LONDON, England – Market research company Euromonitor International released today new analysis on the potential impact of the Brexit on industries and consumers.
In travel, uncertainty is likely to lead to a reduction in business deals and declines in business travel. While the pound’s drop in value makes the UK a more attractive destination for inbound travelers, international holidays would become more expensive to UK travelers, who are more likely to travel domestically.
Sales of alcoholic drinks would be hit by a disorderly Brexit scenario with wine being one of the most affected categories. While the impact of the Brexit would be particularly disruptive for the UK, Western Europe will not escape the tremors and aftershocks.
For fashion brands, Brexit could provide an incentive to bring production back to the UK. The weak currency causes major issues for British fashion brands that outsource their production, with low price/high volume retailers likely to be hit the hardest, as their margins are already thin.
Beauty players, especially premium fragrances, skin care and colour cosmetics would witness weaker activity, potentially facilitating a resurgence of the mass segment. As the single market is vital for the industry, those exporting from the UK to Europe may decide to move operations to the continent in order to remain competitive.
In packaged food, the most affected categories would be ready meals, sweet and savoury snacks, breakfast cereals, biscuits and snack bars, as they would be the first to be hurt by lower consumer income and slightly higher retail prices.
Renewable energy expansion is likely to slow down in upcoming years. Leaving the EU will certainly cut the flow of EU funds, while regulatory uncertainty arising from the unclear stance of the country will also discourage new investments in the energy sector.