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The UK Domestic Garden Products market was worth just
over £5.2bn in 2007. In recent years the market has suffered from
poor weather conditions over key trading periods, as well as falling
consumer confidence. We anticipate that the market will continue to
struggle throughout 2008 and 2009, but should recover in the longer
term.
In recent years the market has been affected by
weakening economic conditions and falling consumer confidence, as
well as extreme weather conditions in important trading periods.
During 2006 overall sales fell by over 3%, hampered by poor weather
in both March and May, as well as very warm, dry weather over the
summer months which saw hosepipe bans introduced across much of
southern England.
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During 2007, the market experienced modest growth of less
than 1%, reaching a value of just over £5.2bn. Warm weather from March to
May ensured strong sales during the key Easter trading period, with sales
increases experienced across most product sectors. However, the situation
deteriorated over the summer months, as the UK experienced record
rainfall, with some areas of England hit by severe flooding. While the wet
summer provided a boost to some sectors such as horticulture and garden
equipment, many others were severely affected, and the sales increases
gained over Easter were all-but wiped out.
The
market is influenced by several factors, with the weather, the housing
market and consumer confidence key. Other factors currently affecting the
market include media coverage, the growth of e-commerce within the
gardening sector and the impact of environmental issues. Changing consumer
demographics, as well as an increased interest in gardening from younger
consumers should help to benefit the market.
Distribution of garden products is dominated by DIY multiples and garden
centres, both of whom have grown their shares in recent years. This is in
spite of increased competition from high-street and grocery multiples, as
well as from online retailers. Garden centres in particular have had to
adapt to these growing threats, with many increasingly becoming
‘destination centres’ and allocating more space to non-garden products, in
an attempt to attract customers all-year round.
All major product sectors have felt the impact of the
weather in recent years, although some, such as Horticulture and Garden
Leisure, were particularly badly-affected. Others, including Garden
Buildings and Garden Sundries are expected to be hit hard by the credit
crunch, with consumers increasingly deferring high-value purchases and
projects. The outlook looks brighter for some sectors, notably Garden
Chemicals, where product innovations, coupled with a constant underlying
demand should help the market to grow over the coming years.
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