ENTERING THE UNITED KINGDOM (UK) MARKET.

Why should You choose the UK market?

The UK is a big, rich and stable market with great reputation and connectivity with the rest of the world.

The UK population is 66,9 million, while London has 9,8 million (in Estonia 1,3 million).

The UK GDP is 2,7 trillion eur in 2024 (in Estonia 43,5 billion eur).

The UK GDP growth of 0.7% in 2024 (in Estonia -0,5%).

The UK inflation of 2% 2024 (in Estonia - 3,5%; Euro zone average 2,6%).

The UK median wage cost for the employer in the 3rd quarter of 2024 was £39,516 per year (in Estonia £22,252 per year). UK median net salary was £29,317 per year, i.e. the employee received 74.2% and 25.8% was paid taxes (in Estonia was £13,488 per year, i.e. the employee received 60.7% and 39.3% was paid taxes).

The UK unemployment rate was 4.2% in the 1st quarter of 2024 (in Estonia 7,8%).

In January 2024, the average UK home cost £282,000 (the expected price drop in 2024-2025 is 7.6%) and the average home size was 77 m2, or £3,662/m2. An employee with an average median salary costs 9.6 years' salary to buy an average home. In Tallinn, at the same time, a home cost 3,593 eur/m2 and the average median net salary was 17,294 euros/year, i.e. an employee with an average median salary costs 16.0 years' salary to buy an average home. In addition, it must be taken into account that in the UK there are no big costs related to winter and snow (average winter temperature 2-7 C). In the UK, an equivalent food basket is much cheaper than in Estonia. In the UK, clothes are 8.7% cheaper than the EU average price, while Estonia is among the top 3 most expensive countries in the EU in terms of the price of clothes.

The economy of the United Kingdom comprises a blend of services, manufacturing, finance, and creative sectors. London functions as a worldwide financial centre, enticing foreign investments. 

The UK has a highly efficient and strong social security system, which comprises roughly 24.5% of GDP. The service sector dominates, contributing 82% of GDP.

The online marketplace industry in the UK is booming: In 2023, the UK e-commerce market was valued at £137.4 billion and is projected to grow to £152.4 billion by 2024.

Value added in the Consumer Goods market is projected to amount to £57,6 bn in 2024. The value added margin in the Consumer Goods market is projected to amount to 32% in 2024. Output in the Consumer Goods market is projected to amount to £184 bn in 2024.

The UK is a free and very safe country with its own currency. In the UK, there are 3.2 military personnel per 1,000 inhabitants. While Estonia has 19.8 military personnel per 1,000 inhabitants, after UAE, Montenegro and Russia. The UK was created in 1707 and has not been invaded since that time. Whereas Estonia has been a free independent country only from 1918 to 1940 (22 years) and from 1991 to today (33 years). 

*statistics collected from August 2024