The UK domestic garden products market is valued at around £5bn and has grown by an estimated 8% in 2014 according to a new report from AMA Research. Market forecasts are for further steady underlying growth to 2019, with the market benefiting from pent up demand in many product areas and a stronger performance in the housing market in the next couple of years - though the weather will always impact on the market in any given year.
Key product sectors in the market by value are horticulture – accounting for almost a 25% share – while garden sundries, garden buildings, garden equipment, leisure and chemicals all have shares typically ranging from around 10-20% of the total market. Individual sectors of the garden products distribution market perform differently - horticulture for example, benefited from the boom in GYO, conservatories have returned to growth since 2011, the fencing sector performed particularly well in 2014 due to the winter storms, and garden leisure has benefited from homeowners increasingly moving upmarket and using the garden as an ‘extra room’. Decking, however, is experiencing an underlying decline as its popularity appears to be falling.
Annual growth rates in this sector are influenced by prevailing weather conditions and market performance fluctuations reflect this variability. Also impacting on market performance are the UK economy and consumer confidence & spending, although the sector has tended to cope well with economic downturns, not suffering as badly as some other consumer markets. The market benefits from underlying trends for outdoor living, environmental concerns, and an ageing population that are generally more interested in gardening, however, the number of apartments and smaller size of UK gardens in new properties negatively impacts on the market in the longer term.
Distribution of garden products is complex and fragmented, consisting of a wide range of products distributed through a range of channels. Garden centres account for over 20% of total sales and are a key channel for horticulture, while DIY multiples are the largest channel and a key outlet for garden equipment & leisure products, and direct sales are important for garden buildings. In terms of product distribution, it is expected that DIY multiples and garden centres will remain the key distribution channels, but the Internet accounts for around 7-8% and mobile technology as a means of researching and buying products will continue to grow.
“Growth is forecast for most product sectors, but given the high maturity of most product sectors of the market, underlying growth rates are forecast to be more modest in the medium and long term, at a level of around 2-4% to 2019” said Andrew Hartley, Director of AMA Research. “Having said that, the development of some niche, less mature products, such as garden rooms - and a move upmarket in other sectors such as leisure products - are expected to benefit the market as these will experience slightly higher levels of growth.”
The ‘Garden Products Distribution Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.