2023
9
UK Consumers and Investing Market Report 2023
2024-01-08T10:01:36+00:00
REP14590014_B03F_4088_9A0E_00625C0AA9BE
2195
169399
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Report
en_GB
Although many challenges persist, there is ample scope to expand the retail investment fund market. Sarah Hitchcock, Associate Consultant – Financial Services…

UK Consumers and Investing Market Report 2023

£ 2,195 (Excl.Tax)

Report Summary

UK households are continuing to feel the effects of inflation, while many mortgage borrowers and renters are facing added financial pressure due to the recent surge in interest rates. It means that most people across the wealth spectrum have reduced capacity to save and invest, despite significant interest in doing so.

Key Issues Covered in this Report

  • Assessment of the retail investment fund market in terms of its size and medium-term outlook.
  • Impact of the cost of living crisis, higher interest rates and market turbulence on investing behaviour and capability.
  • Consumer usage of investment platforms, by brand, versus other channels (eg adviser, digital wealth manager).
  • Evaluation of expected investment activity over the coming year.
  • Investor attitudes towards socially responsible investments and mobile investing, concerns about investment performance and areas needing help with (eg rebalancing portfolio).

UK Consumer Investment Market Landscape

  • UK consumer investment market size: Following two years of strong growth, gross retail fund sales fell by 11% in 2022, reflecting a decline in investor sentiment.
  • UK consumer investment market forecast: Gross sales are set to continue their upward climb over the next five years, with Mintel’s central forecast seeing the market growing to £465 billion by 2028.

UK Consumers and Investing – Market Trends

Investor uncertainty and low confidence can exacerbate and prolong market volatility, as well as depress demand. Encouraging a more positive attitude by extolling the benefits of taking a pragmatic, long-term view will help stem the outflow of money from ISAs, and equity funds in general.

Despite a challenging economic backdrop, appetite for investing remains strong, especially among younger adults. There is also an opportunity to target the 58% of people with £10,000 or more in savings who lack investments. Around half of these are interested in investing, but are likely to need help taking the first step.

Expert Analysis from a Financial Services Specialist

Although many challenges persist, there is ample scope to expand the retail investment fund market.

Sarah Hitchcock
Associate Consultant – Financial Services

Table of Contents

    • Key issues covered in this Report
  1. Executive Summary

    • Opportunities for the retail investment market
    • Market dynamics and outlook
    • Graph 1: type of investment platform used within the past two years by DIY/guided investors, 2023
    • What consumers want and why
    • Graph 2: ownership of saving and investment products, 2023
    • Graph 3: types of investment held (three broad categories), by age, 2023
    • Graph 4: interest in investing in the future by non-investors, by age, 2023
    • Graph 5: sources expected to be used within the next 12 months for investment tips and information, by existing and prospective investors, 2023
    • Innovation and marketing
  2. Market Dynamics

    • Size of the retail investment fund market
    • Graph 6: gross and net retail investment fund sales, 2018-23
    • Market forecast
    • Graph 7: gross and net retail unit trust and OEIC sales, 2007-11
    • Market segmentation
    • Graph 8: [no title]
    • Graph 9: net retail tracker versus actively managed fund sales, 2020-22
    • Channels to market
    • Graph 10: channel used to arrange/buy funds and other investments by retail investors, 2023
    • Investment platform market share
    • Graph 11: investment platform/apps used within the past two years by DIY/guided investors, 2023
    • Market drivers
    • Graph 12: index of financial confidence in the next year, 2016-23
    • Regulatory and legislative changes
  3. What Consumers Want and Why

    • Amount of cash savings
    • Graph 13: amount of cash savings held, 2023
    • Graph 14: ownership of savings and investments, 2022 and 2023
    • Graph 15: non-investors’ intentions to invest in the future, by amount of savings held, 2023
    • Types of investment held
    • Graph 16: ownership of saving and investment products, 2002 and 2023
    • Graph 17: ownership of saving and investment products, investors only, 2002 and 2023
    • Expected investment activity by existing investors
    • Graph 18: likelihood of undertaking activity within the next 12 months by existing investors, 2023
    • Intentions to invest by non-investors
    • Graph 19: interest in investing in the future by non-investors, 2023
    • Sources of investment information
    • Graph 20: sources expected to be used within the next 12 months for investment tips and information, by existing and prospective investors, 2023
    • Investment needs, preferences and concerns
    • Graph 21: investment preferences and needs, by existing and prospective investors, 2023
    • Graph 22: investor behaviours, needs and concerns by existing investors, 2023
  4. Innovation And Marketing Trends

    • Competitive strategies and recent launch activity
    • Advertising and marketing activity
    • Graph 23: total above-the-line, online display and direct mail advertising on investment products, 2019-23
  5. Appendix

    • Supplementary data
    • Market forecast data and methodology
    • Report scope and definitions
    • 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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2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

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