While the ultimate outcome of Brexit may be uncertain, Mintel’s flagship British Lifestyles report reveals that consumers are braced for an expensive future ahead. Over four in five (83%) Brits are currently concerned about seeing price rises on goods and services, with 59% worried about the mounting cost of groceries, 35% worried about the climbing cost of holidays and 26% fearing that clothes prices will ascend.
According to the London, England-headquartered market research company, 46% of UK consumers say that Britain’s vote to leave the European Union will have a negative impact on their cost of living, with this proportion unchanged from when the question was first asked in July of 2016, immediately following the referendum result. However, attitudes towards Brexit’s impact on the economy appear to have softened, as 31% now believe it will have a negative impact on the UK’s economic growth – down from 39% in July 2016.
Jack Duckett, senior consumer lifestyles analyst at Mintel, commented: “Following the UK’s vote to leave the EU, there has been a great deal of discussion about how it will impact the price of goods and services. Mintel research underlines particular concern about the rising cost of in-home food, and inflation is undoubtedly going to squeeze household budgets. However, broader consumer confidence is still relatively strong. Despite rising prices, most people still expect their finances to hold up well over the next year.”
Notwithstanding the political turbulence, Mintel research found that consumer expenditure rose by 3.7% in 2016 to reach £1.2 trillion. While growth was seen in nearly all of the 17 individual sectors included in Mintel’s British Lifestyles report, it was notably lower across all fast-moving consumer goods markets, reflecting ongoing supermarket price wars.
By 2021, it is projected that Britons will spend £1.4 trillion per annum, with growth of 17% expected over the next five years. Mintel predicts that the foodservice business will flourish during this period, along with personal finance and leisure and entertainment. At the same time, household care, technology and clothing and accessories markets are expected to face challenges.
‘Better for You’ Foods Appetite
Among many highlights published in the report, it was underscored that health-conscious shoppers are whipping up sales of ‘better for you’ foods.
Fish, nuts, popcorn and free-from foods were all rising stars in the in-home food category in 2016 as Brits continue to jump on the health wagon. Sales of chilled fish and shellfish grew by 3% in last year, while sales of “free-from foods” rose by 16%, popcorn popped by 10% and nuts grew by 3%. On the other hand, pasta, pre-packed bread and processed poultry and meat all saw declining sales in 2016 due to their perceived negative health implications. While sales of pasta fell by 4% last year, pre-packed bread sales were sliced by 10% and processed poultry and red meat were carved by 4%.
Mintel research shows that the eating habits of Brits are changing. One in three (33%) say they have tried eating less meat, while half (50%) of those who eat fish say that for health reasons they are consuming more of it than a few years ago. What’s more, over one in five (22%) are limiting their carbohydrate intake, with 20% of users regularly substituting pasta, rice and noodles with vegetables in the style of familiar carbohydrates. Bread use in particular is going stale with just a third (34%) of Brits saying they had eaten packaged sliced bread at least once a day in 2016, down from 47% in 2014.
Now in its 27th year, Mintel’s British Lifestyles report tracks spending across all major consumer markets. Priced at £2,195, it is available for purchase by visiting www.mintel.com.
