UK consumer surveys and more.

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UK Consumer Trends

Table of Contents

Abstract