Foodservice and leisure and entertainment will be amongst the slowest areas of growth for consumer spend over the next four years, according to new research from Mintel.
It said that the consumer spend overall would grow 17% from £999bn in 2012 to reach £1.17trn in 2017, but predicts that slowest areas of growth will be technology and communications +5%, home and garden +7%, foodservice +7%, holidays +9% and leisure and entertainment +11%.
When asked about how their spending habits have changed over the past five years, some 56% of all Brits (amounting to 23 million adults) claimed to now only buy items when absolutely needed and almost four in 10 (37%) say they are buying fewer treats for themselves and their families.
While just over a fifth (22%) of consumers agree they have been better off over the past year, more than a third (36%) say things have become more difficult. A further third (36%) of Brits claimed to go on fewer holidays and almost a fifth (17%) are working longer hours as a consequence of the downturn. In addition, while in 2008 six in 10 Brits (60%) were perfectly happy with their standard of living, this fell to 50% in 2012.
Today, the top three financial priorities for British consumers are 1. Keeping up with bills (82%) 2. Adding to rainy day savings (67%) 3. Saving for big ticket purchases (58%). Just 6% of adults admit they haven’t changed their spending habits in response to the economic downturn.
Ina Mitskavets, senior consumer and lifestyles analyst at Mintel, said: “Amidst the rising cost of living and biting austerity measures, British consumers are adjusting to the new economic reality, with financial prudence and savvy shopping already the default for many. Britons are working harder and saving more money for the future, as a direct consequence of the recession. The reduced desire to fritter away hard-earned income on ‘nice-to-haves’ will shape retail offerings and will have far-reaching implications for consumer expectations about quality, price, product variety and customer service.”
