Although historically the pond equipment
market has seen steady growth, lower growth was seen in 2004-05 due to
poor weather and reduced consumer spending. Growth in volume terms is
understated as market prices in many product sectors have been stable or
even declined in recent years.
The largest sector of the pond equipment
market is liners and pre-formed ponds,
which account for an estimated 25% of the market. Pumps
are also a major sector at 23% of the market by value, whilst general
accessories, including fish food and pond treatments, are a
growing market at 22%. Filtration systems
account for 18% of the market with pond
accessories making up the balance of the market and including
products such as self-contained water features.
In the liners and pre-formed ponds
sector, liners hold the dominant
share accounting for over half the market whilst pre-formed ponds have
an estimated share of 40%. Within the liner market, plastic liners are
the larger sector representing 65% of the market, having seen a small
loss in share to rubber liners, due to more competitive retail prices.
The rubber liner market is a significant part of the liner market and is
generally viewed as the premium product. Most pre-formed ponds are
plastic, although glass-fibre ponds account for 40% of the market.
The pumps market has
seen some growth in middle range pumps (1000-3999 litres per hour) at
the expense of smaller pumps (flow rates up to 999 litres per hour) as
the price differentials between these two groups has lowered. The pumps
market has performed better than the market average as this sector is
not wholly reliant on new pond construction but will benefit from
upgrading by existing pond owners.
The general accessories market
has seen above average market growth due to good growth in fish foods
and treatments. These products are often seen as essential purchases
rather than ‘extras’ and have performed well in contrast to other
sectors in the market, which have suffered poorer growth as a result of
bad weather and lower consumer spending.
In the filtration systems
market, combined units, which offer consumers significant benefits in
terms of installation time and cost savings, have seen growth.
Pond accessories include
products such as self-contained water features, which have seen some
growth in the last 2 years, pond lighting, pebble pools and preformed
watercourses.
Most of the leading suppliers in the pond equipment
market are either specialists in the pond sector, or part of larger
groups with interests in wider garden products. However, the market is
attracting new entrants from other sectors, offering purpose-designed
products. The market is also characterised by a number of imports, for
example from Europe and the Far East, resulting in increased
competition. Hozelock Cyprio is
overall market leader in the sector, with an estimated share of around
21%. Blagdon, Oase, Tetra and
Oasis are also leading suppliers,
with shares of around 10-14%. The remainder of the market is made up of
a large number of suppliers, some of which specialise in particular
sectors of the market, for example, Firestone
rubber liners and Atlantis glass
fibre pre-formed ponds.
Specialist aquatic/water garden centres continue to
dominate the distribution of pond equipment with an estimated 50% share.
Garden Centres are also leading outlets, but many of these sell pond
equipment through concessions run by specialist aquatic operations, such
as World of Water and Maidenhead
Aquatics. Mail order and DIY Multiples each account for
relatively small shares, while landscape contractors are strong in the
pond liner/pumps sectors. Specialist aquatic centres are anticipated to
maintain their dominant position based on their extensive product range,
knowledge and customer support.
Future prospects for pond equipment remain fairly
positive after a poor performance during 2004-05 and the market is
expected to see some improvement in 2006-08, albeit at relatively low
growth rates of 4-5% when compared historically with the higher rates of
growth seen in previous years. Increased competition has resulted in
lower prices for consumers and so pond ownership is becoming more
accessible to a larger number of people. Consumers are expected to
continue to upgrade pond equipment, which should be especially
beneficial in sectors such as filtration systems, where consumer
awareness of these products and their benefits is increasing.
Large garden shows with water garden displays have also
stimulated interest in water gardening as a leisure activity and this is
expected to continue in the foreseeable future. Gardening programmes
encourage more adventurous landscaping projects, even for relatively
small gardens, which has seen the pond equipment market benefit. The
economic climate in early 2006, however, is uncertain, with slowing
consumer spending, a flat housing market and uncertain overseas markets,
coupled with low interest rates and low inflation, but rising
unemployment. Possible severe winter weather is expected to hamper
pre-season sales, but future summer weather is obviously impossible to
predict but will always play an important part in market performance in
any given year. However, growth forecasts for 2006-08 are positive and
the market is expected to grow to £43m at MSP by 2008.
