ESOMAR UNVEILS TOP LINE RESULTS FROM ITS 2005 GLOBAL MARKET RESEARCH REPORT
- Global Market Research turnover tops $23 billion in 2005 with a growth rate of 4.3%
- Europe maintains its leading role with 45% of the global market
- Use of online studies grows by 80%
The 2005 edition of the ESOMAR Global Market Research Report, made with the support of KPMG, demonstrates that the Market Research industry remains healthy with longer term compound annual growth rates of 4-6%. The new EU member states and Asia remain the most dynamic markets. The report also highlights the success of new methodologies such as online which now represents 20% of Market Research expenditure worldwide.
The Report reveals that the industry now represents an estimated global turnover of $23,290 million with a 7% growth rate compared to 2004 (real growth rate adjusted for inflation is 4.3%). Asia Pacific and the new EU member states showed a 7.4% real growth rate, demonstrating the dynamism in these areas.
The mature EU 15 markets remain buoyant too, with a 5.4% growth rate, 1 point above the global average. With an estimated turnover of $10,437 million, Europe continues to generate the most Market Research turnover (45% of the total), followed by North America ($8,295 million; 36% of total Market Research turnover).
Europe – along with Middle-East and Africa – are the only areas to have experienced a strong real growth in 2005 compared to 2004.
The fastest growing markets include Latvia (34% growth), China (25%), Thailand (23%), Bulgaria (22%) and Malaysia (20%). The results also show that amongst the largest markets, France grew the fastest at 3.2% followed by Germany (2.8%), USA (2.1%) and Japan (2%). UK remains stable with 0.7% growth.
Online at the heart of Market Research
The 2005 Report also demonstrates that online research is now playing a key role in Market Research around the world, representing 20% of expenditure on data collection methods. This figure nearly has nearly doubled from 2004 to 2005 (11% in 2004).
At the same time face-to-face interviews have dramatically decreased, now representing 21% of data collection compared to 31% in 2004. Telephone interviews are currently the most popular data collection method, representing 22% (relatively stable compared to 2004 with a 2 point decrease). The quantitative/qualitative ratio remains constant with 2004 with roughly a 80/20 split.
“We expect the Industry’s healthy growth rate to continue in the near-term driven by good economic conditions, increasing client demand for continuous multinational research projects and value added research based consultancy.” said Véronique Jeannin, ESOMAR Director General. “In the short term the industry faces challenges of downward pressure on prices as companies pass on savings to clients from conducting online research, which are likely to be offset by demand for result from more sophisticated online research tools.”
ESOMAR gives special thanks for their contributions to John Smurthwaite of TNS Asia Pacific, Lex Olivier of EFAMRO, Jorge Frech of Mercaplan Central America and Larry Gold of Inside Research.
About the Global Market Research Report
The Global Market Research Report is conducted every year by ESOMAR in order to assess the main industry trends. The 2005 version of the report has been conducted with the support of KPMG. The full report will be available in September 2006.
ESOMAR is the world organisation for enabling better research into markets, consumers and societies. With 4000 members in 100 countries, ESOMAR’s aim is to promote the value of market and opinion research in illuminating real issues and bringing about effective decision-making.