B. Consumer Lifestyles in Norway - Passport Oct 2014

CONSUMER LIFESTYLES IN
NORWAY
Euromonitor International
October 2014
CONSUMER LIFESTYLES IN NORW AY Passport I
LIST OF CONTENTS AND TABLES

Top Five Consumer Trends .......................................................................................................... 1
Consumer Confidence Remains High, Spurring Continued Spending ...................................... 1
Consumers Continue To Turn To Internet Retailers for A Wide Range of Products ................. 1
Incentives Fuel Increased Demand for Electric Cars ................................................................ 2
Housing Boom Spurs Rising Mortgage Debt ............................................................................ 2
Consumers‘ Increasing Use of Cards and E-payments Driving Norway Toward Cashless
Society ...................................................................................................................................... 3
Consumer Segmentation .............................................................................................................. 3
Babies and Infants .................................................................................................................... 3
Kids........................................................................................................................................... 4
Skiing Competitons Popular Among Young Kids ...................................................................... 4
Tweenagers .............................................................................................................................. 5
Teens........................................................................................................................................ 5
High School Graduations Spur Spending Sprees ..................................................................... 5
Young Adults ............................................................................................................................ 6
20-somethings Taking on Housing Debt ................................................................................... 7
Middle Youth ............................................................................................................................. 7
Mid-lifers ................................................................................................................................... 7
Late-lifers .................................................................................................................................. 8
More Seniors Keep Working ..................................................................................................... 8
Pensioners Increasingly Living Abroad ..................................................................................... 9
Table 1 Consumer Segmentation and Population Data 2000, 2005, 2011,
2012, 2013, 2016 ......................................................................................... 9
Chart 1 Population Aged 15-64 Compared with Old-Age Dependency Ratio
2000-2020 .................................................................................................. 10
Housing and Households ........................................................................................................... 10
Home Ownership .................................................................................................................... 10
Household Profiles.................................................................................................................. 11
Running Costs ........................................................................................................................ 11
More Consumers Being Second Homes Abroad .................................................................... 12
Table 2 Housing and Households Data 2000, 2005, 2011, 2012, 2013, 2016 ........ 12
Chart 2 Number of Households by Disposable Income Bracket 2005, 2010,
2016 ........................................................................................................... 14
Money and Savings .................................................................................................................... 15
Attitudes Toward Payment Methods ....................................................................................... 15
Savings ................................................................................................................................... 15
Loans and Mortgages ............................................................................................................. 16
Table 3 Money and Savings Data 2000, 2005, 2011, 2012, 2013, 2016 ................. 16
Chart 3 Consumer Lending Compared with Savings and Savings Ratio 2000-
2016 ........................................................................................................... 17
Eating and Drinking .................................................................................................................... 17
Eating Habits .......................................................................................................................... 17
Drinking Habits ....................................................................................................................... 19
Demand for Sparkling Wine Continues To Grow .................................................................... 20
Popularity of Craft Beer on the Rise ....................................................................................... 20
© Euromonitor International
CONSUMER LIFESTYLES IN NORW AY Passport II
Table 4 Eating and Drinking Data 2000, 2005, 2011, 2012, 2013, 2016 ................. 20
Chart 4 Real Growth in Consumer Expenditure Compared with Real Growth
in Consumer Expenditure on Food and Alcoholic Drinks 2000-2016 ......... 21
Grooming and Fashion ............................................................................................................... 21
Perceptions of Beauty............................................................................................................. 21
Female Grooming ................................................................................................................... 22
Male Grooming ....................................................................................................................... 22
Fashion Trends ....................................................................................................................... 23
Table 5 Grooming and Fashion Data 2000, 2005, 2011, 2012, 2013, 2016 ............ 23
in Consumer Expenditure on Clothing, Footwear and Personal Care
2000-2016 .................................................................................................. 24
Health and Wellness .................................................................................................................. 24
Attitudes To Health and Well-being ........................................................................................ 24
Obesity ................................................................................................................................... 25
Attitudes To Smoking.............................................................................................................. 25
Table 6 Health and Wellness Data 2000, 2005, 2011, 2012, 2013, 2016 ............... 26
Chart 6 Real Growth in Public and Private Expenditure on Health Compared
with Healthy Life Expectancy at Birth 2000-2013 ....................................... 27
Shopping Habits ......................................................................................................................... 27
Main Household Shop ............................................................................................................ 27
Increased Demand by Consumers for Locally Produced Food ............................................... 28
Cross-border Food Shopping Gains in Popularity Among Price-conscious Consumers ......... 28
Shopping for Big-ticket Items .................................................................................................. 29
Personal Shopping ................................................................................................................. 29
Shopping Online ..................................................................................................................... 30
Table 7 Shopping Data 2000, 2005, 2011, 2012, 2013, 2016 ................................. 30
Chart 7 Index of Retail Sales through Discounters, Hypermarkets,
Supermarkets and Internet Retailing 2000-2016 ........................................ 31
Leisure and Recreation .............................................................................................................. 31
Staying in ................................................................................................................................ 31
Going Out ............................................................................................................................... 32
Sport and Fitness.................................................................................................................... 32
Vacations ................................................................................................................................ 33
Public Holidays, Celebrations and Gift-giving ......................................................................... 34
Table 8 Leisure and Recreation Data 2000, 2005, 2011, 2012, 2013, 2016 ........... 34
Chart 8 Percentage of Households in Possession of Cable TV; Satellite TV
System; Internet Enabled Computer; Mobile Telephone; Video
Games Console 2000-2016 ....................................................................... 35
Getting Around ........................................................................................................................... 36
Private Transport .................................................................................................................... 36
Growing Demand for Electric Cars ......................................................................................... 36
Public Transport...................................................................................................................... 37
Commuting ............................................................................................................................. 37
Air Travel ................................................................................................................................ 38
Table 9 Transport Data: 2000, 2005, 2011, 2012, 2013, 2016 ................................ 38
CONSUMER LIFESTYLES IN NORW AY Passport III

in Consumer Expenditure on Transport Services and Purchase of
Cars, Motorcycles and other Vehicles 2000-2016 ...................................... 39
CONSUMER LIFESTYLES IN NORW AY Passport 1
CONSUMER LIFESTYLES IN NORWAY

TOP FIVE CONSUMER TRENDS
Consumer Confidence Remains High, Spurring Continued Spending

While recent job reports are serving as a warning for some observers, for the most part
Norwegians feel secure and remain optimistic about their national and household financial
conditions. A recent report from newsinenglish.no noted ―New figures show the number of
vacant jobs dropped dramatically in Norway over [2013-2014], making competition more fierce
and signalling tougher times. Optimism remained high among Norwegians, however, with the
latest consumer outlook survey showing increased confidence‖.
The report also noted that secondary school dropout rates remained relatively high, ―as is the
trend in prosperous times‖. In short, students are leaving their studies to take jobs and earn
wages. ―SSB figures showed just 69% of students who started high school in 2007 completed
within five years. The numbers are particularly low for students doing vocational training, with
only 55% completing in five years...When job opportunities in the labour market improve by 1%,
the proportion of high school dropouts increases between 0.1 and 0.4%. Conversely, when
unemployment rates rise, more young people stay in school‖.
According to a recent report from Bloomberg News, it is Norwegian consumers and their high
spending levels are the engine driving economic growth: ―Consumers are sustaining an
expansion in Scandinavia‘s richest economy per capita after home prices recovered from
declines in 2013 and as registered unemployment remains below 3%‖. In 2013, annual
disposable income per household reached NOK573,737, up from NOK522,868 in 2008. Over
the same period, consumer expenditure per household increased by 2.3% (in real terms), going
from NOK477,502 in 2008 to NOK488,620 in 2013.
Consumers Continue To Turn To Internet Retailers for A Wide Range of

Products
Norwegian consumers have always been keen online shopping and this is expected to
continue as internet access becomes even more pervasive throughout the country. In 2013 the
percentage of Norwegians using the internet reached 95%, up from 91% in 2008, while 88% of
households possessed broadband internet-enabled computers in 2013, up from 73% in 2008. In
line with this growth, over the same period the retail value of internet retailing increased by 29%
(in real terms), going from NOK22.7 billion in 2008 to NOK29.3 billion in 2013.
A recent report on e-commerce in the Nordic region by PostNord highlighted some of the
preferences and habits of Norwegian consumers when they shop online. According to the
report, 34% of Norwegians buy goods online at least once a month and in 2012 the average
online shopper bought goods valued at €983, the highest among Nordic countries. The report
also revealed that Norwegians prefer to pay for goods bought online using their debit or credit
cards. (In contrast, Swedes prefer to pay once goods have been received and Finns prefer to
pay electronically via their bank.) While home delivery of goods bought online is generally
preferred by Norwegian consumers, they don‘t complain if they have to collect their orders at
designated collection points. The most popular products bought online were consumer
electronics products.
The online retailing landscape is expected to change as more consumers increasingly
incorporate their smartphones and tablets into their shopping experience. According to a recent
report by dibspayment.com on Nordic m-commerce trends, more than one-quarter of consumers
in the region have purchased products or services using their smartphones or tablets and that is
expected to grow rapidly in coming years.
Incentives Fuel Increased Demand for Electric Cars

With 32,000 electric cars on the road, a significant rate in a country of 5.1 million, Norway is
the top-ranked market for new environmentally friendly electric cars. And, according to a recent
report from Agence France-Presse (AFP), sales of electric cars continue to grow: ―From the
popular Leaf by Japan's Nissan to high-end US-made Tesla S, [electric cars] have accounted for
13% of new car sales since the beginning of 2014, far ahead of the rest of the world. In March
[2014] the Tesla became the highest selling car in a single month in Norway‘s history, despite its
relatively high price‖. For 60% of households which own them, electric cars serve as the primary
transport vehicle.
While Norwegian consumers certainly consider themselves friends of the environment it
appears that, for the most part, the robust demand for electric cars can be attributed to their
desire to save money rather than a desire to reduce their carbon footprint. A recent article in the
UK-based newspaper The Independent noted ―The biggest attraction for many are tax breaks,
incentives and perks that electric car drivers receive, said Christina Bu of the country's Electric
Vehicle Association. ‗The small, plastic-box electric cars are a thing of the past,‘ she said. ‗The
uptake has nothing to do with the Norwegian psyche or love of the environment, it came when
people started to realise there were huge savings to be made‘ ‖. A report from the BBC said
bluntly ―Even in a country with a high level of environmental awareness, it all comes down to the
owner's kroner‖.
Indeed, savings can be significant for consumers choosing to buy electric cars rather than
standard fuel-powered vehicles. In addition to saving on the cost of fuel, AFP notes, ―Cars are
also exempt from urban toll payments or fees at public parking spaces, where they can recharge
batteries without cost. But above all, they are exempt from Norway's sky high sales taxes and
VAT...meaning a new, battery powered vehicle comes in about half the cost of the petrol driven
equivalent‖. Reuters reported that Statistics Norway estimates that the subsidies on electric cars
save consumers as much as US$8,200 per car, every year, adding that ―Commuters driving into
Oslo from the surrounding areas save an annual US$1,400 in road tolls, can get free parking
worth US$5,000 and avoid other charges of US$400‖. Adding convenience to savings, owners
of electric cars also have the right to use bus lanes and free access to ferries.
Observers will be watching closely to determine the extent of the impact on consumer
demand when the Norwegian government finally reduces or alters subsidies. The plan had been
to keep the subsidies in place until 2017 or until the number of electric cars on the road reached
50,000 vehicles but at the rapid rate that consumers are snapping up electric cars that number
will be achieved by 2015, according to revised government estimates. Thus, changes for
consumers considering buying electric cars may be right around the corner. AFP noted ―The
commitment [to subsidies] is important, because 48% of electric car owners say their main
reason for buying them was to save money. According to a survey by the Norwegian Electric
Vehicle Association, only 27% said it was for environmental reasons and 12% to gain time in
their rides‖.
Housing Boom Spurs Rising Mortgage Debt

A combination of low interest rates, low unemployment rates and rising housing prices over
the past several years has led to Norwegian home owners holding significantly large amounts of
mortgage debt, notable in a country where 70% of home owners have mortgages. Between
2008 and 2014 the outstanding balance of mortgage/housing debt increased by a robust 34%
(in real terms) to reach NOK794,746 per household in 2013.
This considerable rise might be worrying in a country with an economy weaker than that of
Norway, but in Norway accumulating and servicing high levels of debt has been considered
fairly normal. In 2013 Øystein Dørum, Chief Economist at DNB Markets, told the newspaper
Aftenposten what most consumers believe to be a simple truth about buying a home in Norway:
―To be able to enter the real estate market, it‘s necessary to borrow heavily‖.
Regardless, observers are beginning to worry somewhat about mortgage debt levels as the
economy slows a bit and as unemployment rises, however slightly. In early 2014, according to a
report from Bloomberg News, ―Norway‘s Prime Minister Erna Solberg warned of ‗insecurity‘
gripping the nation‘s housing market as deflating prices coincide with a rise in the jobless rate in
Scandinavia‘s richest economy‖. If this feeling of insecurity turns into an out and out concern for
Norwegians, it would have a significant impact on consumer confidence and, in turn, on
expenditure, at least in the short term, as home owners shut their pocketbooks and cut
discretionary household spending.
Consumers‘ Increasing Use of Cards and E-payments Driving Norway

Toward Cashless Society
Finans Norge, an association of 200 Norwegian financial institutions and financial groups,
recently made headlines by declaring that it believed Norway would be ‗cashless‘ by 2020,
stating ―Cash now represents such a small proportion of payments in the society, that we could
well do without it‖.
Indeed, between 2005 and 2013 cash transactions declined by 16% (in real terms) to reach
NOK127.9 billion. In contrast, over the same period debit card transactions increased by 23% to
reach NOK548.2 billion in 2013 while credit card transactions increased by more than 240% to
reach NOK105.6 billion in 2013. In coming years, the trends are projected to remain the same,
with cash transactions declining by a further 12% between 2013 and 2016 while debit card and
credit card transactions increase by 5.2% and 46%, respectively. Of course, it may be that
bringing about a cashless society in Norway will not only be down to consumers simply using
their financial cards more often. Rather, many believe that the death knell for cash will be the
result of consumers finally adopting new technologies such as mobile payments facilitated
through their smartphones on a large scale.
CONSUMER SEGMENTATION
Babies and Infants

Due to Norway‘s extensive welfare system, many families have few worries about their
household financial situations. Parents can take advantage of generous welfare programmes,
subsidised, high-quality day-care services and lengthy maternity/paternity leave. Currently,
statutory parental leave is either 49 weeks at 100% salary or 59 weeks at 80% salary. This is
divided between both parents, but the father must take at least 14 weeks.
Children are entitled to places in day-care centres (or barnehagers) from their first birthday.
Around 70% of one-year-olds were placed in day-care centres in 2013, according to
Folkehelseinstitutt (FHI), the state public health institute.
The government heavily subsidises both public and private day-care centres with fees paid by
parents means-tested. In 2012 the maximum fee for a place was set at NOK2,330 per month. A
survey conducted by polling company EPSI in 2013 found that 76% of Norwegian parents said
they were satisfied with their children's daycare. The rate of satisfaction was slightly higher
among those in private rather than in public day-care (77% versus 74%, respectively).
Babies and infants are usually dressed by their parents in layers during the winter months,
with woollen clothing most commonly used as the outer layer. They are also dressed in hats,
socks, scarves and leg warmers. Jumpsuits are also popular. Even during the summer months,
light jackets are often worn.
There is a long-established and widespread Norwegian practice of putting babies in their
prams and leaving them outside (even during the winter months) to take their naps. Babies
usually lie on a sheepskin and are fastened into a ‗voksipose,‘ a goose-feather duvet. Babies
also wear one or more layers of woollen clothing. Many day care centres even leave children
outside in temperatures as cold as minus 20 degrees Celscius to sleep, despite rules preventing
them from playing outdoors in such cold weather, according to parents magazine Foreldre &
Barn. On the other hand, a growing number of medical and health personnel are questioning the
practice. ―I think it‘s a very peculiar Norwegian practice, or a bad practice, that infants sleep
outside, even through winter,‖ said Dr Torleiv Ole Rognum, a forensic specialist at Oslo
University Hospital, in a 2013 interview in the newspaper Aftenposten.
Kids
The number of children aged between three and eight years-old declined from 370,000 to
360,000 between 2000 and 2011 but recovered to 366,000 by 2013. This rebound was driven
by the spike in fertility rates that occurred between 2008 and 2010. Children usually attend
kindergarten from around the age of one years-old. There is a strong emphasis on outdoor play
year-round and, as a result, warm, tough clothing is essential.
Norwegian children attend kindergarten until they are six years-old and then they start primary
school. All public education is free and the school year and runs from August to mid-June with
two semesters divided by a Christmas holiday from mid-December to early January. Children
begin to learn English in the second grade when they are around seven years-old. Younger
students usually spend one day a week either playing outside all day or on an excursion. All
public schools offer an after-school programme called SFO (Skolefritidsordningene) for children
in the first four grades. Most Norwegian students do not wear school uniforms. Norwegian
primary schools usually do not have canteens and children bring packed lunches to school.
Kids tend to participate in sports, watch television and, increasingly, go online with friends and
siblings. Popular sports include cycling, swimming, football and winter sports such as ice skating
and skiing. Indeed, many kids begin to ski almost as soon they can walk. According to website
Norway.org.uk, ―Three out of four Norwegian children regularly take part in sporting activities or
belong to some kind of sports club. Football and athletics are the most popular sports. Children
can also join folk dance groups or martial arts classes, become members of the Scouts or
Guides, or join their school band or choir.‖
According to a 2013 report published by the London School of Economics, 56% of Norwegian
children up to six years-old are internet users while 23% had access to touchscreen devices.
Games are particularly popular among this group of young internet users. Few visit social media
sites. In 2013, Statistics Norway reported that ―Almost all households with children have access
to a computer and the internet via a broadband connection at home‖.
Skiing Competitons Popular Among Young Kids

Cross-country skiing is a hugely popular sport among Norwegian youngsters, with many
participating in the competitions that are held all over the country. According to The Norway
Post newspaper, ―Competitions start at an early age and the level of interest is great...The
youngsters have the latest and best equipment and nothing is left to chance. Their parents are
100% behind them, talking about tactics, waxing, who to beat, and last but not least, providing
the best comfort and explanations when the results are not as expected!‖ The article added
―These kinds of competitions are held throughout the winter in all parts of the country, not only in
cross country, but also in Alpine skiing, ski-jumping and other ski disciplines as well‖.
Tweenagers
Many tweenagers, particularly older ones, have their own mobile phones, with smartphones
increasingly the norm. Video games are popular among tweens and a growing number visit
social networking sites. A survey by Microsoft in 2012 revealed that 49% of Norwegian parents
said they monitored the internet use of their children aged between eight years and 12 years,
with 45% saying they limited their tweens‘ time online.
The vast majority of tweens live in relative affluence, but a report published by the National
Audit Office found that 8% of children lived in low-income households in 2012, up from 5% in
2002. Students from households with fewer financial resources sometimes find themselves
excluded from participating in events, sports, cultural activities or school trips.
Tweens tend to become fashion-conscious relatively quickly. Local brand Wow and Me is
particularly popular, with website Little Scandinavian noting ―It‘s affordable, the style is funky
and functional for the older children that want to dress trendy without looking like adults‖.
It is typical for tweens to be given pocket money. A small, but growing, number of tweens
have payment cards. Norwegian SpareBank, for example, launched a Visa card for children
aged 13 years-old and younger in 2013. Accounts can be controlled by parents and cards can
be used online, in stores and at SpareBank‘s ATMs. Cards are particularly convenient when
children make online purchases, which is increasingly common.
Teens
Younger teens attend middle school (grades 8-10) and most go on to high school (grades 11-
13), although this is not compulsory. Pupils are entitled to free school transport if they live at
least 6km from their school. Many use public transport (usually buses) or bicycles. It is very rare
for Norwegian teens to be driven to school or to drive themselves, even if they have a car. Some
will ski to school in winter.
Most teens are not required to wear school uniforms. Winter clothing is quite expensive, and
parents tend to buy high-quality products that can be passed down to younger siblings. Most
parents do not buy designer clothing and footwear for their children, preferring to hunt for
bargains. However, some children from affluent households wear fashionable, expensive
branded clothing. Unsurprisingly, girls tend to be much more ‗on trend‘ when it comes to fashion
than boys.
Many teens, particularly boys, play organised sport in school or as members of clubs. In
addition to winter sports, football, handball, basketball, swimming and athletics are popular.
Traditionally, girls tended to lose interest in sport during the teenage years, but there are signs
that this is changing. High-achieving sportswomen such as members of the Norwegian women‘s
handball team are helping to shift attitudes and making it ‗cooler‘ to participate in sport. Of
course, most Norwegian teens are also quite tech-savvy and a large number have laptop
computers, tablets and smartphones and spend their leisure time on the internet.
High School Graduations Spur Spending Sprees

Every year before final school exams in late May, many Norwegian teens celebrate the
traditional ‗Russefeiring‘ or ‗Russ‘ which lasts for nearly one month. According to a spring 2013
entry on blog Lifeinnorway.net, you know it is Russ when you see ―teenagers lounging wearing
coloured (usually red) overalls, party buses cruising on the roads playing (really bad) bass-
heavy music and fountains full of washing-up liquid,‖ adding that Russ is perceived as ―an
essential rite of passage for young Norwegians, a chance to let off some steam after years of
compulsory schooling‖.
The participants, also referred to as ‗Russ,‘ sometimes buy old school buses or vans and
decorate them. Some affluent households and students spend as much as US$10,000 on these
celebrations. Some even get corporate sponsorship. In May 2014, website Newsinenglish.no
reported that ―High school students spend a small fortune each year kitting out customised Russ
buses, but a new trend has emerged where students are spending up to NOK150,000
(US$25,000) on their own professionally produced theme music.‖ An investigation conducted by
state television network NKR revealed that there were a total of 149 buses and cars with their
own Russ music registered online.
Young Adults
Most young adults either work or study. Although Norway‘s rate of youth unemployment has
risen over recent years (from 7.5% in 2008 to 9.4% in 2013), it is still very low by European
standards; in contrast, in 2013 the youth unemployment rate reached 20.6% in the UK and
24.1% in Sweden. Nonetheless, Norway‘s youth unemployment rate is much higher than the
rate for the population as a whole (a mere 3.7% in 2013).
Norway has a system of vocational education based on the apprenticeship model, and many
credit the country‘s relatively low youth unemployment rate to this scheme. Norway also has a
regionally organised follow-up-system that aims to assist young people who have not completed
their education. As a result, very few Norwegians enter their 20s as NEETs (not in employment,
education or training).
The incomes of 20-somethings have exhibited significant growth over recent years. In real
terms, the average gross income of those aged between 20 and 24 years-old grew by 10.5%
between 2008 and 2013 to reach NOK414,059 in 2013. For those aged between 25 and 29
years-old, gross incomes increased by 10.2% over the same period to reach NOK497,882 in
2013.
Education is free at public universities, and students enjoy a relatively generous system of
grants and loans meant to help cover living costs. All students are entitled to financial aid, and
loans are interest-free during their study period. Students normally rent accommodation while
attending university, but in 2012 the Norwegian Association of Real Estate Agents warned that
―increasing demand by students for private housing and the decreasing number of new buildings
will lead to further inflation in rents‖.
According to an article published in newspaper Dagens Næringsliv in 2012, six out of ten
third-level students work part-time, with seven out of ten earning less than NOK60,000 a year.
Many work in retail. According to a survey conducted by Bergen University in 2012, 53% of
students get one-half or more of their income from student loans and grants. Students were
found to receive an average of NOK9,800 per month in loans and grants. However, in such
cities as Oslo and Bergen this is often barely enough to cover the cost of housing. Bars, cafés
and nightclubs are popular hangouts for students while music festivals are popular during the
summer months. However, as going out is expensive for students in Norway, many also spend
quite a lot of time socialising with friends at home, watching TV, drinking alcohol, playing video
games or enjoying meals.
Many young Norwegians start families whilst in their 20s although the average age of first
marriage in 2013 was 30.8 years for women and from 34.1 years to 32.7 years for men.
Marriage is not regarded as a prerequisite for starting a family, and a significant number of
young couples cohabit without any legal arrangement. According to Statistics Norway, 75% of
children lived with both their parents in 2013.
20-somethings Taking on Housing Debt

Home ownership has always been valued by Norwegian consumers. However, as residential
housing values rose sharply over recent years, young Norwegians found it increasingly difficult
to get on the housing ladder. Those that did manage to purchase homes found themselves
saddled with high levels of mortgage debt which some argue will make life difficult over the long
term.
Citing 2012 data from the Norwegian Institute for Urban and Regional Research, the blog
Norwegianbubble noted ―Homeownership in Norway has achieved what one could almost
describe as cult-/religion-like status. In the age group 30-34 year-olds, 74% own their own
home; in the group 25-29 year-olds 52%; and even among 20-24 year-olds, 19% are
homeowners...Many of these young people have seen no alternative to owning.‖ In 2013 the
Norwegian Financial Supervisory Authority noted that 35% of mortgages issued to those aged
between 25 years and 29 years had a loan-to-value ratio in excess of 85%. Bloomberg News
reported ―Households owe about twice their disposable incomes, a level the central bank and
the regulator have warned is unsustainable‖.
Middle Youth
The gross income of consumers in the middle youth cohort increased by 10% (in real terms)
between 2008 and 2013, reaching NOK543,229 in 2013 for those aged 30 to 34 years,
NOK572,000 for those aged 35 to 39 years and NOK586,888 for those aged 40 to 44 years.
Unemployment is low within this cohort. While some middle youth are self-employed, most are
employees in public and private organisations.
For many, being in their thirties means they are focused on getting married and raising their
children. On the other hand, divorce and separation are not uncommon. According to Statistics
Norway, one- quarter of children lived with only one parent in 2013.
Home ownership is the norm for 30-somethings, but younger members of this cohort are
finding themselves increasingly squeezed by rising house prices. This has forced many to take
on larger mortgages, putting pressure on household budgets and spending. At the same time,
other members of this cohort who became property owners before the market began rising so
robustly are sitting on significant equity, and this ‗wealth effect‘ has had a positive impact on
their spending.
With family responsibilities, much socialising is done at home. Regardless, with their interest
in fitness, many join gyms and frequently participate in such outdoor activities as skiing and
hiking. Similarly, looking to live healthier lifestyles, many middle youth seek out organic produce
in farmer‘s markets and supermarkets, eat more fish and eat less meat.
Middle youth are internet-savvy and many are frequent visitors to social networking sites such
as Facebook. Often socialising at home, many use such services as Netflix to stream television
programmes and films to their computers and televisions. When they do go out to socialise, they
are as likely to go to cafés as bars or restaurants.
With family responsibilities, many middle youth spend significant leisure time with their
children. They also spend time and effort ferrying them between such extra-curricular activities
as sports clubs and music, dance and art lessons. Most households possess cars, and these
are often used for weekend trips to the mountains for skiing or hiking. Foreign travel is also very
popular, with seaside holidays in Spain and Greece particularly popular among young families.
Mid-lifers
Annual real gross incomes of those aged between 45 years and 49 years increased by 10%
between 2008 and 2013, reaching NOK587,102 in 2013, on average the highest gross income
among all age segments. For those aged between 50 years and 54 years, average annual gross
income reached NOK572,537 in 2013 while for those aged between 55 years and 59 years it
reached NOK555,677.
Homeowners aged between 45 years and 59 years have been among the biggest
beneficiaries of the recent boom in residential housing values. With most having bought their
homes prior to the boom, many of them have paid off most or all of their mortgage loans and are
sitting on significant equity. Some have used this equity to help pay for home redecoration or
renovation while others have bought second cars, boats or even second homes. As a result,
debt levels have soared, and some economists worry that these mid-lifers may struggle to make
their repayments if interest rates rise or if the economy slows.
In 2013, 18% of the population lived alone, according to Statistics Norway. In Oslo, this figure
stood at 52%. Living alone is particularly common among mid-lifers; indeed, the average age of
persons living alone s 52 years-old, 58 years-old among women and 46.5 years-old among
men.
Late-lifers
The number of Norwegians aged 60 years or older continues to rise steadily, having
increased from 865,000 in 2000 to nearly 1.075 million in 2013. Life expectancy rates in Norway
are among the highest in the world. Indeed, life expectancy at birth rose from 80.8 years in 2008
to 81.7 years in 2013. Healthy life expectancy at 60 years also increased, going from 19.6 years
to 21 years for women between 2008 and 2013 and from 16.7 years to 17.6 years for men.
According to the latest projections from Statistics Norway, the average Norwegian could live to
almost 100 years of age by the end of this century.
All Norwegian citizens are entitled to receive a state pension from the age of 67 years if they
have lived in Norway for at least 40 years. The state pension is calculated on the basis of what
individuals have earned between the ages of 16 and 67 years. The state pension is divided into
three different parts: the public pension base rate (to which everyone is entitled); the special
supplement; and the dependents supplement. The private pension market is relatively small and
dominated by insurance products.
According to a recent report by the OECD, the old-age poverty rate in Norway was 5.5%,
significantly lower than the OECD average of nearly 13%. Moreover, the report noted ―Publicly
provided services [such as healthcare] play a major role in enhancing household incomes
compared to most other OECD countries‖.
A recent study conducted by HelpAge International revealed that Norway was the second-
best country in the world in which to grow old (behind Sweden). The study noted the high
proportion of Norwegians aged between 55 years and 64 years who had paid jobs (68.6%) and
the low proportion of over-65s earning less than one-half of the median income (9.1%).
However, it also found that inadequate public transport was a problem for some pensioners.
The government spends a significant amount of money to ensure that elderly Norwegians can
continue to live independently (or at least semi-independently) for as long as possible.
According to a 2010 OECD study, Norway was deemed the third-best country in the world in
terms of provision of care for the elderly, noting the country allocated the equivalent of 2.2% of
GDP to elderly care.
More Seniors Keep Working

A recent article in the Norway Post noted ―More seniors choose to receive both a pay check
and their pension, and work more than ever before‖. Civil engineer Erik Vebner, 66 years-old,
said "It has never been an option for me to retire at 62. That is partly because of financial
reasons, because the pension has become much lower, but first and foremost because there
are so many interesting things happening in my field that I wish to be a part of ". The
economically active population aged 65 years and older increased by 47% between 2008 and
2013, to reach just more than 83,000. According to data published by NAV, 39% of 64-year-olds
were employed in 2010; by 2013, this figure had reached 46%.
Pensioners Increasingly Living Abroad

The Work and Welfare Administration recently reported that the number of Norwegians
choosing to retire abroad had risen by one-third over a period of just four years, to reach more
than 50,000 in 2013. The most popular foreign country for retirement was Sweden, followed by
the USA, Denmark and Spain. Additionally, a growing number of more adventurous retirees are
moving to Thailand. In 2013, 81-year-old Ingrid Alice Bjørnsen, who lives in Pattaya, told
website Theforeigner.no that she did not regret her decision to move to Thailand, noting that,
apart from enjoying sunnier skies, she appreciated the lower living costs.
The Work and Welfare Administration also noted that the national pension system pays out
around NOK5.5 billion to retirees who no longer live in Norway. The strength of the Norwegian
crown vis-à-vis other currencies (particularly the euro) has made it more affordable to live
abroad on a Norwegian pension. Moreover, tens of thousands of elderly Norwegians spend a
portion of their year abroad, usually over the winter months.
Table 1 Consumer Segmentation and Population Data 2000, 2005, 2011, 2012, 2013,
2016
2000 2005 2011 2012 2013 2016
Babies/infants (aged 0- 179 171 187 187 185 185

2) ('000)
Kids (aged 3-8) ('000) 370 363 360 366 373 384
Tweens (aged 9-12) ('000) 238 249 246 244 243 249
Teens (aged 13-17) ('000) 266 306 321 321 321 315
Young adults (aged 18- 719 674 763 783 801 844
29) (‗000)
Middle youth (aged 30- 998 1,025 1,046 1,051 1,058 1,069
44) (‗000)
Mid-lifers (aged 45-59) 844 917 962 980 995 1,038
(‗000)
Later-lifers (aged 60+) 865 901 1,035 1,054 1,075 1,142
(‗000)
Population: National 4,478 4,606 4,920 4,986 5,051 5,226
estimates at January
1st (‗000)
- Population aged 0-14: 895 909 922 924 927 941
January 1st ('000)
- Population aged 15- 2,901 3,019 3,256 3,294 3,333 3,434
64: January 1st ('000)
- Population aged 65+: 683 678 742 768 791 851
January 1st ('000)
- Male population: 2,217 2,284 2,461 2,499 2,536 2,632
January 1st ('000)
- Female population: 2,261 2,322 2,459 2,487 2,515 2,594
January 1st ('000)
- Urban population ('000) 3,398 3,574 3,906 3,972 4,038 4,218
- Rural population ('000) 1,080 1,033 1,014 1,014 1,014 1,008
Birth rates (per '000 13.2 12.3 12.2 12.0 11.6 11.9
population)
Death rates (per '000 9.8 8.9 8.4 8.4 8.1 7.9
population)
Marriage rates (per 5.7 4.9 4.7 4.7 4.7 4.6
'000 population)
Divorce rates (per '000 2.3 2.4 2.1 2.1 2.1 2.1
population)
Source: National statistics, Euromonitor International
Chart 1 Population Aged 15-64 Compared with Old-Age Dependency Ratio 2000-
2020
Source: Euromonitor International
HOUSING AND HOUSEHOLDS
Home Ownership
The website Thelocal.no recently noted ―The main objective of Norwegian housing policy is to
have as many people as possible become home owners‖ and, indeed, most Norwegians live in
owner-occupied housing. There were 1.7 million households living in owner-occupied housing in
2013, up from 1.6 million in 2008. The country‘s house price index rose by almost one-third
(32%) between 2008 and 2013. In a report it published in September 2013, the IMF claimed that
house prices were overvalued by up to 40%. A recent article in the Financial Times quoted a
local business executive who said ―If you go to a café in Oslo all everybody is talking about is
house prices. That‘s not a good thing‖.
The government has responded to rising house prices by trying to make it easier from
consumers to get a mortgage. In February 2014, it announced that purchasers would be able to
borrow up to 90% of a property‘s value, up from 85%. Some analysts, however, doubt that this
will make much difference. "It would be somewhat easier for banks to give loans to borrowers
with less than 15% equity. But I doubt it will have any great influence on overall lending and the
housing market since the guidelines are already applied with great flexibility," according to
economist Erik Bruce of Nordea Markets. The government also intends to ease regulations
related to the construction of new builds in an effort to increase supply. ―Everyone needs a
home and we want to help most people to have their own," Finance Minister Siv Jensen recently
said. More than two-thirds (1.2 million) of home owners had mortgages in 2013. Between 2008
and 2013, the number of mortgage-free owner-occupiers fell from 533,000 to 519,000.
Between 2008 and 2013, the number of households living in rented accommodation rose from
507,000 to 559,000. In part, this reflected the sharp increase in home values. Discussing
renters, website Thelocal.no said ―A tenant in Norway has more rights than in many other
countries. For example, while a lease period cannot be for less than three years, a tenant can
terminate the tenancy at any time without any reason. The only stipulation is that they give
notice in writing.‖ The report added that renting ―an average two-bedroomed apartment
measuring 70 square metres in the nicer parts of Oslo can set you back as much as NOK16,000
[per month]‖.
Many Norwegians are affluent enough to afford second homes. A study published by the
Norwegian Centre for Transport Economics in 2011 revealed that three-quarters of second
homes were located either by the coast or in the mountains and that, on average, they were
occupied for around 40 days a year. The report also revealed that, on average, expenditure on
second homes amounted to around NOK25,000 annually.
Gardening is a popular hobby in Norway, particularly among older consumers. In some of the
climatically more hostile regions of the country, rock gardens are sometimes cultivated.
Allotment gardening has a long tradition in urban areas, and this has mutated into so-called
‗urban‘ gardening over recent years. DIY is a popular hobby among many home owners,
although a growing number are more inclined to pay professionals to carry out home repair and
renovation work rather than do it themselves.
Household Profiles
The number of single-person households increased by nearly 27% between 2000 and 2013,
reaching 925,000 in 2013. This represented more than 40% of total households, the largest
proportion among household types. Single-person households include young unmarried workers
and professionals, older independent widows and widowers and many divorced Norwegians.
While their circumstances vary, in many instances their preferences for consumer products are
similar. For example, occupants of single-person households tend to buy food in smaller
quantities and in smaller packaging. Additionally, as their incomes and household budgets don‘t
have to take into account children or spouses, they tend to spend more on personal products.
Over the same period, the number of households consisting of couples without children
increased by 19% and the number of households consisting of couples with children—the
second-largest type with 27.7% of total households—increased by 7%. Obviously, the
household budgets of couples with children typically take into account the various needs of the
children, including the need for clothing and footwear, educational toys and materials and other
child-related products and services.
In spite of taxes and social security contributions that accounted for 37% of gross income in
2013, levels of disposable income remain high. Indeed, Norway is among the most affluent
societies in the world and that affluence is steadily increasing. Over one-half (53.4%) of
Norwegian households recorded annual disposable income of at least US$45,000 in 2013, up
from 45.7% in 2008. Additionally, 22% reported annual disposable income of more than
US$77,000, up from 15.7% in 2008. These figures confirm a large and growing middle class.
Regardless of the household type in which they live, Norwegians tend to be pet lovers. Cats
are the most popular pets in Norway and 35% of households had cats in 2013, up from 33.8% in
2008. At the same time, 20.3% of households had dogs, up from 18.9% in 2008. In terms of
costs, per pet expenditure increased by 12% (in real terms) from 2008 to 2013. Premium
products accounted for the bulk of spending on pet food per household expenditure on mid-
priced and economy products declined by 13% and 4.5%, respectively.
Running Costs
Expenditure on electricity, gas and other fuels declined by nearly 8% (in real terms) between
2008 and 2013, to NOK17,251 in 2013. Spending on electricity accounted for the bulk of this
with per household expenditure reaching NOK15,787 in 2013. Relatively little is spent on gas
(per household expenditure of NOK206 during the same year), liquid fuels (NOK601) and solid
fuels (NOK620).
Historically, the price of electricity has been very low but this has changed over the past
decade or so. On the other hand, it is still lower in Norway than most EU countries. According to
Eurostat data, the average price of 100kWh of electricity in Norway during the second half of
2013 was NOK143.7 (€17.80). In contrast, the average price was €18 in UK, €20.50 in Sweden
and €29.40 in Germany.
As electricity costs rise, households have been seeking to invest in technology that will reduce
their energy consumption. The installation of heat pumps has proven to be particularly popular.
In 2011, according to a report from Statistics Norway, 17% of households had an ambient air
heat pump and 2% had geothermal or ground-source heat pumps. At the same time, Statistics
Norway noted, the use of heating oil had declined by 46% since 2004 and by 2009 it accounted
for only 4% of Norway‘s total energy consumption.
Statistics Norway also reported that 72% of households had the ability to heat their homes
using firewood, either in a dedicated or combined stove. Among detached houses, more than
90% had the ability to heat with firewood. Many chop their own wood from the country‘s
abundant forests and, indeed, among some chopping firework is considered to be something of
an art. One of the most popular books in Norway over recent years was Hel Ved by Lars
Mytting. The term, literally meaning firewood, is also used as an expression akin to ‗salt of the
earth‘ in English. According to the author, ―Using wood as a heating source is more than just
about heating. It's part of the national heritage‖.
More broadly, the agency reported that total energy consumption per household continued a
long-term decline, noting that ―More people in new dwellings (from about 1990) report that the
insulation is good compared to those who live in older dwellings. Higher energy prices have also
stimulated energy saving‖.
Norwegian consumers tend to be environmentally conscious, so their interest in green
technology is quite high. Crucially, they also have the money to pay for the often expensive
technology. A great deal of research effort has been devoted to ‗passive housing‘ in an effort to
reduce household energy bills.
More Consumers Being Second Homes Abroad

Lured by lower prices, a growing number of Norwegians have been purchasing holiday homes
in neighbouring Sweden over recent years. In 2012, website Thelocal.no reported that ―Since
2007, Norwegian ownership of Swedish cottages has increased by nearly 35%, according to
Statistics Sweden, and they now own around 9,000 cottages‖. The region of Strömstad, situated
by the Norwegian border in western Sweden, has proven to be particularly popular among
Norwegians.
Some are also purchasing holiday homes further afield in sunnier climes, such as Spain. The
proliferation of low-cost air carriers has played a significant role in this shift, as have significantly
lower house prices in Southern Europe and the strength of the Norwegian crown versus the
euro. In 2012, a report published by Fastighetsbyrån, part of Swedish banking group Swedbank,
revealed that the number of Norwegians buying property in Spain had soared by 108% since
2007. A far smaller number are buying second homes even further afield in such locations as
Southeast Asia, particularly in Thailand.
Table 2 Housing and Households Data 2000, 2005, 2011, 2012, 2013, 2016
2000 2005 2011 2012 2013 2016
Total number of 1,945 2,034 2,224 2,260 2,297 2,406

households ('000)
- Urban ('000) 1,524 1,622 1,809 1,844 1,879 1,985
- Rural ('000) 420 413 416 417 418 421
Households by tenure
- Home owner ('000) 1,494 1,552 1,686 1,712 1,738 1,815
-- Home owner without 655 563 522 520 519 521
mortgage ('000)
-- Home owner with 839 990 1,164 1,192 1,219 1,295
mortgage ('000)
- Rented ('000) 451 482 538 549 559 591
Households by type of
dwelling
- House ('000) 1,526 1,562 1,643 1,663 1,683 1,742
-- Detached ('000) 1,114 1,133 1,177 1,189 1,202 1,241
-- Semi-detached and 412 429 467 474 481 502
terraced ('000)
- Apartment ('000) 354 403 505 519 534 575
- Other ('000) 64 69 75 78 81 88
Households by number of
persons
- 1 ('000) 730 773 890 907 925 976
- 2 ('000) 529 558 640 652 664 700
- 3 ('000) 269 275 268 270 273 280
- 4 ('000) 268 266 252 253 254 258
- 5 ('000) 115 125 128 130 132 138
- 6+ ('000) 33 39 47 48 49 53
Households by number of
rooms
- 1 ('000) 100 92 78 76 75 72
- 2 ('000) 257 275 328 339 349 377
- 3 ('000) 381 404 471 484 497 533
- 4 ('000) 438 468 546 561 576 618
- 5+ ('000) 769 796 800 800 801 806
Households by sex of
head of household
- Male ('000) 1,201 1,220 1,305 1,323 1,340 1,390
- Female ('000) 744 814 919 938 957 1,015
Households by type
- Single person ('000) 730 773 890 907 925 976
- Couple without 409 430 472 480 488 511
children ('000)
- Couple with children 594 590 621 628 636 660
('000)
- Single-parent family 160 168 184 187 190 200
('000)
- Other ('000) 51 73 57 58 58 59
Housing stock ('000) 2,079 2,189 2,343 2,363 2,390 2,467
Housing completions 19 30 20 26 28 31
('000)
House price index (2010 52.6 71.6 108.0 115.2 119.6 -
= 100)
Pet population (animals 2.6 2.7 2.6 2.6 2.6 2.5
per household)
Ownership of household
durables by type
- Dishwasher (% of 61.0 72.0 80.1 80.9 81.7 83.7
households)
- Freezer (% of 92.0 93.0 91.1 91.1 91.1 91.1
households)
- Microwave oven (% of 68.1 78.0 85.8 86.6 87.3 89.0
households)
- Refrigerator (% of 98.9 99.0 99.1 99.1 99.1 99.1
households)
- Telephone (% of 95.5 92.1 86.8 86.2 85.6 84.5
households)
- Tumble drier (% of 40.0 42.0 43.4 43.5 43.6 43.9
households)
- Vacuum cleaner (% of 94.2 95.3 96.2 96.4 96.5 96.8
households)
- Washing machine (% of 89.0 90.0 89.7 89.8 89.9 90.1
households)
Average household
expenditure
on running costs (NOK per
household, at constant
prices)
- Maintenance and 1,924.5 973.9 700.1 690.6 679.9 662.8
repair of dwellings
- Water and miscellaneous 4,910.0 5,755.4 6,522.2 6,645.7 6,874.2 7,469.6
domestic services
- Electricity, gas and 13,004.5 16,821.5 17,104.6 17,070.8 17,250.7 18,139.6
other fuels
- Hardware and DIY 2,445.9 2,682.5 2,589.5 2,573.6 2,570.9 2,638.9
goods
- Household and 4,124.4 4,011.2 4,060.7 4,064.2 4,050.6 4,278.3
domestic services
Chart 2 Number of Households by Disposable Income Bracket 2005, 2010, 2016
MONEY AND SAVINGS
Attitudes Toward Payment Methods

In 2013, financial website Totalpayments.org named Norway as one of the ―top five cashless
countries in the world,‖ alongside neighbouring Sweden. An earlier study by EDB ErgoGroup
(now Evry) and Synovate in 2011 found that ―More than one-third of Norwegians believes cash
will cease to be used as a way of paying for goods and services‖. Beyond cash, other types of
paper payment (such as payment by cheque) are now very rare, with annual per capita
payments reaching less than NOK20 in 2013, down from NOK56 in 2008.
Not surprisingly, financial cards are important tools for consumers in a ‗cashless‘ society.
Consumers held 2.6 ATM cards per capita in Norway in 2013, up from 2.2 in 2008, and 1.4 debit
cards, up from 1.3 in 2008. The number of personal credit cards per capita increased from 0.7 to
0.9 over the same period. Consumers held 1.1 pre-paid cards per capita (all closed loop) in
2013, up from just 0.4 in 2008.
As for mobile internet payments, John-Arne Haugerud, deputy CEO of EDB ErgoGroup (now
Evry), recently observed ―In just a few years‘ time, mobile phones will be very much the
dominant payment method‖. Indeed, contactless smartphone payments are due to be launched
in Norway in 2014 with the launch of a system by TSM Nordic, a joint venture by incumbent
telco Telenor and DNB, the country‘s largest bank. TSM Nordic is developing a so-called ‗virtual
wallet‘ based on NFC (near field communications) technology. Using the Valyou app,
smartphone users can make payments of up to NOK200 by opening the app and holding their
handset close to a contactless payment-enabled reader. For larger amounts, users must enter a
PIN number.
A mobile wallet called mCash is already available to consumers but the payment system has
not taken off among consumers in any significant way. Rather than using NFC technology the
app uses the smartphone‘s camera to scan QR codes. The app must also be linked to a money
source, either Visa or Master debit cards.
Savings
Although the Norwegian economy has weathered the global economic downturn better than
other economies in Europe (due in large part to its abundant reserves of hydrocarbons), the
downturn nevertheless shocked many Norwegians into saving more. In 2008, Norwegians
saved 5.6% of their disposable income; by 2013 the savings ratio had almost doubled to 10.8%.
In contrast, the savings ratio is 9% in Sweden and 0.7% in Denmark.
Mandatory occupational pensions (called "Obligatorisk tjenestepensjon" or OTP) were
introduced in 2007 to cover those employees who were not already in private pension schemes.
OTP was introduced due to fears that many workers had made no private provision for their
retirement and would be dependent on the state pension scheme. OTP is funded by employers,
but employees can make voluntary contributions. It is also possible for individuals to make
contributions under arrangements they make with pension providers, such as insurance
companies.
In 2013 the new government signalled that it intended to use the income tax system to
incentivise saving. ―I don‘t think that we have too large of a private debt problem in Norway but
we will create tax relief on savings,‖ Prime Minister Erna Solberg said. ―The policy will be to get
more people saving for the future,‖ she added. ―As long as the rest of the economy is going well
private debt is not a problem‖.
Loans and Mortgages

Norwegian consumers have gone on something of a borrowing binge over recent years.
Indeed, the outstanding balance of consumer credit increased by 81% (in real terms) between
2005 and 2013, going from NOK256.9 billion in 2005 to NOK465.6 billion in 2013. Apart from
strong consumer confidence based on a relatively benign economic environment, historically
low interest rates have also driven growth in borrowing.
Credit card borrowing has been particularly high in recent years, with gross card lending
increasing by 71% between 2008 and 2013. Over the same period, home lending (for repairs,
maintenance and remodelling or furnishings) more than doubled in real terms; education lending
rose by 20.4%; and durables lending increased by 22.5%.
More than two-thirds of owner-occupiers (1.2 million out of 1.7 million) had mortgages in
2013. In 2013, the outstanding balance of mortgage/housing lending reached NOK2.089 trillion,
up by 74% since 2005. Growth has been fuelled by house price inflation; indeed Norway‘s
house price index rose by almost one-third (32.3%) between 2008 and 2013.
In an effort to boost demand in the housing market, the government tabled a proposal to allow
banks to issue mortgages for up to 90% of the value of the property. While the country‘s
Financial Supervisory Authority (FSA) rejected this, the government nevertheless went forward
in 2014. Prior to this, banks were allowed to lend up to 85% of a property‘s value.
According to a recent article from Reuters, Norwegian household debt is around 200% of
disposable income, one of the highest rates in Europe. In 2014, Birger Vikøren, Norges Bank's
executive director for monetary policy, noted that Norwegian household debt was continuing to
rise faster than income and that this should be a concern for the central bank. There is particular
concern that younger families are taking on too much mortgage debt. Data released by
Statistisk Sentralbyrå (the national statistics office) in 2013 stated that the average mortgage
debt of families with children under the age of seven years almost tripled between 2004 and
2012.
Table 3 Money and Savings Data 2000, 2005, 2011, 2012, 2013, 2016
2000 2005 2011 2012 2013 2016
Financial cards in
circulation
- ATM cards (mn cards) 5.6 7.9 12.3 12.6 13.1 14.2
- Debit cards (mn cards) 4.0 4.9 6.9 6.9 7.1 7.6
- Credit cards (mn cards) 1.0 2.3 4.7 5.0 5.3 6.4
- Charge cards (mn cards) 0.4 0.5 0.6 0.6 0.6 0.7
Financial cards'
transactions
- ATM cards (NOK mn, at 157,972 145,627 129,167 125,322 119,200 105,500
constant prices)
- Debit cards (NOK mn, 327,543 447,052 517,485 536,111 548,200 576,800
at constant prices)
- Credit cards (NOK mn, 11,488 30,859 77,174 90,499 105,750 154,542
at constant prices)
- Charge cards (NOK mn, 21,559 22,769 22,123 23,586 25,160 27,210
at constant prices)
Cash transactions (NOK 164,124 152,989 134,725 131,783 127,879 112,527
mn, at constant prices)
Other paper 2,803 826 155 122 99 70
transactions (NOK mn,
at constant prices)
Annual savings (NOK mn, 65,841 140,830 125,217 133,936 141,958 171,435
at constant prices)
Savings ratio (% of 7.8 13.1 10.2 10.5 10.8 11.6

disposable income)
Annual lending rate (%) 8.9 4.0 4.4 3.8 4.5 -
Consumer lending
- Consumer credit 163,173 256,968 386,158 423,313 465,593 610,472
(outstanding balance)
(NOK mn)
- Mortgages/housing 679,191 1,197,677 1,828,830 1,959,592 2,089,689 2,303,207
(outstanding balance)
(NOK mn)
Chart 3 Consumer Lending Compared with Savings and Savings Ratio 2000- 2016
EATING AND DRINKING
Eating Habits
Fårikål, a stew made from lamb and cabbage, has been Norway's official national dish for
more than four decades. In 2014, food and agriculture minister Sylvi Listhaug launched a
competition to replace it as part of a series of events to mark the bicentenary of the country's
constitution. Website Thelocal.no reported that ―The nationwide survey she commissioned from
Ipsos to whittle down nominations sent to the official competition e-mail revealed that, despite
the popularity of foreign imports such as tacos and pizza, fårikål remained the nation's firm
favourite‖. The dish won 45% of the national vote, followed by kjøttkaker (meatballs), Raspeball
(potato dumplings) and pinnekjøtt, (lamb ribs), a dish traditionally served at Christmas.
Fish remains an important part of the local diet. A report released by Norway's Seafood
Council revealed that salmon, cod and herring were the country's favourite fish in 2012. The
report also noted that sushi was beginning to gain in popularity amongst consumers. ―Single-
person households are buying more seafood. The increased availability of portion-sized
processed food probably makes it easier for this group of people to choose fish for dinner,‖ said
the Council's Asbjørn Warwik Rørtveit. Per capita fish consumption rose from 35.5kg to 37.4kg
between 2008 and 2013, ranking Norway second in Europe (behind Portugal) and sixth in the
world.
Meals with family and friends are central to many holiday celebrations. The primary dish at
Christmas dinner is traditionally pork, lamb or cod and often served with boiled potatoes,
sausages, meatballs and lingonberries. These foods are usually washed down with beer and
aquavit. Many local breweries brew special Christmas beers, while gløgg (a kind of mulled wine)
is also popular. The traditional Norwegian Easter Sunday lunch consists of roast lamb with
boiled potatoes and vegetables, often washed down with Easter beer. The meal is followed by a
selection of cakes and desserts, as well as Easter eggs.
More women are working and, in turn, there is less time available for them to prepare meals
for their families (or for themselves) at home. This has led to increased demand for convenience
food. On the other hand, household responsibilities tend to be fairly evenly divided among men
and women and many men prepare dinner. A study published by the OECD in 2014 found that
Norwegian men spent an average 180 minutes a day doing housework, compared with 210
minutes for women. In addition, the tradition of preparing ‗matpakke‘ or a packed lunch for work
is being replaced by buying and eating meals outside of the workplace as more Norwegians
choose to socialise with work colleagues.
Norway has a small, but growing, population of Muslim migrants from Asia and Africa. One
local abattoir even began slaughtering reindeer halal in 2013. The Islamic Council of Norway
visited the abattoir and gave its seal of approval to the reindeer meat, which is also used to
make ham. ―We got some information that we could produce some ham from the reindeer, so
Muslim children can have ham on their sandwiches,‖ said Harry Dyrstad, owner of the abattoir,
to the Daily Mail newspaper. There are also a growing number of halal restaurants, particularly
in Oslo.
There are a wide range of fine dining restaurants in Oslo, many serving international cuisines
and some with Michelin stars. Indeed, it has been reported that Oslo has more Michelin stars
per capita than any other capital city. Regardless, restaurants in Oslo—as well as in other
Norwegian cities—that serve traditional dishes remain very popular among consumers. In a
recent article in Director magazine, Dag Terje Klarp Solvang, managing director of the
Norwegian Culinary Institute, said ―We were eating to survive until 1969 [when oil was found in
the North Sea]...That legacy still characterises traditional food in Norway, which is rustic and
usually based on just one main ingredient‖. Beyond the ubiquitous seafood, other local
specialities include lamb, grouse, elk and reindeer, he added. Solvang also noted the trend
toward consumers demanding local foods sourced in a sustainable manner. Of course, noted
the article, the move toward locally sourced foods may, in part, be a financial decision:
―Imported food in Norway is often more expensive. (Still outside the EU, Norway pays extra
taxes.)‖.
Recent research on dining habits of consumers from Norway and other Nordic countries by
the National Institute for Consumer Research (SIFO) revealed that two-thirds of young
consumers visit fast food venues once a month or more. Reasons offered most often for eating
fast food was taste and convenience. Young men were found to eat fast food more often than
young women. According to SIFO, the one-third who never or rarely ate fast food were asked
why, and ―‘the two most frequent answers were ‗It is too much unhealthy food‘ and ‗It is too
expensive‘. The health argument and the price argument were given most importance among
the Danish and Norwegian youth‖.
With fast-paced consumer lifestyles increasingly the norm, takeaway coffee shops are very
popular amongst Norwegian commuters. The fact that there are many coffee shops located near
high-traffic areas makes it easy for consumers to buy takeaway coffee to take to work. Norway‘s
café culture is growing stronger and even spreading to smaller towns. Capsule or pod coffee
systems like Nespresso have also proven popular among time-poor Norwegians.
Drinking Habits
Drinking levels are relatively low by European standards. Per capita beer consumption among
adults (aged 15 years-old and older) fell from 72.1 litres in 2008 to 61.9 litres in 2013. In
contrast, the per capita figure in 2013 for Germany was 126.5 litres while it was 82.9 litres in the
UK. Over the same period, per capita consumption of spirits declined from 3.8 litres to 3.1 litres
(less than one-half the levels of Germany and the UK) while per capita consumption of wine
increased from 17.5 litres to 18.2 litres.
In 2013 alcoholic drinks in Norway were priced at 259% of the EU average, according to
Eurostat. This compared with 178% in Ireland, the most expensive country in the EU. Many of
those living close to the border buy alcoholic drinks in neighbouring Sweden. Indeed, alcohol
accounts for 15% of the total spend during these trips, according to 2011 data from Statistics
Norway. Due to high prices, Norwegians also tend to take advantage of duty-free shops when
travelling abroad. The off-trade accounts for the bulk of alcohol sales (around three-quarters of
volume consumption of beer in 2013, for example). Even when they go out to a bar, many
consumers, particularly younger ones, drink at home first in order to save money (this practice is
known as ‗vorspiel).
Distribution of alcohol is also restricted. Grocery retailers can only sell beer with an alcohol
content of no more than 4.75%, and they cannot sell it after 8pm on weekdays, 6pm on
Saturdays or at all on Sundays. For stronger drinks, consumers must go to Vinmonopolet, state-
operated shops. These shops have limited opening hours, closing at 6pm during the week and
3pm on Saturdays (they are closed on Sundays). Long queues are frequent as closing time
approaches, particularly on Saturday afternoons.
Selling alcohol to minors or buying alcohol for minors is illegal. Minors are defined as those
under 18 years-old for beer and wine consumption and under 20 years-old for consumption of
spirits. According to the Norwegian study on life course, ageing and generation (NorLAG),
younger consumers (those in their 20s and 30s) are drinking less than their older counterparts
(those aged between 50 and 70 years). This gap is particularly wide among men. An increased
awareness of the health risks associated with alcohol consumption, combined with increased
consumer interest in health and wellness, are playing a role in this shift.
Regardless of recent trends, it is clear that many Norwegian men still enjoy a drink, with some
enjoying it more than others. Writing on website Newsinenglish.no in 2010, writer Solveig Torvik
noted ―Though more Norwegians are adopting moderate, continental-style social drinking
patterns, enough of them engage in binge drinking to merit unfavorable notice. The role of
alcohol in Norway often appears to be to consume it until you‘re senseless, and alcohol
commonly is accepted as an excuse for indulging in antisocial behaviour... The historic religious
taboo associated with alcohol has only increased its allure – as has the astronomical cost
imposed by the state to discourage drinking. As the price of this forbidden fruit goes ever higher,
its illicit aura predictably becomes more enticing.‖ National Police Director Ingelin Killengreen
recently speculated that the fact that Norwegians were ―not very social and open‖ led some to
drink to loosen their inhibitions.
A growing number of East Europeans taking residence in Norway has resulted in a more
diverse selection of alcoholic beverages available in both on- and off-trade establishments.
Migrants tend to remain loyal to their national brands, such as Kirow and Stolichnaya vodka
from Latvia. Vinmonopolet has expanded its product assortment to include brands which appeal
to Polish immigrants, such as Grand Imperial vodka, in addition to the Zywieck and Ksiak beer
brands. Indeed, Polish brand Dworek is now the most popular brand of vodka in Norway.
Consumption of most types of soft drinks is declining in Norway. Per capita consumption of
carbonates fell by almost 10% between 2008 and 2013 with cola carbonates accounting for
almost 70% of the decline. However, there has been increased demand for flavoured
carbonated bottled water as it is considered to be a healthier alternative to carbonated
beverages. Demand for energy drinks is increasing rapidly, particularly among younger
consumers, with Red Bull most in demand.
Demand for Sparkling Wine Continues To Grow

Norwegian consumers continue to drink more wine and appear willing to spend more to get
what the varieties they want. Between 2008 and 2013, the volume of wine consumed increased
by 11.6% while in 2013 spending on wine per household reached NOK4,981, up from
NOK4,550 in 2008.
Growth was driven in large part by increased consumer demand for sparkling wine, reflected
by volume sales growing by 83.5% between 2008 and 2013. According to the recent Nordic
Landscape report from Wine Intelligence, the increased consumption of sparkling wine has been
due to the growing popularity and robust consumption in recent years of Prosecco, a trend
perhaps not surprising in a country where Italian wines have topped the charts for years.
According to the report, the proportion of Norwegians drinking Prosecco increased by 70%
between 2011 and 2013.
The report also noted that, regardless of the general steady increase in wine consumption, it
appears that Norwegian consumers have become a bit set in their ways. ―Norwegians may be
drinking more wine, but they seem less adventurous in their choices and more unsure of their
wine knowledge than they used to be" said Wine Intelligence COO Richard Halstead.
Popularity of Craft Beer on the Rise

According to website Travelsquire.com, ―Norway now has about 40 microbreweries, and that
number is growing. Many began as home-brewing operations...A handful of microbreweries
have evolved into full-fledged companies...You‘ll find beers brewed with berries, juniper
branches, birch sap and other distinctly Scandinavian ingredients.‖ There are also a small, but
growing, number of microbrew pubs. The rise of microbreweries has extended the concept of
beer from lager to stout, pale ale, wheat beer, dark beer, and many others.
―Norway has seen a veritable beer-culture explosion,‖ website Spottedbylocals.com reported
in 2014. For example, Nøgne Ø brews more than 20 different types of ale. According to a 2014
report on website Norway.org, ―In Norway, Nøgne Ø‘s popularity has soared in recent years.‖
According to the company, ―Our never ending search for new flavours and ingredients
constantly results in new seasonal and experimental brews‖.
Table 4 Eating and Drinking Data 2000, 2005, 2011, 2012, 2013, 2016
NOK per capita, at constant prices

2000 2005 2011 2012 2013 2016
Food consumer expenditure 21,804 22,741 24,781 25,000 25,104 27,099

- Bread and cereals 2,791 3,172 3,651 3,691 3,714 4,038
consumer expenditure
- Meat consumer 5,440 5,668 5,662 5,572 5,462 5,601
expenditure
- Fish and seafood 2,154 2,356 2,905 2,992 3,066 3,430
- Milk, cheese and eggs 3,466 3,300 3,700 3,764 3,804 4,166
- Oils and fats 521 456 474 474 473 499
- Fruit consumer 1,301 1,468 1,741 1,794 1,839 2,045
expenditure
- Vegetables consumer 1,819 1,942 2,036 2,074 2,103 2,326
expenditure
- Sugar and confectionery 3,355 3,355 3,386 3,391 3,379 3,591

Coffee, tea and cocoa 769 849 868 881 884 946
Mineral waters, soft 2,638 2,633 3,115 3,182 3,201 3,472
drinks, fruit and
vegetable juices
Alcoholic drinks 4,299 4,399 4,621 4,636 4,632 4,777
- Beer consumer 1,931 1,702 1,760 1,772 1,760 1,819
expenditure
- Spirits consumer 1,189 1,207 1,175 1,123 1,084 1,033
expenditure
- Wine consumer 1,179 1,490 1,686 1,741 1,788 1,925
expenditure
Catering consumer 9,710 9,488 10,911 11,314 11,473 12,597
expenditure
Availability of fruit 169.1 206.0 210.0 211.3 212.6 216.9
and vegetables (kg per
capita per year)
Chart 4 Real Growth in Consumer Expenditure Compared with Real Growth in

Consumer Expenditure on Food and Alcoholic Drinks 2000-2016
GROOMING AND FASHION
Perceptions of Beauty
While the attributes of blond hair and blue eyes are relatively common among people in
Norway and while many are tall, far from everyone fits the Viking stereotype and body types of
all kinds can be found throughout the country. With a growing number of migrants, particularly
migrants from the Middle East, Africa and Eastern Europe, the general appearance of
Norwegians is becoming somewhat more diverse. According to Statistics Norway, migrants

accounted for just under 15% of the country‘s population in 2013.
Speaking to website Sciencenordic.com in 2012, Iiná Márjá Jávo, a researcher at the Faculty
of Health Sciences at the University of Tromsø, revealed that her recent research had shown
that 49% of women aged between 18 and 35 years in northern Norway were open to the idea of
cosmetic surgery, with 25% saying they wanted liposuction, 15% breast enlargements and 7%
rhinoplasty. According to the website, ―Since plastic surgery is now much more widely accepted,
Jávo‘s research shows that women may be encouraged to undergo surgery. Society‘s focus on
appearance is increasing‖. Associate Professor Gunn Pettersen at the University of Tromsø
added that young people were increasingly preoccupied with their bodies and often had
unrealistic and often unhealthy body ideals. ―Society today has a strong focus on appearance
and perfectionism,‖ she said.
Female Grooming
Female consumers have been driving increased demand for premium grooming products in
recent years. Indeed, per capita sales in premium beauty and personal care products rose by
nearly 10% between 2008 and 2013 to reach NOK621 in 2013. Over the same period, per
capita sales of mass market beauty and personal care products fell by 7.3%, to NOK1,443in
2013. The desire to keep a youthful appearance is a strong driver of demand for premium
products, as is the willingness to pay more for products that are considered to be safer.
Products that include so-called anti-aging properties, high SPF sun protection levels and
antioxidants are increasingly popular.
Consumers are increasingly turning to internet retailers for their hair care products, and the
channel accounted for nearly 10% of hair care value sales in 2013, up from a mere 2.7% in
2008. In particular, salon hair care products are becoming more widely available online. In
addition, many price-conscious consumers shop for products on foreign websites in order to pay
less tax.
Increased awareness of the potentially harmful effects of overexposure to the sun and the
dangers of skin cancer has been the main drivers of growth in demand for sun care products.
The fact that Norwegians tend to be fair-skinned has also played a role.
There was a significant increase in consumer demand for oral care products, particularly
mouthwashes/dental rinses, mouth fresheners and tooth whiteners. Merely having clean teeth is
no longer enough for many Norwegian consumers, and the desire for a dazzlingly smile is
driving demand for a wide range of whitening products. According to an article published on
website Pressenytt.no in 2012, two out of three Norwegians believes that they have discoloured
teeth and almost three in ten have considered whitening their teeth.
Male Grooming
There is strong demand amongst Norwegian men for grooming products, reflected by per
capita sales of NOK288 in 2013. On the other hand, while demand has remained steady there
has been only slight growth. In recent years, new products and strong competition have held
down prices and in some cases led to reduced prices, much to the benefit of consumers.
A survey conducted by Nivea in 2012 found that 90% of Norwegian men shave at least once
per week, with 40% shaving every day. The survey also revealed that wrinkles around the eyes
were a concern for 57% of men, driving growing interest in anti-aging products. Beards have
become popular among a small but nevertheless enthusiastic group of consumers.
While not under the intense pressure felt by teenage girls, teenage boys are coming under
growing pressure to look good and they are increasingly seeking out grooming products. Some
centres that offer waxing services have extended their services to men and young men are now
among their most frequent visitors. The centres report that the body areas most often waxed are
backs, stomachs, bikini lines and eyebrows. Some men are even having their teeth bleached.
One of the most important aspects of men‘s grooming habits is the attention they pay to their
hair and their efforts to maintain a tidy and well-kept hairstyle. Indeed, the Nivea survey found
that 92% of men considered over-styled hair to be unattractive. Wax is a popular hair styling
agent, particularly among young adult men.
Fashion Trends
Norwegian fashion differs little from the broader Scandinavian style. In winter months,
Norwegians tend to wear more sombre colours such as black and brown although women wear
colourful accessories such as scarfs, caps, hats and gloves. For the most part, colourful clothing
is generally reserved for the summer months. Sunglasses are a popular accessory, particularly
among women, even though Norwegian summers are not particularly sunny.
Brands tend to be important to consumers, with the more affluent driving demand for designer
apparel. Among younger, less affluent consumers there is an emphasis on ‗fast fashion‘. Jeans
are popular among Norwegians regardless of income level, gender or age. Knitwear is also a
perennial favourite among both men and women. Business attire tends to be fairly casual in
Norway, with dressing down the norm in most offices. On the other hand, more formal business
attire is required in such sectors as banking.
Traditional Norwegian folk costumes (or ‗bunad‘) are quite popular among some locals. For
women, bunad is usually made of wool accompanied by highly embroidered blouses, shawls
and aprons. For men, bunad consists of traditional shirts and jackets. Until fairly recently, bunad
was rarely seen outside of Constitution Day (17 May) but this has changed and some
Norwegians ((particularly men) now wear it on formal occasions. Bunad is increasingly seen as
something akin to a status symbol, with complete outfits costing upwards of NOK6,200.
Norwegians tend to wear bunad at Christmas and at celebrations such as birthdays, baptisms
and confirmations.
Table 5 Grooming and Fashion Data 2000, 2005, 2011, 2012, 2013, 2016

2000 2005 2011 2012 2013 2016
Personal care consumer 4,165.8 4,955.3 5,968.3 6,109.3 6,134.0 6,551.8

expenditure
Colour cosmetics retail 288.0 344.8 381.9 382.3 382.7 389.3
sales
Fragrances retail sales 97.7 118.6 117.7 116.1 115.1 113.5
Hair care retail sales 508.0 552.3 537.0 527.5 524.1 529.5
Oral care retail sales 183.4 184.8 210.9 214.4 217.0 225.2
Men's grooming retail 100.8 126.1 140.5 141.4 143.3 148.5
sales
Skin care retail sales 348.0 463.0 515.4 518.0 523.0 546.9
Sun care retail sales 52.6 67.9 72.1 72.7 74.8 83.8
Clothing consumer 8,266.0 9,175.3 9,494.0 9,556.6 9,529.7 10,012.2
expenditure
- Clothing materials 73.0 82.0 29.0 23.5 19.4 15.5
- Garments consumer 7,778.9 8,561.7 8,974.8 9,049.0 9,031.4 9,502.1
expenditure
- Other clothing 340.3 405.5 372.4 367.6 362.5 368.9
- Clothing cleaning, 73.8 126.1 117.7 116.4 116.4 125.7
repair and hire
Footwear consumer 1,403.6 1,678.1 1,910.2 1,962.6 1,980.7 2,170.0
expenditure

Consumer Expenditure on Clothing, Footwear and Personal Care 2000-2016
HEALTH AND WELLNESS
Attitudes To Health and Well-being

The Norwegian public healthcare system provides free basic medical services to all citizens
and those registered as residents. It is supported by the National Insurance Scheme (NIS)
which is funded from general taxation. The NIS covers medical consultations (for which fee are
paid by patients), medical emergencies and hospitalisation. The typical fee is NOK136 during
office hours and 229 NOK for evening appointments. Children under the age of 18 years benefit
from free dental care and psychological help, while all types of medical services are free for
children under the age of 12 years.
International organisations consistently rank the Norwegian healthcare system as being
among the best in the world. According to an OCED report published in 2014, ―Norway is among
the top-performing countries in terms of its universal healthcare system.‖ In recent years, the
government has adopted a number of initiatives to shift treatment away from hospitals and
towards primary care practitioners in an effort to improve efficiency.
Some prescription drugs are free while the cost of others are subsidised. The government has
capped pharmacy profit margins on prescription drugs at 7% and, as a result, the cost of
prescription medicines for consumers is fairly low by Western European standards. As a general
rule, the Norwegian Medicines Agency sets the maximum purchase price at an average of the
three lowest market prizes in a selection of Western European countries. There are no price
controls on OTC medications.
Per capita sales of consumer health products rose by 8% (in real terms) between 2008 and
2013, to reach NOK1,410 in 2013. Vitamin and dietary supplements accounted for more than
one-third of this with per capita sales of NOK531 but it is clear that this is a mature market that
has seen little growth. Due to the lack of sun exposure in Norway, Vitamin D supplements tend
to be particularly popular among consumers.
Demand for herbal/traditional products continues to grow, reflected by sales growth of more
than 10% between 2008 and 2013. There are few local traditional medicines as most
Norwegians believe that effective traditional medicine comes from other countries, such as
China.
Obesity
In 2008, 9.6% of Norwegians aged 15 years and older were obese, but by 2013 this figure
had risen to 11.1%, including 11.8% of men and 10.4% of women. Nonetheless, this was the
third-lowest obesity rate in Europe, behind France (10.9%) and Italy (11%). At the same time,
nearly 39% of Norwegians (44.3% of men and 33.6% of women) were classed as overweight
(but not obese) in 2013, up from 37% in 2008. According to the Norwegian Institute of Public
Health, ―A Norwegian 40-year-old today weighs 5kg more than a 40-year-old did in 1985‖.
Childhood obesity is also a growing concern. According to the Child Growth Study, which
provides data to the WHO Childhood Obesity Surveillance Initiative, 19% of children in Norway
aged 8 and 9 years were overweight or obese in 2010. A separate study conducted by
researchers at Telemark University College and the Norwegian Institute of Public Health in 2007
and published in 2010 found that overweight children were less physically active and were more
likely to have obese parents than children of normal weight.
Per capita sales of weight-management products increased significantly, by 44.2% (in real
terms) between 2008 and 2013, reaching NOK96 in 2013. Most of this was sales of meal
replacement slimming products with per capita sales of NOK62.4 in 2013. Per capita sales of
health and wellness food rose by 8.7% over the same period, reaching NOK5,808 in 2013.
Some consumers have taken the fight against obesity into their own hands. A movement
called Tjukkasgjengen (The Fatso Gang) was launched in 2012 with more than 100 informal
groups and thousands of members nationwide. According to the group's Facebook page, ―The
only requirement for joining is that you are able to walk and are in good spirits— you don't even
have to be fat!‖ Members organise group walks several times a week.
Attitudes To Smoking
In 2013 smoking prevalence among adults was 16.2%, among the lowest rates in Europe.
Reflecting a continuing decline, this included 15.9% of adult males and 16.5% of adult females.
In general, smoking prevalence tends to be higher among migrants (particularly those from
Eastern Europe and the Middle East) than native Norwegians.
The decline in smoking prevalence has been attributed in part to anti-smoking campaigns
conducted by the government over the course of several decades as well as high taxes on
tobacco products, smoking bans in public places and restrictions on advertising tobacco
products. Excise taxes and VAT account for around 75% of the retail cost of tobacco and up to
84% for economy brands.
The legal age for smoking in Norway is 18 years. Since 2013, retailers have required a
license to sell tobacco products. The Association for the Tobacco Industry (Tobakksindustriens
Felleskontoret) has estimated that just 60% of the cigarettes consumed in Norway are
purchased from local retail outlets. Cross-border shopping trips, tax- and duty-free shops and
illicit trade are the most common alternative sources. In particular, value-conscious Norwegians
often make day trips to nearby Sweden to buy less-expensive tobacco products.
Demand for smokeless tobacco, particularly snus, is growing with many using it as a
substitute for cigarettes. According to Statistics Norway, the proportion of daily snus consumers
in Norway stood at 9% (14% of men and 4% of women) in 2013 while 4% (5% of men and 3% of
women) took it occasionally. Young adults (particularly young men) have been the main drivers
of this growth. Using snus is generally viewed as a healthier alternative than smoking cigarettes.
The variety of products and tastes/flavours offered in smokeless tobacco is also greater than in
standard cigarettes. Sometimes smokers trying to quit will use snus as a transitional product.
In 2013, a ban was introduced on the sale, production or importation of electronic cigarettes
(e-cigarettes) containing nicotine. While the authorities acknowledged that e-cigarettes could
make a positive contribution to smoking cessation, they maintained research was still
inadequate to substantiate these claims. The sale of nicotine-free e-cigarettes is and permitted
to consumers over the age of 18 years, although producers are not permitted to market e-
cigarettes in Norway. According to a report from Statistics Norway, 10% of Norwegians had tried
e-cigarettes as of 2013, adding ―A higher percentage of young people under 35 years have tried
electronic cigarettes compared to people older than 35 years. A majority of those who had tried
electronic cigarettes also smoke or take snuff‖.
Table 6 Health and Wellness Data 2000, 2005, 2011, 2012, 2013, 2016
2000 2005 2011 2012 2013 2016
Total health 3,155.4 5,943.6 8,987.3 9,684.4 10,507.3 -

expenditure (US$ per
capita)
Share of total health 8.4 9.0 9.0 9.7 10.4 -
expenditure in GDP (%
of total GDP)
- Public health 82.5 83.5 85.6 86.2 86.5 -
expenditure's share of
total health expenditure
(% of total health
expenditure)
- Private health 17.5 16.5 14.4 13.8 13.5 -
expenditure's share of
total health expenditure
(% of total health
expenditure)
Healthy life expectancy 70.6 73.0 73.9 74.0 74.1 74.5
at birth: total
population (years)
at birth: males (years)
at birth: females (years)
Average supply of food 3,352.0 3,486.0 3,457.5 3,460.3 3,463.3 3,470.0
calories per day
(calories per capita)
Average supply of 104.1 105.8 108.1 108.2 108.3 108.7
protein per day (grams
per capita)
Average supply of fat 136.6 146.6 141.3 141.3 141.5 142.9
per day (grams per
capita)
Obese population (BMI 7.7 8.8 10.5 10.8 11.1 11.9
30 kg/sq m or more) (%
of population aged 15+)
Overweight population 33.0 35.7 38.3 38.6 38.9 39.8
(BMI 25-30 kg/sq m or

more) (% of population
aged 15+)
Tobacco consumer 3,808.5 4,359.4 4,696.6 4,808.5 4,904.0 5,234.4
expenditure (NOK per
capita, at constant
prices)
Smoking prevalence 30.7 25.0 17.5 16.5 16.2 14.3
amongst adult
population (% of total
adult population)
amongst adult male
population (% of male
adult population)
amongst adult female
population (% of female
adult population)
Chart 6 Real Growth in Public and Private Expenditure on Health Compared with
Healthy Life Expectancy at Birth 2000-2013
SHOPPING HABITS
Main Household Shop

Consumers grapple with high food prices in Norway. According to Eurostat, the cost of food
and non-alcoholic beverages in Norway was 177% of the EU average in 2013. Norway‘s support
programme for local farmers helps to keep food prices high and even results in occasional
shortages, particularly for dairy products such as butter and cheese. A study published by the
OECD in 2013 found that Norwegian farmers were the most subsidised in the world, with more
than 63% of their income coming from the government. Agriculture Minister Trygve Slagsvold
Vedum defended Norway's system: "If we want food production in our country, this is the way it
has to be". A recent article in newspaper Aftenposten reported that only 43% of the food
consumed in Norway was produced domestically in 2012, down from 48% in the previous year.
Many Norwegian households do a big grocery shop once a week. Grocery shopping is
typically done after working hours during the week or on Saturdays. Most consumers do their
grocery shopping in discounters or supermarkets. Convenience stores and forecourt retailers
are quite popular for top-up food shopping. Food shopping is restricted by most large retailers
(shops occupying 100 square metres or more) unable to open on Sundays. The government is
seeking to relax this regulation, but a survey conducted in 2013 by newspaper Aftenposten
revealed that 58% of respondents were opposed to this change. Regardless, some consumers
are voting with their feet, crossing the border on Sundays to shop in neighbouring Sweden
where no restrictions apply.
In spite of the high price consumers pay for their food, a large proportion is thrown away. In
2012 the Nordic Page website reported that ―Total food wasted in Norway would be enough to
feed between 1.5 million and two million people every day.‖ On average, consumers throw away
50 kilograms of food annually, accounting for 25% of all food purchased.
Norway saw its first farmers‘ market established only in 2010 but the concept has proven
popular and it has spread rapidly and farmers‘ markets can now be found in most cities and
towns at the weekend. On the other hand, there are relatively few specialist butchers, fish shops
and fruit and vegetable shops in Norway.
Increased Demand by Consumers for Locally Produced Food

Norwegian consumers appear to be embracing the global trend of seeking out locally
produced food and are willing to pay more for local food. A recent report from NRK/Nationen
highlighted the results of a consumer survey by Ipsos MMI which noted ―More than half of
respondents...say it is important to eat food that is produced in Norway, and they are willing to
pay the price. The share of the population who want to buy food produced in Norway hit an all-
time low in 2009, but has had a steep increase in the past five years‖.
Local food producers have also seen evidence of increased demand. According to the
NRK/Nationen report, ―Sales have gone up to record-levels, and Egil Smith Meyer in Tingvollost
(‗Tingvoll cheese‘) says that he has doubled his production each year...‗I think this is a reaction
to all the industrial food. There has been a demand for a larger selection and a different level of
quality than what the traditional industry can offer,‘ Meyer says. Although Tingvollost is sold in
stores across the country, most of the clients are local. ‗The closer you get to Tingvoll the higher
the sales are,‘ the owner explains‖. Bernt Bucher-Johannessen, head of Hanen, the union for
local producers, confirmed the increased demand for locally produced foods, reflected by rising
revenues of local producers. ―It has especially gone up the past two-three years after the
financial crisis was over," he said.
Cross-border Food Shopping Gains in Popularity Among Price-

conscious Consumers
Cross-border shopping is more popular than ever as more consumers seek out lower prices in
neighbouring Sweden. A study conducted by Sweden-based UI Research found that between
2010 and 2012 Norwegians made 8.5 million annual shopping trips across the border and, in
2012, Norwegian consumers spent NOK13 billion on groceries and NOK7 billion on other
consumer goods in Sweden.
In 2012 Statistics Norway estimated that cross-border shopping accounted for 5% of all
spending on groceries. Thomas Angell, trade director at Norway's Enterprise Federation (Virke),
said ―The cross-border trade will continue to grow as long as there's a lot of money to be saved
by shopping in Sweden. The price differences between Norway and Sweden on things like
alcohol, tobacco and chocolate are at a critically high level‖.
Shopping for Big-ticket Items

Consumers are increasingly shopping for big-ticket items online to the detriment of brick-and-
mortar retailers. Internet retailing accounted for 40% of value sales of consumer electronics in
2013, up from 22% in 2008. For consumer appliances, this figure stood at 17.3% in 2013, up
from 5.8% in 2008. Regardless, most consumers still shop for big-ticket items at specialist
retailers.
When it comes to considering the purchase of consumer electronics and appliances, quality
(including high levels of energy efficiency) tends to be a more important factor than price.
Indeed, many consumers are prepared to pay premium prices for brands such as Panasonic or
Bosch which they perceive to be more reliable. Many read online reviews and use price-
comparison websites before making big-ticket purchases, with an increasing number of
consumers doing feature and price checks in-store using their smartphones. Cross-border
shopping is also very much a factor for consumers looking for big-ticket items as prices in
Sweden are often lower. Shopping in Sweden has been facilitated by the growing number of
retail developments launched in Western Sweden close to the border.
Personal Shopping
A recent headline in the Norway Post blared ―Norwegians shopping like crazy," with the
accompanying story highlighting the latest data on retail sales from Statistics Norway which
showed that consumers are increasingly doing their personal shopping in popular malls such as
Sandvika Storesenter in Bærum, Sørlandssenteret in Kristiansand, Storo Storsenter in Oslo and
Amfi Moa in Alesund. Even many fairly small towns have their own malls. Free parking is a
major attraction as city-centre parking can often be difficult and expensive. Many consumers
also value the wide range of retailers under one roof and the convenience of one-stop shopping.
Shopping centres also offer such activities as music and book clubs for children as well as
seasonal activities, making a trip to the mall a pleasant way for consumers to spend leisure
time.
Consumers tend to shop for clothing and footwear at specialist retailers, with this channel
accounting for 79% of value sales in 2013. Buoyed by a strong economy and strong consumer
confidence, many Norwegians focus on buying high-quality branded products that they believe
will be not only more fashionable but also durable. In 2013 H&M Hennes & Mauritz AS launched
a COS shop in Oslo offering premium clothing at higher prices than clothing offered at its
mainstream stores. At the same time, however, less affluent shoppers tend to shop at popular
outlet shops which offer branded products at lower prices.
Egertorget, a pedestrianised square in Oslo, is at the centre of the country‘s most upmarket
shopping district. In addition to the usual international fashion brands, Moods of Norway, the
country‘s most successful indigenous fashion brand, has a store on the square. Eger, a nearby
high-end shopping centre, is popular among luxury shoppers. Those looking for something
edgier make their way to Grünerløkka, a once-gritty suburb that is steadily gentrifying as it fills
with shops offering the latest looks from young local designers.
Beyond brick-and-mortar specialist retailers and grocery retailers, internet retailers are
attracting an increasing number of consumers looking for beauty and personal care products.
Traditional retailers have responded to the online threat by beefing up their loyalty schemes.
Duty-free outlets are another popular non-traditional sales channel for consumers looking for
beauty products. In particular, a growing number of Norwegians travelling abroad are taking
advantage of the strong Norwegian krone to buy luxury items that would be very expensive in
shops back home.
Shopping Online
The percentage of the Norwegian population using the internet rose from 91% to 96%
between 2008 and 2013. Perhaps not surprisingly, Norway has the highest per capita annual
spending via internet retailers in the world, reaching NOK5,795 (US$995) in 2013. In contrast,
consumers in Denmark spent US$867 and consumers in the UK spent US$835 in the same
year. Popular products bought online include consumer electronics and video game hardware,
clothing and footwear, housewares and home furnishings and beauty and personal care
products. Consumers are also increasingly purchasing their media online, with TV show and film
streaming service Netflix proving particularly popular since its launch in 2012. Music-streaming
service Spotify also has a significant following.
In addition to buying products online and having them delivered, many shoppers reserve
products online on retailer websites and pay for and collect them in-store. A growing number of
consumers are turning to price comparison sites such as prisjakt.no and prisguide.no to find the
best prices for products offered by different retailers. Indeed, according to a 2014 report on
website Newsinenglish.no, the growing number of consumers buying products online has
prompted some bricks-and-mortar retailers to call for government protection.
According to 2012 survey conducted by Eniro/Gule Sider, 19.2% of consumers (21.5% of men
and 16.7% of women) said they had had bought products or services via their smartphones,
with music, films and tickets being the most popular purchases. Among those aged 18 to 29
years-old, this figure reached 31% while it reached 29% among those aged 30 to 44 years-old.
Smartphone users are also increasingly using their devices to compare prices while shopping
in-store. Indeed, 22% of smartphone users said they often used their smartphones to check
prices in another store while another 22.6% said they did so occasionally.
Table 7 Shopping Data 2000, 2005, 2011, 2012, 2013, 2016
NOK per household, at constant prices
2000 2005 2011 2012 2013 2016

Grocery retailers' 69,799.4 75,407.3 80,670.9 81,333.3 79,290.1 79,784.8
- Modern grocery 59,489.5 66,551.8 72,025.2 72,675.9 70,674.2 71,149.4
retailers'
-- Convenience stores' 2,964.6 3,458.9 2,036.0 1,934.7 1,838.7 1,711.8
-- Discounters' 20,769.1 27,488.5 34,671.4 36,548.8 36,963.2 38,237.2
-- Forecourt retailers' 3,317.8 3,052.0 2,457.4 2,507.1 2,531.7 2,486.2
-- Hypermarkets' 4,059.2 5,542.2 6,662.7 6,370.8 4,709.3 4,429.7
-- Supermarkets' 28,378.9 27,010.2 26,197.8 25,314.5 24,631.4 24,284.6
Traditional grocery 10,309.8 8,855.5 8,645.7 8,657.4 8,615.8 8,635.4
retailers'
-- Food/drink/tobacco 9,357.2 7,920.5 7,949.7 7,976.1 7,954.2 8,023.6
specialists'
-- Independent small 304.8 243.4 175.1 167.1 156.7 141.7
grocers'
-- Other grocery 647.9 691.5 520.9 514.2 504.9 470.1
retailers'
Apparel and footwear 17,107.8 18,364.3 16,578.9 16,773.5 16,931.2 16,560.9
specialist retailers'
Electronics and 9,368.6 8,880.1 7,679.7 7,890.0 8,147.1 8,386.1
appliance specialist
retailers'
Health and beauty 8,568.0 9,948.1 10,571.2 10,599.8 10,554.0 10,571.0

Home and garden 30,904.1 31,312.5 28,137.9 28,465.3 28,274.5 28,173.0
Leisure and personal 14,501.8 13,815.5 15,014.3 15,022.5 14,861.5 14,920.8
goods specialist
retailers'
Mixed retailers' 1,361.8 1,956.2 2,006.0 2,153.2 2,259.2 2,494.5
Other non-grocery 971.3 935.0 912.4 913.0 908.0 891.8
retailers'
Internet retailing 4,113.9 8,892.7 11,827.8 12,352.6 12,752.1 14,362.6
Chart 7 Index of Retail Sales through Discounters, Hypermarkets, Supermarkets and

Internet Retailing 2000-2016
LEISURE AND RECREATION
Staying in
A recent report from Statistics Norway shed light on the leisure habits of Norwegian adults.
According to their data, the favourite at-home leisure activity remained watching television but
that is becoming less popular. The proportion of Norwegians that said they watched television
on an average day fell from 81% in 2011 to 77% in 2012.
At the same time, the average amount of time spent daily on the internet rose from 86
minutes in 2011 to 95 minutes in 2012. A survey of Norwegian internet users conducted by
financial consultancy Deloitte in 2013 revealed that 85% had laptops, 75% had smartphones
and 45% had tablets. Thirty-six percent said they owned all three. This survey also found that
internet users 30 years-old and older said they tended to go online to read the news, surf the
web and read their e-mails while those under 30 years-old were driven much more strongly by
the opportunity to socially interact with friends. Indeed, in 2014 website Sciencenordic reported
that three million Norwegians had Facebook profiles: ―[Facebook] is now Norway‘s largest
media, and has become bigger than the national television channel NRK, the tabloid online
newspaper VG and the commercial television channel TV2‖. Playing computer games is also a
popular at-home pastime, particularly among young Norwegians.
Statistics Norway data also tracked social activities. Between 1990 and 2010, the agency
reported, the average amount of time spent every day with friends, family or neighbours fell by
40 minutes, to an hour and 20 minutes in 2010. In particular, time spent socialising on Sundays
fell significantly. Geir Conrad Tufte, social scientist and assistant professor at Østfold University
College, told website The Nordic Page ―Many of us feel a pressure to perform and we spend a
lot of time on ourselves and do not have time to be social‖. Some attribute increased internet
usage to the growing prevalence of ‗social atomisation‘.
Of course, many Norwegians, particularly older Norwegians, still enjoy traditional at-home
leisure activities, although in many cases the frequency of participation is declining. For
example, 55% of Norwegians said they read at least one newspaper on an average day in 2012,
down from 63% in 2011. Similarly, 25% said they read books on an average day in 2012, down
from 27% in 2011. Somewhat surprisingly, radio listenership increased from 55% in 2011 to
60% in 2012.
Going Out
Going to the cinema remains a popular out-of-home leisure activity in Norway. According to
Statistics Norway, 67% of those between 9 and 79 years-old said in 2013 that they had attended
a cinema at least once during the previous 12 months. The proportion of those who said they
had attended a theatre, musical or show reached 45% while the proportion who said they had
visited a museum reached 41%. Sixty-one percent said they had attended a concert in 2013
while 38% said they had visited an art exhibition, 31% had visited a cultural festival, 14% had
attended a dance performance and 8% had gone to an opera. Fifty-five percent said they had
attended a sporting event.
While young Norwegians do enjoy socialising in bars, clubs and pubs, they do not tend to
hang out in those venues due to high prices for alcoholic beverages. Coffee shops are also
popular. Many consumers, particularly younger consumers, simply sit in cafés staring at their
laptop, tablet or smartphone screens while sipping their coffees.
Sport and Fitness

According to Statistics Norway‘s latest (2008) national lifestyle study, only one-half of adults
attained the Norwegian Directorate of Health‘s minimum recommendation of 30 minutes
physical activity a day. The report noted ―Since most people today work in sedentary
occupations, leisure time plays a large role for the total amount of physical activity with
moderate and high intensity‖. Many Norwegians are fond of spending leisure time outdoors in
activities that promote fitness. Hiking is a popular activity in the summer with skiing and other
winter sports popular during colder months. Indeed, Norwegians do not let the country‘s climate
force them inside; there is a saying that ―There is no such thing as the wrong weather, only the
wrong clothes‖.
Skiing is taken seriously as pastime, even among children. A recent article in the Norway Post
described a children‘s skiing event near Oslo: ―Competitions start at an early age and the level
of interest is great...The youngsters [aged between three years and 12 years] have the latest
and best equipment and nothing is left to chance. Their parents are 100% behind them, talking
about tactics, waxing, who to beat, and last but not least, providing the best comfort and
explanations when the results are not as expected!‖
Practically every town and village has outdoor and indoor community sporting facilities, with
the latter particularly important during the long, dark winter months. These facilities often include
swimming pools, basketball and tennis courts, football pitches and ice rinks. There are also
numerous ski resorts in mountainous areas and an extensive network of cross-country skiing
and hiking trails.
In recent years there has been a significant rise in interest among women in sport and fitness.
Traditionally, there has been a falloff in sporting participation among girls aged between nine
years and 15 years, but this appears to be changing. Current sporting role models for girls
include the national women‘s handball team (who have dominated international handball for
several years), boxers Cecilia Brækhus and Fam Camilla Engan and skier Therese Joahug.
Among older women, the number of gym memberships has grown rapidly. According to a
survey conducted by Norsk Monitor, 35% of women (compared to 29% of men) went to the gym
in 2011.
Many Norwegians enjoy watching sports on TV, with football by far the most popular spectator
sport. International football tournaments such as the World Cup and the Champion‘s League are
popular as are English Premiership football matches which have been broadcast on domestic
TV for decades. Tippeligaen (Norway‘s top football division) matches, on the other hand, were
watched by live by an average of 7,000 spectators in the 2013-14 season. Winter sports are
also very popular spectator sports, particularly during the Winter Olympics. According to
Eurodata TV Worldwide, the opening ceremony of the 2014 Sochi Olympics was watched by 1.4
million viewers in Norway, 58% of the TV audience share.
Vacations
The statutory holiday entitlement in Norway is 25 days. All workers are entitled to holiday pay
from their employers. This is earned over the year before it is paid and comes to 10.2% of
wages paid during the earning year. Tourism expenditure per capita rose by 20.5% between
2008 and 2013 to reach US$3,585 in 2013, the highest figure in the world. In contrast, in
Sweden this figure stood at US$1,741 and in Germany it reached US$1,061.
The height of the winter skiing season (January-February) and the summer months are the
most popular periods for holidays and leisure travel. Workers are entitled to three continuous
weeks of holiday during the main holiday period which runs from June to September. The school
year finishes at the end of June, and many Norwegian families begin their summer holidays
shortly afterwards. However, the main three-week summer holiday for most Norwegians (called
‗Fellesferie‘ or joint vacation) begins during the second week of July. According to a recent
article in the Norway Post newspaper, this period is also known as ―Norwegian national
paralysis,‖ a time ―when many shops and factories completely close down, and you may have a
problem finding a plumber or an electrician, if you need one in a hurry‖.
According to 2013 data from Statistics Norway, Norwegians now take more short holidays
(fewer than four nights) and longer trips and fewer traditional one-week and two-week breaks.
Longer trips abroad are particularly popular among young adults and retirees. Indeed, many
older consumers seek escape from the long Norwegian winter and some have second homes in
warmer locations. A growing number of local consumers have second homes in Norway
(particularly in the mountains) while others have second homes abroad. In particular, a number
of Norwegians in the east of the country are buying second homes in neighbouring Sweden.
Meanwhile, a record number of domestic tourists visited Norway‘s mountain regions during
the summer of 2013, according to the Norwegian Tourism Organisation (NTO). ―Mountain hiking
is growing in popularity. An annual summer trip to the mountains has become a must for many,
on the same level as a seaside holiday. It's a social activity with both family and friends,‖ said
NTO‘s Kristin Krohn Devold.
Public Holidays, Celebrations and Gift-giving

There are 13 public holidays celebrated every year by Norwegians. Saint Lucia's Day on
December 13 usually marks the start of the Christmas season. Most Norwegian towns and cities
have Christmas fairs and markets. Bergen, for example, is famous for its Gingerbread Town,
holiday concerts and other festivities.
Christmas is celebrated by most with a big dinner on Christmas Eve, usually consisting of
pork, lamb ribs or cod, and Christmas gifts are usually exchanged afterwards. Boxing Day on 26
December is also a holiday. Påske (Easter) is another major celebration. Norway has a long
Easter holiday, with many businesses closed between Maundy Thursday and Easter Monday.
Most schools are closed for the entire week preceding Påske. Like Christmas, Easter is a time
for family gatherings.
Other annual public holidays include Constitution Day on 17 May. This holiday is marked by
parades in nearly every town and village in the country. In Oslo, the parade is usually watched
by tens of thousands of people. Some mark Constitution Day by wearing bunad (national
costume). Midsummer‘s Eve, celebrated on 23 June, is a holiday in some parts of the country
that has pre-Christian roots. It involves ―partying, good food, music and dancing, and the
burning of huge bonfires,‖ noted a recent article in the Norway Post.
According to a recent survey commissioned by Nordea Bank, Norwegians spend almost
NOK50 billion on gifts every year, with around NOK15 billion spent on birthday gifts for children
alone. These figures excluded spending on Christmas gifts. Forty-eight percent of those
surveyed thought that they spent too much money on gift-giving. Christine Warloe, consumer
economist at Nordea, commented ―The paradox is that we Norwegians in fact spend nearly
twice as much money as we think on gifts. That says something about how important it is to
have an overview of what we're spending money on every day‖.
Table 8 Leisure and Recreation Data 2000, 2005, 2011, 2012, 2013, 2016
2000 2005 2011 2012 2013 2016
Ownership of household
durables by type
- Colour TV set (% of 95.2 94.0 96.1 96.1 96.1 96.2
households)
- Cable TV (% of 42.8 44.5 42.7 42.9 42.9 43.1
households)
- Satellite TV system 27.6 31.4 36.0 36.4 37.7 40.3
(% of households)
- Internet enabled 49.0 64.0 92.0 93.0 93.8 96.1
computer (% of
households)
- Mobile telephone (% 75.3 94.0 99.3 99.5 99.7 99.9
of households)
- Video games console 17.5 19.6 19.9 20.1 20.3 20.9
(% of households)
Consumer expenditure on
leisure and recreation
(NOK
capita, at constant
prices)
- Audio-Visual, 4,883.8 5,476.3 5,939.7 5,911.5 5,933.7 6,123.0
photographic
and information
processing
equipment
- Other major durables 1,216.8 1,466.5 1,760.9 1,779.0 1,820.3 1,957.1
for recreation and

culture
- Other recreational 3,475.9 4,158.2 4,983.0 5,069.1 5,116.7 5,509.0
items and equipment,
gardens and pets
- Recreational and 6,161.9 7,705.8 7,478.0 7,315.7 7,384.4 7,581.6
cultural services
- Newspapers, magazines, 3,350.1 3,921.7 4,477.0 4,510.5 4,602.6 4,923.7
books and stationery
- Package holidays 2,713.6 2,545.6 2,781.7 2,791.7 2,829.7 2,965.1
Domestic tourism
receipts and expenditure
- Accommodation 1,937.2 2,054.6 2,321.1 2,337.8 2,328.6 2,285.1
- Entertainment 215.0 229.2 229.1 244.2 275.8 375.7
- Excursions 141.0 193.1 205.7 219.8 247.9 353.4
- Food 1,850.3 1,956.5 1,842.9 1,918.7 2,107.0 2,756.8
- Shopping 2,041.5 2,140.9 1,986.8 2,081.1 2,261.7 2,792.8
- Travel within the 1,795.7 2,198.3 2,329.9 2,449.9 2,744.1 3,710.8
country
- Other domestic 570.3 643.1 589.9 595.5 590.7 595.2
tourist expenditure
Outgoing tourism
receipts and expenditure
- Accommodation 4,611.8 6,186.8 6,864.6 7,003.6 7,130.7 7,517.3
- Entertainment 517.0 748.7 1,032.8 1,112.4 1,160.6 1,242.4
- Excursions 471.2 683.7 883.5 968.8 1,005.6 1,081.3
- Food 2,340.9 2,884.4 3,449.5 3,532.9 3,597.2 3,799.5
- Shopping 717.2 1,122.6 1,591.1 1,649.8 1,663.4 1,741.1
- Travel within the 769.1 1,417.6 1,517.2 1,532.3 1,522.4 1,553.3
country
- Other outgoing 306.5 576.9 571.4 565.1 560.9 542.9
tourist expenditure
Departures by mode of
transport
- Air ('000) 3,530.8 3,999.0 5,630.1 5,946.9 6,217.9 6,754.4
- Land ('000) 1,434.2 1,622.8 1,700.0 1,884.1 2,065.1 2,250.5
- Rail ('000) 68.0 99.6 110.0 126.1 133.8 151.2
- Sea ('000) 549.5 645.6 619.7 538.8 474.7 509.5
Demand factors
- Annual leave - 38 38 38 38 -
entitlement (days)
Chart 8 Percentage of Households in Possession of Cable TV; Satellite TV System;

Internet Enabled Computer; Mobile Telephone; Video Games Console 2000-
2016
GETTING AROUND
Private Transport
Most Norwegians rely on private passenger transport to get around. On the other hand, the
average distance travelled annually by car has been in steady decline over recent years, going
from just under 14,900 kilometres in 2008 to less than 13,800 kilometres in 2013. This, in large
part, reflects the long-term trend towards urbanisation. Regardless, in 2013 nearly 80% of
Norwegian households possessed private passenger cars compared to nearly 87% of
households in Sweden and 78% of households in Germany. While new passenger car
registrations plunged by over 10% between 2008 and 2009—from nearly 111,000 to less than
99,000—as a result of the economic downturn, they have rebounded strongly in subsequent
years.
With household incomes continuing to rise, younger Norwegians find they can get behind the
wheel of their own car at an earlier age, with their parents footing the bill in many cases. As a
result, fewer are purchasing motorbikes or mopeds, waiting until they can afford a car. In any
case, for long periods weather conditions in Norway are not conducive to riding motorbikes and
mopeds.
Cycling is a popular means of urban transportation. Indeed, 81.5% of households possessed
bicycles in 2013, up from 80.8% in 2008. Similar to a growing number of Norwegian cities, Oslo
operates a bike rental scheme with more than 100 bike stations in and around the city centre.
Bikes are available between 6am and midnight daily during the summer season. The same bike
can be used for up to three hours before it must be parked at a city bike station. However, users
may then pick up another bike at the same or another bike station. Some hardy souls even use
mountain bikes with studded tires to get around during the winter months. In 2014, the
smartcard required to access the scheme cost NOK110.
Growing Demand for Electric Cars

The biggest trend in the Norwegian car market over recent years has been the rise in
availability and demand for electric cars (EVs). In 2013, website Newsinenglish.com noted that
―Norway has emerged as a world leader in the introduction of electric vehicles, and Oslo seems
to have become the electric car capital of the world‖. The report went on to note that the number
of ―elbiler‖ (EVs) registered in Oslo had more than doubled during the 12 months to August 2013
to 13,000, half of which were registered in the capital and the neighbouring county of Akershus.
The high price of fuel in Norway has played a role in piquing consumer interest in EVs.
Indeed, the price of ten litres of premium unleaded petrol increased by almost one-fifth (to
NOK149) between 2008 and 2013. Additionally, there is no VAT charged on sales of electric
cars and they are the only private vehicles entitled to park for free and to use bus lanes in Oslo.
In 2014, the Wall Street Journal reported that electric cars had become so popular in Olso that
they were clogging up the city‘s bus lanes. Electric car drivers are also exempt from road tolls.
Nissan‘s LEAF and the US-made Telsa Model S are particularly popular. In 2014, website
Ecomento.com reported that ―More than 10% of new cars sold are now powered by electrons
instead of hydrocarbons. Almost incredibly, at one point last year the Tesla outsold any other
car, while the LEAF regularly outsells the Volkswagen Golf. Sales of the BMW i3, Peugeot iOn,
and Volkswagen e-up! are also strong.‖ The report added ―The typical EV owner has a charging
outlet at home and probably also at work. He uses public charging stations less frequently.‖
A survey by the Norwegian Electric Vehicle Association in 2013 revealed that ―The typical
Norwegian EV user is a middle-aged father with higher education and income, and he owns a
Nissan LEAF as one of two cars. He uses his electric car on a daily basis instead of a traditional
petrol or diesel car. He uses the electric car for commuting, after work activities, and not for
longer holiday trips. He agrees that his electric car saves him money and time and he is very
satisfied as an EV owner. His next car will also be electric‖.
Public Transport
Oslo and the surrounding region offers consumers an extensive public transport system called
Ruter, consisting of six metro lines, six tram lines and eight commuter rail lines, all of which are
supplemented by buses and even ferries. These operate using a common ticketing system. A
pre-paid single ticket currently costs NOK30 for an adult and NOK15 for a child aged between 4
and 15 years-old. Retirees and students are entitled to significant discounts.
According to data published by Statistics Norway in 2013, there were 541 million journeys
made on public transport in 2012, up 19% since 2007. Travel by rail was the main driver of this
growth, with the number of journeys rising by 24% to reach 199 million in 2013. The number of
bus journeys increased by 17% over the same period to reach nearly 333 million. Just over nine
million journeys were made by boat in 2012, up 4.6% since 2007. The country‘s coastline is
heavily indented by fjords, and travel times in coastal areas can be greatly reduced by utilising
the country‘s numerous hydrofoil ferries.
Norwegian State Railways (NSB) offers travellers a well-developed network that stretches
from Kristiansand on the south coast to destinations north of the Arctic Circle. There are regular
rail services to Sweden and an express train to the Danish capital of Copenhagen.
There are a number of bus companies that offer relatively affordable, comfortable and efficient
inter-city bus travel in most parts of Norway, with Norway Bussekspress and Time-ekspressen
being the largest. Ticket prices vary; certain popular departure times and weekend journeys are
typically more expensive. Most operators offer group, child, student and senior discounts.
Commuting
As the only city in Norway with a population of more than 250,000, Oslo is perhaps the only
city with significant commuter congestion issues. While commuters have the option of using the
extensive public transport system, many still use private passenger vehicles, adding to traffic
congestion during peak travel periods. As a result, Oslo has instituted a congestion charge to
enter the city and the current fee is NOK31. Electric cars (EVs) are exempt from tolls (this has
done much to boost their popularity) and they can use bus lanes, although some complain that
this is slowing down public transport.
Some employers offer incentives in an effort to persuade their employees not to drive to work.
In 2014, website Airport-world.com reported on one such scheme for workers at Trondheim
Airport. The report noted that the environmental adviser for Avinor, the company that runs the
country‘s airports, said ―Airport bus operators offer generous discounts for airport staff, and we
encourage all employees at the airport to commute to work using everything but fossil cars...As
an added incentive, for five months each year, all employees who commute to work on foot,
bike, bus, electric vehicle or through car-pooling for eight days or more each month receive a
prize‖.
Primary and secondary school students are entitled to free transport if the distances to their
schools exceed established standards. For example, transport is free for first grade students if
the distance is more than 2 kilometres; for students in grades 2 to 10 if the distance is more than
4 kilometres; and upper secondary school students if the distance is more than 6 kilometres.
Primary school students are entitled to free school transport regardless of distance if the roads
to their schools are deemed particularly dangerous or difficult. At the same time, many children
who can walk or cycle to school do so and during the winter months some even use cross-
country skis or sleighs.
Air Travel
The number of Norwegians travelling by air has surged in recent years. Between 2008 and
2013, airline passenger traffic rose from 10.9 million passenger-kilometres to 42.4 million
passenger-kilometres while the number of scheduled airline departures rose from 128,000 in
2008 to 405,000 in 2013. Distance travelled by air per capita increased from 2,306 kilometres in
2008 to 8,596 kilometres in 2013. In part, growth has been driven by greater access to low-cost
air carriers such as Norwegian, which is now the third-largest no-frills air carrier in Europe after
Ryanair and EasyJet.
Norwegians are increasingly taking to the air for holidays and other leisure travel. In particular,
they are travelling to destinations abroad. According to a report published by the Institute of
Transport Economics and the Norwegian Centre for Transport Research, ―International traffic
growth has primarily been driven by increased holiday and leisure travel by Norwegians,‖ adding
―At Avinor's airports, this type of travel accounted for half of the increase in international air
travel between 2009 and 2011. Sixty-four percent of international travel to/from Avinor's airports
is now for leisure purposes‖.
Indeed, a recent survey by travel agency Star Tour revealed that Norwegians ranked first in
Europe when it comes to taking holidays abroad. Spokesperson Lena Petersson said that many
Norwegians take two or three foreign trips annually, with older consumers generally travelling
more frequently than their younger counterparts. The survey revealed that Greece was the
favourite international holiday destination for Norwegian holiday-makers.
There has been growth in domestic air travel, as well, with leisure air travel growing at a
higher rate than business air travel over recent years. Regardless, work-related travel accounts
for most (51%) of domestic air travel. Norway‘s low population density and geography—the
country stretches for almost 1,800 kilometres from northeast to southwest—means that air travel
is often the fastest and most convenient means of inter-regional transport, whether for business
or pleasure. According to the Star Tour report, ―The population of North Norway travels most by
air domestically, the population of Finnmark being the most frequent travellers. On average, the
people of Finnmark took 13 times as many domestic flights as the residents of Oppland [in the
south] in 2011, who travelled least by air‖.
Table 9 Transport Data: 2000, 2005, 2011, 2012, 2013, 2016

2000 2005 2011 2012 2013 2016
Consumer expenditure on 26,250.4 28,803.5 32,433.1 33,240.1 33,130.7 35,673.6

transport services
- Consumer expenditure 569.9 789.4 840.6 885.4 898.9 1,038.1
on rail travel
- Consumer expenditure 1,049.3 1,556.5 1,997.3 2,110.7 2,150.0 2,418.7
on buses, coaches and
taxis
- Consumer expenditure 839.2 1,163.4 2,366.0 2,538.4 2,623.9 3,003.5
on air travel
- Consumer expenditure 2,518.2 1,941.7 2,545.1 2,595.1 2,548.4 2,674.2
on other travel
Possession of bicycle 78.1 80.2 81.3 81.4 81.5 81.6
(% of households)
Possession of motorcycle 7.6 10.0 11.9 12.1 12.3 12.8
(% of households)
Possession of passenger 77.5 78.0 79.5 79.7 79.9 80.3
car (% of households)
Km travelled by road 6,277.3 6,232.3 6,713.4 6,802.5 6,871.8 -
(km per capita)
Km travelled by rail 588.4 591.1 625.2 626.9 637.5 -
(km per capita)
Km travelled by air (km 2,314.8 2,238.1 6,546.1 7,224.1 8,596.4 -
per capita)
Passenger cars in use 1,852 2,029 2,376 2,447 2,519 -
('000)
Passengers carried by 51 53 59 60 62 -
rail (mn)
Scheduled airlines: 15,182 12,066 29,906 32,427 37,845 -
Passengers carried ('000)

Consumer Expenditure on Transport Services and Purchase of Cars,
Motorcycles and other Vehicles 2000-2016

B. Consumer Lifestyles in Norway - Passport Oct 2014

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B. Consumer Lifestyles in Norway - Passport Oct 2014

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CONSUMER LIFESTYLES IN

LIST OF CONTENTS AND TABLES

Chart 9 Real Growth in Consumer Expenditure Compared with Real Growth

CONSUMER LIFESTYLES IN NORWAY

Consumer Confidence Remains High, Spurring Continued Spending

Consumers Continue To Turn To Internet Retailers for A Wide Range of

Incentives Fuel Increased Demand for Electric Cars

Housing Boom Spurs Rising Mortgage Debt

Consumers‘ Increasing Use of Cards and E-payments Driving Norway

Babies and Infants

Skiing Competitons Popular Among Young Kids

High School Graduations Spur Spending Sprees

20-somethings Taking on Housing Debt

More Seniors Keep Working

Pensioners Increasingly Living Abroad

2000 2005 2011 2012 2013 2016

Babies/infants (aged 0- 179 171 187 187 185 185

Source: Euromonitor International

HOUSING AND HOUSEHOLDS

More Consumers Being Second Homes Abroad

2000 2005 2011 2012 2013 2016

Total number of 1,945 2,034 2,224 2,260 2,297 2,406

Chart 2 Number of Households by Disposable Income Bracket 2005, 2010, 2016

Source: Euromonitor International

MONEY AND SAVINGS

Attitudes Toward Payment Methods

Loans and Mortgages

2000 2005 2011 2012 2013 2016

Savings ratio (% of 7.8 13.1 10.2 10.5 10.8 11.6

Source: Euromonitor International

EATING AND DRINKING

Demand for Sparkling Wine Continues To Grow

Popularity of Craft Beer on the Rise

NOK per capita, at constant prices

Food consumer expenditure 21,804 22,741 24,781 25,000 25,104 27,099

- Sugar and confectionery 3,355 3,355 3,386 3,391 3,379 3,591

Chart 4 Real Growth in Consumer Expenditure Compared with Real Growth in

Source: Euromonitor International

GROOMING AND FASHION

Norwegians is becoming somewhat more diverse. According to Statistics Norway, migrants

NOK per capita, at constant prices

Personal care consumer 4,165.8 4,955.3 5,968.3 6,109.3 6,134.0 6,551.8

Chart 5 Real Growth in Consumer Expenditure Compared with Real Growth in

Source: Euromonitor International

HEALTH AND WELLNESS

Attitudes To Health and Well-being

2000 2005 2011 2012 2013 2016

Total health 3,155.4 5,943.6 8,987.3 9,684.4 10,507.3 -

(BMI 25-30 kg/sq m or

Source: Euromonitor International

Main Household Shop

Increased Demand by Consumers for Locally Produced Food

Cross-border Food Shopping Gains in Popularity Among Price-

Shopping for Big-ticket Items

Table 7 Shopping Data 2000, 2005, 2011, 2012, 2013, 2016

NOK per household, at constant prices

2000 2005 2011 2012 2013 2016

Health and beauty 8,568.0 9,948.1 10,571.2 10,599.8 10,554.0 10,571.0

Chart 7 Index of Retail Sales through Discounters, Hypermarkets, Supermarkets and

Source: Euromonitor International

LEISURE AND RECREATION

Sport and Fitness

Public Holidays, Celebrations and Gift-giving

2000 2005 2011 2012 2013 2016