Expenditure on market research in the UK increased by 2.6% in 2002, according to new industry figures.
The
British Market Research Association (BMRA) calculates that MR spending totalled £1.18 billion last year. Domestic sales grew by 2.3% to £884 million while international research accounted for £292 million, a rise of 3.8%. These estimates are based on returns from BMRA members who make up 65% of the association’s turnover.
“Although this growth level is still slightly higher than inflation, this is the first evidence we have seen that market research growth is starting to slow down, in line with other marketing disciplines,” commented Peter Jackling, chairman of BMRA. “A sales growth of 2.6% for our members last year compares with 7.1% in 2001, when turnover reached £1.15 billion.”
On the positive side, market research appears to have withstood the brunt of the recession given that advertising spend fell by 3% in 2002 and the public relations industry experienced a decline of up to 11%.
Jackling remains sanguine about the health of the sector, claiming that “there is even more of a need, in times of economic slowdown, to invest in market research” and is confident that growth will pick up again.
“Looking to the future, we need to be cautious with our forecasting in an economic climate such as this one, particularly as prospects remain tight,” said Jackling. “However, those forward prospects suggest an ongoing plateau before we can expect to see renewed growth.”
Earlier this year, Merrill Lynch predicted that growth in market research would be maintained at around 2.5% in 2003 (see UK Market Research Growth Slows, But Remains Positive).
