23 Aug
23Aug

The field of market research, insight, and analytics is a crucial pillar of modern business operations. It offers valuable insights into consumer behaviour, market trends, and societal shifts that guide well-informed decision-making. In the United Kingdom, the market research industry has experienced remarkable growth and expansion, underscoring its vital role in shaping various sectors. Let's delve into the sterling value, growth trajectory, and impact of the UK market research industry. 

Market Size and Value 

According to estimates provided by the Market Research Society (MRS), the UK research insight and analytics industry boasts a sterling value of at least £7 billion. This figure reflects a significant upswing of approximately 40% from the previous estimation of £5 billion. The industry's expanded reach has led to the employment of over 64,000 professionals across more than 4,000 enterprises. The industry's core focus, often described as the "business of evidence," involves the meticulous monitoring, measurement, and comprehension of markets and societies. This information serves as a bedrock for informed, evidence-based decision-making that shapes a wide array of industries. 

Evolving Industry Boundaries 

The revision of these industry estimates doesn't solely point to an abrupt, organic growth spurt within the market research sector. Instead, it underscores the dynamic nature of the industry's activities. As the boundaries of what constitutes market research continue to evolve, the industry continually re-evaluates and expands its scope of business activities. The Market Research Society's revised estimate is rooted in the Standard Industrial Classification (SIC) code, a mandatory self-selection requirement for companies during registration. This code helps classify the economic activities a company engages in. The two relevant codes for the research industry are 73200 (market research and opinion polling) and 72200 (research and experimental development on social sciences and humanities). 

Data Sources and Estimates 

This updated industry estimate is built upon reliable data sources, including the Annual Business Survey (ABS) conducted by the Office for National Statistics. The ABS analyses the sterling turnover of businesses across more than 700 SIC codes. The latest survey, updated in June 2021, indicates a sterling value of £4,814,000,000 for UK businesses in SIC code 73200, with an additional £403,000,000 generated by firms with SIC code 77200. However, a significant number of businesses operating within the realm of evidence-based activities do not exclusively fall under SIC codes 73200 or 72200. Therefore, they cannot be uniquely identified in the ABS's estimate of sterling values. 

The Role of Annual League Tables 

The MRS Annual League Tables provide valuable categorisation data. Compiled from various sources, including Annual Reports, Companies House returns, trade press, and relevant websites, these tables offer insights into the top 100 research firms. These tables encompass firms with SIC codes 73200, 72200, and others. In 2019, the top 100 businesses collectively contributed a sterling turnover of £3,756,000,000. Within this, £1,931,000,000 was generated by firms falling under SIC codes 73200 or 72200, while £1,825,000,000 came from businesses in the research sector classified under different SIC codes. Taking into account firms from the ABS and the top 100 league tables, the total estimate of the market research industry's value reaches £7,042,000,000. 

Employment and Workforce 

The UK research sector is a significant contributor to employment, providing jobs to thousands of professionals. Business population estimates indicate that approximately 47,000 people work in companies with SIC codes 73200 or 72200. Of these, around 67.8% are full-time employees, while 32.2% work part-time. Extrapolating from these estimates, the total workforce engaged in the UK research sector is estimated to be around 64,000 individuals. This implies an average turnover generated per worker of roughly £110,000. 

Turnover Change 

Between 2020 and 2021, the UK market research industry witnessed a contraction in its size, with an estimated -4.7% change in turnover. This estimate is based on the MRS Annual Survey conducted among companies, MRS Quarterly Trends analysis, and official fiscal returns. In conclusion, the UK market research industry plays a pivotal role in shaping business decisions and market trends. With its remarkable growth, expanding boundaries, and substantial contributions to employment, it remains a dynamic and essential sector that continues to evolve in response to changing consumer behaviours and market demands.

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