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In 1992, Key Note estimates that the UK home
leisure market was worth an estimated £35.7bn, an increase of 6.1 percent on the
1991 total. The sector accounts for 42 percent of all spending on UK leisure
activities according to Key Note estimates. Although the majority of leisure
spending (58 percent) is still generated outside the home, the percentage of total
spending attributed to home-based leisure activities has increased slightly
over the last few years.
The above figures are based on home leisure
activities involving adults and the key sectors described in this report are:
audio visual hardware and software; television and radio broadcasting; reading;
eating, drinking and entertaining at home; gardening; adult board games; home
exercise; hobbies and pastimes. Computer games are excluded because the
majority of consumers are children or young teenagers and DIY and car
maintenance are also omitted.
The largest sector of the market is the
takeaway alcoholic drinks market, boosted by worries about drinking and driving
and the availability of a wider range of beers and wines for home consumption.
The next largest sectors are leisure durables and reading material. The leisure
durables market, involving televisions, video recorders and audio equipment,
has struggled during the recession. Demand for reading materials, notably
books, newspapers and magazines, has remained fairly static. The major growth
sectors in the home leisure market have been takeaway foods, cable and
satellite television and CD players and CDs. The gardening and home exercise
markets have also performed reasonably well.
Eating at home has become
an important part of the home leisure sector, boosted by the growth in
ownership of barbecues and the trend towards more informal eating occasions,
involving friends. The spread of home delivery services for pizzas, Indian,
Chinese and other fast foods has also helped to expand this segment of the
market. The number of households linked to satellite and cable systems is still
relatively low so further growth in these markets is expected.
Suppliers to the market include manufacturers, retailers, catering and
media, and broadcasting organisations and, in the network of converging and
often linked sub-sectors that make up the market. The key companies range from
multinational organisations to local family-run businesses or franchises.
International operators include the large consumer electronics companies, most
of whom are based in the Far East, worldwide broadcasting and media
organisations like News International, Hollywood film makers such as Warner and
Paramount and international fast food chains like Pizza Hut and McDonalds.
Major UK companies involved in the sector are Amstrad, Whitbread, WH Smith,
Woolworths, BBC Enterprises and Reed International.
The home leisure
sector is likely to increase its share of the total leisure market over the
next few years as new technological developments, including CD-I, wide-screen
televisions and digital compact cassettes, are taken up by more consumers.
Demographic trends, notably the rise in the number of middle-aged people and
the growth in the proportion of 25 to 44 year-olds will also encourage growth
in key sectors, such as electronic-based home leisure, eating and drinking, and
gardening.
Text © 1993 Key Note
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© 1999 www.the-list.co.uk Ariadne
Last updated by Duncan Nottage 5th March 1999