Growth in online
sales of gardening products have outpaced the overall garden products market by
some distance in recent years. Reasons for this has included the continued
penetration of broadband internet services and mobile devices, as well as the
expanding number of companies which now compete in the online sector. Between
2011 and 2015, Internet sales of garden products more than doubled, with the
sector growing by an estimated 24% in 2015 – with growth of a further 20% estimated
for 2016.
Segmentation of the internet
garden products sector differs from the market as a whole. Garden leisure
products accounted for the largest share of ‘internet garden product sales via
the Internet at around 30%, followed by horticulture and garden equipment - this
compares to the total garden products market where horticulture takes the
leading share. Both the internet sector and the overall market have benefited
from the fact that more people are keen to use their gardens for entertaining
and socialising. This trend has pushed up demand in sectors such as garden
furniture, barbecues and decorative garden features in particular.
It is estimated that ‘non-specialist’
garden retailers such as DIY multiples account for the majority share of
internet garden sales in 2015-16. However, competition continues to grow within
the overall category, as a number of grocery multiples and high street
retailers have recently increased their presence in the market. The garden
centres sector has been slower than others in adopting online sales platforms,
but this is now beginning to change. In addition, there are a range of
specialist online retailers in key sectors, accounting for around 40% of the
market.
Growth within the
overall market for garden products is likely to be fairly restrained in the
medium term. However, more impressive growth is forecast for the internet
sector, which is less mature and at an earlier stage of development.
“By
2020, it is expected that the internet sector will account for over 18% of the
total garden products distribution market and will have grown by more than 55%
compared with 2016 levels” said Andrew Hartley, Director of AMA Research. “While impressive, market growth is
expected to slow during the years leading up to 2020, as the sector starts to
mature.”
Ultimately, internet
sales of garden products will depend upon demand within the overall market.
Future growth rates are expected to vary between sectors, reflecting factors
such as varying levels of maturity, replacement frequencies and consumer tastes
and fashions. Between 2018 and 2020, AMA Research expects the overall growth
rate to have slowed to 10-12% per annum.
The ‘Internet
Garden Market Report – UK 2016-2020 Analysis’ report is published by AMA
Research, a leading provider of market research and consultancy services with
over 25 years’ experience in 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.
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