Executive Summary

The market for dry batteries in the UK has grown strongly over the last 5 years. Between 1993 and 1997, the market grew from £213.8m to £343.9m, an increase of 60.9%. The increasing acceptance by consumers of rechargeable batteries, both for specialist applications and in standard sizes, meant that the market for secondary batteries was particular strong, growing by 89.5% to reach £68.8m in 1997.

The market for dry batteries is comprised of: primary batteries, i.e. disposable standard-sized batteries; secondary batteries, which are rechargeable, in standard sizes and for specialist applications such as camcorders and cellular telephones; and button cells, which are used in small consumer items, including watches and cameras.

The trend toward miniaturisation in consumer electronics and the consequent potential for portable applications has been an important factor in market growth. The development of new types of consumer equipment, ranging from pagers to portable compact disc (CD) players, and their increasing levels of consumer penetration, is an important factor in increasing domestic and commercial demand for batteries. An increasing influence on the sale and distribution of batteries is the development of strong own-label brand identities. Multiple grocers are increasing their market share and challenging the market hegemony of the two leading players -- Duracell and Ever Ready.

The future of the industry will be heavily influenced by European Union (EU) legislation aimed at ensuring that a higher proportion of batteries are recycled at the end of their useful lives. The European Commission (EC) is currently reviewing existing legislation covering this area, and is expected to strengthen and extend the scope of current regulations. The recovery and safe disposal of heavy metals is a particular point of concern.

By the year 2002, Key Note anticipates that the value of the UK dry battery market will have grown to £488m at constant 1997 prices. This represents an increase, in real terms, of 30.2% over the 5-year period. The very rapid rate of expansion in the market since 1993 is likely to moderate due to increasing sales of rechargeable batteries having a slight dampening effect on the market for replacement batteries. However, new applications and increasing consumer use of existing portable equipment will ensure that market growth remains strong at around 7% to 8% per year to 2002.

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