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Children's Online Spending Habits - UK - January 2017

“Some 61% of children spend more money online on digital goods than anything else, driven largely by boys’ gaming purchases. That said, children still demonstrate a general preference for physical stores compared to making online purchases for physical items.”
– Mark Flowers, Research Analyst - Consumer Technology

This report examines the following issues:

  • For six in 10 children, the majority of their online spend is on digital goods
  • Parents want control and curation from online retailers

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Facebook loses class action suit on unauthorised spending
              • European Commission report reveals the impact of ‘advergames’ on children
                • Children’s smartphone ownership nearly on a par with that of adults
                  • Figure 1: Smartphone usage, April 2016
                • Parents are concerned about access to age inappropriate products and how much children are spending
                  • Innovation and market developments
                    • The consumer
                      • Six in 10 14- and 15-year-olds have parental permission to make online purchases
                        • Figure 2: Parents who allow their child to spend money online, by child’s age, August 2016
                      • Children are most likely to make online purchases with a parent’s bank card, but almost a third have used their own
                        • Figure 3: Method of payment for children’s online purchases, August 2016
                      • Parents know what their children are buying online
                        • Figure 4: Parental attitudes towards children’s online spending, August 2016
                      • Control over children’s online spending appeals to parents most
                        • Figure 5: Parental interest in features of online shopping services for children, December 2016
                      • Girls buy clothes and music, while boys favour video games
                        • Figure 6: Children’s online purchases, August 2016
                      • Six in 10 children buying clothes online buy shoes
                        • Figure 7: Children’s online clothing purchases, August 2016
                      • Physical shops are still the default for most children
                        • Figure 8: Children’s attitudes towards online spending, August 2016
                      • What we think
                      • Issues and Insights

                        • For six in 10 children, the majority of their online spend is on digital goods
                          • The facts
                            • The implications
                              • Parents want control and curation from online retailers
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • Parents are concerned about access to age inappropriate products and how much children are spending
                                      • Facebook loses class action suit on unauthorised spending
                                        • European Commission report reveals the impact of ‘advergames’ on children
                                          • Children’s smartphone ownership nearly on a par with that of adults
                                            • Innovation and market developments
                                            • Market Drivers

                                              • Facebook loses class action suit on unauthorised spending
                                                • European Commission report reveals the impact of ‘advergames’ on children
                                                  • Children just as likely as adults to have their own smartphone
                                                    • Figure 9: Smartphone usage, April 2016
                                                  • Parents are concerned about access to age inappropriate products and how much they are spending
                                                    • High-street banks make debit cards available from age 11
                                                      • ‘Ask to buy’ comes to mobile devices
                                                        • Innovation and market developments
                                                          • goHenry secures £4 million on Crowdcube
                                                            • Thumbzap wants to add ‘just ask’ as a payment option online
                                                              • Nickel
                                                              • The Consumer – What You Need to Know

                                                                • Six in 10 14- and 15-year-olds have parental permission to make online purchases
                                                                  • Children are most likely to make online purchases with a parent’s bank card, but almost a third have used their own
                                                                    • Parents know what their children are buying online
                                                                      • Control over children’s online spending appeals to parents most
                                                                        • Girls buy clothes and music, while boys favour video games
                                                                          • Six in 10 children buying clothes online buy shoes
                                                                            • Physical shops are still the default for most children
                                                                            • Payment Methods for Children’s Online Purchasing

                                                                              • Six in 10 14- and 15-year-olds have parental permission to make online purchases
                                                                                • Figure 10: Parents who allow their child to spend money online, August 2016
                                                                                • Figure 11: Parents who allow their child to spend money online, by child’s age, August 2016
                                                                              • Children are most likely to pay with a parent’s bank card online, but almost a third have used their own
                                                                                • Figure 12: Method of payment for children’s online purchases, August 2016
                                                                              • Those who have their own bank card are more willing to make online purchases
                                                                                • Figure 13: Method of payment for children’s online purchases, by children using their own bank card to make online purchases, August 2016
                                                                            • Parental Attitudes towards Children Spending Money

                                                                              • Parents know what their children are buying online
                                                                                • Figure 14: Parental attitudes towards children’s online spending, August 2016
                                                                              • Girls are encouraged to buy in-store, while boys are more willing to spend online
                                                                                • Figure 15: Parental attitudes towards children’s online spending, by child’s gender, August 2016
                                                                              • Parental perception of financial recklessness impacts children’s online shopping habits
                                                                                • Figure 16: Parental attitudes towards children’s online spending, by children’s attitudes, August 2016
                                                                            • Parents and Online Shopping Services for Children

                                                                              • Control over children’s online spending appeals to parents most
                                                                                • Figure 17: Parental interest in features of online shopping services for children, December 2016
                                                                              • Awareness and usage of online shopping services for children is low
                                                                                • Figure 18: Parents who have heard of online shopping services for children, December 2016
                                                                                • Figure 19: Parents who have used online shopping services for children, December 2016
                                                                            • Children’s Online Purchases

                                                                              • Girls buy clothes, books and music, while boys favour video games
                                                                                • Figure 20: Children’s online purchases, by gender, August 2016
                                                                                • Figure 21: Children’s online spending on video games, August 2016
                                                                              • 75% of children have bought at least two types of item online
                                                                                • Figure 22: Repertoire of children’s online clothing purchases, August 2016
                                                                              • Six in 10 children buying clothes online buy shoes
                                                                                • Figure 23: Children’s online clothing purchases, August 2016
                                                                                • Figure 24: Repertoire of children’s online clothing purchases, August 2016
                                                                            • Children’s Attitudes towards Online Spending

                                                                              • Physical shops are still the default for most children
                                                                                • Figure 25: Children’s attitudes towards online spending, August 2016
                                                                              • Girls prefer the experience of real shops, while boys are buying digital goods
                                                                                • Figure 26: Selected attitudes towards online spending, by child’s gender, August 2016
                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                • Abbreviations
                                                                                  • Consumer research methodology

                                                                                  Companies Covered

                                                                                  To learn more about the companies covered in this report please contact us.

                                                                                  Children's Online Spending Habits - UK - January 2017

                                                                                  US $2,478.79 (Excl.Tax)