The UK domestic garden products distribution market was
worth an estimated £4.9bn in 2017 at retail selling prices (RSP), representing
an increase of 3% compared to the previous year. Both the weather and the state
of the economy influence growth rates within the garden products distribution
market. A strong interest in home improvement, which extends to the garden, has
also stimulated growth in this sector.
Key product sectors in the market are horticulture,
garden sundries and garden buildings, which all account for a share of 20% or
more by value, and garden equipment, garden leisure and garden chemicals, with
slightly lower shares. Each sub-sector is subject to different influences and
trends, for example, investment in ‘higher ticket’ items such as paving,
walling and conservatories may be deferred if consumer confidence drops, and fencing
sales may be boosted by wet and windy weather.
Whilst some parts of the garden products market may be
considered comparatively mature, such as barbecues, conservatories and garden
furniture, the desire to reflect more premium materials and styles is
encouraging trade up sales. Developing areas within the market include garden
rooms and garden decoration. Artificial grass has also risen in popularity,
given the minimal maintenance required.
A notable trend has been the desire to maximise
recreational use of the garden including for socialising and dining ‘al
fresco’. This has helped to sustain growth in the sector as the garden is
perceived as an additional room in the home. Other practical uses include use
of the garden for home working and storage resulting in an increase in sales of
garden buildings and clever use of space. Environmental aspects have become
more prevalent, with greater concern over the provenance of materials, such as
timber and ingredients used in garden control products and fertilisers.
Although demand for housing remains high in the UK, the rates
of housebuilding and home moving activity have been slow in recent years,
impacting negatively on the garden products market. The average size of the UK
garden is also diminishing and this, coupled with an increase in apartments, has
given rise to products which suit a smaller space, such as ‘vertical gardens’
and greater use of pots and containers which can be re-located from home to
home and suit balconies.
“The DIY sector and garden centres account for the
majority of sales of garden products, reflecting their diverse product range,
especially in garden equipment and leisure products, but these are facing increasing competition from other
channels - in particular online specialists, but also discount chains and
grocery stores”
said Fiona Watts, Editor at AMA Research. “Although
most larger DIY outlets have embraced the internet as a distribution channel,
there is significant scope for existing retailers to develop internet sales, particularly
in the garden centre sector.”
The UK is undergoing a period of political and economic
uncertainty, as negotiations for Brexit continue. This has created a number of
issues, such as potential seasonal labour shortages within the horticultural sector
and the rising costs of imported garden products and components. Price
competition will, however, constrain market value to some degree, despite any
price increases, due to the rising cost of imports.
Our market forecasts assume moderate growth within the
garden products distribution sector, from 2018 – 2022, underpinned by sustained
demand for housing and interest in home improvement. The market is forecast to grow
by around 2% per year until the end of the forecast period, assuming UK weather
patterns over this period are not severe.
The ‘Garden Products Distribution Market Report – UK 2018-2022’ report is published by
AMA Research, a leading provider of market research and consultancy services with
over 25 years’ experience 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.
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