I was reading an article this week in the Huffington Post about how much money an individual spends on failed New Year’s resolutions. According to author Joseph Grenny, 70 percent of people who fail to keep their New Year’s resolutions lose more than $1,000, reported Time in 2014. Honestly, I couldn’t believe it! I know that a lot of people flock to the gym but, I thought I would dig a little deeper to see what other industries are being affected by this amount of wasted spending.
I went to my trusted source for industry research, IBISWorld, and sure enough, there was a great article specifically on New Year’s resolutions and the industries that are seeing the greatest benefit from the top five New Year’s resolutions that are made. The article by Nick Petrillo, of IBISWorld, reports that the top five resolutions as:
- Get Healthy
- Quit Smoking
- Eat Healthy from Home
- Spend Less, Save More
- Go Green
Personal fitness goals routinely represent the most common New Year’s resolution for US consumers. First quarter of 2016 is expected to be one of the busiest ever for the Gym, Health and Fitness Clubs industry in terms of new memberships and demand for personal trainers. Together, these account for 47.7% of industry revenue, a proportion that is anticipated to rise in January.
Lifestyle improvement goals, particularly related to tobacco cessation, remain perennial New Year’s resolutions for millions of Americans. For many of the estimated 42.1 million adult smokers in the United States, quitting smoking will be a major challenge in 2016. This is welcome news to the Pharmacies and Drug Stores industry, which offers a host of smoking cessation products and services. While would-be quitters may find the increased support a breath of fresh air, smoking cessation has poised a major threat to the already hurting Cigarette and Tobacco Manufacturing industry. Sales from smoking cessation products are expected to reach $1.2 billion by 2017.
Eat Healthy from Home.
After several months of festive meals and weeks of expensive holiday shopping, many US consumers prefer to reduce food purchases sharply during the new year. To kick this off, many consumers resolve to cook more meals at home and reduce the amount of meals purchased at restaurants, bars and other dining establishments. The Supermarket and Grocery Stores industry, which IBISWorld expects will grow an annualized 1.2% to $587.5 billion over the five years to 2015, will benefit from the influx of shoppers needing groceries for their home cooking. With more consumers opting to eat at home to both save money and eat healthier, the Chain Restaurants industry often experiences mounting competitive pressure in January. However, the industry may combat this through increased advertising and promotions. IBISWorld estimates that the Chain Restaurants industry spends 2.2% of its revenue on marketing, which is considerably higher than the 0.7% that the Supermarkets and Grocery Stores industry spends.
Spend Less, Save More.
Improving one’s finances is a common goal for income-earners. For the vast majority of adults, this comes in the form of simply reducing discretionary spending and increasing personal savings. The Financial Planning and Advice industry, which provides wealth management services to individuals and business clients, is often a premier source for consumers to seek advice at the start of a new year. Over the five years to 2015, the Financial Planning and Advice industry is expected to grow at an average annualized rate of 7.4% to $38.3 billion. Conversely, a decrease in spending suggests consumers might aim to cut costs on several different monthly utility expenses. According to the Office of Energy Efficiency and Renewable Energy, by switching a household’s five most frequently used light fixtures or bulbs, a consumer can save $75.00 in electricity bills each year. The Electric Power Transmission industry is expected to contract at an annualized rate of 1.2% to $385.7 billion over the five years to 2015.
Consumers have increasingly embraced new ways to lead more environmentally friendly lifestyles, from something as simple as recycling and composting garbage to more large-scale investments in alternative forms of energy consumption. Businesses and individuals alike are taking advantage of various tax incentives and additional cost savings that come with investing in technologies that harness sources of renewable energy. The Solar Power industry, for example, has benefited immensely from this increased interest; over the five years to 2015, the industry is expected to grow at an 83.9% annualized rate to $1.1 billion in revenue. Funding from the Energy Policy Act of 2005 and the American Recovery and Reinvestment Act of 2009 contributed immensely to the industry’s recent success.
What is your resolution and does it align with the rest of consumers in the US? How long do you think you can sustain your resolution?
Questions or comments? Please contact Jennifer Nietz at jnietz@teamCOACT.com.