London — While 22 percent of consumers in the U.K. say they have been better off throughout the past year, 56 percent say they only buy items when they absolutely need them and 36 percent say their financial situation has become more difficult throughout the past year, Mintel Group Ltd. reports.
In addition, 37 percent buy fewer treats for themselves and their families, as keeping up with bills is the top priority for 82 percent of consumers. Saving for big-ticket purchases is a priority for 58 percent and adding to rainy day savings is of great importance to 67 percent of consumers.
“Britons are working harder and saving more money for the future, as a direct consequence of the recession,” researcher Ina Mitskavets says. “The reduced desire to fritter away hard-earned income on 'nice-to-haves' will shape retail offerings and have far-reaching implications for consumer expectations about quality, price product variety and customer service.”
Despite frugality, overall consumer spending is set to grow 17 percent from 2012 to 2017 and in-home food will be a key contributor.
Valued at $99 billion, the in-home food market has potential for growth with 34 percent of Brits cooking or baking more from scratch and value sales increasing 84 percent in the category from 2007 to 2012. Expenditure on crisps, nuts and snacks increased 29 percent throughout the five-year period.