Consumer Lifestyles in The United Kingdom

CONSUMER LIFESTYLES IN THE
UNITED KINGDOM
Euromonitor International
June 2015
CONSUMER LIFESTYLES IN THE UNITED KINGDOM
LIST OF CONTENTS AND TABLES

Lifestyles in the United Kingdom .................................................................................................. 1
Chart 1
Lifestyles in United Kingdom ........................................................................ 1
Top Five Consumer Trends .......................................................................................................... 1

generation Rent....................................................................................................................... 1
Silver Surfers ............................................................................................................................ 2
Webrooming ............................................................................................................................. 3
Convenience Shopping............................................................................................................. 4
Ethical Consumption ................................................................................................................. 5
Consumer Segmentation .............................................................................................................. 5
Babies and Infants .................................................................................................................... 6
Chart 2
Babies and Infants in Focus 2000-2020 ....................................................... 7
Kids........................................................................................................................................... 7
Chart 3
Chart3 Kids in Focus 2000-2020 .................................................................. 9
Tweenagers .............................................................................................................................. 9
Chart 4
Tweens in Focus 2000-2020 ...................................................................... 11
Teens...................................................................................................................................... 11
Chart 5
Teens in Focus 2000-2020......................................................................... 13
Young Adults .......................................................................................................................... 13

Chart 6
Young Adults in Focus 2000-2020 ............................................................. 15
Middle Youth ........................................................................................................................... 16

Chart 7
Middle Youth in Focus 2000-2020 .............................................................. 17
Mid-lifers ................................................................................................................................. 17
Chart 8
Mid-Lifers in Focus 2000-2020 ................................................................... 19
Late-lifers ................................................................................................................................ 19
Chart 9
Late-Lifers in Focus 2000-2020 .................................................................. 21
Housing and Households ........................................................................................................... 21

Home Ownership .................................................................................................................... 21
Chart 10
Home Ownership 2000-2020 ..................................................................... 22
Household Profiles.................................................................................................................. 23
Chart 11
Household Profiles 2000-2020 ................................................................... 23
Running Costs ........................................................................................................................ 24

Chart 12
Household Running Costs 2000-2020........................................................ 25
Money and Savings .................................................................................................................... 25

Attitudes Toward Payment Methods ....................................................................................... 25
Savings ................................................................................................................................... 26
Loans and Mortgages ............................................................................................................. 28
Chart 13
Borrowing and Saving 2000-2019 .............................................................. 29
Eating and Drinking .................................................................................................................... 30

Eating Habits .......................................................................................................................... 30
Chart 14
Food Expenditure Profile 2000-2020 .......................................................... 31
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Drinking Habits ....................................................................................................................... 32

Chart 15
Drinks Expenditure Profile 2000-2020 ........................................................ 34
Grooming and Fashion ............................................................................................................... 34

Female Grooming and Fashion Trends .................................................................................. 34
Male Grooming and Fashion Trends ...................................................................................... 36
Chart 16
Grooming and Fashion Expenditure 2000-2020......................................... 37
Health and Wellness .................................................................................................................. 37

Attitudes To Health and Well-being ........................................................................................ 37
Chart 17
Health of the Nation 2000-2020 ................................................................. 40
Shopping Habits ......................................................................................................................... 40

Main Household Shop ............................................................................................................ 40
Shopping for Big-ticket Items and Personal Goods ................................................................ 41
Chart 18
Where Households Shop for Essentials 2000-2019 ................................... 43
Leisure and Recreation .............................................................................................................. 43

Leisure Time ........................................................................................................................... 43
Chart 19
Possession of Selected Home-Tech and Mobile Phones 2000-2020......... 45
Vacations ................................................................................................................................ 46
Public Holidays, Celebrations and Gift-giving ......................................................................... 47
Getting Around ........................................................................................................................... 48
Private Transport .................................................................................................................... 48
Chart 20
Getting Around on Private Transport 2000-2020 ........................................ 49
Public Transport...................................................................................................................... 49
Commuting ............................................................................................................................. 50
Chart 21
Getting Around on Public Transport 2000-2020 ......................................... 51
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II
CONSUMER LIFESTYLES IN THE

UNITED KINGDOM
LIFESTYLES IN THE UNITED KINGDOM
Chart 1
Source:
Lifestyles in United Kingdom
TOP FIVE CONSUMER TRENDS

generation Rent
More and more consumers are forgoing home ownership due to rising house prices and years
without real-terms wage growth. The proportion of people aged between 20 and 45 putting
money aside for a deposit fell by six percentage points to 43% in 2014, according to an April
2015 report from Halifax. The report stated that more than one in five believes it is virtually
impossible for to save enough for a down payment and obtain a mortgage. A Guardian article on
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the report quoted a spokesperson for housing charity Shelter, who said that despite interest
rates being at historic lows, Sky-high house prices mean millions are still locked out of home
ownership.
Renting is seen as a more efficient option, as consumers get to live closer to work and
schools, cutting down their commute time as well as allowing them to walk, run or cycle to work.
A report by The London School of Economics found that renters in London were enthusiastic
about their neighbourhoods mentioning access to transport, shops, good schools, parks and
green space as well as the possibility of alternative ways to commute. One of the participants in
the study commented, Its not only a nice neighbourhood but its closer to the tube and shops.
My girlfriend and I walk or cycle to work during the spring and summer. If we bought a place it
would be outside the city limits and wed probably have to drive 40 minutes to an hour each
way.
As renters, consumers are less likely to own pets due to lack of space and regulations
imposed by landlords. Fewer households own multiple pets than previously. According to the
Pet Food Manufacturers Association, while the proportion of households owning pets stood at
46% in 2014 (the same as 2013), the overall pet population decreased from 71 million in 2013 to
65 million in 2014 largely due to people shifting from owning multiple pets to only one.
Tenants are also more likely to defer repairs and renovations to maintenance professionals,
causing a decline in DIY knowledge and skills. August 2014 research from Halifax Home
Insurance showed only 28% of 18- to 24-year-olds are able to put up wallpaper compared to
more than half (55%) of over-55s. Renters end up facing higher energy costs due to their lack of
DIY skills. According to the research, 62% of people would like to update their windows to
improve energy efficiency but dont know how.
Tenants are also demanding improved regulations to make renting for life a viable alternative
to home ownership. In a survey by One Poll, more than half (55%) of consumers claimed they
would be happy to give up on the dream of home ownership if renting offered secure tenancies
and controlled rents. The three most sought after regulations by renters were the introduction of
a renting minister (50%), elimination of letting agents fees (37%) and predictable rents with
annual reviews (30%). A commenter on a Guardian article covering the poll expressed how bad
the situation is for renters out there: Its a nightmare, and tenants are held over a barrel;
ordinary people held into massive financial contracts, e.g. six-month or one-year leases;
tenancy agreements that landlords can give two months notice on. Plus letting agents greedy
tenancy fees, which can run to hundreds of pounds, on top of the rent and deposits.
Silver Surfers
Older consumers those aged 50 and above are increasingly going online for social
networking, shopping, banking and to find out information. May 2014 research by iProspect
revealed that time spent online increases with age, with 63% of consumers over 70 spending
anywhere between 11 and 30 hours a week online compared to 47% of consumers in their 60s
and 43% of those in their 50s. The research highlighted that a patronising approach to older
generations needed to be put to rest as consumers in their 50s and above feel they are just as
confident and as digitally savvy as younger generations.
The main driver pushing older consumers to go online is the decision to continue working
beyond the traditional retirement age, in most cases because the government announced it
would increase the state pension age to 66 from 2020 and then link the retirement age with life
expectancy in the future. A 60-year-old commenter on a Telegraph article covering the iProspect
research shared how he was not only computer literate but also a part-time IT worker now. With
my pension pot, I cant afford to retire in the next five years. So I not only learned how to use the
Internet for chat, but also got an apprenticeship as an IT support worker. I now work part time in
an IT position for a major multinational.
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Silver surfers are already making their presence felt in online food shopping. A January 2015
survey by Careline UK showed that nearly half (48%) of consumers aged 60 and over do their
grocery shopping online. More than three quarters (76%) prefer the online option because it
gives them the freedom to search for quality brands without the constant foot traffic of the food
aisles. Convenience is a big driver, pushing more than half (56%) of silver surfers towards
online shopping as they value the fact that online orders are delivered straight to their door,
removing the hassle of carrying heavy shopping bags home.
Another area of impact is mobile banking, where older consumers are just as likely to use
banking apps as younger ones. According to a January 2015 report by BBA, the number of
customers in their 70s who have downloaded the RBS app grew by 93% between 2013 and
2014 more than any other age group. The number of HSBC account holders aged 70+ who
had downloaded the lenders banking app increased by almost 130% over the same period. The
report also showed that silver surfers are just as active in mobile banking as younger
consumers. For instance, HSBC customers in their 70s were found to log in to their internet
banking account more frequently than any other age group.
With a growing number of tech-savvy senior citizens, the demand for digital health services is
also growing. According to February 2014 research by the National Health Service (NHS), 27%
of senior citizens in England self-track some aspect of their health, such as weight and blood
pressure (18%) or information pertaining to their medical history (11%). The research
highlighted that the digital domain adds convenience for a silver surfer, with 77% saying they
value online appointment scheduling the most just ahead of electronic reminders (69%) and eprescription refill requests (64%). A commenter on a Telegraph article covering the research
shared how vital online appointment scheduling could be. Not having to go to the surgery to
make an appointment prevents you catching some other sort of illness prior to visiting your GP!
And there have been times when I can book online for the same morning!! Now thats service!
Webrooming
Webrooming is where consumers conduct in-depth research online to inform a purchase
decision before finally buying from physical retail stores. More consumers engage in
webrooming than showrooming (examining merchandise in a physical shop), making it the
dominant shopping trend. A May 2014 study by Merchant Warehouse revealed that 69% of 18to 36-year-old consumers practice webrooming, compared to only 50% who practice
showrooming.
The top reason consumers engage in webrooming is to save on shipping, as they abandon
online carts when shipping costs exceed expectations. A March 2014 study by the Baymard
Institute showed that more than half of all online purchase journeys end in cart abandonment
caused by shipping costs that are higher than expected. Consumers tend to feel cheated or
unsure about the shipping cost, prompting them to visit a nearby store instead of buying the
goods online. A commenter on a Smashing Magazine article covering shopping cart
abandonment shared his experience: Ive abandoned carts when the estimated shipping cost
in the cart ends up being completely wrong compared to the actual shipping cost in the
checkout process. If its something I can get locally, it is better to get it from the store just for the
peace of mind.
Another popular reason for webrooming is to try out and evaluate a product before purchase.
According to a July 2014 report from the University of Southampton, webrooming is especially
prominent among consumers shopping for clothes and accessories from high street brands. A
28-year-old study participant highlighted how webrooming made shopping a more efficient
experience: I looked up some dresses with my friends on websites and saved the pictures on
my phone before we went to the stores. It helps me not get distracted by stuff I probably dont
need. But it is also time we spend together as friends just bonding. Spending time trying out
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clothes and accessories in stores with peers is also a well-established social activity among
shoppers.
Shoppers also engage in webrooming to make their shopping experiences more fruitful by
checking store opening and closing times, product availability and directions to the nearest
store. The Merchant Warehouse research found that 42% of shoppers check product availability
online before buying it from the store, while 38% look up shop opening and closing times. More
than a third of consumers (35%) go online to get directions to the nearest outlet. Lack of or the
wrong information about any one of the three would drive one in four shoppers to a competitors
store.
Webrooming will grow in popularity as consumers increasingly adopt click and collect ie pay
online and pick up the product in store. The UK is the biggest global user of the click-and-collect
service with 35% of online buyers choosing the option according to August 2014 research by the
Department for Communities and Local Government. It is estimated that 82 million click-andcollect transactions will be made in 2015, a 17% increase on 2014. The research showed that
consumers prefer to click and collect because it gives them the chance to return products to the
shop if they are not satisfied or change their minds. Consumers shopping for gifts for birthdays
or during holiday season are more likely to engage in webrooming and use the click-and-collect
service to make sure their gifts for loved ones do not get lost in transit and arrive on time.
Convenience Shopping
Consumers grocery shopping habits have evolved since the pre-recession years. During the
economic downturn, consumers developed money-saving tactics like sticking to a list and latenight buying to purchase fewer items. As a result, consumers are now more likely to engage in
smaller but frequent trips to nearby convenience stores instead of the traditional big weekly
grocery shop at a hypermarket or supermarket. Spending in convenience stores is projected to
grow by nearly 17% in real terms over the 2014-2019 period to reach 1,172 per household.
The growing popularity of convenience stores isnt just driven by the availability of alcohol,
tobacco, snacks and on-the-go meals. Research by IGD reported that more than half (58%) of
shopping trips to convenience stores happen when consumers need to top up on staple
products such as bread, milk and eggs. A quarter of all consumer trips to convenience stores
also happen to pick up fruits and vegetable, while 22% visit to buy something for their evening
meal. In comparison, only 20% of convenience store visits are to buy tobacco.
Visiting convenience stores is more common in major cities such as London, Bristol and
Manchester where more than one in ten (11%) said that it was their main weekly shopping trip
compared to 7% nationwide. A London-based commentator on the Telegraphs coverage of the
rise of such outlets pointed out how shopping at the neighbourhood convenience store was a
more personalised experience. I buy everything from the corner store for almost a year. The
guy working there knows my name and my list. He even helped me when the owner changed up
the places of biscuits and tea. I would probably have to hunt down a store worker at Tesco or
ASDA whod then say it was not his part of the store.
Shoppers visiting convenience stores for their weekly shop or a top-up focus more on quality
of food that price. A September 2014 report from the Association of Convenience Store shows
that 77% of convenience shoppers say that quality is the top driver in picking a convenience
store. Consumers are less sensitive to higher prices at convenience stores as they continue to
shop there despite 60% saying that convenience stores are more expensive than other shops. A
commentator on The Grocers coverage of the report highlighted that he also expected the
stores to provide greater benefits in the form of local products. One of the reasons I stick to
convenience stores is because I want to get more locally grown vegetables and fruits. I am still
waiting for them to add locally grown meat, though going to the butcher is still a good option.
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Convenience stores are also becoming the preferred destination for shoppers during holidays
like Christmas and New Year and special occasions such as birthdays. A December 2014 report
by Transport for London showed that four in ten (40%) consumers chose to walk to a nearby
convenience store (over getting the bus or tube to a supermarket) during holidays and special
occasions in 2014 up from 29% in 2013. The primary reason was to top-up on fruit and
vegetables (31%), followed by purchasing a snack (28%). A commentator on The Economists
coverage of the report was quick to point out that trips to nearby convenience stores are also an
opportunity to impulse buy. I cant remember the last time I took the bus or tube to a Tesco or
Sainsburys. But my shopping bag can get a bit heavy sometimes when walking back from the
local shop. Last week before watching the match with my brother I went to the local shop to get
some crisps but ended up getting sweets and noodles as well.
Ethical Consumption
Consumers are increasingly making their purchase decision based on a brands reputation,
with 50% having chosen a product or service because of a companys reputation for
responsibility and 48% having avoided a product or service because of a poor reputation in that
area, according to November 2014 research from the non-profit forum Ethical Consumer. The
research found that the most important ethical factor influencing purchase decisions was the
impact on the local economy, with 70% saying they buy to support local shops and services.
Consumers form opinions on which products are ethical or not based on conversations with
friends and family, with 56% saying they discuss a companys behaviour with friends or family. If
impressed with the brands values, more than four in ten (42%) go as far as recommending a
company because of its reputation for responsibility. However, if consumers find a brand to be
questionable, nearly one in five (19%) boycott the product. Personal boycotts are slightly more
prevalent (22%) amongst younger people (18-34), according to the Ethical Consumer report.
The report highlighted that personal boycotts were most prominent among apparel shoppers in
2014 following the April 2013 collapse of Rana Plaza the deadliest garment-factory accident in
history.
A June 2014 survey by gift shop Paprika found that 41% of consumers would buy more
ethical products if there were greater choice and 36% said they would do so if products were
cheaper. This attitude was most prominent when it came to expensive purchases such as solar
panels, electric vehicles, travelling by train abroad and ethical loans, which remain beyond many
consumers means. A commenter on Blue and Green Tomorrows coverage of the research
said, Like most of us, I switch off the lights, recycle and turn down washing machines regularly
now. But buying a hybrid car or installing solar panels means I have to go into my savings. I am
still waiting for more food, drinks, clothes and shoes where the money goes back to the farmers
and workers.
As consumers become more conscious of ethical consumption, a new generation of
teenagers is looking to become involved via online channels. A survey by the Fairtrade
Foundation found that more than three-quarters of teens (78%) said they would do something
online to support a good cause, such as signing an online petition, liking a page on Facebook or
sharing links with friends. They also actively participate to bring about change, with 40% saying
they would take part in an event, another 40% saying they would join a group or society and
44% saying they would volunteer for a good cause.
CONSUMER SEGMENTATION
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Babies and Infants

Between 2005 and 2013, the number of Babies and Infants aged 0-2 years grew by 15.5%
well ahead of the total population growth rate of 6.2% for the same period. The UKs baby boom
came to an end in 2014 as the number of Babies and Infants decreased by 1.1% year-on-year
to 2.4 million.
In February 2015, the Daily Mail reported that, Overall, 646,900 babies were born in NHS
hospitals in the past year [2014] the smallest number ever recorded since 2006-07. According
to the article, the decrease in the infant population is due to a significant reduction in the number
of young mothers giving birth in the UK. Compared to the previous year, the number of
conceptions in 2013-14 among mothers aged 15-19 decreased by 14% as a result of improved
sexual health among teens. Young women are also delaying motherhood as they focus more on
their career and financial stability. The number of conceptions fell by 8.6% among mothers aged
20-24. Reasons for the decreases in fertility in 2013 are likely to vary by age, social status, and
number of children. For example, older women may feel less inclined to delay having children
than younger women, while at any age childbearing choices may be affected by parents current
financial/housing position. Also, women who have started having families and who may be
considering whether to have another child will be influenced by different factors to those who
have not yet had children.
Delayed motherhood is a well-established, mature trend in the UK. The average age of
women at the birth of their first child is 30.5 years. The conception rate for women aged 35-39
increased to 64.5 conceptions per thousand women in 2013 almost double the figure recorded
in 1990. As women delay motherhood to their late thirties, the declining trend in the Baby and
Infant population is expected to continue until 2020 when the population of 0-2 year olds is
expected to reach 2.29 million.
The list of baby essentials grows
As financially stable women enter motherhood, they are spending more on baby products. A
2014 Aviva study of 2,000 recent parents in the UK found that on average a UK family spent
1,619 on infant and baby products up 17% since 2012. More significantly, the study found
that 60% of parents admitted to having bought items that they either didnt use or could have
done without.
In a February 2014 interview with the Guardian, Siobhan Freegard, founder of the parenting
website Netmums, expressed her concerns about the growing pressure on new parents: More
and more first-time mums are being encouraged to splash out on so-called baby essentials,
when many items are just gimmicks. A 35-year-old new mother voiced her regret in the
Guardian article over having bought a 30 bin sold as an innovative nappy disposal system,
which also required special bin liners that cost 5 each.
Parents are also spending more on gadgets, health remedies and expert advice to help their
infants with sleeping, feeding and teething, among other issues. According to a survey of more
than 1,000 parents by Topcashback.co.uk, 69% had spent more than 50 on gadgets, health
remedies and advice from so-called sleep experts. The results of the gadgets and expert help
have received mixed reviews from parents in the UK. In an interview with The Guardian, a father
recalled how a digital sleeping companion called Slumber Bear worth 30 transformed his child
from screaming to fast asleep in seconds. But for another parent, a similar gadget called Ewan
the Dream Sheep, also worth 30, drove her bonkers as her baby woke up as soon as the
device switched itself off.
Despite these mixed results, new baby-related gadgets are steadily making their way into the
list of baby essentials. According to a CNN report, Sproutling introduced a wearable baby
monitor in August 2014. It tracks the babys vitals and sends real-time data to the parents
iPhone app along with predictions of how long the baby will be sleeping as well as what parents
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could do to increase or decrease his or her sleeping time. Parents are more likely to turn
towards technology to help with their parenting issues in the future.
Prince George returns tradition to childrenswear
In February 2015, The Guardian reported that sales for luxury British children wear brand
Caramel Baby & Child had increased by 20% over the last three years. Meanwhile the high-end
department store Harrods expanded its childrenswear department to 66,000 square feet. Even
online luxury retailers such as AlexandAlexa.com and Net-a-Porter.com have benefitted from
the trend.
The rise of infant luxury wear is seemingly intertwined with the rise of celebrity toddler culture,
led by the UKs Prince George. In a July 2014 article, Forbes dubbed Prince George the worlds
most influential toddler. Everything he wore the Early Days shoes, the Les Petites Abeilles
nautical themed romper and the Rachel Riley shorts sold out in less than 48 hours. According
to a Guardian fashion column in the same month, the Early Days "Alex" pre-walker leather
shoes he wore during his royal tour of Australia and New Zealand sold out within 24 hours.
Sales of the shoes on the online store Childrensalon.com were up by 87% three months later.
The Guardians fashion column also declared Prince George the leading trendsetter
responsible for bringing a sweet, more old-fashioned aesthetic back to childrenswear. Londonbased designer Rachel Riley, whose upscale line of traditional childrens clothing is often part of
the princes wardrobe, concurred in her interview with Forbes, The royals have shown people
how wonderful it is to dress a baby like a baby, not a mini-me.
Prince Georges influence on childrenswear has trickled down to middle class consumers in
search of retro outfits for their toddlers. One of the most beloved brands to have emerged from
this trend is Babyccino Kids, an online retailer that hosts more than 300 independent
childrenswear brands. Since 2013, Babyccino has held ShopUp an annual shopping event
featuring the sites most popular brands along with a brass brand and colouring wall.
Chart 2
Source:
Babies and Infants in Focus 2000-2020
Euromonitor International from national statistics/UN
Kids
The number of Kids between three and eight years of age reached 4.67 million in 2014 an
increase of 2.1% compared to 2013. The increase is largely due to a sustained increase in
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conceptions over the period 2000-2010 referred to as the recession baby boom in a February
2014 Telegraph report. As the number of conceptions continues to decline, the segment is
expected to continue its growth trajectory but at a slower rate to reach 4.74 million in 2020.
The most significant milestone for Kids is the start of formal schooling at the age of three.
According to Gov.uks website, All three- and four-year-olds in England are entitled to 570
hours of free early education or childcare a year. In practice, the 570 hours of free education is
broken down into 15 hours each week across 38 weeks during the year. This early education
can take place in the formal environment of a nursery school or in informal environments such
as playgroups, preschools or a childminders premises. Parents overwhelmingly prefer nursery
schools to other options. According to the Department of Educations National Pupil Projections
published in July 2014, the number of pupils aged below five in nursery schools rose from
776,000 in 2008 to 878,000 in 2014.
However nurseries are becoming an increasingly expensive choice for parents. According to
the Childcare Costs Survey published in March 2014, the average yearly cost of sending
children to nursery school had risen by 27% over the past five years to reach 7,549 for two
part-time nursery places, well above the average family annual mortgage costs of 7,200. A
January 2015 study from LV=, found that of the total cost incurred in raising children from birth
to 21, 31.5% is spent before they turn five, with the bulk of it going towards childcare, ie
nurseries, babysitting and after-school care. Parents with young children can expect 27% of
their annual household income to go towards the cost of nursery fees alone. As a result, parents
have reduced spending on their childrens food items by 1.4% and on hobbies and toys for their
children by 0.6% year-on-year. More significantly, 44% of parents have made reductions to their
own spending over the past year with 39% reducing spending on clothes and 27% on leisure
and recreational activities.
Older children those between five and seven years of age are increasingly going online.
According to an Ofcom report published in October 2014, the estimated weekly hours of internet
consumption among five- to seven-year-olds increased from 4.6 in 2007 to 7.2 in 2014. With
increased internet usage, the next logical trend is an increase in usage of social media
platforms. Already, 5% of five- to seven-year-olds who go online have a social media profile, up
from 1% in 2013.
Rising tablet ownership drives demand for educational apps
Data from Ofcoms 2014 Children and Parents: Media Use and Attitudes report highlights the
emergence of tablets as a prominent digital device among five- to seven-year-olds. Around 54%
now have access to a tablet at home, up from 39% in 2013. When it comes to personal tablet
ownership, 23% of children aged five-seven had their own tablets in 2014 compared to 13% in
2013. Girls aged five to seven were more likely than boys to have their own tablet (29%
vs.17%).
In response to the growing trend of tablet ownership among children, especially girls, Disney
launched Mickeys Magical Maths World in December 2014. The educational app focuses on
early maths skills including counting, sorting and simple addition and subtraction for three- to
eight-year-olds. Following the success of the app, Disney launched Mickeys Magical Arts World
in February 2015. The second app allows children to explore sketching, storytelling, music,
crafts and architecture to build their own creations. Both apps have a companion app on iPhone
and iPad that helps parents track their childrens creations and achievements in the app.
In an interview with the Daily Mail, Kara Norman, a mother of two, expressed her admiration
for the Disney apps that show Minnie Mouse building a robot. She also values the parenting
portal of the apps: Its helpful, especially for younger parents. Its hard to manage what your
kids are doing but not take (the iPad) from them.
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Parents seek to reduce sugar in Kids food to fight obesity

A January 2015 article in The Guardian reported that a survey carried out by Netmums found
that two-thirds of parents were worried about the amount of sugar in their childrens diets, and
nearly half believe their family consumes too much sugar. The parents concern is backed up by
data from the Department of Health which states that 4-10 year olds are consuming 17% of their
daily sugar from soft drinks; 8% from biscuits, 9% from buns, cakes, pastries and fruit pies; 14%
from confectionery, 13% from fruit juice, and 8% from breakfast cereals. Health guidelines
advise that only 10% of a childs daily energy or calorie intake should come from sugar. High
sugar intake has been directly linked to obesity among children. Data released by the Health
and Social Care Information Centre in December 2014 found that more than 22.5% of children
in reception class were overweight or obese.
In response to the growing obesity issue, a Public Health England (PHE) campaign titled
Change4Life is offering parents sugar swap tips to reduce the sugar content in the food
consumed by their children. To cut back on sugar and a lead a healthier lifestyle, the
Change4Life campaign recommends parents make simple swaps at key times during the day,
such as replace sugary cereal with plain cereal (the Breakfast Swap) or switch muffins for fruited
teacakes (the After School Swap). Ahead of the campaign launch, PHE worked with Netmums
and the University of Reading to advise 50 families on sugar swaps. It found on average their
sugar intake was reduced by 40% over a month.
A mother who signed up her family for the campaign was pleased to notice that her kids were
not only eating healthily but also having fun trying out new food items. In an interview with
WalesOnline she said, I have been very impressed at how enthusiastic the children have been
about Change4Life Sugar Swaps. Because they are eating different foods as part of the
campaign they have approached the whole thing as a fun way to try new things I dont think
they have really noticed that the foods they are trying are low in sugar. So it has been easy.
Chart 3
Source:
Chart3 Kids in Focus 2000-2020
Tweenagers
The number of Tweenagers between the ages of nine and twelve had been on a declining
trend, falling by 3.5% between 2005 and 2013. In 2014, it showed signs of reversal as the 9-12
population increased slightly to reach 2.8 million in 2014. The population of Tweens is expected
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to grow by 14.3% over the next six years to reach just under 3.2 million in 2020 as kids born
during the baby boom over the period 2000-2010 reach this age band.
School takes up most of a Tweens life. One of the key aspects of school life is the uniform.
Each school decides its own uniform. According to a study by the Childrens Society in February
2015, nearly 800,000 pupils went to school wearing incorrect uniforms because their parents
could not afford the proper ones. Families with children in primary schools have to spend on
average 251 each year on school uniforms. Since pupils risk suspension or expulsion if they
repeatedly ignore uniform rules, parents are cutting back on household spending and even
funding their childs school uniform with debt. According to the report, More than 1 million
children live in families that have cut back spending on food or other basic essentials as a result
of the cost of school uniforms. More than half a million are... [in] debt as a result of uniform
costs.
Besides uniforms, school exams are another major source of stress for Tweens and their
parents. A February 2015 study by national helpline Childline revealed the number of child
counselling sessions relating to exam stress had tripled between 2013 and 2014. According to
the study, 43% of those receiving counselling about school and education problems were under
the age of 11. A March 2015 poll by the Royal College of Paediatrics and Child Health shows
psychological wellbeing is a key issue among parents, with 69% saying concerns around
childrens mental health should be addressed.
Faced with increasing stress from school, it is not surprising that Tweens, especially older
ones, are turning to social media platforms. Despite the restriction placed by Facebook and
Instagram on children below 13, 25% of children aged 11-12 have a Facebook profile and 23%
have an Instagram account, according to the Net Children Go Mobile study.
Smartphone ownership drives online video consumption
According to the Net Children Go Mobile study, 67% of 9- to 10-year-olds say their phone is a
dumb phone that does not connect to the Internet, while the figure is only 15% among 11- to
12-year-olds.
Tweens who own a smartphone are more likely to consume various media content including
e-books and video. The study revealed that 24% of smartphone-owning Tweens read an e-book
every day, while that figure drops to 1% among non-smartphone-owning Tweens. More
significantly, 34% of 9- to 12-year-olds with a smartphone watch online video clips every day
compared to 23% without a smartphone.
YouTube recently announced it would be launching a Kids app on smartphones and tablets
after viewing time in 2014 grew by 200% for content categorised as family entertainment. The
app will filter out inappropriate content, hide comments on videos. According to an Ofcom
report, 20% of British 9- to 12-year-olds subscribe to 50 or more YouTube channels.
Tweens still prefer traditional toys to digital games
Despite the hype around iPads and smartphones, Tweens still spend most of their time
playing with traditional toys. According to the Daily Mail, a July 2014 survey of 1,000 kids aged
11 and under showed that 63% of Tweens spend over five hours a week playing with
conventional toys compared to 54% who spend the time on PC and console gaming.
In 2014, the toy that captured the imagination of children across the UK was the Rainbow
Loom, a plastic device for turning small rubber bands into jewellery. According to a BBC article
in June 2014, all 30 of the best-selling toys on Amazon UK were either looms or loom-related.
Children use the looms to weave coloured bands into items such as bracelets, necklaces and
charms. There is even a campaign to build the worlds longest loom band in memory of Skye
Hall, a five-year-old boy who died in August after battling a brain tumour for a year. The
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campaign, called Loom to the Moon, has more than 14,500 likes on Facebook and the family
has already received more than 15km of loom bands.
Esther Lutman assistant curator at the Museum of Childhood, highlighted the cultural
significance of looms in an interview with the BBC: I would bracket them with marbles in the
Victorian era, yo-yos in the 1930s and hula-hoops in the 1950s. They are quite cheap, which
helps explain their spread around playgrounds. They are at their absolute peak now. Who
knows what will be next? The Duchess of Cambridge wore a loom band bracelet during her trip
to New Zealand, and with David Beckham and One Directions Harry Styles sporting the toy as
fashion accessories, it seems that looms will continue to be popular into 2015.
Besides the simplicity and low cost of traditional toys, they also tend to last longer. According
to a Cambridge toy storeowner, We have traditional toys like the Fisher-Price Chatter telephone
that came out 50 years ago, it sold out for Christmas. But high-tech toys will never be able to
stay around, because theres always something that means theyll become obsolete. New toys
will be in landfill in a few years because the software will be outdated.
The longevity of traditional toys like board games and Lego helps parents and their children
create lasting memories. With most parents its even a case of passing down the legacy of their
childhood to their offspring. Only one in six children remembers a single gift they were given for
Christmas last year, according to a study conducted on behalf of Stagecoach Theatre Arts
School, while 70% of adults not only remembered, but still owned a treasured childhood
Christmas gift.
Chart 4
Source:
Tweens in Focus 2000-2020
Teens
There were 3.7 million Teens between the ages of 13 and 17 in 2014 a 1% decline
compared to 2013. Overall, the teen population declined by 4.5% between 2005 and 2014 and
the trend is expected to continue into 2020 when the figure falls to a low of 3.65 million.
As of 2013, teens are required by law to stay in school until they are 17 years of age. The
school leaving age is set to increase to 18 in 2015. This was done to combat the overall
unemployment rate, as many 16- to 18-year-olds were unable to find work due to a decline in
unskilled jobs and the higher technical demands of modern-day employment. According to a
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February 2015 report by the House of Commons, 87% of 16- to 17-year-olds were in full-time
education in the fourth quarter of 2014 compared to 74% in the first quarter of 2002.
UK Teens are increasingly taking up sport. According to Sport England, 76% of 14- to 15year-olds played sport at least once a week as of October 2014, an increase of 3.8% compared
with October 2013. Despite this increased physical activity, overall health is still a key issue
among Teens who fail to meet dietary requirements. According to the National Diet and Nutrition
Survey published on May 2014, teenage boys and girls aged 11-18 consumed on average 3.0
and 2.7 portions of fruit and vegetables per day respectively. Only 10% of boys and 7% of girls
in this age group met the five-a-day recommendation set by health experts. In contrast, added
sugar consumption among teens accounted for 15.6% of food energy, well above the
recommended 11% threshold. Consequently 62% of boys and 67% of girls were classified as
obese, overweight or both.
When it comes to fashion, UK Teens have abandoned popular casual brands like
Abercrombie & Fitch and Hollister, in exchange for fast fashion retailers such as H&M and
Zara. Teen tastes have shifted to cheaper yet smart-looking apparel copied from catwalks
because they have found other things to spend their money on smartphone, tablets and apps.
As a result of growing up in the digital age, 12- to 15-year-olds are developing fundamentally
different communication habits from older generations. According to Ofcoms The
Communications Market Report of August 2014, just 3% of teen communication time is spent
making voice calls while 94% happens through instant messaging and social networking. In
contrast, on average 20% of adult communications time is spent talking on the phone.
Teens have always been at the forefront of discovering new social networking spaces. After
Facebook, Instagram and Snapchat, they are now flocking to We Heart It an online bulletin
board that allows them to collect and share inspirational images. We Heart It has captured the
attention of teen girls, who love posting collections of vintage fashion, body art, and funny
quotes. Most importantly, the lack of comments on the platform makes it a safe, positive space
for teenage girls to express themselves. The popularity of We Heart It among teenage girls is
not surprising considering a recent study by the Schools Health Education Unit that correlated
the decline among teenage girls reporting high self-esteem over the last seven years with the
boom in use of social media and online communication.
Selfies and online privacy to become required school learning
The 16- and 17-year-olds taking Sociology A-level will soon be analysing the digital cultures of
selfies and hashtags of which they themselves are a big part. According to a July 2014 article on
Mail Online, Englands exam regulator Ofqual approved the inclusion of social media, online
safety and privacy as part of the sociology curriculum starting September 2015.
A recent study showed that more than 93 million selfies are taken every day. This comes
alongside another study linking selfies to narcissism and psychopathic tendencies. Despite the
negative perceptions around selfie culture, it has endured as Teens push the limits of where
and how selfies can be taken. In October 2014, the Mirror reported on viral selfies taken by a
17-year-old from the top of Londons tallest skyscrapers after scaling them.
Like selfies, online privacy is a key concern of Teens that will be covered in the course. An
April 2014 study carried out by the Oxford University found that almost 95% of people aged 1417 had checked or changed their privacy settings on social networks, compared to an average
of just 65% across all age groups. A small group of Teens take online privacy extremely
seriously to the point where they deactivate their accounts or delete all their posts after each
use. The research also found that Teens are eager to join new social networks like Whisper and
Secret because they are not yet crowded with parents, teachers and marketers.
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A socially conscious generation of Teens want ethical businesses

Despite an affinity for selfies, UK teenagers are not as apathetic and self-centred as theyre
often portrayed to be. A survey by the Fairtrade Foundation found that Teens not only care
about global issues but are also willing to take action. According to the survey, 90% say they are
prepared to take action on issues they care about, with buying an ethical product being their
most popular course of action. More significantly, 82% of Teens also think companies need to
act more responsibly.
More than three-quarters of UK Teens (78%) say they would do something online to support a
good cause, such as signing an online petition, liking a page on Facebook, or sharing links with
friends. But they will also actively participate to bring about change, with 40% saying they would
take part in an event, 40% saying they would join a group or society and 44% saying they would
volunteer for a good cause.
A recent example of Teens taking action for ethical business comes from Harry Potter fans,
who have managed to persuade Warner Brothers Entertainment to use only fair trade-certified
chocolate in all Harry Potter-branded chocolates. The issue was brought to light by the Harry
Potter Alliance (HPA), a social justice group, in 2010 and has since been backed by Harry
Potter creator, J.K. Rowling herself. After receiving thousands of letters and petitions over the
last three years, Warner Bros. announced that by the end of 2015 all Harry Potter chocolate
products would be 100% UTZ or fair trade certified.
Chart 5
Source:
Teens in Focus 2000-2020
Young Adults
The number of Young Adults aged between 18 and 29 grew from 9.2 million to 10.3 million
between 2005 and 2014. However, the figure is expected to decline by 1.8% to below 10.1
million by 2020 following a drop in the teenage population.
According to the Higher Education Statistics Agency, there were 2.29 million university
students in the UK in the 2013-14 academic year, down from 2.34 million in 2012-13. This
decline was mainly due to a fall of 8% in the number of part-time student enrolments. The
number of full-time students increased by 1%, taking their share to 73.8% of the university
student population. The number of international students also increased from by 2.4% in 201314, to account for 18% of all university students. The sciences emerged as a popular choice
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among students entering university in 2014 with enrolments for biological sciences and
computer sciences experiencing the greatest percentage increases at 11% each.
A new attitude of sobriety is shaping the student lifestyle. The ONS revealed in February 2015
that the proportion of 16- to 24-year-olds engaging in binge drinking has fallen from 29% to 18%
in the last decade, while the proportion who completely abstain from alcohol has increased by
43%. The Home Office research also shows that the share who admitted to taking drugs has
fallen from 48% two decades ago to 36% today. Financial and future concerns have contributed
to the change in student attitudes. Tuition fees have tripled to an annual charge of 9,000,
burdening students with more debt. Not long after the higher fees were introduced, a House of
Commons report revealed that only half of university graduates had managed to secure
graduate-level jobs.
Unemployment caused by the economic downturn hit 18- to 24-year-olds hardest. According
to figures released by the ONS in February 2014, 18- to 24-year-olds account for 12.6% of the
total labour force, but make up 31.3% of the rise in unemployment. The burden of higher
unemployment has fallen most heavily on younger workers; while the fall in national
unemployment rates has benefited workers aged 35-49 proportionately more than those aged
18-24.
This has had considerable impact on the living standards of working youth. According to a
research piece published on February 2015 in the Financial Times, in the 1960s and 1970s, 20to 25-year-olds with average incomes after housing costs were better off than at least 60% of
the population. In 2014, they were only better off than 37% of the population. Consequently its
not uncommon for working-age adults to move back into their parents place after completing
university. In 2014, 49% of 20- to 24-year-olds and 21% of 25- to 29-year-olds were living with
their parents.
The Young Adult demographic is not only tech savvy but also tech dependent. While 90% of
16- to 24-year-olds use a smartphone regularly, 47% say they would miss their smartphones the
most, ahead of their TV and PC. In a separate January 2015 poll by Traidcraft, more than 66%
of 16- to 24-year-olds listed their smartphone as their top necessity ahead of food, water and
shelter and 60% said they wouldnt last a day without the Internet. Young Adults tech
dependence is most visible in the amount of time spent on media and communication using
various devices. According to an Ofcom report in 2014, 16- to 24-year-olds cram over 14 hours
of media and communications activity into 9 hours 8 minutes each day by multi-tasking and
using different devices at the same time.
Influenced by YouTube celebrities, Young Adults seek transparency and authenticity
YouTube video bloggers have emerged as the most influential icons for many Young Adults of
this generation. According to research from Tesco Mobile, almost 40% of 16- to 25-year-olds
say they would prefer to follow in the footsteps of professional vloggers (video bloggers)
compared to 4% who would rather emulate reality TV stars.
One of the UKs most successful YouTube personalities is 24-year-old Zoe Zoella Sugg,
who regularly shares beauty tips and make-up tutorials on her YouTube channel. She also posts
shopping haul videos, in which she goes through that days purchases, explaining why she
loves each item.
Tips, tutorials and reviews arent new to the Internet, but the preference to consume this
content via video is unique to Young Adults of this generation. According to Netmums cofounder
Siobhan Freegard, When we [the older generation] look for a recipe, we look for the text
version as we dont think we have time to watch a video. In contrast, younger generation users
want to watch the video. Video is nearer to how we naturally communicate. We were taught to
consume words by text but video offers a more human way to connect.
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As a more human way to communicate, video also allows for a deeper emotional connection
between the content creator and the viewers. For Zoella, its her deeply personal videos on
dealing with anxiety and panic attacks that have helped her build a fan base of over 7.5 million
subscribers. In an interview with the Daily Mail, she says, The best thing is helping people and
making them happy. People stop me in the street to say my video about panic attacks changed
their life.
According to Matthew Hook, managing director of Carat, Europes biggest media network,
Consumers want to see celebrities more as their peers. The YouTube eras emergence is part
of a broader shift toward transparency and authenticity among Young Adults. YouTube
celebrities give their audience an authentic perspective.
Young Adults drive smartphone-enabled clothes shopping
According to February 2015 research by PayPal, between 2013 and 2016, the UKs average
mobile spend is projected to grow at 36% compared with just 10% for overall online spending.
Around 33% of online shoppers had bought something on their smartphone in the past 12
months. Some 58% of these smartphone shoppers were aged 18-34 compared with 34% of
total online shoppers.
Clothing has emerged as a popular shopping category among Young Adults. According to the
ONS, 64% of 25- to 34-year-olds bought clothes online. Young Adults affinity for online
shopping was also evident when Amazon became the top ranked brand among 18- to 24-yearolds in Voxburners Youth 100 rankings for 2014, replacing YouTube and ahead of Google,
Cadbury and Ben & Jerrys.
As a result, leading clothing brands like Topshop integrated mobile into their marketing during
London Fashion Week in February 2015, allowing consumers to buy clothes seen on the
catwalk using their smartphone during the show. In an interview with Forbes Life, Lindsay
Nuttall, chief digital officer of BBH, said, Linking everything to mobile means awareness and
engagement is never more than one swipe away from converting to purchase, right there and
then, wherever they are.
Chart 6
Source:
Young Adults in Focus 2000-2020
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Middle Youth
In 2005, the 30-44 demographic accounted for 22.4% of the total population the highest
among all consumer segments. In 2014 they accounted for less than 20% of the population, as
their size steadily declined from 13.5 million in 2005 to 12.8 million in 2014. The proportion of
this demographic is expected to further decline to reach 19.4%, despite an estimated increase
of 1.2% between 2014 and 2020.
Data published by HM Revenues and Customs show that in 2014, average income before tax
among 30- to 34-year-olds was 28,900, up by 0.7% compared to 2013. The figure increases to
35,600 among 40- to 44-year-olds in 2014, up 1.1% compared to 2013. Despite these
increases, living standards for Middle Youth have not improved since the economic downturn.
According to a March 2015 report by the Institute for Fiscal Studies, average income for 30- to
34-year-olds is still below the 2007-08 level, after adjusting for inflation. A January 2015 survey
by jobs search engine Adzuna found that 52% of Britains were employees unhappy with their
pay and only 3% completely satisfied with their current salary.
A key personal milestone for this demographic is getting married. The average age for firsttime marriage is 32 for men and 30 for women. In 2014, the Marriage (Same Sex Couples) Act
2013 made provision for gay couples to wed in England and Wales. The first marriages of
same-sex couples took place on 29 March 2014. A total of 1,409 marriages between same-sex
couples followed over the next three months. Most of the gay couples tying the knot in 2014
were above 30 years of age. According to the ONS, the average age at marriage for women
was 37.0 years, slightly lower than the male average of 38.6 years. The greatest number of men
and women marrying were aged 30-34.
Besides marriage, childbirth is another prominent factor affecting the lives of Middle Youth. In
2014, conception rates among women aged 35-39 increased by 1.7% the largest percentage
increase of all age groups reaching 64.5 conceptions per thousand women aged 35-39,
almost double the figure in 1990. Conception rates among women aged 30-34 have also risen
by over a third since 1990. According to research from the University of Southampton, the
primary reason for the increase in the number of women giving birth at 30 and above is growing
female participation in higher education, although increased roles in the labour force and labour
market uncertainty also play a part.
Home ownership has traditionally been a key aspiration of this age group. However, fewer
people in their 30s and early 40s are buying homes today. In 1991, 67% of the 25-34 age group
and 78% of the 34-44 cohort were home owners. By 2011-12, this had declined to 43% and
64% respectively. People are instead opting to rent. According to the Department for
Communities and Local Government, the vast majority of new housing since 2000 has been
bought by landlords of the 3 million homes built between 2000 and 2012, 2.5 million went to
the private rented sector. It expects in the next two decades that most Britons will be renting for
the first time since the early 1970s.
Middle Youth seek out apps to help improve health and fitness
Figures released by app analytics company Flurry in June 2014 show that usage of healthrelated apps grew by 62% in 2014, compared to 33% for apps in general. This growth in usage
was driven by what Flurry calls fitness fanatics more than half of whom are women in their
30s who are sports fans, lead healthy lifestyles, and are likely to have children.
According to an October 2014 survey by Health Tech and You, 50% of 35- to 44-year-olds
believe technology can help them better manage their health and fitness. They are also the
most proactive users of technology for health and fitness purposes, with 11% keeping an
electronic record of their personal health using spreadsheets and documents that they compile
themselves. Obesity is the number one health problem consumers want technology to tackle,
both in the short and long term.
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In response to the growing trend of fitness app usage, insurance provider Bupa launched a
fitness tracking social app in January 2015 designed to increase workforce wellbeing. Called
Bupa Boost, it allows users to track data from wearable devices or by manual input; set personal
goals such as weight loss targets; participate in team challenges; and interact with colleagues
by messaging via the app or liking each others progress updates. In November 2014, even the
NHS stepped in with a plan to set up its own app store endorsing apps that help people lose
weight, exercise more and monitor health conditions.
Middle Youth increasingly join Tinder
Tinder, which has been the dating app of choice among 20-somethings since 2012, saw its
subscriber base grow among 35- to 44-year-olds in 2014. In April 2014, Middle Youth made up
6.5% of the apps 50 million users. By November 2014, it had almost doubled to reach 12%.
In an interview with The Telegraph, a 40-year-old boxing coach from north London said there
had been a decline in the social stigma attached to dating apps. I think it is a lot more socially
acceptable now. There is nothing shameful about it and no stigma attached. Meeting people on
Tinder is no different from meeting them down the pub. He was introduced to Tinder by a
younger friend and downloaded it one-and-a-half years ago. In his experience, over time the
demographic has changed and there are far more people his age using it now than there were
when he first joined.
Online dating is common among 35- to 44-year-olds. The majority of members of Match.com,
one of the earliest dating sites, are aged 35 and older, with 28% of its members aged 35-44.
Tinder is the first app that has got this demographic to shift their matchmaking from the PC and
laptop to mobile. In March 2015, Tinder announced that it would be launching premium services.
UK users 28 and above face a 14.99 monthly fee, almost three times what 18- to 27-year-olds
have to pay.
Chart 7
Source:
Middle Youth in Focus 2000-2020
Mid-lifers
The number of people aged between 45 and 59 rose from 11.6 million in 2005 to 12.9 million
in 2014 an increase of 11%. This demographic is the tail end of the post-Second World War
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baby boom. Growth of the segment is expected to continue with the size of this demographic
projected to reach 13.3 million by 2020.
According to figures released by HM Revenue & Customs in January 2015, 45- to 49-yearolds had the highest average gross income of all age groups in 2014 at 36,500 up by 2.8%
since 2013. Incomes decline with rising age brackets, with 50- to 54-year-olds earning an
average of 35,800 and 55- to 59-year-olds earning 33,400. Despite the growth in average
income, living standards have not improved for mid-lifers since the recession began. According
to a March 2015 report by the Institute for Fiscal Studies, after adjusting for group specific
inflation, average real income for people aged 31-59 has gradually declined and is projected to
be 2.5% lower in 201415 than in 200708.
In response to declining real income, people above the age of 45 are turning towards selfemployment. According to the ONS, the average self-employed worker is 47 seven years
older than the average employee.
Additionally, 43% of self-employed people are aged 50 and over. Although construction and
building was the top job for self-employed people it had the slowest growth in self-employment
between 2009 and 2014. The rise in self-employment was instead largest across professional,
scientific and technical roles such as management consultancy, bookkeepers, photographers
and chartered accountants.
It is also increasingly common for Mid-Lifers to gain a new skill with the aim of prolonging their
working years beyond retirement. According to a study by MetLife, 63% of adults aged 50-59
are considering retraining so they can carry on working well past what was previously retirement
age. Around 71% say they will still be working past retirement. For many, this is because of the
financial implications of giving up work, but others want the stimulation of employment, the
company of colleagues or a sense of purpose, according to the study. By 2020 it is estimated
that up to a third of the nations workforce will be 50 or older. In 2014, the government
announced that there would be no age limits on anyone wanting to take up an apprenticeship,
opening the way for many adult workers to retrain.
As Mid-Lifers look to further their working years, they are also growing accustomed to using
the Internet. Research by iProspect in May 2014 revealed that 80% of 50- to 59-year-olds
believe that their age is no barrier to using the Internet and expect to use it even more in the
future. According to the study, 43% of 50- to 59-year-olds spend a minimum of 11 and a
maximum of 30 hours per week online. Mid-Lifers are also adopting online video usage, with
15% of 50- to 59-year-olds watching videos on YouTube at least once a day and 7% claiming to
use a smart TV to access online videos.
Consumers in their 50s are the new core segment for motorcycles
In 2009, 6,463 motorcycle tests were taken in Great Britain by individuals 50 and above,
constituting 7.2% of all tests. In 2015 the figure is expected to grow to 10.4%. In 2014, over-50s
spent 340 million a year on motorbikes and bike equipment nearly a third of total motorcycle
spending. In the period between 2008 and 2014, growth in annual motorcycle spending among
the over-50s averaged 41%, compared to 4% for those under 50.
In a sign of the growing interest in motorcycling among Mid-Lifers, Saga the company
specialising in services for the over-50s bought Bennetts, a specialist motorbike insurer
renowned in biker circles, for 26.6milion in January 2015. In an interview with
Thisismoney.co.uk, Paul Green, a director at Saga, said, Older people are undoubtedly fitter
and healthier than people their age have been in the past and they want to stay active. While
younger motorcyclists may have taken it up as primarily a means of transport, older riders also
want the lifestyle and social aspect.
A January 2015 survey of over 50 motorbike customers by Saga showed only 17% used their
bikes to commute to work. About 23% of bikers aged 50 and over consider motorbikes cheaper
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to run than cars. An overwhelming 83% said they rode a motorbike for the freedom of the open
road.
Mid-Lifer males indulge in luxury products
According to data released by eBay in December 2014, middle-aged men are more likely to
treat themselves with luxury goods once the holiday season is over. January was the most
popular month for indulgence shopping outside the festive season, with ebay.co.uk recording
over 15 million searches for the basket of luxury items designer fashion, jewellery and
technology products in January 2014, making it second only to the Christmas spike recorded
the previous November and December. Middle-aged men who replaced gifting with shopping for
themselves largely drove this trend.
In January 2014, there were 3.8 million searches for luxury items by men aged 45-54 years
old the highest volume of consumer enquiries across the gender and age ranges. Luxury
watch brands alone were searched for around 900,000 times in the month. Additionally, 45 to
54-year-old men in particular spend the most cash on luxury items at this time of year.
Chart 8
Source:
Mid-Lifers in Focus 2000-2020
Late-lifers
The number of people aged 60 and over surged from 12.7 million in 2005 to 14.7 million in
2014. The growth in this segment comes from post-Second World War baby boom, as well as
longer life expectancy. Life expectancy for men went from 78.6 in 2010 to 79.5 in 2014 and for
women 82.6 and 83.1 over the same period.
Retirement has traditionally been the most significant milestone for consumers 60 and over.
However, the previous retirement age (65 for men and 60 for women) has been phased out.
People can now work for as long as they want before claiming state pension. From 2020, both
men and womens state pension age will be 66, increasing to 67 between 2026 and 2028, and
then linked to life expectancy after that.
As retirement age becomes a personal decision instead of a government mandate, people are
easing into retirement by reducing their number of hours rather than stopping on a pre-specified
date. A study by peer-to-peer lending firm Zopa, found that those aged 65 and above in paid
employment work 20.8 hours a week on average, compared to 30.5 hours among 50- to 54-
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year-olds. While most plan to continue working, only 17% of over-65s decided to remain in work
because of financial necessity. Instead, 27% said they work to keep their mind active, while 16%
do it to keep busy, and 11% to stay healthy and physically active. In terms of retirement income,
consumers 65 and over rely on multiple Source pension (82%); investments (43%); continued
work income (22%); downsizing the family home or equity release (20%); and selling other
assets (9%).
As most Late-Lifers continue to work, they are increasingly choosing the self-employment
route. According to a March 2015 report from the Bank of England, people aged 65 and above
have driven the growth of self-employment in the country. Calling the segment Silver
Entrepreneurs, the report found that the self-employment rate of those 65 and over stood at
39% in comparison to 10.5% for those aged between 25 and 34. Silver entrepreneurs also have
a higher success rate. Another report by the Future Laboratory in 2014 found that businesses
founded by over-50s had a 70% chance of lasting five years, compared with 28% for younger
entrepreneurs.
In May 2014 research by iProspect revealed that 88% of 60- 69-year- olds believe their age is
no barrier to using the Internet and expect to use it even more in the future climbing as high as
92% in the over-70 age group. About 63% of over-70s and 47% of 60- to 69-year-olds spend
11-30 hours per week online. A good part of that time is spent watching videos on YouTube.
Some 33% of those aged 60-69 watch videos on YouTube a few times a week the same
proportion as for 30- to 49-year-olds. Over-70s emerged as leaders in consuming videos via
smart TV, with 8% claiming to use a smart TV to access online videos.
Silver surfers increasingly adopt internet and mobile banking
As Late-Lifers prolong their working years, they are warming to the convenience and value
provided by mobile and Internet banking. According to a January 2015 report by BBA, 2.3
million customers aged over 70 are now registered to use internet banking, with more than
600,000 aged 80 and above. There have been more than 450,000 downloads of banking apps
by customers aged 60 or over. Nearly 20,000 of these customers are 80 and above. More than
300,000 customers aged 60 and above have also signed up to receive text alerts from their
bank, which can help customers avoid fees when breaching borrowing limits. BBA chief
executive Anthony Browne said of the numbers: Millions of older people are avid users of
banking websites and apps. Banking on the move is as much a reality for silver surfers as it is
for students.
Silver surfers are not only signing up for internet banking facilities but also actively using it at
a rate comparable with younger consumers. HSBC internet banking customers in their 70s log
in more frequently than any other age group. Users of Lloyds Banks internet banking in their
60s and 70s typically log in 2.1 times a week compared with 2.7 times per week for those
aged between 35 and 49.
The same hold true for mobile banking, where silver surfers are driving growth ahead of other
age groups. The number of customers in their 70s who have downloaded the RBS app has
grown by 93% in the past year more than any other age group. The number of HSBC account
holders aged 70+ who had downloaded the banking app increased by almost 130% in just one
year.
Late-Lifers shop for their groceries online
A January 2015 survey by Careline UK revealed that consumers aged 60 and over prefer
quality over quantity, and online food shopping gives them the time to choose the food brands
they want without the hustle and bustle of walking around the food aisles. They especially value
that online orders are delivered straight to their door, taking away the hassle of carrying heavy
shopping bags home.
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As a result, all the major grocery stores now offer home deliveries, with Waitrose enjoying
record online sales year on year. New entrants such as Able and Cole offer a range of organic
food groceries delivered to ones door.
The trend of buying groceries online is likely to expand into mobile. The Careline survey also
found that over a quarter of online shoppers aged 60-69 plan to use their mobile devices more
often to buy groceries in the future. Already 55% of online shoppers aged 60-69 and 51% of
those aged 70-79 use a smartphone or tablet at least once a week to browse for online
promotions and offers. Around 12% of online shoppers aged 60-69 are already buying groceries
online once a week on their mobile devices.
Chart 9
Source:
Note:
Late-Lifers in Focus 2000-2020

Old-Age Dependency Ratio:
% of persons older than 65 per persons aged 15-64
HOUSING AND HOUSEHOLDS

Home Ownership
Research from MoneySuperMarket conducted in May 2014 shows that the average age of a
potential UK first time homebuyer is now 36. Those north of the border in Scotland are the most
optimistic, claiming they will be 33 on average before they buy their first property, while
Londoners typically wait until 36 before doing so. Since most consumers plan to wait until their
mid-thirties to buy a home, it has become increasingly common for people to rent. The number
of rented households has increased by 15% since 2005 compared to a 12% increase in number
of home owners with mortgages.
According to a February 2015 Housing Survey report, 48% of 25- to 34-year-olds were renting
from private landlords in 2014, compared to 21% 10 years ago. As they rent more, young adults
are increasingly giving up on owning a home. Back in 2004, 59% of 25- to 34-year-olds owned
their own home compared to 36% in 2014. Rising house prices are the key reason why people
are increasingly opting to rent. According to the Land Registry, average house prices increased
from 162,712 when the coalition government was formed in 2010 to 179,492 in February
2015.
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The key factor driving house prices up is a lack of new homes. Projections from the Town and
Country Planning Association show that England needs 245,000 extra homes every year until
2031. In 2014, only 141,000 new homes were built. This figure is expected to rise up 190,000 a
year by 2020. The lack of new homes means the number of rented households is expected to
increase and account for 32% of all households in 2020 the same proportion as home owners
with mortgages that year.
After several years in rented accommodation, many people say they willing to abandon the
traditional aspiration of home ownership altogether if renting regulations are introduced. In a poll
by One Poll, 55% of respondents claimed they would be happy to give up on the dream of home
ownership if renting offered secure tenancies and controlled rents. The three most sought after
regulations among renters were the introduction of a renting minister (50%), the elimination of
letting agents fees (37%), and predictable rents with annual reviews (30%). The CEO of flatsharing site Weroom.com agrees that a shift from home ownership to renting for life is
underway: These [regulations] might be the long-term solution that everyone is looking for and
the one that could instil a new culture in the UK that sees Brits move away from buying
properties and towards the ideal that flat sharing could be something they do for life.
As renting becomes the norm, more and more people are choosing to live in apartments
instead of houses. Since 2005, the number of apartment dwellings has increased by 16% from
4.9 million to 5.7 million in 2014. Over the same period, the number of households living in
houses has increased by only 5%. The trend is expected to continue, as the number of
apartment dwellings will increase at more than twice the rate of houses to reach 6.1 million in
2020.
Will generation rent herald the end of DIY?
August 2014 research by Halifax Home Insurance shows that confidence in undertaking many
home improvement tasks is lower among young people who increasingly prefer to rent. While
55% of over-55s are confident they can put up wallpaper, only 28% of 18- to 24-year-olds feel
able to do so. Similarly, 83% of older people said they felt confident they could paint a house,
compared to 64% of those under 24. Even simpler tasks such as changing a light bulb confuse
younger people, with 73% of 18- to 24-year-olds saying they could do this, compared to 95% of
over-55s. The research revealed that as more young people choose to rent, they expect
maintenance to be taken care of by the landlord, agent or building supervisor.
As young renters give up on learning DIY skills, homes are falling into a state of disrepair.
March 2015 research by Everest Home Improvements found that the homes of more than a
third of people are in disrepair, with 30% saying that they think their homes look ugly. More
significantly, people are losing out on energy cost savings by improving their homes energy
efficiency. According to the research, 62% of people would like to update their windows to
improve energy efficiency but dont know how.
Chart 10
Home Ownership 2000-2020
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Source:
Euromonitor International from national statistics
Household Profiles
Single-person households made up a third of all households, ahead of any other household
type. According to figures released in January 2015 by the ONS, people aged 65 and above
constitute 45% of all lone households higher than any other age group. However, the largest
increase in lone households over the last ten years has come from 45- to 64-year-olds, among
whom the number of people living alone rose by 27% between 2004 and 2014. This is partly
due to the increasing population among 45- to 64-year-olds, as the 1960s baby boom
generation reach this age group. The hike is also due to a rise in the number of divorces and a
fall in the number of marriages among 45- to 64-year-olds.
In contrast, the number of 25- to 44-year-olds living alone fell by 15% between 2004 and
2014. This is because the proportion of those aged 20-29 living with their parents has increased
over the past decade. A report released by the ONS in February 2015 shows that 49% of 20- to
24-year-olds and 21% of 25- to 29-year-olds were living with their parents in 2014. The report
cited the lack of affordability of moving out of the parental home as a key factor in this increase.
The fastest growing household type was the single parent family, which expanded by 13.7%
between 2005 and 2014. This household segment is expected to grow by another 6.5% over the
next six years. According to the 2014 Families and Household report by the ONS, women
accounted for 91% of lone parents with dependent children in 2014. The figures have changed
little over the previous decade. Women are more likely to take on the main caring
responsibilities for any children when relationships break down, and therefore become lone
parents.
It is also quite common for UK households to have a pet. According to the Pet Food
Manufacturers Association, 46% of households had pets in 2014 roughly the same as 2013.
The dog population decreased by 3.3% over the period 2009-2014 to reach 8.8 million and the
cat population declined by 10.3% over the same period to reach 9.1 million largely due to
households shifting from owning multiple pets to only one.
Chart 11
Household Profiles 2000-2020
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Source:
Euromonitor International from national statistics
Running Costs
Energy costs remain the top priority for consumers, having accounted for 57% of annual
household running costs in 2014. Average annual household expenditure on electricity, gas and
fuels increased by 46% in the period 2005 and 2014 exceeding 1,500 per household. Energy
costs are expected to rise by a further 8.4% over the next six years.
According to a November 2014 survey by price comparison site uSwitch, consumers are more
worried about the cost of energy than any other daily expense, with 24% saying the rising costs
of energy have substantially affected their disposable income. As a result, 57% of people have
already cut back, or plan to ration their energy use during the winter season to reduce bills.
Around 36% of respondents who rationed their energy last winter said it had adversely affected
their wellbeing.
Unable to cope with high-energy costs, many consumers refrain from turning on their
radiators and heaters during the winter season, according to a survey by Citizens Advice. The
National Energy Action found that high energy costs will lead to 100,000 needless deaths and
saddle the NHS with a 22 billion bill for illnesses over the next 15 years, as vulnerable people
are left unable to afford to heat their homes. Consumers are increasingly turning to solar as an
alternative source of energy. According to figures from the Department of Energy and Climate
Change, 478,875 solar installations have been fitted on domestic rooftops across the UK. The
government has announced an ambitious plan to fit 10 million homes in the UK with solar panels
by 2020.
According to an August 2014 poll, more than one in five property owners are interested in
getting solar panels installed on their homes as many think it will make their home more
saleable. However, almost half admitted they are simply not interested in solar. Around 35% of
those not interested cited high up-front costs. According to the Energy Saving Trust, the
average cost of a solar panel system for a domestic property in the UK is between 6,000 and
7,400. To encourage solar power adoption, organisations such as A Shade Greener are
providing home owners with free solar panels and installations.
Consumers turn to smart meters to address high energy costs
The government has announced that by 2020 every household in Britain will be offered a
smart meter. The ambitious project involves replacing old analogue meters with more than 50
million digital models. A scheme by all the power companies to roll out smart meters has begun
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and, according to Smart Energy GB, the not-for-profit organisation encouraging the use of smart
meters, over 1 million British homes already had them by end of 2014.
Consumers who have had smart meters fitted in their home are more likely to take action to
better manage energy consumption. According to research on British Gas Smart Meter
customers, 90% of people with smart meters have taken simple daily steps to reduce their
energy use, such as turning off appliances when they are not using them, and 79% of those
using their smart energy monitor are now more aware of their energy consumption.
In a March 2015 interview with The Express, a 60-year-old father of four, who had had a
smart meter fitted at his semi-detached home in Kingsbury, north-west London, a year ago,
said, I tend to notice when the kids have come home now and I even realised that my son was
putting on the electric heater in his bedroom when the heating was already on in the house. You
just dont need that much heating.
Another key feature of the smart meters being backed by the government is traffic light-style
warnings about excessive power consumption, which could alert you to a cooker or iron that had
inadvertently been left on. The portable monitor also has an option to set a daily budget, which
has proved popular with consumers. A 31-year-old from Stockport, Greater Manchester, who
received a smart meter last summer said, If were close to our target budget its an additional
reminder to switch off unused lights.
Chart 12
Source:
Note:
Household Running Costs 2000-2020

In constant 2014 prices
MONEY AND SAVINGS

Attitudes Toward Payment Methods
According to the Payment Council a trade body for the financial industry UK consumers
wrote and cashed a total of 464 million cheques in 2014 down 12% from 2013. Some 44% of
consumers and 63% of businesses still use them, according to research. Research carried out
by Visa Europe has shown that only around 6% of consumers said they preferred to pay by
cheque with 20% never bothering to carry a chequebook. Reasons given for never using
cheques included the time involved (62%), a perception that they are a hassle (55%) and fears
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over safety and security (44%). The most popular form of payment among consumers was
credit or debit cards with 57% preferring plastic cards above all other forms of payment.
There were 99 million debit cards in use by the end of 2014, up 48% since 2005. The number
of credit cards declined by 21% in the same time period to just below 55 million. Decreasing real
income among households is the biggest driver behind the decline in credit cards. The trend is
expected to continue as the number of debit cards crosses the 100 million mark in 2019 while
credit cards continue to decline and fall under 54 million.
Cash has long been the preferred method of payment, especially for low-value transactions.
However, in March 2015, the Payment Council reported that cash was no longer Britains
dominant method of payment. The number of annual cash transactions in 2015 is expected to
fall below 19 billion as the number of cashless transactions including credit cards, debit cards,
contactless cards, direct debits and standing orders inches closer to 20 billion.
The most significant rival for cashs crown is contactless payment, which is starting to sweep
up some of the low-value transactions that would previously have been done with cash. The
average value of a cash transaction fell from 11.43 in 2009 to 9.47 in 2014, while the average
contactless transaction crept up to 8.26 in the same time period. The UK Card Association
(UKCA) estimates that in the next two years contactless payments will make up 6% of all card
transactions.
Consumers are also using credit and debit cards to pay for smaller transactions. According to
the UKCA, the average value of a card transaction dropped from 49.46 to 46.73 between
2011 and 2014. One of the reasons is that local corner shops, which formerly only took cash,
are now more likely to offer chip and PIN services. The other big driver for small-value card
payments is the popularity of self-checkout terminals in retail stores. A March 2014 survey by
Viewbank found that 90% of UK shoppers use self-checkout regularly with 71% doing so
exclusively for small-value transactions.
The growth of online shopping in categories beyond clothes and appliances is also
responsible for the increased usage of cards for small-value transactions. The UKCA says ecommerce is rising by 13% every year because people are buying online what they might
previously have bought with cash. Finally, the ability to lump multiple cash payments together as
one card payment through subscription or top-off services will further drive the decline of cash
payments. Popular examples of such services are Netflix which replaces rented videos with a
single subscription charge and Transport for Londons Oyster card, which replaces daily paper
tickets with longer-term top-up fees. The UKCA predicts there will be 2 million fewer
transactions in 2017 than there were in 2014 because of payments being amalgamated in this
way.
However the Payments Council claims that cash will not disappear completely. According to
the councils latest figures, cash is the only method of payment among unbanked consumers.
Currently there are around 3.5 million unbanked people, most of whom are poor or claiming
benefits.
Savings
The savings ratio has continued to decline from a high of 5.8% in 2010 to 2.1% in 2014.
According to February 2014 research by Aviva, over one in five consumers have not been
saving for the future, with the figure reaching 26% among consumers in London and the North
East. The top three reasons for not saving are not being able to afford it, fear of losing savings,
and existing loans and debts. The most visible impact of a fall in savings can be seen in the lack
of emergency funds among households. The two primary concerns for UK consumers are
significant increases in the price of basic necessities (55%) and the impact of unexpected
expenses such as car costs and home repairs (51%).
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Another key reason behind people saving less is the low interest rates they receive from
banks. According to a January 2015 report from the Financial Conduct Authority, the majority of
savers are getting a raw deal from the big high street banks with interest rates on their accounts
at 0.5% or lower the same as the Bank of Englands base rate. The report suggested that
savers lack clear information and help to switch to better accounts. About 80% of current
accounts have not been switched to higher interest savings accounts in the past three years.
As people turn away from short-term emergency savings in their current accounts, they are
increasingly opting to save for the long-term future. Research published by Scottish Widows in
March 2015 shows that the proportion choosing to focus just on long-term savings jumped from
14% to 17% between 2010 and 2014, with nearly half saying that a more secure future was
the main reason behind saving for the long term.
Low interest rates for cash deposits and a focus on the long-term future have translated to
saving growth via pensions. According to August 2014 research by Lloyds Bank, in 1974, cash
deposits accounted for 53% of households total savings. By 2014 this proportion had fallen to
38%. In the same period the share of pensions as a proportion of total savings increased from
17% to 44%. Not surprisingly, the most likely demographic to save was those age 55 and over,
with 22% in this segment putting money aside for the long term.
Pensions are now the default saving method, with almost half of consumers agreeing that
contributing to a workplace pension was the normal thing to do, according to an August 2014
poll by the Department for Work and Pensions. The latest government regulation states that by
2018, all UK employers will be obliged to offer a workplace pension scheme and automatically
enrol qualifying staff. Some 78% of people polled believe an employer being compelled by law
to automatically enrol their workers is a good thing.
The falling savings rate and the rising popularity of pensions influenced the government to
launch pensioner bonds for those aged 65 and above in January 2015. The bonds offered an
interest rate of 2.8% to 4%. The bonds proved highly popular as more than 1 billion were sold
in the first two days of the scheme and 600,000 people had signed up by the end of January.
The government has offered to continue offering the bonds for a further three months in efforts
to raise 15 billion.
The government has also announced that starting April 6, 2015, consumers 55 and over will
be able to access and use their pension funds as they wish. Previously, retiring consumers were
required to use their pension pots to buy annuities, which guaranteed an income for life.
However, annuities were seen as a poor investment choice owning to their low interest rates
and the provision that if the person were to die before the annuity expired and this could be
the day after they pay for one the remaining money becomes the property of the insurer.
As pensions become free of the annuity requirement, those aged 55 and above are expected
to withdraw their funds in a lump sum. In a Guardian article published in January 2015, Hymans
Robertson, a pensions consultancy, estimated that around 6 billion would be taken out of
pension pots in the first four months after April 6, 2015. While some retirees planned to go on a
spending spree with their pension funds, most planned to use it wisely. A survey of over-50s by
Saga in March 2015 found that two-thirds planned to take their tax-free lump sum and then use
the rest to secure a sustainable future income. Only 5% planned to buy a sports car with their
pension funds.
In an interview with The Guardian, a 55-year-old man said he planned to withdraw all the
money from his pension fund to improve the care for his wife, who suffered from Multiple
Sclerosis, and the lives of his four daughters. Similarly, a 57-year-old woman said she planned
to withdraw a big chunk from her pension fund in the next few years to pay off a credit card debt
and perhaps fund a career change. Some retirees may even purchase a home with their
pension fund: a March 2015 survey by the Bank of Ireland found that 29% of retirees nationwide
were planning to use their pension to buy property.
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Loans and Mortgages

Consumer credit reached 203 billion in 2014 a jump of 8% compared to 2013. According to
a report released in February 2015 by the Money Charity, consumer debt comprising
mortgages, credit cards, overdrafts and personal loans saw its biggest growth in 2014 since
2004. The report highlighted that people have recently been borrowing more due to the squeeze
on their purchasing power coming from extended low earnings growth.
Most of the growth in consumer credit has come from unsecured credit, specifically personal
loans and overdrafts. The latest figures from the Bank of England show that Britons ran up their
highest level of new monthly debt in November 2014 for nearly seven years, with the months
borrowing on unsecured credit crossing 1.25 billion up 6.9% compared to the previous year.
More than 980 million was taken out in loans and overdrafts during the month a sharp
increase from the monthly average of 728 million over the previous six months. Increased
consumer debt at this time of the year is usually put down to the approaching holiday season.
However, credit card debt for the month actually fell to 269 million from 399 million in October
2014. In other words, people were borrowing for personal needs to make ends meet instead of
holiday gift shopping on their credit cards.
Total outstanding non-mortgage borrowing grew by nearly 19.7 billion, or 9%, in 2014,
marking the fastest growth rate in a decade, according to a March 2015 report from PwC. The
growth was fuelled by a rise in consumer confidence. Only 18% of consumers said they were
worried about how they would make future repayments, down from 26% in 2013. And only 26%
of people expected their pay to be frozen or decline in the next 12 months, compared to 48%
who thought this in 2010, following the financial crisis. With unsecured borrowing expected to
increase by between 4% and 6% annually over the next two years, the report warned of rising
consumer complacency in dealing with household debt. A 2% rise in interest rates on total debt,
including mortgages, would leave households needing to find an extra 1,000 a year just to
cover the extra interest.
Student loans and personal debt made up two-thirds of the increase in non-mortgage
borrowing in 2014. According to the PwC report, of the 19.7 billion increase, almost half of it,
9.1 billion, came from student borrowing. Graduates who started university after 2012 are
estimated to leave with an average debt of 40,000 to 50,000. Almost a third of the increase,
6.4 billion, came from personal loans, overdrafts and other sources such as payday loans and
peer-to-peer loans. Credit cards accounted for 4.2 billion of the increase behind student loans
and personal loans.
While the unsecured credit market increased in November, mortgages continued to decline.
The Council of Mortgage Lenders figures showed a 12.4% fall in the number of mortgages
advanced to people buying a home in November 2014 compared to October 2014, and a drop
of 6.6% compared to a year ago. The decline in mortgages comes despite a steep dip in home
loan interest rates. Bank of England data show that, between 2013 and 2014, the average twoyear fixed mortgage rate dropped from 2.37% to 2.01%. While interest rates have plummeted,
house prices are still beyond the reach of many first-time buyers, causing people to choose
renting over ownership. The most significant decline in mortgage lending continues to affect
first-time home buyers, as the figure fell by 11.3% on October 2014 figure and by 3.4% on the
previous year.
Consumers take advantage of 0% balance transfers to pay off credit card debt
One of the key reasons behind the decline of credit card debt has been the growing popularity
of 0% balance transfer schemes. Balance transfer cards allow people to transfer debts from an
existing credit card, giving them time to pay the debt off with generous interest-free periods.
Zero interest periods have been getting longer and longer thanks to competition in the industry,
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with some even offering 33 months to pay off debts without accruing interest. But the moment
the deal ends they start getting charged interest, often around 20% APR.
A July 2014 survey by RBS and NatWest found that 60% of cardholders had transferred debts
onto a balance transfer product. Most people who choose to transfer balances perceive it to be
a good financial decision. Around 37% of consumers said they thought 0% cards were savvy for
those paying off debts. In fact, 63% end up paying off the balance in full within the 0% time
period.
However, those who do not pay off the balance run the risk of incurring even higher interest
rates. Some 57% of balance transfer card holders dont know what interest they will be charged
once their introductory deals come to an end, putting them at risk of taking on more debt than
they expect. A third dont even know when their 0% deal will end.
Despite the risks involved in 0% transfers, consumers are still keen to enrol in the scheme.
February 2015 research from Sainsburys Bank Credit Cards revealed that around 25% of
cardholders plan to transfer some or all of their outstanding balance to a new card by mid-2015
to take advantage of 0% interest deals. On average, those seeking balance transfers expect to
switch 2,500 to a new card, with 12% of these switchers intending to transfer more than
5,000.
Youth drive adoption of mobile payment methods
A May 2014 survey by Centre for Economics and Business Research found a willingness to
use smartphone payments, especially among younger demographics. About 31% of 18- to 34year-olds have purchased products or services via their smartphones after seeing advertising or
endorsements for them. Some 23% of those aged 35-44 have done this, and 16% of those aged
45-54. Just 27% and 19% of 18- to 24- and 25- to 34-year-olds respectively with smartphones
would never purchase items on their device. This proportion rises to 64% among those aged 55
and over.
One of the most successful mobile payment services in the UK has been Pingit by Barclays.
Launched in 2012, the app allows people to send and receive payments using mobile phone
numbers, without needing to exchange bank account numbers and sort codes. Pingit has
received 3.7 million downloads and over 1 billion has been sent using the app. Pingit is open to
people who do not bank with Barclays, as well as its customers. In February 2015 Barclays
unveiled plans to enable people to pay each other and small businesses using just their Twitter
handle. Launching on both Android phones and iOS devices in March 2015, people using the
banks Pingit payment service will be able to link their Twitter handle to the service.
The growing popularity of mobile payment methods among consumers has driven social
networking site Facebook to launch its own money transfer service through its messenger app.
The soon to launch peer-to-peer feature will retain a users Visa or MasterCard debit card
information and allow them to transfer money to their Facebook contacts. The feature will be
available on Android and iOS devices.
Chart 13
Borrowing and Saving 2000-2019
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Source:
Note:
Euromonitor from trade sources/national statistics

Outstanding balance in constant 2014 prices
EATING AND DRINKING

Eating Habits
Consumer expenditure on food declined by 2.6% per capita (in real terms) between 2013 and
2014. Price deflation due to cheaper prices from discounters such as Aldi and Lidl is the primary
driver behind the fall in consumer food expenditure.
Having learned how to make their money stretch further during the recession years, shoppers
look certain to continue their habits of shopping around and buying in smaller quantities.
According to a June 2014 report by the Institute of Grocery Distribution, consumers are giving
up big format stores like ASDA, Tesco and Sainsburys for the cheaper prices and increasing
variety provided by discount retailers, local convenience stores and online grocers that help
them shop little and often.
An increase in eating out among consumers is another reason behind the decline in food
expenditure. According to February 2015 research from Allegra Foodservice, the number of
consumers eating out grew by 4% in the final quarter of 2014, as the average number of meals
eaten out per month reached 9.2. While more people are eating out more often, they are also
spending less on each meal. Allegras data also revealed that average spend per visit dropped
by 13% in the final quarter of 2014 to 9.25.
The tendency to search for cheap options to eat out of home has driven consumers to
increasingly eat unhealthy food. In a September 2014 poll conducted by Allegra, 46% of
consumers said they mainly ate healthily when out down from 51% in 2013. Consumers are
more likely to eat unhealthily when eating out because they see it as rewarding themselves for
eating healthy food at home. About 48% of consumers said that eating out was a treat,
compared to 40% in 2013. In fact, consumers actively look for non-healthy options when eating
out. Only 36% prefer to visit restaurants with healthier eating option, compared to 56% in 2013.
While the trend of healthy eating is on a decline among restaurant goers, 73% of consumers
are interested in sustainability 60% of the 18-24 age group and 84% of 35- to 39-year-olds.
Animal welfare was the key sustainability concern in 2014 at 58% up from 34% in 2013. Half
of consumers also say it is important that the restaurant they eat at actively engages in reducing
food waste.
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The increased tendency to eat out comes as consumers have begun to realise their foodie
aspirations are much more difficult to attain than depicted in popular home cookery shows such
as the BBCs Great British Bake Off and cook books like Jamie Olivers 15 Minute Meals. A
February 2015 poll by online supermarket Ocado revealed that although people like to think of
themselves as foodies and own on average six cookbooks, they typically only cook the same
nine meals on a repetitive loop with one in five not having changed that menu for over a year.
An inability to source appropriate ingredients was the top reason that stopped people from being
as adventurous in the kitchen as they wanted to be.
Reclaiming the nations cooking habit at a young age
Home cooking has been on a decline in the UK for a while now. In November 2011, a survey
by kitchen appliance maker Kenwood found that home cooking had dropped by 30% since the
1980s. In 2013, recipe box provider Hello Fresh found that half of all families had convenience
food once a week, with one in five eating it three times a week because they believed that
cooking from scratch was a waste of time.
One of the key reasons behind the decline in cooking habits is a lack of knowledge when it
comes to preparing meals, especially among younger generations. September 2014 research
by Sainsburys revealed that 63% of 19- to 24-year-olds said they were unable to rustle up
simple, balanced dishes such as a shepherds pie. Some 44% of 17- to 18-year-olds admitted
they were unable to make simple yet convenient and nutritious dishes like an omelette from
scratch.
To help address the issue, Sainsburys is launching Sainsburys Active Kids Superstar Cooks
an ambitious new nationwide school competition. Supported by free curriculum-linked lesson
plans and recipe ideas, and hosted by Diversity founder and TV talent show Got to Dance
judge, Ashley Banjo, Sainsburys aims to get children aged 5-16 cooking in the kitchen, helping
to improve the cooking skills of the next generation.
Consumers increasingly prefer store brands when buying groceries
As shopping for cheaper options becomes the norm, instead of a recession-specific
behaviour, consumers are increasingly choosing supermarket own-label brands over name
brands. A June 2014 survey by Perception Research Services found that 63% of consumers
regard own-label items as the same quality as branded alternatives, compared to only 23% who
feel they are of lower quality.
The perception that name brands are better quality than store brands is also no longer true
among consumers. About 47% of shoppers say they are indifferent towards buying own-label
brands with 27% saying it makes them feel as if they are savvy shoppers. Only 3% report
feeling embarrassed when purchasing retailer-branded products.
A January 2015 consumer poll by review site Which? rated Morrisons M Savers as the top
own-label grocery brand among consumers, ahead of Aldi and Marks & Spencer. According to
the poll, consumers prefer Morrisons because it sources, processes and manufactures most of
the fresh food it sells. Consumers also find that the quality of food at Morissons is consistently
high. In December, its 3.99 M Signature Jewelled Fruit Christmas Pudding beat offerings from
Harrods and Fortnum & Mason in Which? Christmas taste tests.
Chart 14
Food Expenditure Profile 2000-2020
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Source:
Note:
Euromonitor International from national statistics/Eurostat/UN/OECD

In Constant 2014 prices
Drinking Habits
The recession appears to have changed for good consumers purchasing and consumption
habits. Consumers continue to favour quality over quantity and there is a trend towards drinking
more responsibly and limiting the occasions during which they drink. Therefore, the overall
consumption trend is largely disconnected from economic considerations and is increasingly
being affected by lifestyle factors.
According to an article Published in The Guardian, in a recent YouGov poll, six in 10 people
chose wine as their "drink of choice" as middle-class couples increasingly spend evenings at
home, rather than in the pub, and throw weekend dinner parties. Indeed, more than half of
respondents in every region preferred wine when asked their preferred tipple. Miles Beale, chief
executive of the Wine and Spirits Trade Association, which commissioned the research,
declared the results as evidence that wine was "no longer just for connoisseurs" and was
enjoyed by "all social classes".
In a February 2015 report from the ONS it was revealed that 21% of adults do not drink
alcohol at all up from 19% in 2005. Consumers aged 16-24 were primarily responsible for the
drop in alcohol consumption. The proportion of young adults who said they did not drink alcohol
at all increased by over 40% between 2005 and 2013. The main reason behind the fall in young
people drinking is a demographic shift in the youth population. Muslims, who are most likely to
refrain from alcohol, have the lowest average age out of all the major religious groups, with
nearly half of all Muslims below the age of 25, according to the ONS.
According to May 2014 research by YouGov, 82% of Brits drink tea once a day. Milk is still the
dominant accompaniment with over three quarters saying they have milk with tea. Only 18%
add sugar as they seek a healthier diet. Black tea is the most popular form of tea consumed,
with 52% saying they prefer English Breakfast and 22% picking Earl Grey. Increasingly
adventurous and health conscious Brits are venturing to fruitier, herbal and greener alternatives,
despite a higher price tag. With 23% consuming green tea in 2014 while 19% tried fruit and
herbal flavours.
When it comes to soft drinks, carbonated colas are losing out to energy drinks. Figures
released by Britvic in February 2015 show that energy drinks outsold cola for the second year at
convenience stores where young people are more likely to stock up. The most popular energy
drink was Lucozade. Young people associate some carbonated drinks with their parents so
they want something new. The Britvic study also revealed another growing alternative to fizzy
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cola cold versions of hot drinks such as iced teas and the Starbucks range of packaged
coffees that have grown in popularity.
Coffeehouses replace pubs as social hubs for Britons
Between 2009 and 2013, 4,500 pubs closed down while 3,800 new coffee shops opened
across the UK, according to a report from Allegra. Both branded chains like Starbucks, Costa
and Caff Nero, as well as independent local shops, have driven the growth of coffee shops.
While coffee culture has taken off, bringing a change in the way Britons drink coffee, it doesnt
necessarily mean they are drinking more coffee, but they are using it as an opportunity to meet
up with friends in a relaxing and convivial space, particularly with add-ons such as comfortable
seating and free wi-fi.
Although, consumers are fast catching on to good quality coffee available in pubs such as
Fullers, the brewery and pub chain and JD Wetherspoon, the cut-price pub chain, who offer
Lavazza filter coffee at 99p, with free refills, selling close to 1 million cups per week.
November 2014 research released by Greggs and the University of Stirling revealed that 40%
of consumers now prefer a chat with friends over a cup of coffee to visiting a pub and having a
glass of wine or a pint. According to the report, almost every consumer segment from young
professionals to pensioners, from mums to students, has replaced the pub with the coffee shop
as their new social hub.
The study also found that the city of Brighton & Hove has the highest coffee spend a year at
177 per person, ahead of London where people spend 151 per person. The popularity of
coffee shops in Brighton is being driven by freelancers keen to get out of the house or
professionals looking to escape the office. In a November 2014 Guardian interview, a PR
business owner said she met her clients in local coffee shops: Go to London or other cities and
our meetings tend to be held in company offices, but whenever we see our local clients, we
nearly always meet for a coffee. According to a freelancing app developer, I think what
sustains Brightons coffee shops is the fact that there are so many freelancers and creatives in
the city. You just need to look at the amount of bearded young folk with laptops and tablets to
see that theyre all using coffee shops as their offices.
Health-conscious parents opt for fruit over juice drinks
Owing to years of research into healthy eating and drinking habits, most parents are now
aware of sugary drinks and their impact on children. Some parents have already stopped buying
fruit juice and are saving money on it. According to one commenter, [My] family cut out fruit
juice a year ago. Now the kids have tea or water at breakfast. We save about 4 a week used
to drink three cartons a week without even noticing it! So thats at least 200 to the good and
undoubtedly better teeth.
Aware of the benefits of eating fruit over drinking fruit juice, parents are starting to add more
fruit to their childrens diet despite official advice from the NHS saying that a 150 ml glass of
unsweetened fruit juice counts towards a persons five-a-day fruit requirement. A parent
commenting in an article in the Guardian stressed that eating fruit was better than consuming
fruit juice, which should be relegated to an occasional treat: The problem with fruit juices is that
all of the fibre is removed, so what youre left with is a product of refined sugars, which causes a
spike in blood sugar levels. Even smoothies that maintain some of the fibre arent much better
because youre gulping down the fruit essentially chewing helps to trigger feelings of satiety,
and youre bypassing that step. Fruit juice should be seen as an occasional treat; its basically
just sugar.
The sentiment was echoed by Nutritionist Kawther Hashem and Oxford professor Susan Jebb
following research by Action on Sugar that found many childrens juices contain at least six
teaspoons of sugar more than cola and come in larger cartons than recommended.
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Chart 15
Source:
Note:
Drinks Expenditure Profile 2000-2020

GROOMING AND FASHION

Female Grooming and Fashion Trends
Personal care is a key part of most womens everyday lives. According to a February 2015
study by toothpaste maker BlanX, women on average spend 41 minutes a day beautifying
themselves, which includes washing, brushing teeth and applying makeup, with women in their
early 30s spending twice the amount of time. Per-capita spending on personal care increased
by 7% over the period 2013 to 2014 to reach 447.50. Consumers spent most on skin care (percapita spending of just over 33 in 2014), colour cosmetics (24.70), hair care (24.20),
fragrances (19.80), and oral care (17.40).
Most women are willing to pay for beauty and personal care products because they perceive
them as essentials rather than vanity items. A participant in a September 2014 study by
Promotionalcodes.org.uk said, I spend so much money on the likes of hair products and makeup but I rarely take the time to tot it all up because I just consider them essentials. Finding out
how much I spend has shocked me but I would buy the products regardless of cost as its so
important to make sure I look my best. For others, beauty regiments and salon trips carry a feel
good factor that has a positive impact on their emotions. Another study participant commented,
Using beauty products on myself or taking a trip to the salon always puts me in such a good
mood, so Id never begrudge paying that amount of money. Its worth it.
Ever since Blemish Balms (BB creams) were introduced to the UK market in 2012, women
have looked to South Korea for their supply of innovative skincare. Korean skincare products
have become popular amongst consumers as they are perceived to use natural ingredients
without harsh chemicals. A November 2014 study by Nature revealed that 89% of women
consider the potential harmfulness of ingredients an important factor before making a purchase
decision and 79% expect that the products contain uniquely natural ingredients.
Celebrities have long held clout over the world of consumer fashion and beauty. A November
2014 survey by One Poll confirms that this continues to hold true, with 48% of women stating
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that reading about or following celebrities on social media had the strongest impact on their
fashion purchases of all influences. Best friends came in second with 31% of the consumer
vote, indicating that years of camaraderie do count for something and that they listen to their
friends opinions.
One of the biggest celebrity-driven trends in 2014 was the adoption of grey hair. Prominent
celebrities like Rita Ora, Rihanna and Lady Gaga were seen with the grey hair look, which Jean
Paul Gaultier first tried when he sent models with huge, grey beehives down the catwalk at his
Autumn/Winter 2011 show. The adoption of grey hair by both older and younger women alike
shows a change in the mindset towards ageing. Many now believe grey hair can make a woman
look softer, more premium and even younger. According to Harvey Nichols, grey hair is set to
continue as a prominent trend and has been included in their list of trends to watch for in 2015.
Another celebrity-inspired beauty trend is contouring a laborious method of applying makeup to enhance facial features. It was put on the map in 2014 by Kim Kardashian and is expected
to grow further in 2015. In 2014, Rodial, the beauty brand fronted by Daisy Lowe, launched the
first-ever contouring range of make-up and a sculpting bar in Harvey Nichols with more products
expected to hit the shelves in 2015. The trend is also spilling over into hair care, where Charles
Worthington is pioneering hair contouring beyond two-tone ombre and dip dye with the
introduction of micro lights.
Do-it-yourself beauty treatments that allow women to enjoy the luxury salon experience at
home at an accessible price point have been growing in demand throughout 2014 and are
expected to become a major grooming trend in 2015. When putting together DIY beauty
treatments, consumers tend to mix skin treatments such as facial peels and skin brushing with
oral care such as teeth whitening to make the experience both pampering and practical.
Growing spending power makes mature women the new face of fashion
Older women today consider ageing well as a lifestyle, quite different from the past when
people regarded ageing as a fate. The changed perception towards ageing is largely driven by
their growing spending power. According to an April 2014 report in The Telegraph, women now
own 48% of Britains wealth, a figure thats predicted to rise to 60% by 2025. Of Britains
millionaires, 46% are female, with 24% more women than men in the 18-44 age group.
Despite older womens spending power, they dont relate well to the fashion and beauty
industry. Fashion has long been dominated by younger women with a sprinkling of
appearances from older models. The older women get, the less fashionable their options get
blue rinse, pleated skirts and blouses being the former go-to look for most entering old age.
According to 2014 research by Imogen Matthews Associates, the top concern among older
women is that there is no recognition that they use products differently from younger women
and most of the imagery used by beauty brands is disingenuous and insulting.
In recent times older women have taken to technology to voice their feelings. The challenges
older women face while shopping for fashion and beauty products has been chronicled in The
Guardians Vintage Years blog by Helen Walmsley-Johnson. Similarly, the popular blog
Advanced Style, which showcases the sartorial tastes of women over 60, inspired a Marc
Jacobs collection and a documentary.
Caryn Franklin, co-founder of All Walks Beyond the Catwalk a non-profit that challenges the
fashion industrys dependence on one body ideal has openly voiced her opinion on how
mature women have long gone unnoticed by the fashion and beauty industry. Older women
account for a large portion of retail revenue. Recent studies have supported a large, untapped
demographic for brands to invite into stores in an intelligent way. Mature women dont want to
be infantilised or hyper-sexualised and have said so.
Consequently brands are picking older celebrities ahead of 20-something supermodels as
their brand ambassadors. In January 2015, Yves Saint Laurent announced 71-year-old Joni
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Mitchell as its latest model, a week after 80-year-old author Joan Didion was revealed as the
face of Cline. They join Helen Mirren and Diane Keaton, both 69, who front campaigns for
LOral, as well as 64-year-old Jessica Lange who is the face of Marc Jacobs Beauty.
In an interview with the Huffington post, Alex B, a UK fashion blogger and mature model, said,
I am delighted to see more older women in fashion. It is time to stop thinking of growing older
as the end of all pleasurable things in life. Older women should be encouraged to dress well and
should see older role models in the media. Even the style-forward retailer Selfridges scrapped
its annual Bright Young Things showcase in which it traditionally introduces the work of trendsetting young designers and instead launched Bright Old Things, a platform for stylish 50- to
80-somethings.
Male Grooming and Fashion Trends

Male grooming has migrated from the barbers chair and become the fastest growth driver for
hair and beauty salons. An October 2014 survey by Dove Men+Care showed that British men
spend four and a half years of their life perfecting their appearance compared to just over three
years spent by women. Image-conscious men spend the most time creating expertly groomed
facial hair, dedicating five and a half months of their lives to shaving. Apart from vanity reasons,
shaving is also considered a rite of passage among men. Some 27% of men said that learning
to shave was the top skill passed on by their fathers.
The cultural significance of mens facial hair today is most visible in Movember a month-long
event in November where men grow facial hair, usually moustaches but also beards, to raise
money for charity. Some 5 million people participate in the event and some even choose not to
shave off their facial hair after the event ends. In a November 2014 Guardian interview, one 30year-old consumer from east London was curious to see if he could actually grow facial hair. By
the end of November he had decided to keep his moustache and grow a beard.
The Dove survey also revealed that hair care takes up five months of a mans life up from
three and a half a year ago. The growth is largely driven by a fall in salon prices as a result of
which men are visiting salons more frequently. According to a March 2014 study by Salon
Services, the average price for a male haircut fell from 16 in 2013 to 12 in 2014 with men
coming in for a haircut every four weeks in 2014 compared to every eight weeks in 2013.
The biggest and most polarising hair trend among men in 2014 was the man bun tying
long hair into a rounded bun made popular by celebrities such as David Beckham, Jared Leto
and Leonardo DiCaprio. More recently, Zayn Malik, formerly of the boy band One Direction,
posted pictures of his man bun on Instagram. While many people still lament the rise of the man
bun, others believe it embodies gender subversion without being arrogant or pretentious. This is
because hair styling has long been a female-centric area with most men opting for cropped
styles.
The Dove survey also found that men spend a year and three months of their life on average
in the gym, perfecting their bodies six times as long as women, who spend two months. Men
increasingly feel the pressure to have a sculpted body. November 2014 research by health app
Noom found that 75% of men in the UK would like to achieve an eight pack or Fight Club torso
the lean, muscular body shape popularised by Brad Pitt in the movie Fight Club. In a February
2015 interview, sports star Andrew Flintoff confessed to feeling intimidated when he was in the
dressing room with lads a lot younger than me and they had abs and muscles and all sorts and
felt obliged to sneak off to get changed so I could get my belly out.
Increasing consumer demand for unisex fashion blurs gender divide
More and more women are shopping in the mens section, prompting designers to put out
new female collections that mimic traditional mens styles. For some women the choice of mens
clothing is practical as it is related to the workplace. A commenter on a March 2015 Guardian
article said, I am a female who has been provided gear by a workplace which is heavily male-
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dominated, and for most of the outerwear they only provided mens cut clothing. This meant that
in order to get a coat that I could close around my hips it was way too big everywhere else
sleeves too long, shoulders too wide, etc. All of the women at this workplace had the same
problem, even the super-skinny ones. Lets not even start with the over-trousers.
For other women its a lifestyle decision driven by their sexual and gender identities. Journalist
Sophie Wilkinson wrote in The Guardian, For me, its a question of comfort and a lack of fear of
being judged for looking like a lesbian, because, well, I kind of am. Thats why I love labels
such as Wildfang, an American company that makes mens clothes in female cuts for tomboys.
Its a women-ready menswear delight.
The wave of unisex fashion that has been building since 2014 can be now be seen in the
spring and summer collections of Saint Laurent, JW Anderson and Herms as well as high
street retailers such as Topshop and The Kooples. Proof it had gone mainstream came when
Selfridges decided to devote a whole section to what it has called Agender clothing. According
to the retailer, the concept extols a genderless attitude to fashion that is transcending
traditional notions of his and hers.
Celebrity influence has also played a big role. From the ever-quirky Tilda Swinton to the more
tabloid-friendly, youth-appealing Cara Delevingne, most leading celebrities are now fronting
campaigns for their respective brands in suits and t-shirts. While unisex clothing for females
might be something that is long overdue, it remains to be seen if men will start wearing any
traditionally female apparel or accessories.
Chart 16
Source:
Grooming and Fashion Expenditure 2000-2020
HEALTH AND WELLNESS

Attitudes To Health and Well-being
All four nations within the United Kingdom England, Scotland, Wales and Northern Ireland
have their own publicly funded healthcare available to all UK permanent residents at no cost.
The National Health Service (NHS) provides public healthcare services. Each NHS system uses
general practitioners (GPs) to provide primary healthcare and to make referrals for further
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services as necessary. Hospitals then provide more specialist services, including care for
patients with psychiatric illnesses, as well as direct access to Accident and Emergency (A&E)
departments. Community pharmacies are privately owned but have contracts with the relevant
health service to supply prescription drugs.
According to the British Social Attitudes survey published in March 2015, public satisfaction
levels with the NHS increased in 2014, with 65% saying they were satisfied up from 60% in
2013. While people are satisfied with the quality of care provided by the NHS, an overwhelming
92% realise that the NHS faces a financial crisis that is pushing it towards greater privatisation.
The majority want reform of the NHS, with 48% saying they want the NHS to stop providing
treatments that are poor value for money while only 37% support increasing taxes to fund the
NHS and even less (14%) support paying for a visit to the GP or local A&E department.
The financial crisis is already having an impact on the quality of care provided by the NHS.
According to a Kings Fund review of the NHS published in March 2015, the lack of funds is
causing the NHS to miss waiting time targets for A&E, hospital treatment and cancer care. Bed
occupancy has increased to very high levels as patients wait for tests, treatment and surgery.
Consequently the NHS agreed to its biggest-ever service privatisation deal in March 2015 to
help hospitals tackle the growing backlogs of patients.
People are almost evenly split when it comes to privatisation of the NHS with 45% saying they
already foresee paying for the NHS in 10 years and 48% saying they would like to keep the
NHS a completely free service funded by public taxation over the same time period. The latter
group were active in voicing their concerns ahead of the May 2015 elections. A petition entitled
Save Our NHS on the activism site 38 degrees gathered over 580,000 signatures from 650 local
campaigns across the UK. According to one activist from Cornwall: We are all users of the
health service and from different backgrounds but we all agree that we dont want the NHS
privatised. Health care is not about profit, it is about people.
One of the reasons the NHS is battling a funding crisis is increased healthcare expenditure
over the last decade. Public healthcare accounted for 84% of the expenditure in 2014 up from
81% in 2005. Per capita healthcare expenditure has increased by 14% between 2005 and 2014.
Increased usage of prescription drugs is a major culprit behind the rise in consumer
healthcare expenditure. According to a December 2014 report by the Health and Social Care
Information Centre, 50% of women and 43% of men regularly take prescription drugs with an
average of 18.7 prescriptions per person (excluding contraceptives and smoking cessation
products). Cardiovascular diseases (CVDs) such as high blood pressure, heart failure and
cholesterol levels were the leading cause accounting for nearly a third of all consumer-bought
prescriptions. The British Heart Foundation has reported that an estimated 7 million people live
with CVDs in the UK.
Mental health and depression in particular was another leading cause driving prescription
uptake among consumers, especially women. More than one in ten women has taken
antidepressants double the figure for men. Middle-aged women especially those from
deprived areas most commonly took the drugs. The research revealed that 17% of the poorest
women took antidepressants compared with 7% of the richest. According to the Mental Health
Foundation, 29% of women seek mental health treatment in a year compared to 17% of men.
Medicines related to obesity also topped the list of prescription drivers. Obesity has long been
treated as a lifestyle condition addressed via increased physical activity and a controlled diet.
However, consumers are seeking medical alternatives to deal with it. More than half of severely
obese people in England reported taking at least one prescribed medicine and a third had taken
at least three.
The obese population, defined as those with a BMI of 30 or more, increased from 23% of the
adult population in 2005 to 27% in 2014. It is predicted to grow to more than 28% of the
population by 2020. The overweight population, defined as those with a BMI between 25 and
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30, fell slightly from 38% of the adult population in 2005 to 37.5% in 2014. It is further estimated
to decline to 37% over the next six years. According to a May 2014 study by the Institute for
Health Metrics and Evaluation, the UK has higher levels of obesity and overweight people than
anywhere in Western Europe except for Iceland and Malta.
However, obesity levels among children under 10 are showing signs of levelling off. A January
2015 study by Kings College London found that overweight and obesity levels among two- to
five-year-olds stayed relatively stable at 25% for boys and 23% for girls between 2003 and
2013. Among girls and boys aged 6-10, about 30% were overweight or obese during that time.
The most likely to be obese were children aged 11-15. Overweight and obesity levels in this
demographic have reached 37%, up from 35% in 2003.
As health-related issues like heart disease and obesity grow, consumers are increasingly
willing to take action to fight it. According to December 2014 research by MMR Research
Worldwide, 44% of the UK consumer base is not only aware of health-related challenges but is
also willing to take action by diet control. A further 18% of people are aware of health-related
challenges but lack the motivation to do anything about it. Of those who are aware and willing to
act, 50% say they are sceptical of health messaging from brands.
Consumers are increasingly turning to digital platforms to address their health-related
concerns. October 2014 research by Integrated Health showed that 19% of the UKs digital
population had accessed NHS websites regarding health-related queries, making it the nations
most visited destination in the health category. The demographic most likely to visit healthcare
websites was 65 and above, with 27% already self-tracking aspects of their health, such as
weight, blood pressure or other health indicators. According to the research, these silver surfers
desired greater access to digital healthcare services with 77% demanding access to online
appointment scheduling and 69% asking for electronic reminders. Older consumers feel that
surfing the Internet coupled with engagement in civic, leisure, and cultural activities can stave off
mental decline.
Fighting adult obesity with increased physical activity
Obesity is a major health concern among working-age adults in the UK as it has been linked
to cardiovascular diseases, diabetes and even cancers. According to a May 2014 study by the
Institute for Health Metrics and Evaluation, 67% of working-age men and 57% of working-age
women in the UK are overweight or obese.
Research by the NHS has identified lack of physical activity specifically sitting for long
periods as a key factor in obesity. A March 2015 survey by the British Heart Foundation
revealed that 4 out of 10 office employees walk for less than 30 minutes a day. According to the
survey, more than half regularly eat lunch at their desk and 66% say they are significantly less
active at work than at home.
In response, the Get Britain Standing campaign partnered the British Heart Foundation to run
a new event called On Your Feet Britain which took place in April 2015. The event was intended
to motivate people to sit less by providing fun challenges that require standing or walking around
the workplace.
The trend towards increased physical activity was also picked up by Coca-Cola. As a part of
its marketing strategy for the World Cup, Coca-Cola launched Park Lives an initiative to
encourage consumers to get more active by offering free access to activities such as zumba,
pilates, yoga, tennis, rugby and football amongst others at local parks across the country. While
some consumers are a bit sceptical, the programme has been welcomed because it helps them
get started with physical activity without the hassle and cost of a gym membership.
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E-cigarettes rise in popularity and controversy

In a BBC poll that asked if e-cigarettes should be banned in public places only 34% said yes,
with an overwhelming 62% saying no. Among those who support e-cigarettes, most believe it
helps smokers to switch. An e-cigarette enthusiast told the BBC, Its really important that
electronic cigarettes are allowed to be used in public as widely as possible so that as many
smokers as possible are aware that they have this option. The more smokers we can get to
make the switch, the bigger the public health gain we can achieve.
The British Medical Association (BMA), on the other hand, has called for e-cigarettes to be
banned in public places, citing them as a gateway to smoking among young people. However, a
YouGov poll in April 2014 revealed that e-cigarette use appears to be mainly among current
smokers, with 52% having tried it once. And for the increasing numbers of ex-smokers who use
them (12% in 2014, up from 7% in 2013 and 4% in 2012), 71% say the main reason is to help
them stop smoking tobacco entirely.
An ex-smoker backed up the research, saying, I used to smoke 60 a day, but I switched to
my e-cig. Best thing Ive done: my health has improved and I havent had a proper cigarette in
11 months. Im all for them. If I can stop smoking with them anybody can.
Meanwhile, airlines, train companies and the pub chain JD Wetherspoon have all banned the
use of e-cigarettes following the BMA guidelines. An irate consumer responded to these actions,
Banning e-cigs would be an absolute joke. Theyre the best and only invention that makes a
real difference in quitting smoking.
Chart 17
Source:
Note:
Health of the Nation 2000-2020

SHOPPING HABITS
Main Household Shop
Consumers are not willing to drop the price-conscious shopping habits acquired during the
recession. One such habit is shopping shortly before closing time to buy discounted food.
According to a March 2014 survey by Think Money, 20% of British shoppers say they do this.
According to one such shopper, I look around the shop, see which items are about to go past
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their expiry dates, then check them again. Sometimes I follow the person putting all the latest
price markings on the items. The rise of price-conscious shopping habits resulted in a 4.5%
decline (in real terms per household) in spending on groceries between 2008 and 2014.
Spending on groceries is expected to increase only slightly by 1.4% (in real terms per
household) over the next five years as consumers stick to their price-conscious shopping habits.
As consumers prioritise price while shopping, they are also shifting their shopping
destinations for the big weekly shop from hypermarkets and supermarkets to discounters like
Aldi and Lidl. Spending per household between 2005 and 2014 at discounters more than
doubled (rising by 114%) in real terms. In comparison, over the same period, consumer
spending in hypermarkets declined by 6% and in supermarkets by 12% per household.
Consumer spending at discounters is expected to drive grocery sales in the future, as it will
grow by 40% in real terms over the next five years.
The big weekly shop is no longer the only way people do their grocery shopping. One of the
newer trends is for consumers to drop the weekly shop in favour of popping to the shops two or
three times a week. For such occasions, consumers prefer to visit convenience stores because
they are in the right place at the right time when shoppers are ready for a top-up shop.
Consumer spending per household between 2005 and 2014 at convenience stores increased by
38% and is expected to grow by a further 11% over the next five years.
Additionally, the weekly shop is being replaced by online orders. Consumers are increasingly
favouring a bulk online order for key staples and supplementing this with visits to convenience
stores during the week for fresh goods. Online will be the fastest growing grocery channel over
the next five years, with demand increasing by more than 30% to reach 7.4 billion in 2019. The
key factors driving the rise of online grocery are increased rollout of grocery click and collect,
lower deliver charges, and more widespread use of delivery subscription schemes.
Consumers are also increasingly adopting frozen foods as part of their weekly grocery basket.
Online grocery shopping is a key driver behind the growth of frozen foods. According to
research by the Irish Food Board, online shopping baskets have 25% more frozen products than
store shopping. The research also found that consumers who eat on the move seek ways to
reduce food waste at home and experiment with new cuisines are most likely to drive the growth
of frozen foods.
Shopping for Big-ticket Items and Personal Goods

Consumer spending in electronics and appliances stores declined by 45% in real terms
between 2005 and 2014 as the Internet empowered consumers go online to find cheaper deals.
According to a December 2014 report from Mindshare, 70% of consumers used the Internet to
research electronics such as mobile phones and 77% researched home appliances online
before even visiting a store. Consumers used a combination of search engines, price
comparison sites and online retailer websites to look up information on prices, features and
availability.
Despite the growing importance of online in the consumers path to purchase, 55% of
shoppers say they cannot find basic information such as delivery and returns policies on half the
websites they visit, according a December 2014 report by Eptica. When online consumers have
less patience they can easily move to another website or retailer. Over a third (39%) said they
would only spend five minutes looking for an answer online before switching to another supplier
or channel.
Consumer shopping for big-ticket items like electronics and appliances not only begins online,
but also tends to end in online purchase. According to January 2015 research by Wipro Digital,
71% of consumers reported doing more than half of their 2014 holiday shopping online a
significant increase from 2013 when the figure stood at 45%. Consumers prefer to buy from
pure play online retailers like Amazon and ASOS over bricks-and-mortar retailer websites such
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as Wilko or Currys. As such, 44% of online shoppers report doing more than half their online
shopping on pure play retailer sites with 25% not even considering bricks-and-mortar retailer
websites.
Consumer spending on internet retail increased by 252% between 2005 and 2014. It is
expected to continue to grow by another 38% in real terms over the next five years. Mobile
devices will drive a big part of this growth. A February 2015 report from IMRG revealed that
purchases made on smartphones and tablets accounted for 40% of all online retail in the final
quarter of 2014, up from 32% a year ago. Time spent shopping via iOS and Android
smartphones increased by a massive 174% in 2014, more than double the growth rate of 77%
in 2013.
Online purchases have also risen and will continue to do so due to the increasing availability
of click-and-collect features. According to a March 2015 report by IMRG, 73% of online
shoppers have used click and collect with another 10% intending to do so in the near future.
Unsurprisingly, price and convenience are the key drivers behind consumers opting for clickand-collect services 62% used the service as it offered free delivery, while 42% believe that
collecting in store is more convenient than collecting from their local post office or collection
centre.
Shoppers adopt self-service checkout, but still prefer human interaction
The vast majority of UK shoppers use self-service checkouts. A March 2014 survey by
Viewbank found that 90% of consumers have done so. Convenience and time savings are the
key reasons shoppers choose to use self-service checkouts. Around 71% of shoppers say the
machines are convenient when buying a few items, while 61% use them because they are
quicker. Also, 5% of shoppers use self-service checkouts to avoid being embarrassed when
buying personal items. Despite the growing usage of self-service checkouts, shoppers still
prefer to interact with a person. Just over half (55%) say that, if they only had a small number of
items and there was a choice between checkout staff and a self-service machine, theyd go for
the manned checkout.
One of the reason shoppers prefer a manned checkout experience is because nearly half of
them regularly need help when using self-service checkouts, according to the survey. Around
45% of shoppers say they almost always or quite often need staff assistance, and only 2% claim
they never need help. The biggest complaint about self-service checkouts is the message
unexpected item in bagging area, which 83% of shoppers using self-service checkouts find
annoying.
After showrooming, consumers turn to webrooming for shopping needs
A May 2014 study by Merchant Warehouse revealed that 69% of smartphones users aged
18-36 practice webrooming, compared to only 50% who practice showrooming. Webrooming
ranked higher than showrooming with both men and women. About 75% of male and 63% of
female consumers claimed to webroom, whereas only 53% and 40% respectively admitted
showrooming.
The main reason for webrooming was to avoid shipping costs 47% of consumers said they
engaged in webrooming for this reason. Consumers also felt a need to evaluate the product
before purchase, causing them to visit the store. Some 46% of consumers said they like to go to
a store to touch and feel a product before buying it, while 42% simply wanted to check product
availability online before buying it from the store.
Webrooming is most prominent in among mobile shoppers purchasing products locally.
Nearly 80% of local searches on mobile turn into a purchase, with almost 73% of these
purchases made in-store, highlighting just how important a tool the Internet is for driving in-store
sales.
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Chart 18
Source:
Note:
Where Households Shop for Essentials 2000-2019
Euromonitor from trade sources/national statistics

LEISURE AND RECREATION

Leisure Time
An April 2014 survey by content and listings aggregation app CircleMe found that traditional
leisure activities such as stamp collecting, train spotting, and bird watching are falling out of
favour and making way for technology-driven activities such as computer gaming, online
shopping and social networking all of which made the top 10 of consumers favourite
pastimes. Young adults aged 16-24 were most likely to engage in social networking (91%) and
online games (68%) as leisure activities. Consumers aged 25-34 engaged the most in online
shopping (90%) during their free time. Increasing ownership of household internet and
smartphones is making this digital leisure time possible. In 2014, 84% of UK households owned
an internet enabled computer, compared to only 55% in 2005. This figure is predicted to reach
91% in 2020. According to Ofcom data released in April 2014, 62% of adults used a smartphone
in 2014, up from 54% in 2012.
Smartphone owners are more engaged with digital devices during their free time than with
television. In October 2014, eMarketer reported that consumers spend an average of 4 hours
and 5 minutes every day on digital devices with more than half of that time spent on desktops
and laptops (2 hours and 10 minutes). In comparison, they spend 3 hours and 15 minutes a day
watching television. A commenter on the BBCs coverage of the report quipped that he didnt
watch much TV despite paying for it: Even though I have to pay 145.50 per year for a TV
license I never actually watch any TV. I mostly just go on YouTube and Facebook. I just keep
paying the license fee because I don't want the hassle of people knocking on my door to search
my house for TV equipment. Social networking sites Facebook in particular are the driving
force behind people spending more time on their laptops and computers. According to an
August 2014 report from Ofcom, consumers spend an average of eight hours per month
browsing Facebook on laptops and computers, far greater than the amount of time spent on
Twitter (35 minutes) and LinkedIn (31 minutes). Another commenter observed how technology
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was the go-to leisure activity providing emotional comfort. Is the vision of the future old peoples
homes with nobody talking and everyone texting? Technology has become a comfort blanket.
We reach for our smartphone whenever we have nothing to do.
As consumers increasingly turn to technology during their free time, they inadvertently
lengthen their working hours, taking work-related calls and replying to emails. As a result, 33%
of consumers feel unhappy about the time they devote to work and 40% are neglecting other
parts of their lives, according to a survey by the Mental Health Foundation. In a November 2014
interview with The Guardian, a journalist commented on how the line between work and leisure
has blurred, leading to constant anxiety. Work and leisure used to have a border, and the
Republic of Leisure used to be so peaceful. Now its just 24/7 anxiety. You never know when
youre going to get a text or an email commissioning you to do some work. Or just have your line
manager on the phone wanting to discuss something that, in the past, could have waited until
the following morning.
Consumers are also using the Internet to find local leisure activities they can engage in.
According to a March 2015 report by the Department for Culture, Media and Sport, 49% of
consumers went online to buy tickets to attend exhibitions, the theatre or live concerts, while
70% did so to find out more about artists and events. Consequently, 77% of consumers
attended the theatre or live concerts and 52% visited a museum or gallery at least once in 2014.
According to a February 2015 survey by Horizon, 71% of consumers had gone out for food
and drinks in the past two weeks with 26% doing so to meet friends. Eating and drinking out with
friends and family also accounts for the greatest share of consumer leisure expenditure. In
2014, eating out and drinking out accounted for 62% of monthly leisure spending up from 57%
in 2013, as per a March 2015 report by the brewer Greene King. The report also found that
households with kids spent more when eating out (84.41 per month) than those without kids
(75.67 per month).
A June 2014 report by the Sport and Recreation Alliance revealed that 55% of adults still
participate in outdoor activities at least once a week during their free time. The figure for adults
who did so at least once a month rose to 75%. The most popular outdoor leisure activity was
walking (57%), followed by running (43%) and cycling (41%). Of the three, cycling has seen the
biggest growth in the last decade. According to February 2015 figures released by Transport for
London, cyclists now make up more than a quarter of all traffic in London, a proportion that has
doubled over the last decade. Consequently, Transport for London has approved two new cycle
superhighways across London where cyclists will be segregated from traffic, giving families,
older people and those less confident at riding through traffic a safe route through the centre of
town.
Gardening enjoying a renaissance
According to an August 2014 report by Alfresia, the outdoor furniture company, gardening
outranked visiting cinemas and even family time as the favourite leisure activities among 25- to
35-year-olds. Young adults in a relationship were the most invested in gardening, with couples
spending 12 to 15 hours a month on gardening. They spent 518 on gardening over the
summer of 2014 almost double the figure in 2013.
The report highlighted that young adults were investing more time and money in their gardens
to provide a social place where friends and family can spend quality time together. For many
consumers, gardening is also an opportunity to escape exposure to technology. In an interview
with The Independent, 27-year-old Hugo Bugg, the youngest person to be awarded a gold
medal at the Chelsea Flower Show for 20 years, said, Gardening is going back to nature and
getting away from technology and those sorts of things. Hectic lifestyles have pushed people to
appreciate the outdoors; they want to be close to nature again.
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As celebrities like Mindy Kaling and Zooey Deschanel exhibit their personal gardens on
Instagram, an even younger segment of consumers are turning to gardening. An April 2015
survey by the Royal Horticultural Society found that 89 per cent of 16- to 24-year-olds say they
have a garden or grow plants. For most consumers in this age segment, gardening is not about
building a pretty looking garden. In an interview with The Telegraph, 27-year-old Dale Connelly,
who with his brother runs Skinny Jean Gardeners and serves as the in-house horticulturalists on
the BBCs Blue Peter programme, said, Young people want to use what they grow in the
garden in their cooking, or even in other ways did you know you can make shampoo out of
lemon thyme? Thats whats really exciting.
Consumers turn hobbies into a source of income
Consumers working ethos doesnt stop once people clock off for the day. A December 2014
survey by reed.co.uk found three quarters of consumers (77%) have a part-time hobby that
provides a source of income in addition to a full-time job. They identify themselves as
professional hobbyists.
Photography was the most popular after-work vocation (12%), closely followed by gaming
(11%) and baking (10%). On average, a professional hobbyist took home over 1,800 a year.
Despite being a secondary source of income, consumers treat their hobbies as a serious
commitment with 16% investing over 10 hours a week in their craft. Spending time on their
hobbies also has a positive impact on emotional wellbeing. Almost a third of people (29%)
spend time on a hobby to lift their mood, while over a quarter (27%) happily give up their
evenings to pursue interests that they are passionate about.
Commenting on her part-time pastime, one woman said: During the day I work in fashion
buying and in the evenings I run a card business, where I handcraft individual cards using
stamps. I find making them a great way to wind down after work, even though I have had a huge
amount of Christmas orders recently so Ive been kept pretty busy. Ive found making the most
of my evenings has helped me move away from that living for the weekend mentality and
improved my mood both in work and out.
The study found that having a hobby can also have a positive impact on an individuals day
job. One in three Brits (29%) say having interests outside of work acts as a positive distraction
after a busy day and helps them to remain calm and relaxed in the workplace. An additional
22% find having a hobby makes them more interesting to colleagues and gives them talking
points at the water cooler. Almost one in six (17%) believes the skills developed through parttime passions have supported their day job.
Chart 19
Possession of Selected Home-Tech and Mobile Phones 2000-2020
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Source:
Note:

Vacations
According to December 2014 research by ABTA, the leading association of travel agents and
tour operators, the number of Britons taking a holiday declined from 83% in 2013 to 80% in
2014. The average number of holidays taken per person continued to decline from 3.8 in 2011
to 3.0 in 2014, suggesting consumers continue to feel the squeeze in the cost of living.
Consumers aged 25-34 overtook 16- to 24-year-olds for the first time since 2011 as the most
active in the holiday market, taking an average of 3.7 holidays per year up from 3.2 in 2013. In
comparison, 16- to 24-year-olds took on average 3.4 holidays per year, down from 4.7 in 2012.
It is most common for people to holiday with their partner (50%) or immediate family (35%),
according to ABTAs research. However, one in five consumers (19%) went on holiday with their
extended family (family members from outside the household) in 2014, more than twice the
number compared with 2013 (7%). Individuals aged 16-24 are most likely to go on holiday with
an adult-only group of friends (33%). Those aged over 65 are most likely to holiday alone, one in
five (21%) having done so in the past year, suggesting older age groups are among the most
independent when it comes to taking holidays.
The study also revealed that city breaks overtook beach holidays as the most popular type of
vacation among consumers in 2014. Some 42% of consumers took a city break in 2014 while
38% took a beach holiday compared to 39% and 41% respectively in 2013. All-inclusive
holidays continue to prove popular with 16% of consumers saying they took an all-inclusive
holiday in 2014, while 10% took to the lakes and mountains for their vacation.
The research shows that package holidays are the most popular form of booking
arrangements. The package holiday has advanced significantly over the past five years, with
more than half the population (51%) booking an overseas package holiday in the last 12 months
compared to 37% in 2010. Among domestic travellers, the number of vacationers booking
package holiday grew from 18% in 2013 to 24% in 2014. Consumers prefer packages because
they value having everything taken care of and having the best value option for the price.
The research found that over a third (35%) of consumers think that they will take a holiday to
a new country and almost half (48%) say they are quite likely or practically certain to visit a new
resort or city in 2015. Younger consumers are the most eager to try new destinations with half of
16- to 24-year-olds (49%) saying this was quite likely and a further 16% saying it was certain.
Meanwhile, older consumers are more conservative over half (56%) of over-65s and half
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(51%) of 55- to 64-year-olds said that they would definitely not or would be unlikely to visit a
country they had never been to.
Consumers value the freedom and flexibility of a car vacation
According to a March 2015 survey by Stena Line, more than a quarter (28%) of vacationers
plan to take their car on holiday this year, drawn by the greater freedom to explore as well as
the flexibility to change plans on-the-go. Nearly seven in ten (69%) holidaymakers feel that a
driving holiday provides them with greater freedom and flexibility when on vacation with more
than half (53%) saying that it gives them the opportunity to experience spontaneous happenings
along the way. Another big advantage of travelling by car is the opportunity to buy goods and
take them back home. Local delicacies, souvenirs and wine are some of the goods consumers
are most likely to purchase while on a car holiday.
One of the key reasons drivers take their cars on vacation is the maintenance work on
national railways during the main short-term holiday periods like Easter weekend. According to
RAC estimates, 16 million holidaymakers were set to take to the roads over Easter, with 4
million travelling on Good Friday and 4.5 million on Easter Sunday, as engineering works on
railways caused a significant shutdown of the network. In addition, Virgin Trains and London
Midland cancelled cheap advanced fares, forcing passengers to purchase more expensive offpeak tickets. According to a commenter on a March 2015 Daily Mail article, It's a rip-off. A
journey from London to Liverpool costs 31.50 and involves four trains and a bus for a six-hour
trip, instead of 12 for the normal direct service taking 3 hours 16 minutes. Paying more for
journeys taking longer adds insult to injury. Travelling by car has become a shorter and
cheaper option for holidaymakers.
Passport crisis and unique local attractions drive staycation growth
Staycations became a phenomenon in 2009 as a weak pound made overseas holidays
significantly more expensive. A June 2014 report by Travelodge shows that the staycation has
continued to grow, reaching record levels in 2014, with 74% of consumers holidaying near home
more than double the proportion in 2011.
The 2014 passport crisis, which led to a huge backlog of applications, further boosted
staycations as consumers dropped their overseas holiday plans to go someplace nearer to
home instead. According to data published in September 2014 by VisitEngland, the number of
foreign trips taken by consumers is 16% lower than it was before the recession, while domestic
holidays jumped by 12% between 2008 and 2013. Short trips are the fastest growing type of
vacation, with 29.6 million one- to three-day holidays taken in England in 2013, a 17% increase
on 2008.
As holidaymakers decide to vacation closer to home, they also look for exciting locations and
activities such as the Llamas Pyjamas in Cumbria, where visitors stay in Peruvian-inspired
accommodation by night and trek with llamas by day. According to VisitEngland, these
innovative small firms are helping to boost the staycation trend.
Public Holidays, Celebrations and Gift-giving

The UK has fewer public holidays than other European nations eight in England and Wales
and ten in Northern Ireland. The most prominent of the holidays that call for a social gathering or
exchange of gifts are the New Year and Christmas Day.
Consumers not only celebrate the New Year with friends and family, but also often mark the
occasion by setting a personal resolution. According to a December 2014 poll by AngelsDen,
63% of adults said getting fitter and healthier was one of their resolutions, followed by drinking
less alcohol (57%). Besides physical fitness, financial improvement is a prominent resolution,
with 26% of adults saying they wanted to get out of debt in the coming year.
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Christmas is strongly associated with traditional meals shared with the family. According to a
November 2014 survey by dotcomgiftshop, Christmas dinner is the nations favourite thing about
the festive period, with a third (33%) of people agreeing. Seeing family was a close second, with
31% voting for spending quality time with relatives. The research also found that consumers put
serious effort into finding gifts for others, with 66% spending more than two days shopping for
gifts.
A December 2014 poll by lastminute.com revealed that consumers receive an average of
eight Christmas gifts but dislike two of them. Consequently, they are increasingly turning online
for better gift ideas. Around 61% of consumers found gift ideas from researching Amazon and
50% got ideas from searching on Google, according to December 2014 research by
Searchmetrics. Another 23% turned to Facebook friends, company pages, ads and promotions
for gift ideas. Nearly twice as many women (30%) use Facebook to research gifts than men
(17%).
One of the benefits of looking for gift ideas online is seeing feedback and preferences from
other consumers, as well as participating in online discussions about products with a range of
people, including friends and family. The research found that 32% of consumers find Christmas
shopping less stressful by researching online. Over a quarter (28%) prefer to use the web to
avoid in-store queues and crowds.
GETTING AROUND
Private Transport
The National Travel Survey, published by the Department of Transport in July 2014, found
that consumers made an average of 923 trips per person in a year the fewest since 1995.
Private transport, which accounted for 89% of all trips, was largely made up of car journeys
(64%). The most common trip purpose was shopping (20%), followed by business trips (19%),
visiting friends (15%) and leisure (15%).
Car possession marginally increased from 74% of households in 2005 to just over 75% in
2014. Figures from the Department of Transport show that in 2014, 525,000 more cars were
registered as being on the road compared to 2013 growth of 1.8%. The rise was partly due to
2.5 million new cars being sold in 2014 the most in a calendar year since 2004, according to
the Society of Motor Manufacturers and Traders. Household car possession is predicted to
exceed 76% in the next six years, driven by record low petrol prices. In December 2014, the
RAC predicted that petrol prices would fall below 1 a litre a pump price last seen in late May
2009.
As more Britons take to the road in their cars, congestion has increased. The average speed
on local authority-managed A roads during the morning peak in 2014 was 24.3 miles per hour,
down from 25.3 miles per hour in 2012, according to Department of Transport data. Rising
congestion is driving up the cost of motor insurance. According to a January 2015 study by
Confused.com, car insurance prices grew by 12, or 2%, in the final quarter of 2014 to reach
594 on average, marking the first consecutive quarterly increase since 2011.
Another consequence of growing road congestion is lack of parking spaces. A July 2014
survey by the RAC found that 67% of drivers say there are fewer parking spaces close to their
town or city centre. As parking space becomes a scarce resource, consumers have to pay for it.
More than a fifth (22%) of consumers say they have noticed parking spaces that used to be free
become charged for, and a massive 80% say parking charges have grown since 2013.
Some 65% of consumers told the RAC survey that even when they finally found a space to
park, it was too small for their cars, many of which are wider than previous generations of
vehicle because of the addition of side-impact protection features. As a result of small parking
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spaces, drivers are involved in 1,400 car park collisions every day a 4% rise since 2010 according to a November 2014 report from Accident Exchange.
Away from cars, walking is much more prevalent among consumers than cycling. An April
2014 report from the Department for Transport revealed that 86% of people walk at least once
per month compared to 15% who cycle. Only 7% of consumers cycled for utility purposes at
least once per month (for example shopping or visiting friends), while nearly half (47%) chose to
walk for utility purposes at least once a month.
One of the reasons consumers use their bicycles less is a fear of accidents. The British Social
Attitudes Survey published in July 2014 showed that 61% of all consumers felt it was too
dangerous for them to cycle on the roads up from 59% in 2012 with 48% of cycle-owning
households agreeing. Despite a low incidence of cycling for utility purposes nationally, there are
small pockets where cycling stands out as the top choice of transport such as Cambridge,
where 58% cycle at least once a month, and Oxford, where the figure stands at 43%.
Chart 20
Source:
Note:
Getting Around on Private Transport 2000-2020

Public Transport
Rail passenger numbers increased from 1.1 billion in 2005 to 1.6 billion in 2014, marking 49%
growth. Consumers are also travelling further by rail: rail passenger distance travelled per capita
increased by 32% in the same period. Consequently, consumer expenditure per capita on rail
increased by 51% in real terms between 2005 and 2014 to reach 168.3. The growth is set to
continue with per capita rail expenditure on course to approach 193.4 in 2020.
A January 2015 survey by Passenger Focus revealed that customer satisfaction with railways
dropped slightly from 83% in 2013 to 81% in 2014. When only regional short-distance journeys
were taken into account, the overall satisfaction level was unchanged year-on-year at 84%. The
satisfaction level of passengers using long-distance train services was 86% a decline of 2%
since 2013. Late trains and higher fares were the major culprits behind reduced satisfaction
levels. The research showed that the decline in customer satisfaction was driven by a 2% fall in
passengers rating their trains as punctual and reliable (77%), while less than half believed
increased fares offered value for money. Areas where passenger satisfaction improved were in
the shops, eating and drinking facilities and other services at stations.
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According to December 2014 figures released by the Department for Transport, while rail
accounts for the majority of passenger kilometres (71%), buses account for the majority of
passenger journeys (63%). An estimated 4.71 billion local bus passenger journeys were made
in England in 2014, around 53 million more than in 2013. Most of the growth came from
increased bus use in London, which had grown by 33% since 2005. Bus journeys outside
London remained flat in 2013 and have in fact declined by 5% since 2008.
A 2014 survey by Passenger Focus revealed that 87% of passengers were fairly or very
satisfied with their bus journeys in 2014. The top three factors contributing to a satisfactory bus
journey were on-time service (86% reporting fairly or very satisfied), punctuality (77%) and value
for money (66%). Congestion, departures from the schedule and road works were the most oftcited factors negatively affecting journeys.
According to December 2014 figures published by the Department for Transport, there are 4.1
taxis and private hire vehicles per 1,000 people, most of which are concentrated in London.
Over 300,000 journeys were made by taxi or private hire vehicle in the capital every day in
2014.
Personal safety is a key concern among taxi passengers, with 85% saying it is important to
know if a taxi or private hire car is licensed in order to feel safe while travelling in it, according to
a December 2014 study by the London Assembly. The study also found that 40% of consumers
are more likely to take a cab if mobile apps like Uber help them book and pay for it.
Commuting
The amount of time that commuters spend travelling to and from work has increased by an
extra 11 hours over the past five years, according to Trade Union Congress (TUC) figures
published on November 2014. UK workers spend an average of nearly 211 hours per year, or
the equivalent of more than a months full-time work, commuting to and from work. Londoners
had the longest daily commute time at almost an hour and twenty minutes.
According to the TUC report, travelling by car is the most common way of commuting, with
58% of all commuters choosing to drive and an additional 9% commuting by car as a
passenger. More than one in ten (11%) walk to work, followed by taking the bus (8%), national
rail (5%) and underground trains or trams (4%). Commuters using national rail have the longest
average daily commute of over two hours (131 minutes) while those who walk to work have the
shortest at just under half an hour (29 minutes).
A November 2014 study by Royal Holloway University showed that the number of people
choosing to run to or from work as an alternative mode of transport has tripled in the last two
years. The study found that 50% of such commuters ran both to and from work and that around
60% have been doing so for less than two years. The motivation for running to work ranges from
marathon training to being fed up with public transport and a desire to improve their work-life
balance. In a Telegraph article, a 31-year-old estimated he saved around 1,500 doing the
equivalent of a 10k run each day: I no longer pay for car parking at Alton, nor do I have any
Tube costs and I get into work in a better frame of mind.
An April 2014 survey by investing service Nutmeg.com found that Londoners spent the most
on commuting to work and back 118 a month followed by those in Manchester (78), and
Bristol (74). More than half (51%) of Londoners deemed travel costs expensive. Those based
in Birmingham were happiest with the cost of their commute, with only a quarter (25%) deeming
it expensive.
The Nutmeg survey found that 20% of the workforce commutes because it is too expensive to
buy or rent closer to their workplace. And just over one in five (21%) believes they have a better
standard of living away from work. However, commuters would like to see the cost of their
commute decline. The biggest annoyances among commuters were the cost of commuting and
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traffic jams both picked by 32% of commuters. These were followed by delays (30%),
dangerous or bad drivers (27%) and overcrowding (17%).
A March 2015 survey by First Great Western found that commuters spend 33.5 minutes each
working on the train every day with one in ten passengers doing an extra 45 minutes of overtime
while travelling on trains. Just over a third of commuters (36%) say checking emails is the main
work-related task. Others conduct research, edit documents or send files to colleagues and
clients over the Internet.
Motivated by health concerns, commuters turn to cycling
A March 2015 report by Cyclescheme found that 7% of consumers commute to work on a
bicycle. Those who cycle to work do it on average three times a week covering a distance of 6
to 10 miles per return journey. The top reason why people choose to cycle to work is improving
their health (77%). Almost three-quarters of cycle commuters (74%) say it is an easy way to
build exercise into their daily routine.
Whilst many commuters switch to cycling for health reasons, the research showed it is having
a greater impact beyond weight loss and fitness. Cycle commuters are now seeing a snowball
effect on their health with 48% saying they eat more healthily and 45% saying they experience
less stress at work.
The study found that 61% of cycle commuters have increased the number of times they cycle
to work in a week since they first began. However, infrastructure and lack of support from other
commuters keep consumers from cycling to work more often. When asked what is keeping
cyclists from using their bicycles for commuting more often, 74% pointed towards the lack of
cycle lanes while 62% said motorists negative opinion of cyclists discourages them from cycling
to work as often as they would like.
Word of mouth is a strong influencer in spreading the cycle to work movement, with 71% of
those who cycle to work saying they have encouraged someone else to do the same. The study
found that 27% of current non-cyclists plan to take up cycling to work sometime in the future.
Train commuters go online to browse and buy products
According to a June 2014 survey by KBH On-Train Media, 92% of train commuters use a
smartphone while on the train. The survey found that consumers have on average 50 minutes of
time to kill while doing their daily commute by train. As consumers turn to their smart devices
during their commute, they are less likely to read newspapers, with 41% saying they have not
read the Metro or Evening Standard (free newspapers) in the past 12 months.
The top online activity among train commuters was to browse for products and services
online, with 63% saying they have looked up products and services online on the train and
another 45% saying they have found out more about products and services advertised in the
train. Consumers are even making purchases during the commute with 40% having bought a
product or service via a connected device while on the train, compared to just 10% in 2013.
Chart 21
Getting Around on Public Transport 2000-2020
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Source:
Note:

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Consumer Lifestyles in The United Kingdom

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CONSUMER LIFESTYLES IN THE

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

LIST OF CONTENTS AND TABLES

Lifestyles in United Kingdom ........................................................................ 1

Top Five Consumer Trends .......................................................................................................... 1

Babies and Infants in Focus 2000-2020 ....................................................... 7

Chart3 Kids in Focus 2000-2020 .................................................................. 9

Tweens in Focus 2000-2020 ...................................................................... 11

Teens in Focus 2000-2020......................................................................... 13

Young Adults .......................................................................................................................... 13

Young Adults in Focus 2000-2020 ............................................................. 15

Middle Youth ........................................................................................................................... 16

Middle Youth in Focus 2000-2020 .............................................................. 17

Mid-Lifers in Focus 2000-2020 ................................................................... 19

Late-Lifers in Focus 2000-2020 .................................................................. 21

Housing and Households ........................................................................................................... 21

Home Ownership 2000-2020 ..................................................................... 22

Household Profiles 2000-2020 ................................................................... 23

Running Costs ........................................................................................................................ 24

Household Running Costs 2000-2020........................................................ 25

Money and Savings .................................................................................................................... 25

Borrowing and Saving 2000-2019 .............................................................. 29

Eating and Drinking .................................................................................................................... 30

Food Expenditure Profile 2000-2020 .......................................................... 31

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

Drinking Habits ....................................................................................................................... 32

Drinks Expenditure Profile 2000-2020 ........................................................ 34

Grooming and Fashion ............................................................................................................... 34

Grooming and Fashion Expenditure 2000-2020......................................... 37

Health and Wellness .................................................................................................................. 37

Health of the Nation 2000-2020 ................................................................. 40

Shopping Habits ......................................................................................................................... 40

Where Households Shop for Essentials 2000-2019 ................................... 43

Leisure and Recreation .............................................................................................................. 43

Possession of Selected Home-Tech and Mobile Phones 2000-2020......... 45

Getting Around on Private Transport 2000-2020 ........................................ 49

Getting Around on Public Transport 2000-2020 ......................................... 51

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

CONSUMER LIFESTYLES IN THE

Lifestyles in United Kingdom

TOP FIVE CONSUMER TRENDS

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

Babies and Infants

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

Babies and Infants in Focus 2000-2020

Euromonitor International from national statistics/UN

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

Parents seek to reduce sugar in Kids food to fight obesity

Chart3 Kids in Focus 2000-2020

Euromonitor International from national statistics/UN

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

Tweens in Focus 2000-2020

Euromonitor International from national statistics/UN

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

CONSUMER LIFESTYLES IN THE UNITED KINGDOM

A socially conscious generation of Teens want ethical businesses

Teens in Focus 2000-2020