Essential reading for retailers and suppliers in the home improvement market

Pent-up demand to benefit landscaping market

Published: 14 September 2015
The garden landscape materials market enjoyed strong growth in 2014 - up 7% - thanks to a mix of good weather, the improving economy and increased consumer confidence.
Pent-up demand to benefit landscaping market
In its new report on the market, AMA Research predicts it will continue to grow, but at a more modest rate of 3-4% per annum.

AMA points out that the market is heavily influenced by the weather, and though the economy also has an impact the market tends to cope well with downturns and has not suffered as badly as some other consumer markets.

AMA defines the key product sectors within domestic landscaping materials as horticulture, which accounts for just under half of the market by value, hard landscaping and garden decoration.

It says that since the start of the economic downturn those sectors have performed differently, with areas such as paving and decking declining, whilst those associated with grow your own have experienced overall growth.

Key distribution channels include DIY multiples, garden centres, builders' merchants and mail order and internet businesses. Going forward, internet retailing is expected to continue to gain share as consumers seek greater value for money and convenience, with delivery of hard landscaping products a key issue.

Garden centres are increasingly addressing this issue and it is likely that those companies prepared to evolve their formats and develop their offer will perform better than others in the future, says AMA.

Trends that may benefit the market include the increasing demand for artificial grass, permeable paving and other environmentally-friendly options such as solar lighting and container 'vertical gardening'.

"Key factors influencing market performance include the housing market, consumer confidence and spending, and levels of interest in gardening as a hobby or to grow produce, as well as the trend for gardens to be seen as an extension to the home and al fresco dining," said AMA director Andrew Hartley.

"In addition, the mature structure of most sectors and the growth in internet sales are also important as they tend to drive down average prices and increase price competition in the market."

Predicting future performance in this market is difficult due to its dependency on the weather, says AMA. However, it expects it to benefit from pent-up demand for landscaping projects that have been deferred during the economic downturn and is forecast to exceed a value of £1bn by 2019.

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