GLOBAL MARKET
RESEARCH
2014
An ESOMAR Industry Report
in cooperation with BDO Accountants & Advisors
GLOBAL MARKET
RESEARCH
2014
An ESOMAR Industry Report
1
FOREWORD 2
1. HIGHLIGHTS 4
1.1 The top line 6
1.2 Regional profiles 7
1.3 Five largest markets 13
1.4 International subcontracting, projects and clients 14
1.5 A review of the market leaders 15
1.6 Sources of research turnover 16
1.7 Spend by research method 17
1.8 Outlook for 2014 20
2. BEYOND BOUNDARIES 22
2.1 Pressure and instability – welcome to the new normal 24 2.2 Growing footprint – the quandary over expansion 28
2.3 Moving on, moving up 35
3. AFRICA AND LATIN AMERICA 36
3.1 Seeking greener pastures 37
3.2 Progress under African skies 38
3.3 Backing a new generation of winners – the rise and rise again of Latin America 46
3.4 Roads less travelled 53
4. BIG OPPORTUNITY… THE NEXT GENERATION OF DATA & PEOPLE 54
4.1 Looking to the future 55
4.2 Why ‘big data’ is not a dirty term 56
4.3 Shouting from the rooftops 64
young professionals on a mission to raise the profile of research
4.4 Minding gaps, adding value 71
5. TOP 25 COMPANIES 72 6. KEY FINANCIAL FIGURES 80 7. INDUSTRY JOURNAL 91
8. ANNEX 97
8.1 Methodology 98
8.2 Turnover, growth and per capita data 99
8.3 Sources of research turnover 110
8.4 Spend by research method and design 120
8.5 Five-year trend 128
8.6 GDP growth rates 2009-2013 130
8.7 Average exchange rates per US$ 2009-2013 132
8.8 Inflation rates 2009-2013 134
INDEX
CONTENTS
ESOMAR is the essential organisation for encouraging, advancing and elevating market research worldwide.
With over 4,900 members in 130 countries, ESOMAR promotes the value of market, social and opinion research in illuminating real issues and bringing about effective decision-making.
To facilitate this ongoing dialogue, ESOMAR creates and manages a comprehensive programme of industry-specific and thematic events, publications and communications as well as actively advocating self-regulation and the worldwide code of practice.
COPYRIGHT © ESOMAR 2014
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system of any nature, or transmitted or made available in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of ESOMAR. ESOMAR will pursue copyright infringements.
In spite of careful preparation and editing, this publication may contain errors and imperfections. Authors, editors and ESOMAR do not accept responsibility for the consequences that may arise as a result thereof.
ISBN 92-831-0275-4
Published by ESOMAR, Amsterdam, The Netherlands For further information, please call + 31 20 664 2141 or email [email protected]
Lastly (and as always), we owe a large debt of gratitude to the many people who make this study possible: to the sounding board, trade associations, industry experts and ESOMAR representatives whose support is essential to the production of this report – thank you, one and all for all of your contributions.
A very special word of thanks must also go to our tireless and dedicated partners – John Smurthwaite, Jo Bowman and Larry Gold – whose time, efforts, regional expertise and guidance are critical to the success of the Global Market Research Report.
I hope this report will continue to provide you with the authoritative review of the market it sets out to, and I look forward to any thoughts or suggestions on how we may further improve it to meet your needs. With best regards,
Finn Raben
ESOMAR Director General
FOREWORD
THE GLOBAL SOUNDING BOARD Laurence N. Gold
Editor & publisher, Inside Research John Smurthwaite
ESOMAR APAC ambassador Carlos Harding
Deputy CEO, Ipsos Leonie Vorster
CEO, South African Market Research Association (SAMRA) Nigel Burrows
Senior Principal, International Research, IMS Health
FOREWORD
Each issue of this report has traditionally marked a number of important
developments in our profession, and this year is no different! Firstly, the more traditionally defined “market research” sector now surpasses the US$ 40 billion mark, putting it on a par with the global Wi-Fi market, or the recorded music industry. Secondly, North America (including the USA - the single largest research market globally) now assumes top spot on the podium as the fastest growing region globally, and while global growth is on a par with that recorded last year, there is substantial optimism for 2014 which has been borne out by many of the half-year investor reports that have been circulated to-date.
Some of the key topline findings in this report are:
• Our market does continue to grow globally, and now exceeds US$ 40 billion in value;
• Parts of Europe still struggle to overcome the economic ‘hangover’ from the crisis;
• North America now leads global growth, underpinned by a resurgence in Qualitative in the USA;
• China’s growth rate has declined by more than half in the past year, but the size of the market research industry in China is now quickly catching up with Japan, the most developed market in the region;
• The Middle East records growth at the regional level, but shows a more complex and diverse picture at the sub-regional level
Applying the extended definition of the market to our measure, the value of the industry grows by 50% (!!) from US$ 40 billion to US$ 60 billion, the equivalent value of the electronic gaming industry and the highest valuation ever recorded. We also see (as the ownership of companies change), a more dynamic Top 10 company listing, echoing a greater movement of funding and investment, stemming (we believe) from increased optimism about the industry.
A continuing challenge however, is that we still need to do more to raise the value of our profession – to legislators, to users and most importantly, to our participants and consumers. The importance of research and insight to society, to government and to business simply cannot be stressed enough, so allow me a small plea: Help us celebrate what we do, louder and farther in 2014 and beyond!
To complement these important milestones, you will note that our report has also had a slight makeover; we hope that you like the new format – as well as the additional information contained within – so please let us have your feedback or comments to: [email protected] It is only with your input, your guidance and your support that we can continue to encourage, advance and elevate the cause of market research globally!
Welcome to the Global Market Research Report, covering 2013.
Finn Raben
ESOMAR Director General
5 4
1.
The latest developments in market research industry
size, performance, consolidation, composition of clients
sectors and research methods.
1.2
REGIONAL PROFILES
Europe - Market research turnover
2009 – 2013 (US$ millions)Fastest growing markets in Europe
Net growth rates in 2013 (%)Ukraine 8.2%
Russia 5.8%
Bulgaria 5.3 %
Turkey 5.0%
Lithuania 2.4% Other European countries 2.0% Luxembourg 2.0% Latvia 1.7% Poland 1.7% Croatia 1.2%
REGIONAL PROFILES HIGHLIGHTS
Europe
The downward trend in European turnover remains the region's, primary challenge; for the third year in a row, the value of the sector in the region declines: 0.4% in ‘‘gross’’ terms, but (1.4%) after inflation. Turnover reaches US$ 16,005 million. Of the EU 15, France, the Netherlands, Denmark and Luxembourg were the only markets to record net growth, ranging from 0.1% to 2.0%. Germany bucked the trend recording solid growth in recent years
too, but now suffers a small net decline of (0.5%) as the country sees competition from outside the market research industry intensify. The UK, Europe’s largest market, reported positive growth (in local currency terms) for the first time since 2008, but this converts into a net decline of (1.4%) after inflation is taken into account. The Southern European markets – those that were hit hardest in past years – remain unable to bounce back, seeing market research turnover contract, from (1.3%, Greece) to (22.4%, Portugal). Overall growth for the EU 15 was (1.9%).
The new EU member states returned to positive territory, posting year-on-year growth of 2.0%, and 0.4% after inflation. Poland, the largest market among the new EU member states (it is about twice the size of number two, the Czech Republic), returned to growth – up 1.7% – which is 3.1% higher than the European average. The uplift was fuelled by an increase in the number of research projects commissioned. In total 7 of the 12 new EU member states saw turnover increase; in contrast, Cyprus was the worst performing market with growth sliding (36.9%).
Looking at the rankings of fastest growing regions, Ukraine, again, qualifies for the fastest-growing country, with sales climbing 8.2% (versus 24.8% in 2012). The country forecasted 18% for 2013, but political instabilities in Q4 of 2013 may have negatively impacted the market performance. Russia, Bulgaria and Turkey reported solid growth, too. Russia profited from higher investments in market research and expanding retail chains, while Bulgaria continues to benefit from its position as an outsourcing hub.
See chapter 8, table 8.2.3, page 100 for country data.
-8% -6% -4% -2% 0% 2% 4% 6% 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2009 2010 2011 2012 2013 Net growth Millions US$
Turnover (US$m) Net growth (%)
ESOMAR estimates. Rounded figures presented Percentage point changes in market share compared to 2012 are provided between brackets.
1.1
The global size of our profession continues to grow, as worldwide turnover
reaches US$ 40,287 million in 2013, representing an annual/year-on-year
increase of 2.8% and 0.7% after inflation is factored in. The North American
research market now appears to have fully recovered from the economic
downturn of recent years and is rewarded with the title of fastest growing
region for the first time since 2000. This year it is the USA, which is making up
for sluggish performances in some of the world’s other large research markets.
Middle East $277 1% Europe $16,005 40% North America $15,705 39% (+2) Africa $382 1% Asia Pacific $5,998 15% (-1) Latin America $1,920 5%
Global market research turnover 2013
US$ 40,287 millionNet growth rates 2013
(adjusted for inflation)THE TOP LINE
HIGHLIGHTS TOP LINEExchange rate fluctuations eliminated. IMF inflation rates used to determine growth.
0.7% -1.4% 2.9% 1.6% -0.1% -1.2% -1.2% World Europe North America Asia Pacific Latin America Africa Middle East
• Market research turnover increases in 49 countries or sub-regions, and declines in 40, after adjustment for inflation.
• North America, accounting for 39% of global research sales, buoyed the industry, recording 2.9% net growth. • Asia Pacific is the second of two
regions that recorded positive growth for the year 2013.
• Latin America, which was the best performing region in 2013, saw research turnover drop by 0.1%, impacted by inflation and declines for the region’s largest markets, Brazil and Mexico. • Europe still struggles to counter the
effects of the ongoing economic pains and saw the market decline for a third consecutive year.
• The Middle East and Africa posted steady growth in absolute terms, but this turned into net declines after the inflationary measures were made.
