Regional papers are becoming more popular among young and old people as they provide news about issues that are close to home. Young people are increasingly turning to their local paper for job information, sports news and ads, while older readers continue to be interested in local community stories and politics.
The appeal of local newspapers has been boosted by associated websites that offer increased opportunities to advertisers, according to the research, which is part of Mintel's UK Market Intelligence Series.
The study highlights investment by the industry and promotional work by the Newspaper Society, which has contributed to the sector's strength. Initiatives such as AdFAst, the internet-based artwork delivery service, and the Conversion Study -- a £250,000 piece of research into the power of advertising in the regional press, which attracted big companies such as Unilever -- have helped also.
Lynne Anderson, communications director of the Newspaper Society, said: "It is always gratifying when an independent research company like Mintel revises its forecasts and recognises the industry's unique strengths and its potential for further growth. This report has important messages for publishers and advertisers alike."
The study also raises the point that there is a thirst among consumers for information about their local area, as the amount of national and international news increases along with the number of platforms such as the internet and digital TV.
James McCoy, senior consultant on consumer goods from Mintel, said: "In a world where readers are able to obtain national and international news from a variety of sources - such as the Internet or digital/cable TV - the importance of local or regional news is growing, providing readers the opportunity to feel part of their local community."
Mintel also hints that national and international news could be adapted to become more localised, as readers are interested in how larger stories will affect their local community.
McCoy said: "After all, every national or international news story is also a local story somewhere."
In the last set of ABC figures for the January to June period, 44% of ABC member newspapers increased sales compared with the previous period, despite an industry-wide decision to strip out bulks.
The industry has also seen a surge in ad revenues. Between 1998 and 2000 they increased by 20%, while the regional press' market share climbed to 81% from 78%.
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