The domestic landscaping materials market was worth an estimated £919 million in 2011 at manufacturers selling prices. The market as a whole has been negatively impacted by the general effects of the downturn, and in particular by the difficult housebuilding and house moving markets and by restrained consumer spending. Positive underlying drivers for the market focus around several key themes, including:- ‘improve not move’, interest in ‘grow your own’ and the garden as an extension of living space.

The weather is a key factor in this market. Mild weather can encourage sales of plants, bulbs and seeds, and extend the period during which construction projects can take place in the garden. Poor weather can result in a boost to sales of products like fencing, for example, where replacement is required because of storm damage. The core of the market remains stable. Whilst larger projects such as installing garden buildings have seen reduced sales during the recession, the plants, bulbs, and seeds sectors have prospered. These are non-essentials, but they are low cost and regarded as affordable products by many, even in the downturn.

Decking and landscaping materials is a fragmented market consisting of a very wide range of products distributed via a range of distribution channels. Key products are paving & walling (19%), fencing/trellis & garden structures (8%), decking (4%), aggregates (4%), pots & planters (10%), water features & decorative products (6%), nursery stock & bedding plants (38%) and bulbs & seeds (9%). The decking market is mature and stable. The bulk of decking installations are wood, though some other niche materials exist in this market. Most of the wooden decking in the market is made of softwood boards.

The paving and walling sector has been hit hard in the difficult economic conditions prevailing in 2009-2011. The market, whilst restrained by the difficult housing sector, has seen a wide range of new products incorporating drainage features alongside hard standing becoming available on the market in response to new planning rules introduced in 2008.

The market for pots and planters has been maintained by continued interest in ‘grow your own’, based on a solid existing gardening market. This is a highly competitive sector, reflecting a combination of a fragmented product range and many low cost imports.

Key distribution channels for domestic landscaping materials are Garden Centres, DIY multiples and Builders Merchants – though merchants are not involved in the sale of soft landscaping products or most garden decoration products. Consolidation in the distribution sector is continuing with a number of developments since the last edition of this report.

The internet has been gaining share as a distribution channel across many markets, offering consumers perceived greater value for money and the convenience of shopping from home. Mail order is a well established channel for bulbs, seeds and plants. This channel – currently offering order facilities by post, phone and internet – is likely to remain a strong channel among more serious gardeners.

Given the current macro economic climate in late-2011/early 2012, forecasting future market performance is extremely difficult at this time due to uncertainty over the speed and timing of recovery from the downturn. The Autumn 2011 Statement has seen downward revisions to growth prospects in 2011-2012, resulting in higher debt levels and further cutbacks in spending – though higher infrastructure spending will result in a boost for some sectors of the non-domestic landscaping market.