2023
9
UK Consumer Trends, Attitudes and Spending Habits for the Home Market Report 2023
2023-02-09T03:07:13+00:00
OX1154789
2195
160438
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Report
en_GB
“The necessity nature of the home market will remain important amid the downturn as consumers shift from spending on the bigger-ticket projects seen in 2021 to lower-ticket purchasing where consumers…

UK Consumer Trends, Attitudes and Spending Habits for the Home Market Report 2023

£ 2,195 (Excl.Tax)

Description

Understand the latest consumer trends, attitudes and spending habits when shopping for the home with our comprehensive market report. Packed with valuable insights on the impact of the cost-of-living crisis on the home improvement industry and consumer spending in the home, how consumer behaviour has changed, and how brands and retailers can respond to this. Read on to discover our insights.

Consumer Shopping Habits for the Home – Market Outlook

The home market will be impacted by the cost-of-living crisis as consumers shift their spending behaviours to be value driven. Consumer spending on the home is estimated to have declined by -1.7% in 2022. 

However, despite a decline in the market size, the necessity nature of the home market will continue to be supported despite these challenging times. 

Home Improvement Consumer Trends and Attitudes

Mintel’s market research found the biggest motivation to purchase for the home is necessity, almost half of consumers are planning to spend or are spending on the home to replace worn out or broken items. Moreover, smaller projects around the home, such as redecorating, remain popular. 

Home Improvement Consumer Spending Habits and Behaviour

With the rising cost of living, consumers have shifted to more value-oriented behaviours.  UK consumer spending habits are price-driven. More than half of consumers say that when choosing where to shop for products for the home, price is more important to them than it was last year.

Home Retail Industry – Market Opportunities

Retailers can support consumers’ economic concerns by offering financial support. Bigger-ticket home projects require a bit more financial planning and money to complete. Retailers can offer buy now, pay later schemes, or partner with alternative payment options like Klarna, to help consumers separate the cost of items and encourage them to purchase.

Read on to learn more about our Consumer Trends, Attitudes and Spending Habits for the Home Market Report, or take a look at our extensive research in the retail sector.

Quickly Understand

  • The impact of the cost of living crisis and economic downturn on consumer spending on the home.
  • How has the pandemic continued to shape the home market?
  • How brands and retailers respond to shifting consumer behaviour?
  • How brands and retailers can promote value for consumers seeking to purchase for the home?

Products and Brands Covered in this Report

Products: This report looks at consumer attitudes towards spending on the home. Broadly it will take in: furniture, carpets, decorating, the garden, energy (savings), security, home extensions, smart home developments.

Brands: IKEA, John Lewis, Currys, Waitrose, B&Q, Next, Screwfix.

Expert Analysis from a Specialist in the Field

This report, written by Bridget McCusker, a leading analyst in the retail sector, delivers in-depth commentary and analysis to highlight current trends in the UK home retail market and add expert context to the numbers.

The necessity nature of the home market will remain important amid the downturn as consumers shift from spending on the bigger-ticket projects seen in 2021 to lower-ticket purchasing where consumers can make small improvements to the home whilst they mitigate the strains of rising prices. Many will turn to their home as a place of entertainment as many will look to cut costs in other categories.

 

Bridget McCusker
Retail Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for spending on the home
      • Figure 1: Category outlook, 2023-28
    • Spending on the home is expected to decline by -1.7% in 2022
      • Figure 2: Market size for spending on the home, 2017-22 (est)
    • Spending on the home is expected to grow slightly post-economic downturn
      • Figure 3: Market Forecast for Spending on the home market, 2017-27
    • Household appliances feel the impact of the economic downturn
    • Housing market will cool off from strong demand brought on by pent-up pandemic savings
    • Companies and brands
    • Retailers will pass costs onto consumers
    • Value needs to be explicit for retailers to navigate the economic downturn
    • The consumer
    • Softer year for consumer spending on the home
      • Figure 4: Consumer spending on the home, 2020-2023
    • Spending on the home is feeling the strains of the economic downturn
      • Figure 5: Levels of expenditure on the home in the last year, 2023
    • Necessity drives purchasing for the home
      • Figure 6: Triggers to purchase for spending on the home, 2023
    • Smaller projects around the home remain popular
      • Figure 7: Intentions to spend on the home, 2023
    • Consumer behaviour is price-driven
      • Figure 8: The legacy of the pandemic, 2022
    • Home is an important place for many
      • Figure 9: Attitudes towards purchasing for the home, 2022
  3. Issues and Insights

    • Constant streams of noise amid growing economic uncertainty
    • Financial support from retailers can lead to purchasing for the home
    • Retailers must support consumer missions
    • Retailers supporting environmental missions
    • Greener solutions
  4. Market Size and Performance

    • Home continues to be prioritised post-peak of the pandemic
    • Demand becomes more polarised
      • Figure 10: Market size for Consumer Trends, Attitudes and Spending Habits for the Home, 2017-2022
  5. Market Forecast

    • Necessity of the home promotes spending
      • Figure 11: Category outlook, 2023-28
    • Spending growth will be marginal amid the economic downturn
    • Necessity maintains spending on the home
    • Consumer budgets tighten
      • Figure 12: Market forecast for spending on the home, 2017-27
      • Figure 13: Market forecast table, 2017-27
    • Learnings from the last income squeeze
    • Forecast methodology
  6. Market Segmentation

    • Rising cost of living has consumers partaking in DIY projects
    • Appliances feel the impact of the downturn
    • Flexible living spaces extend to the outdoors
      • Figure 14: Consumer expenditure on the home, by category, 2022 (est)
      • Figure 15: Consumer expenditure on the home, by category, 2019-22
  7. Market Drivers

    • Inflation is the key concern for consumers and brands…
    • …and despite Government support, energy prices are still a major concern
    • Rising interest rates mean that the pressure will move up to middle- and higher-income households
    • The housing market remains strong for now
      • Figure 16: Monthly UK house price rates of change for all dwellings, 2020-22
    • High inflation and rising interest rates will compound the impact of the slowing recovery
    • Consumer spending power will be curbed
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 17: Household financial wellbeing index, 2009-22
    • …and most people are feeling the effects of price rises
    • Pent-up savings from pandemic restrictions
      • Figure 18: UK Monthly Spending on Credit and debit cards on social activities, 2020-22
    • Home ownership during an economic downturn
      • Figure 19: English housing tenure, 2016-21
    • More consumers will resort to credit
      • Figure 20: Quarterly growth rate of credit borrowing, 2020-22
  8. Competitive Strategies

    • Cost of living crisis impacts operations
    • Kingfisher reports downturn in profits
    • Made.com entered administration
    • IKEA manages economic uncertainty
    • Consumers look to retailers to help them in the midst of the downturn
    • Circularity of products for John Lewis by 2025
  9. Launch Activity and Innovation

    • Retailers offer value to consumers
      • Figure 21: John Lewis ANYDAY range, 2021
      • Figure 22: Currys repair initiative, 2022
    • Garden centre retailers diversify offerings to broaden appeal
      • Figure 23: Waitrose and Dobbie’s partnership, 2022
    • Retailers can play a role in helping self-sufficiency
    • B&Q continues launch of its convenience store concept
    • Renting tools in metro stations in Berlin
      • Figure 24: Rentool system by thingk.systems, 2020
    • Brands must align with consumers’ values
    • Electrolux launches GRO – a sustainable modular kitchen range
      • Figure 25: Electrolux GRO sustainable kitchen concept, 2022
    • Smart technology supports sustainable values
      • Figure 26: Signify introduces lightening ecosystem, WiZ, 2022
    • Environmentally-friendly alternatives for the home
      • Figure 27: Alusid launches silicastone, 2022
    • Myceen creates home furnishings
      • Figure 28: Myceen creates home items made from carbon-negative materials, 2022
  10. Consumer Spending on the Home

    • Softer year for consumer spending on the home
    • Smaller-ticket home projects grow amid the economic downturn
    • But bigger-ticket home projects still remain popular
      • Figure 29: Consumer spending on the home, 2019-22
    • Consumers want a safer a home
      • Figure 30: Consumer spending on home security based on family type & income, 2022
    • Energy efficiency is important across income levels
      • Figure 31: Consumer spending on the home by financial situation, 2022
  11. How Much They Spend

    • More than half of consumers are spending over £500 on the home
    • Spending on the home is feeling the strains of the economic downturn
      • Figure 32: Levels of expenditure on the home in the last year, 2022
      • Figure 33: Levels of expenditure on the home in the last year based on financial situations, 2022
    • Homeowners lead investment
      • Figure 34: How much they spent on their home in the last 12 months based on housing tenure, 2022
  12. Triggers to Purchase

    • Necessity drives purchasing for the home
      • Figure 35: Triggers to purchase for spending on the home, 2022
    • City-dwellers seek to increase the functionality of their space
      • Figure 36: Triggers to purchase based on residency, 2022
    • Many want their home to reflect their style
      • Figure 37: Triggers to purchase on reflecting a sense of style by income level, 2022
    • Renters are purchasing to make their spaces their own
      • Figure 38: Triggers to purchase based on housing tenure, 2022
  13. Intentions to Spend on the Home

    • Smaller projects around the home remain popular
      • Figure 39: Intentions to spend on the home, 2022
    • Energy-efficient home projects offer pay-off in the future
      • Figure 40: Intentions to spend on energy efficiency home projects based on income levels, 2022
    • Many seek out security with smart technology
      • Figure 41: Intentions to spend on home security based on household type and income, 2022
  14. Priority Shifts

    • Consumer behaviour is price driven
      • Figure 42: Priority shifts, 2022
    • Retailers need to offer consumers more in the midst of the economic downturn
      • Figure 43: Most important purchasing factor based on financial situation, 2022
    • Fashionable products popular among those aged 16-34
      • Figure 44: Fashionable products as being the most important purchasing factor among age group, 2022
  15. Attitudes Towards Purchasing for the Home

    • Home is an important place for many
      • Figure 45: Attitudes towards purchasing for the home,2022
    • Younger consumers spending more time at home
      • Figure 46: Attitude towards entertaining friends at home is just as good as going out based on gender and age, 2022
    • Cost of living impacts on home spending
      • Figure 47: Attitudes towards purchasing for the home relating to rising cost of living, 2022
    • Consumers are more likely to delay spending on the home
      • Figure 48: Delayed spending on the home based on financial situation, 2022
    • Growth of DIY due to economic downturn
      • Figure 49: Attitudes toward the home – CHAID – Tree output, October 2022
      • Figure 50: Consumer Trends, Attitudes and Spending Habits for the HOME – CHAID – Table output, October 2022
      • Figure 51: Consumer Trends, Attitudes and Spending Habits for the HOME – CHAID – Table output, October 2022
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  17. Appendix: Forecast Methodology

    • Market forecast and prediction interval
      • Figure 52: Consumer spending on the home, best- and worst-case forecast, 2022-27
    • Market drivers and assumptions
    • Forecast methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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