Garden market poised for volume and value growth
Published: 24 September 2014
Sales of garden products are set to top £5bn for the first time by 2018, prompting rising optimism in the sector.
That's the conclusion of a new report on the garden products market by MTW Research, based on financial data from 80% of the garden centre market and input from garden product manufacturers.
The study depicts a strengthening market, with the majority of garden sectors poised to experience buoyant performance in value and volume terms. It says there is a growing consumer appetite for higher quality garden products in 2014, following a race to the bottom for many sectors in recent years. Nevertheless, it adds that imports will continue to gain share of the overall market as the lower value sector of the market rises by 25% in the next four years.
Sales of garden products via the internet will reach £400m this year, according to MTW, and garden centres have lost some share in recent years, though this trend is now slowing as higher quality product and service provision become more important.
Supermarkets also continue to target the market on an increasingly broader scale and this is recognised as a key threat to longer-term value growth.
On a more positive note, the report identifies a number of opportunities for market growth in both volume and value. Volume growth derived from the rising number of UK households and growing range of uses for UK gardens is set to be complemented by increasingly sophisticated marketing and product development, driving value growth.
Key sectors forecast to perform well include garden buildings; horticulture, garden lighting; water features; garden furniture; outdoor cooking; garden equipment and garden care products.
The report says over 70% of garden centres experienced sales growth in the last 12 months, driven by core garden products, catering, pet care, leisure activities and destination marketing. It also forecasts a steady rise in garden centre mergers and acquisitions.
It concludes that the garden products market will outpace UK GDP by more than 5% in the next four years, with the majority of garden product suppliers and retailers set to find increasing success in 2015 and beyond.