Brexit Preliminary Aftershock Projections Revealed by Euromonitor

LONDON–(BUSINESS WIRE)–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
travellers, international holidays would become more expensive to UK
travellers, 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.

To find out more about Euromonitor’s research on Brexit, visit: http://blog.euromonitor.com/?s=Brexit

About Euromonitor International

Euromonitor
International is the world’s leading provider for global business
intelligence and strategic market analysis. We have more than 40 years
of experience publishing international market reports, business
reference books and online databases on consumer markets.

Contacts

Asti Michou
Communications Executive – Euromonitor International
asti.michou@euromonitor.com
+44
(0) 20 7251 8024 EXT 1402