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ABC1 Consumer Market Assessment 2008 Details a Number of Major Recent Trends within the Food and Grocery Market

DUBLIN, Ireland-(Business Wire)-September 30, 2008 - Research and Markets (http://www.researchandmarkets.com/research/404cbe/abc1_consumer_mark) has announced the addition of the "ABC1 Consumer Market Assessment 2008" report to their offering.

The proportion of adults who are classified in socio-economic terms as either ABs or C1s has been increasing steadily for many years. This can be attributed to a variety of social and economic factors, including the expansion of higher education, and changing patterns of employment that have resulted in fewer jobs in traditional `blue-collar' occupations, and more jobs in the `knowledge professions'.

A number of major recent trends within the food and grocery market — including organic and fair trade products, as well as food with health benefits — have been led by ABC1 consumers. In most cases, food products that have fulfilled any of these criteria have attracted a premium price tag. This has not generally proved problematical for ABC1 consumers, who have historically been more willing than lower social grades (who tend to be less affluent) to pay more for their food.

However, recent trends in global food markets have meant that the prices of many basic food products have grown considerably during 2007 and 2008. Although this is a relatively new phenomenon, it may mean that manufacturers and retailers will find it harder to charge a premium on top of the already inflated basic food prices — and that ABC1 consumers will be less willing to pay more.

The housing boom in the UK has fuelled consumer spending for many years, with homeowners being prepared to spend more on large items because they were confident in the financial security provided by the rising value of their homes. This was particularly true of ABC1 consumers, who also drove the buy-to-let market, investing in property as an alternative to pensions or other financial investments. The long-predicted `correction' in the housing market finally arrived during the first part of 2008, and this will no doubt have strong effects on markets for home-related products.

The purchasing of clothing from discount retailers and supermarkets is now a firmly established trend among many younger ABC1 consumers, and our consumer research confirms that this is the case. However, there is increasing disquiet about the ethics involved in the production of some very cheap clothing. This — together with environmental concerns linked to the idea of `throwaway clothing' that may be discarded after being worn once or twice — may mean that consumers' habits in this respect will begin to change.

Looking forward, our research suggests that, although those in the A and B groups feel that they are unlikely to alter their spending habits in the light of current economic uncertainty, this is not the case for C1 consumers. The latter are more likely than any other social grade to say that they will try to weather any financial problems by looking out for more discounts and special offers.

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