Online distribution of garden products set to double by 2018

In contrast to the overall garden products market, online gardening sales have experienced substantial levels of growth in recent years and the internet is by far the fastest growing distribution channel for garden products. In its newly published report on this sector, AMA Research estimates that the Internet garden products distribution market is now worth over £300m at retail prices.

Consumer shopping behaviour is changing, influenced by digital technology, and many non-specialist suppliers such as garden centres, store-based garden product retailers and mail order/ catalogue companies are increasingly entering the online retail market. Use of mobile phones and tablets is also growing rapidly and some non-specialists have seen rapid growth in the ‘click and collect’ service.

Selling over the Internet tends to favour some product categories over others, with garden leisure, garden equipment and horticulture being key products for sales online. There are also significant differences in mix between the specialists and non-specialist online retailers by product group. For example, garden sundries and chemicals are dominated by the non-specialists, whilst the specialist e-tailers compete well in garden leisure and horticulture.

The Internet garden market is still relatively immature and is expected to continue to show strong annual growth levels, although inevitably the pace of growth will slow down as the market matures. Taking these issues into account, it is estimated that the UK Internet garden products market will be worth an estimated £744 million in 2018, more than twice its current size.

Andrew Hartley, Director of AMA Research said: “The Internet has removed barriers to entry previously enjoyed by traditional store-based retailers and other suppliers, which has allowed small and medium sized specialist e-tailers to enter the garden products market, creating a new competitive dynamic. By 2018, it is estimated that the Internet garden products market will account for an estimated 15% of the total garden products market, up from around 8% in 2013.”

There are a number of key factors affecting the future prospects for the Internet garden market in the UK, including consumer spending levels, the pace of economic recovery and overall trends in online e-retail shopping. Demand for garden products is also heavily affected by the weather, and as a result there are likely to be fluctuations of sales growth and decline on an annual basis.

The ‘Internet Garden Market Report - 2014-2018 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.