New Year's resolutions mean big bucks for some
As the New Year approaches, business information analysts at IBISWorld reveal the industries set to cash in – or lose out – on our good intentions for 2013.
I will lose weight
With Australian Bureau of Statistics (ABS) research showing that 63 per cent of Australians are now classified as overweight and obese, "I will lose weight" is one of Australia's most popular New Year's resolutions. This will benefit key players in the weight loss industry – including surgery, food and drinks, dietary supplements, books, nutritionists, dietitians and weight-loss counselling. In 2012-13, IBISWorld expects Australia's weight loss industry to grow by 1.2 per cent to $827.1 million.
"Weight loss services – such as counselling and books – continue to account for the greatest share of expenditure at $379.6 million in 2012-13. This is followed by food, drinks and dietary supplements at $292 million in 2012-13. Yet, the fastest growing segment is surgical procedures – forecast to grow by 4.7 per cent over the next five years to reach $151.9 million in 2017-18," said IBISWorld general manager (Australia), Karen Dobie.
I will quit smoking
In 2011-12, there were 2.8 million Australians aged 18 years and over who smoked daily, representing 16.3 per cent of the population – down from 22.4 per cent of the population in 2001.
"Thirty-one percent of the Australian population are currently ex-smokers, with many using the New Year as the motivation behind their decision to quit," Dobie said.
Increasing health concerns, anti-smoking campaigns, increasing regulations and higher excise taxes have all contributed to declines for the industry, with IBISWorld forecasting the tobacco product manufacturing industry's revenue will decline by 0.6 per cent in 2012-13 to reach $1.52 billion.
I will get fit
Late January and February are the busiest time of the year for gyms, fitness centres and personal trainers. IBISWorld expects 2013 will be no exception, forecasting gyms, sports grounds and personal trainers, as well as fitness and athletic clothing retailers will reap the rewards of Australia's resolve to get fit in the coming year.
"Gym memberships, group fitness classes – including boot camps, yoga and martial arts classes – and personal trainers continue to grow in popularity as time-poor Australians seek options that they can work into their busy routines," Dobie said.
In terms of overall participation, Dobie said more Australian women (17 per cent) participate in aerobics, fitness or gym activities than men (11 per cent), and that participation is highest among those aged 15 to 24 years (25 per cent) and 25 to 34 years (28 per cent).
In 2012-13, IBISWorld expects expenditure at gyms and sports grounds to rise by 3.8 per cent to $3.08 billion, while fitness and athletic clothing retail spending is forecast to jump 4.2 per cent to $1.17 billion.
I will get out of debt
"The household savings ratio has steadily increased over the past two years, growing by nearly 2 per cent over the period to total over 10 per cent of disposable income – the highest in over twenty years," Dobie said, highlighting the continuing cautious economic climate as the key driver.
IBISWorld expects prudent spending to continue to characterise the coming year – somewhat subduing growth for a number of retail sectors, including clothing retailers, domestic appliance retailers and furniture retailers.
I will live life to the fullest
"The past two years has seen a consistent increase in expenditure by Australian households on recreation, culture, travel and dining out as Aussies seek to make the most of their leisure hours", Dobie said.
"Despite the trend to cut back and save when it comes to retail and big-ticket items, IBISWorld is seeing experiential activities grow in popularity."
In 2012-13, IBISWorld expects spending on recreation and culture will rise by 3.3 per cent to reach $88.2 billion, equating to over 11 per cent of total household consumption expenditure. This will include sport and physical recreation participation, sporting events attendance, and visits to galleries, museums, cinemas, zoological parks and botanic gardens.
Australians' love affair with travel – both domestic and international – will continue, with IBISWorld forecasting total domestic tourism expenditure to increase by 5.9 per cent to reach $71.9 billion by the end of 2012-13. International departures – primarily to Asian Loneraganets such as Thailand, India and Indonesia – are anticipated to increase strongly.
A favourite pastime of many Aussies – dining out in restaurants and cafes – is expected to grow strongly over the coming 12 months, to the tune of 3 per cent revenue growth for restaurants in 2012-13 (to reach $13.9 billion) and 2.6 per cent revenue growth for cafes (to over $5 billion).
I will be more eco-friendly
"On both an individual and business level, one of the key messages this past year has been to 'Go Green'. The introduction of the carbon tax has spurred Aussies to consider the environmental impact of everything from electricity suppliers and usage, to transport options and food consumption," Dobie said.
"For example, IBISWorld is expecting the solar panel installation industry to grow 13.8 per cent to be worth $1.39 by the end of 2012-13."
As more Australians seek to switch to more cost effective and 'greener' energy providers, and look to upgrade older appliances for newer, more energy efficient and environmentally friendly models, Dobie highlighted electricity comparison companies and home appliance retailers as beneficiaries of this trend. IBISWorld forecasts revenue for appliance retailers to grow by 0.8 per cent in 2012-13.
"Many Australians are expected to take advantage of the Boxing Day and New Year's Day sales to upgrade existing, older white goods for new models with high star ratings. However, this is expected to have only a slight influence on the appliance retailing industry, with growth limited due to lower overall prices," Dobie said.
I will eat healthier
In 2011-12, ABS data showed 48.3 per cent of Australians aged 18 years and over reported that they usually met the guidelines for fruit intake (two serves per day), while just 8.3 per cent met the guidelines for daily vegetable intake (five serves per day).
"A growing focus on health and nutrition, coupled with increasing interest in cooking spurred on by popular food-focused television programs has resulted in increased demand for fresh produce. IBISWorld forecasts this trend will continue in the coming year, to the tune of 5.3 per cent revenue growth for vegetable growers to reach $3.3 billion, and 11.6 per cent growth for organic farmers to reach $578.9 million," Dobie said.