UK Market Research Industry Grows By 3.9% In 2003
The UK’s market research industry saw total revenues rise by 3.9% to £1.2 billion in 2003, according to the British Market Research Association’s (BMRA) annual report.
The survey, conducted on UK-based market research companies, reveals that domestic sales, which make up 79% of this market, were up by 6.8%. This reflects the general UK economic recovery; in contrast, international sales fell by 5.6% during the year.
Peter Jackling, chairman of BMRA said: “We believe the strong domestic performance reflects continued strong public sector spending and general economic recovery. At the same time, the relative strength of the pound during 2003 may have put the squeeze on research budgets and commissions from outside the UK.”
For 2004, BMRA anticipates a continued growth above inflation but admits this may not be a smooth curve. Jackling said: “We expect the domestic market to hold up well at least until the next UK general election but we remain cautious with our forecasting for international work.”
It is expected that the 2004 US presidential elections will have a knock on-effect for global spending in the market research sector. However, unlike the ad industry – which will benefit from US political spending – Jackling believes that the elections could have a negative effect on global market research.
“Continued sterling strength, uneasiness about global security and speculation about the 2004 US presidential election results may dampen spending among some of the multi-nationals,” he speculates.
The annual survey also shows that TNS is by far the largest market research company in the UK in terms of turnover. Its 2003 revenue of £159.5 million is more than twice that of second place group NOP World, with a turnover of £76.4 million. TNS and NOP World are also ranked first and second in the global league table.
British Market Research Association: 020 7566 3636 www.bmra.org.uk
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