Abstract
This report presents a review of the retail battery market. It is an update to a previous Mintel report on this market published in July 2006. The intervening period has been one of continuing evolution with primary, single-use, cells coming under increased pressure from secondary, rechargeable, batteries. An equally important development taking place is the growing threat to certain end-user segments of the battery market from the incorporation of rechargeable batteries in certain products.
The battery market appears to be at a point where volume sales have peaked, although through product development a number of new uses are emerging. Price competition is a feature of the market, with manufacturers having to use a variety of tactics to stimulate sales. Although one of the more important trends is a movement towards higher power, single-use, batteries, here too price is an ever-present factor, with Mintel' s research identifying a sizeable group of consumers who largely buy on this basis.
Main report topics:
- The increasingly difficult conditions being experienced by manufacturers as a result of greater competition from both within and outside the market, the latter coming from built-in original equipment manufacturer (OEM) rechargeable batteries.
- The growing demand for power from a new range of digital appliances, which in turn is creating demand for both primary and secondary (rechargeable) cells with longer life.
- The growth in the profile of rechargeables, which suggests that consumers are now more accepting of this form of technology.
- The recent rollout of a new type of rechargeable, the USBCELL.
- The impact of the forthcoming EU Battery Directive on manufactur
Table of Contents
- Issues in the Market
- Main issues
- Definition
- Abbreviations
- Market in Brief
- Sizeable market
- Product development moves the market in new directions
- Digital technology offers useful opportunities
- Supermarkets dominate retail distribution
- Advertising is dominated by mass-market channels
- Consumers have specific demands but also appear confused
- Internal Market Environment
- Key points
- Tighter regulations on battery use and disposal soon to arrive
- Obsession with battery-powered devices continues
- Figure 1: Trends in the penetration of selected battery-powered devices, 2001-07
- Growth in internal rechargeable batteries presents a threat
- Are battery manufacturers now reliant on Tweens?
- Figure 2: Penetration of handheld games, personal CD players and cameras amongst 11-14-year-olds, 2003-07
- Seasonality plays a major part in directing purchases
- Figure 3: Battery sales, by season, 2007
- Need for consumer education
- Broader Market Environment
- Key points
- High levels of PDI support growth of battery supported devices
- Figure 4: PDI and consumer expenditure, at constant prices, 2003-13
- Change in population structure
- Figure 5: Size of UK population, by age group, 2003-13
- Growth in one-person households will offer opportunities
- Figure 6: Total number of UK households and one-person households, 1991-2013
- Rising costs
- Competitive Context
- Key points
- Competition from internal rechargeable batteries is growing
- Battery brands fight back
- Benefits still to be found from the demand for portable technology
- Figure 7: Consumer expenditure on selected leisure goods and activities, 2002-07
- Spending priorities also suggest boost for batteries
- Figure 8: Expenditure priorities, 2007 and 2008
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Market Size and Forecast
- Key points
- Competition within the market hits value
- Figure 9: UK consumer retail sales of dry-cell batteries, by volume and value, 2003-13
- Discounting hits average prices
- Figure 10: UK average retail price per unit of dry-cell batteries based on rrp, 2003-08
- Decline continues but average price fall begins to weaken
- Further insight into the future of batteries
- Stimulating demand for next-generation cells
- Novel takes on batteries to receive greater attention
- Everything' s going miniature
- Falling sales?
- Product specific promotions
- Focus on price continues
- Factors used in the forecast
- Segment Performance
- Key points
- Volume market is dominated by long-life batteries
- Figure 11: UK retail sales of batteries, by cell formulation and volume, 2003-07
- Retail sales figures benefiting from more expensive products
- Figure 12: UK retail sales of batteries, by cell formulation and value, 2003-07
- New-generation cells are seeing especially strong growth
- Rechargeables proving popular
- Market shifts towards smaller cells
- Figure 13: UK retail sales of batteries, by cell size and volume, 2003-07
- Figure 14: Side-by-side comparison of AA and AAA Energizer batteries, to scale (cm), 2008
- Figure 15: Side-by-side comparison of C and d type Energizer batteries, to scale (cm), 2008
- Distribution
- Key points
- Grocery multiples dominate, albeit challenged by new channels
- Figure 16: UK retail sales of batteries, by outlet type, 2003-07
- Grocery multiples dominate market
- DIY and electrical also make inroads
- High street stores important but losing ground
- Is online a potential distribution channel?
- Brand Communication and Promotion
- Key points
- Fall in promotional expenditure hints at tougher conditions on the market
- Figure 17: Main monitored media advertising expenditure on digital photographic equipment, 2003-07
- Manufacturers dominate advertising although degree of interest varies
- Figure 18: Advertiser spend on batteries, 2005-07
- Television increasingly dominates promotional channels
- Figure 19: Advertising spend on batteries by media type, 2005-07
- Below the line is also important
- Promotional expenditure is focused around Christmas
- Market Share
- Key points
- Companies and Products
- Duracell UK
- Energizer Ltd
- Panasonic
- Rayovac
- Uniross
- Others
- Consumer Purchasing Habits
- Key points
- Current purchasing habits suggests a stable market
- Figure 20: Purchasing of batteries (including rechargeables) in the last 12 months, 2003-07
- Standard batteries the preferred format
- Figure 21: Types of batteries bought in the last 12 months (inc. rechargeable), 2007
- Although spend in all formats is relatively low
- Figure 22: Spending on batteries in the last three months, 2003-07
- Where Consumer Use Their Batteries
- Key points
- Batteries find use in everyday items
- Figure 23: Battery-enabled devices that consumers own, April 2008
- Average person has seven devices requiring batteries
- Figure 24: Ownership of battery-powered devices, April 2008
- Who is likely to own more battery-enabled devices?
- Figure 25: number of battery-powered devices owned, by gender, age and socio-economic group, April 2008
- Consumer Battery Buying Motivations
- Key points
- Distress purchasing is most important reason for buying batteries
- Figure 26: How consumers buy batteries, April 2008
- A small percentage do regularly shop for batteries
- Who are the ' last minute' purchasers?
- Figure 27: How consumers buy batteries, by gender, age and socio-economic group, April 2008
- Distress purchasing is important for all types of appliance
- Figure 28: Attitudes towards purchasing batteries, by battery-enabled devices owned, April 2008
- What Consumers Look for in a Battery
- Key points
- Variety of factors point to a complex market
- Figure 29: What battery buyers look for in a battery, April 2008
- Point-of-sale and promotional packaging could do better
- Price a feature most sought out by young adults
- Figure 30: What battery buyers look for in a battery, by gender, age and socio-demographic group, April 2008
- Qualities sought increase with device ownership
- Figure 31: Importance of qualities, by number of devices owned, April 2008
- Appendix -- Where Consumers Use their Batteries
- Figure 40: Most popular battery-enabled devices that consumers own, by demographics, April 2008
- Figure 41: Popular battery-enabled devices that consumers own, by demographics, April 2008
- Number of battery-operated devices owned
- Figure 42: Number of battery-enabled devices owned, by demographics, April 2008
- Appendix -- Consumers' Battery Buying Motivations
- Figure 43: How consumers buy batteries, by demographics, April 2008
- Appendix -- What Consumers Look for in a Battery
- Figure 44: Features battery buyers look for in a battery, by demographics, April 2008
