Trends in Leisure Activities Market Assessment
- ID: 3914
- January 2001
- Region: United Kingdom
- Key Note Ltd
The lifestyles of UK residents have changed considerably over the past few years, and a key element in this development has been the change in the pattern of their leisure activities.
This report considers both current and future demand for the products and services that meet the needs of this market and its segments. It also examines how suppliers are adapting to these changes and providing products to address new needs.
The report draws upon the results of research conducted on behalf of Key Note by NOP, establishing the extent to which patterns of leisure activity vary across various segments of the UK population.
Over the past 5 years, not only has total UK consumer spending been increasing more rapidly than household income, but leisure activities have also been increasing their share of consumer spending. Although leisure activities may be considered as `non-essential', many consumers rank them highly on their list of spending preferences, once the necessities of life are provided for.
Several economic influences affect the decision to purchase the products of the leisure activities sector, and at present most of these indicators are favourable. Unemployment continues at a low level, and consumer confidence remains high. UK economic expansion is expected to proceed at a sustainable rate, leading to continued growth in consumer spending in general and spending on leisure activities in particular.
UK government policies will continue to recognise the contribution made by the industries that support leisure activities, although regulatory controls will continue to be a constraint.
Social and demographic changes, notably changes in the age profile of the population and reductions in household size, are likely to affect the balance between different leisure activities. However, these effects will be felt mainly in the longer term, with the short-term outlook continuing to be influenced more by fluctuations in the economy.
Among technological developments, the development of the information society, and its acceptance by many sectors of the UK population has implications for the marketing, advertising and distribution of many of the products of the leisure activities sector. Technologically driven innovation will continue to have an impact on this market, with the role of the Internet becoming increasingly important over the next 5 years.
These developments will have an impact on the range of leisure products and services on offer and on the ways in which they are marketed, advertised and distributed.
Along with the travel trade, the leisure activities sector is a business well suited to take advantage of the unique feature offered by the Internet and other new technologies. It faces few of the problems caused by the need to ensure the physical delivery of items to a customer's home address.
The electronic ticketing of items such as cinema and theatre seats, the electronic delivery of music and the operation of hi-tech gaming over the Internet, and other forms of betting via interactive TV are technologically feasible. Many of these innovations are already in place, even if not widely adopted.
Most out-of-home leisure activities involve the purchase of a service or an experience, such as a theatre or cinema performance, entry to a museum or theme park or the enjoyment of eating out. On the other hand, many home-based activities involve the purchase or hire of leisure equipment, such as television sets, video cassette recorders and CD players, records, CDs and DVDs, or DIY and gardening materials, although services such as subscriptions to the Internet, cable or satellite TV are also purchased.
For out-of-home activities, the emphasis has been on a greater variety of experience, with health-related activities a particular growth area. With home-based leisure products, innovation has been increasingly based on technological development, including communications via the Internet, digital television and DVDs.
Because of the diverse nature of this market, the competitive structure of the industry that serves it is also diverse. Many sectors of the industry are highly fragmented, notably restaurants, pubs and clubs, and the sports hobbies and exercise sectors, although even within these sectors there are some large operators. At the other extreme, the cinemas and attractions and media sectors are far more concentrated.
Overall, because of the size of the contribution made by the larger operators their contribution to total sector turnover outweighs that of the small and medium-sized firms. This means that in subsectors where the larger operators dominate the market, competition is somewhat limited.
This report presents detailed forecasts for each of the main sectors of the leisure activities market. These are based on the assumptions that the UK economy will continue to achieve steady sustainable growth, and that there will continue to be a steady increase in the share of expenditure on leisure activities as a percentage of total consumer spending. SHOW LESS READ MORE >