Average household spend expected to fall

By £6,600 this year

Average UK household spend is expected to fall by £6,600 this year, with total consumer spending not expected to recover to pre-pandemic levels until 2023.

Food and drink will experience the biggest increase in consumer spending this year – totalling £11.2 billion, or just over £4 0 0 per household, according to market researcher Mintel.

To t a l spending is predicted to fall by £183.6bn, or 14.9%, this year due to the Covid-19induced lockdowns , according to new research from Mintel’s British Lifestyles report.

This equates to a drop in spending of around £6,600 per household, with the biggest decreases occurr ing in the transport, foodservice, and holiday industries.

Consumer spending in these three categories is expected to fall by £140.1bn in total, or just over £5 ,000 per household – representing about 77% of the overall decline in consumer spending this year.

Bu t these same categories are forecast to bounce back the strongest next year, with spending on transport increasing by £32.3bn, compared to 2020, foodservice rising by £17.7bn and holidays up by £19.2bn.

T his represents an increase in spending of just under £2,500 per household; however, this will still only represent a return to pre-pandemic levels.

Minte l consumer l ifesty les research associate director Jack Duckett said: “Although consumer spending will recover from this year’s astonishing £180bn drop, it will undoubtedly be a long path to recovery.”

Food and drink will experience the biggest increase.