All Industries

Retail

UK Direct to Consumer Retailing Market Report 2024

UK Direct to Consumer Retailing Market Report 2024

Following several years of rapid growth, direct to consumer (D2C) sales have been plateauing since 2021. While a technical definition exists between D2C and traditional retail, most consumers are unaware of this and therefore they expect the same experience when shopping directly. Therefore, alongside a solid online presence, pop-ups and flagships are an important way to reach more consumers.

UK Direct to Consumer Retail Market – Current Landscape

Brands in the UK retail industry have been reaching consumers through an expanding array of channels, with marketplaces, and to a growing extent, social media, now capturing more traffic and spending that traditionally passed through third-party retailers and brands’ D2C websites. The challenge today lies in standing out, finding ways to rise above the crowd, attract and keep new and existing customers.

One way that primarily digital D2C brands can do this is by finding physical space to create meaningful connections with consumers. Pop-ups or even one-off permanent flagships can be used to embody a brand’s design and style, enabling businesses to tell their story. Showcasing their products in a premium environment will help shoppers learn about the brand’s culture while also experiencing its products firsthand.

UK Direct to Consumer Market Statistics

Popular brands in the D2C channel: Nike and Adidas are the most directly purchased brands in the last year.
Direct to consumer retail demographics: Older generations, such as Baby Boomers and Generation X, are least engaged with D2C purchasing.

UK Direct to Consumer Retailing Market Report – What’s Inside?

Key Topics Analysed in the Report

How the financial recovery among affluent shoppers should provide a boost for D2C brands which target the more premium market.
The importance of a presence in the physical sector for D2C brands.
Rising consumer expectations for personalised service and customised products that D2C brands are well positioned to tap into.
Which D2C businesses are building momentum, and the relative awareness and usage of leading brands.
The reasons why consumers choose to buy direct, and ways that brands can retain their loyalty.
Elements which create success for D2C brands, including exclusivity, nostalgia, sustainability and wellness.

Report Scope

For the purposes of this report, Mintel has used the following definitions:

Direct to Consumer (DTC/D2C) – is a retail strategy where brands sell their products directly to their consumers instead of going through a retailer. This is often completed online, and examples of D2C brands include but are not limited to Made, Allbirds, HelloFresh, Glossier, Gymshark, etc.

The report also covers brands which can not be classed under the technical definition of ‘D2C’ but for which direct selling, either via their own channels or via marketplaces, constitutes a significant element of their business.

Meet the Expert Behind the Analysis

This report was written by Natalie Macmillan. Natalie is a senior analyst with over 25 years’ experience researching and writing reports for Mintel’s European retail market coverage. She now specialises in the French market.

With the finances of more affluent consumers recovering, premium demand is rising, giving D2C brands that can offer something different, a chance to secure a market foothold and expand retail distribution.

Natalie Macmillan
European Analyst – Retail

Collapse All

Executive Summary
- Opportunities for the D2C market
- Use pop-ups or flagship stores to reach more consumers
- Physical space can offer the personal touch…
- …and create unique experiences
- Create exclusivity through scarcity and limited editions
- Help forge strong emotional connections with customers
- Go the extra mile on sustainability issues…..
- …to stand out against mediocre big business voices
- Market dynamics and outlook
- Market outlook for the D2C market
- Affluent consumers drive the return of premium demand
- Graph 1: financial confidence for the coming year, by income bracket, 2024
- The evolving role of social media
- Sustainability and ethical transparency are key
- What consumers want and why
- Almost six in ten have bought directly from a brand
- Graph 2: purchasing of products via the D2C channel in the last 12 months (net), 2024
- Direct and indirect purchasing is relatively even for most brands
- Graph 3: purchasing of selected brands that sell via the D2C channel in the last 12 months, 2024
- Only a few emerging D2C brands are cutting through on awareness
- Graph 4: awareness of emerging D2C brands, 2024
- Perceptions of obtaining a better price are biggest motivation for buying direct
- Graph 5: factors that would motivate people to buy direct from a brand, 2024
- Good customer service keeps shoppers loyal
- Graph 6: factors that would encourage D2C buyers to continue purchasing from that brand, 2024
- Testimonials and seeing the product key to choice of D2C brands
- Graph 7: attitudes towards shopping directly with brands, 2024
- Leading D2C players
- Successful ways to stand out in a market
- Innovative products finding gaps in a market
- Brands can inspire, and benefit from, the wellness trend
Market Dynamics
- Online market size and D2C spending
- Growth returning to the online sector
- Graph 8: market size for all online retail sales (inc. VAT), 2019-24
- Online sales to grow by a fifth by 2029
- Rapid growth in D2C sales during the pandemic, but plateauing since
- Graph 9: sum of known D2C retailers’ sales, 2019-23
- Leading D2C retail brands
- Post-pandemic income squeeze has forced many D2C businesses into survival mode…
- …and many businesses have failed
- Graph 10: total number of VAT and/or PAYE based non-store retailers, 2019-2024
- Social media platforms are evolving into shopping hubs
- TikTok is building scale as a true social commerce platform
- TikTok Shop sees rapid growth as social commerce climbs on the agenda
- New customers driving growth at the disruptive players
- Graph 11: fastest growing major non-food retailers and platforms, monthly number of transactions within cohort, 2023-24
- Graph 12: fastest growing major non-food retailers and platforms, monthly number of customers within cohort, 2023-24
- Market drivers
- Day-to-day confidence remains shaky
- Graph 13: the financial wellbeing index, 2016-24
- Perceptions of the cost-of-living crisis
- Graph 14: perception of the state of the cost-of-living crisis in the UK, 2024
- A diverging financial recovery
- Graph 15: expected behaviour changes in the next two months, by financial position, 2024
- Two back-to-back months of volume growth boost retailers’ sales, but market remains tough
- Graph 16: all retail sales (excl fuel), non-seasonally adjusted year-on-year performance, value and volume, 2023-24
- More seasonality returning to online demand
- Graph 17: all online sales, non-seasonally adjusted, year-on-year change in value, 2023-24
- Sustainability concerns rising up the agenda
- AI divides opinion but younger millennials are positive about it
- Graph 18: “I think AI will have a positive impact on my life”, by generation, 2024
What Consumers Want and Why
- Purchasing from D2C brands
- Nike and Adidas are the most popular brands in the D2C channel
- Direct and indirect purchasing is relatively even for most D2C brands
- Graph 19: purchasing of selected brands that sell via the D2C channel in the last 12 months, 2024
- Retail is important for expanding the reach of D2C brands
- Graph 20: purchasing of selected D2C brands in the last 12 months, by method, 2024
- Most leading D2C brands are failing to engage effectively with women
- Graph 21: purchasing of selected brands via the D2C channel in the last 12 months, by brand, 2024
- D2C brands are missing out on custom from older generations
- A generational divide in D2C purchasing
- Graph 22: purchasing of selected brands via the D2C channel in the last 12 months, by generation, 2024
- Direct purchasing attracts an affluent audience
- Graph 23: purchasing of selected brands via the D2C channel in the last 12 months , by household income, 2024
- Higher earners are the most engaged with other D2C brands too
- Graph 24: purchasing of other D2C brands in the last 12 months, by household income, 2024
- A popular way to shop
- Almost six in ten have bought via the D2C channel
- Graph 25: purchasing of products via the D2C channel in the last 12 months (net), 2024
- Awareness of emerging D2C brands
- Only a few emerging D2C brands are cutting through on mass-market awareness
- Only a few emerging D2C brands are cutting through on awareness
- Graph 26: awareness of emerging D2C brands, 2024
- Building awareness is key to building a D2C brand
- Graph 27: trends in awareness of top three emerging D2C brands, 2023 and 2024
- Gymshark has the potential to move upmarket
- Graph 28: awareness of emerging D2C fitness/activewear brands, by gender, generation and household income, 2024
- Opportunity for Snag Tights to expand appeal of its range?
- Graph 29: awareness of emerging D2C fashion brands, by gender, generation and household income, 2024
- Indu not scoring with core teen audience, but instead with Millennials
- Graph 30: awareness of emerging D2C beauty and personal care brands, by gender, generation and household income, 2024
- Heights and Provytl 50+ missing out on awareness among older generations
- Graph 31: awareness of emerging D2C supplement brands, by gender, generation and household income, 2024
- Tails could look to increase focus on savings and subscriptions
- Graph 32: awareness of emerging D2C pet food brands, by gender, generation and household income, 2024
- Motivations for buying direct
- Value still critical for emerging brands
- Perceptions of obtaining a better price are biggest motivation for buying direct
- Graph 33: factors that would motivate people to buy direct from a brand, 2024
- Easy returns and loyalty have strong appeal to female D2C shoppers
- Graph 34: factors that would motivate people to buy direct from a brand, by gender, 2024
- Better prices would be the main motivator for older generations
- Graph 35: factors that would motivate people to buy direct from a brand, all vs over-45s, 2024
- Good customer service keeps shoppers loyal
- Importance of customer service is underlined
- Graph 36: factors that would encourage D2C buyers to continue purchasing from that brand, 2024
- Older D2C buyers are more focused on price and deals…
- Graph 37: factors that would encourage D2C buyers to continue purchasing from that brand, by generation, 2024 (continued)
- …while younger D2C buyers want to feel part of something
- Graph 38: factors that would encourage D2C buyers to continue purchasing from that brand, by generation, 2024
- Attitudes towards D2C brands
- Testimonials influence perceptions of trust in D2C brands
- Graph 39: attitudes towards issues relating to trust and trial of D2C brands, 2024
- Brands targeting older female demographics should highlight testimonials
- Graph 40: “I think that customer testimonials are important for trusting a new direct-to-consumer brand”, by gender and age, 2024
- Being able to see a product physically is important when choosing to buy products from D2C brands
- Graph 41: “Seeing a product physically (eg in-store, in a pop-up) is important to me when choosing to buy products from direct-to-consumer brands”, by age and gender, 2024
- Two thirds of D2C buyers want transparency
- Graph 42: attitudes towards issues relating to ethics and sustainability of D2C brands, 2024
- Transparency about ethical credentials is most important to women
- Graph 43: “It is important to me that a direct-to-consumer brand is transparent about its ethical credentials”, by age and gender, 2024
- Buying direct is seen as enabling more-sustainable purchasing decisions
- Graph 44: “Buying directly from brands allows me to make more sustainable purchase decisions”, by age and gender, 2024
- Personalisation of D2C products and service is an expectation
- Graph 45: attitudes towards issues relating to personalisation and D2C brands, 2024
- Subscriptions play vital role in retaining customers
- Graph 46: attitudes towards issues relating to subscriptions and D2C brands, 2024
- An opportunity to trade on authenticity
- Graph 47: attitudes towards issues relating to other issues with D2C brands, 2024
- Use celebrities to build credibility
Leading D2C players
- Using social media to increase content views and drive brand awareness
- Scrub Daddy: bringing exclusives to social media
- All Things Butter: making butter “cool”
- Bold Bean Co uses ‘beanspo’, recipe videos to showcase new ideas
- Personalising and incentivising loyalty
- Kith takes tiered loyalty to a new level
- Suri invites customers to have their say
- Innovate to stand out in a crowded market
- Rocco: the hard-to-find ‘Super Smart Fridge’
- Hello Klean: a solution to a niche problem
- Ffern: small batches for clients in the know
- Allday Goods: viral knives that protect the planet
- Sustainability – going beyond the norm
- Patagonia: continuing to put activism and sustainability at its core
- Davines: “To do our best for the world, creating a good life through beauty, ethics and sustainability”
- Allbirds backs its sustainability claims with visuals and context
- Nostalgia reigns
- Surreal: healthy ‘adult’ versions of breakfast cereals
- Tastes like childhood
- AI wearables: early days of a new product category
- Life-enhancing or invasive tech ?
- Tapping into the wellness trend
- Huel: appealing to time-poor health enthusiasts
- Provytl 50+: targeting older consumers specific health needs
- Oddballs: quirky undies with a serious message
- Nike extends into holistic fitness
- Advertising and marketing activity
- Advertising spend from D2C brands declined by 68% in 2023
- Graph 48: total above-the-line, online display and direct mail advertising by select D2C brands,2020-2023
- Most D2C brands focus on digital
- Graph 49: total above-the-line, online display and direct mail advertising by select D2C brands, by advertising type, 2023
- Top 10 D2C advertisers in 2023
- Hello Fresh was the top advertising spender in 2023
- Castore unveils glow-in-the-dark billboards for its latest ‘Better Never Stops’ campaign
- On Running’s Dream Together
- Mous tests new backpack
Appendix
- Report scope and definitions
- Market definition
- Data sources
- Abbreviations and terms
- Snoop SpendMapper methodology
- Consumer research methodology
- Nielsen Ad Intel coverage

Market Intelligence Made Easier With Mintel

The first Mintel Market Intelligence report was published over 50 years ago. Since then, we have provided our unique insights and understanding of consumers, innovation and global markets to thousands of customers worldwide. Here’s why our customers rely on Mintel:

Gain a comprehensive, 360-degree view of the market: Mintel reports blend consumer research, market forecasts, product innovation tracking, and competitive analysis, allowing businesses to see every angle of their industry and identify new opportunities quickly.
Make decisions with confidence, grounded in robust data: Each report draws on up-to-date, reliable information from trusted sources and industry experts, ensuring your strategies are based on solid evidence rather than speculation.
Benefit from expert analysis and practical recommendations: Mintel’s reports are written by experienced analysts who interpret complex data and provide clear, actionable insights you can trust to guide your next moves.
Stay ahead with actionable intelligence on market trends and consumer behaviour: By combining fresh research with long-term market monitoring, our reports help businesses anticipate changes and adapt strategically. So you’re prepared to make informed decisions and drive growth.

What goes into a Mintel Market Intelligence Report?

Curious about how a Market Intelligence report comes together? We like to think of it as building a detailed puzzle. We start with individual pieces: data from consumers, market statistics, industry trends, and online conversations. Then our expert analysts add world-class human insight and industry knowledge. The pieces are assembled to reveal a clear, comprehensive picture of a market.

The Four Pillars of Our Research

We use a combination of four main research methods when creating our reports, each adding a valuable perspective:

Consumer Research: Direct surveys with real people, giving us clear, current insights into what people think and do.
Desk Research: In-depth review of trusted data sources. We use this rich database, plus powerful internal tools that track new products and market sizes, to detect trends and guide forecasts.
Trade Research: Insights from conversations with industry experts. Their real-world experience helps us understand what’s happening behind the scenes.
Brand and Social Media Research: Analysis of online opinions and trends. This lets us spot trends, measure brand sentiment, and capture feedback in real time, adding further depth to our research.

Bringing It All Together

Each of these four pillars provides a different piece of the puzzle. Consumer research tells us what customers think, desk research provides the factual framework, trade research offers an insider’s view, and social media analysis reveals public sentiment.

Our expert analysts are skilled in weaving these diverse data streams together. They apply a range of quantitative and qualitative analysis techniques to uncover the deeper story, connecting the dots to deliver clear, actionable insights. This comprehensive, multi-layered process is how we transform raw data into a market intelligence report you can trust to inform your most important business decisions.

€ 2600 (Excl.Tax)

Download today with instant access
Multiple formats provided
Interactive databook included
Save up to 20% when you purchase multiple reports

Report Brochure Methodology Talk to a Reports Specialist

Next Starts Here

Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.

Learn more

Trusted by global industry leaders

There is no question that Mintel is the go-to resource for the best quality market research, but I did not think it was an affordable option for Abacus Marketing to consider. As a small marketing agency, we only work with a few new clients each year.

However, we have a very high-end consultative approach to our work, so we really do need a partner like Mintel to provide the big agency experience we are always aiming to deliver. Our clients come from an incredibly diverse range of industry sectors, so we obviously need access to market research reports from a very wide spectrum of marketplaces – and that is precisely what we got.

Stephen Taylor-Brown, Managing Director, Abacus

We use Mintel Reports, mostly for financial services and ecommerce markets, plus a few retail and technology ones.

As a leading payments provider, we value additional insights into consumer behaviour, opinions and trends that are shaping the many different markets we operate in. Mintel is a very good and very quick way for us to obtain those insights.

We use Mintel to get a view on where a particular market is going, which can support us in product development and help us identify opportunities or indeed risks, it is a very useful barometer of a market’s potential.

Andrew Neeson, Market Intelligence Manager, VocaLink

Mintel helps us when we want to know something quickly – it provides fast answers to our questions. If we need to get a view of what’s going on in a particular market it’s very useful.

When carrying out background research, I find Mintel an excellent starting point.

The fact that it covers so many markets is a big plus for me– instead of having to buy specialist products in each area we are interested in, especially when we only require a brief view on a particular market, we can go to Mintel for help as a one-stop shop. I find Mintel a useful and valuable resource.

Ben Zeidler, Director - Research and Analytics, Tenth Wave

We have such a great working relationship with Mintel on lots of different levels. As an insight partner, they have helped us to develop our business planning in specific categories as well as supporting our creative process but they’ve also been super helpful with facilitating our events in their inspirational offices near St Paul’s.

They’re an innovative company, with a client-focused team that always delivers.

Abby Carvosso, Group Managing Director, Bauer Media Group

We use Mintel to inform our thinking and reinforce strategy. If you’re presenting new ideas, it’s essential they are underpinned by robust data and evidence, and clearly rooted in fact.

Mintel gives us all that. It’s a great brand and one that is trusted by clients.

Marie Stafford, European Director, The Innovation Group, VML