An estimated £1 billion is expected to be spent on food and drink as fans stock up for viewing parties at home instead of heading out to pubs and bars.
According to a new report from VoucherCodes.co.uk, retailers are set to make £1.6 billion during the 2022 World Cup – down by £370 million compared to the 2018 tournament. Out of this amount, £1bn is expected to be spent on food and drink alone as more Britons are expected to choose to stay at home to watch the matches.
The report mentions that England is forecast to spend the most during the World Cup tournament with a total spend of £1.41bn. However, despite having the lowest viewer numbers, as the only other nation to compete Wales will spend the second most during the tournament with a total spend of £92.9m. Scotland will spend an estimated £70.5m, and Northern Ireland will spend £28m.
The report assumes that England will progress until the Quarter-finals and Wales will not make it past the group stages, as a result, the group stages are set to see the highest retail spend at £1.01bn. During this stage, fans will be purchasing food and drink for watch parties, souvenirs and decorations, and also any big purchases, such as TVs and electricals, that they may want for the duration of the World Cup tournament.
However, unlike during a summer World Cup where consumers can host BBQ and garden parties, with a winter World Cup options will be more limited due to the cold weather and therefore limited space.
Looking at the impact of the winter World Cup on retail spending, sales are forecast to be down 19 per cent on the 2018 World Cup (-£0.37bn), and 41 per cent down on the Euros 2021 (-£1.1bn).
This year the World Cup is taking place during a tough economic period and as a result consumers are likely to cut back on unnecessary purchases such as new sportswear and souvenirs in particular, but also in other areas too.
When looking at spend compared to the UEFA Euro 2021, the biggest decline is in food and drink sales (-56 per cent), and souvenir sales (-54 per cent), states the report. Again, the financial climate surrounding the World Cup will have a negative impact on spend. In 2021, consumers had just emerged from months of consecutive lockdowns and so were happy to splurge and enjoy the tournament. However, in 2022 consumers will be cutting back where possible.
