The Internet garden products market has shown exceptional levels of growth over the last five years as increasing numbers of consumers gain access to the Internet and confidence in shopping online. In 2009, 70% of households in the UK have Internet access, an increase of 28% compared to 2006. Increasing numbers of consumers are purchasing online. Of those that bought goods or services online in 2009, 47% had bought household goods, compared to 24% in 2006.

The Internet garden products market is estimated to be worth £163 million at Retail Selling Prices (RSP) in 2009, a 28% increase on the previous year. This market estimate includes both e-tailers, that primarily sell garden products and use the Internet as their main distribution channel, and non-specialists, that offer garden products online but this does not represent their main distribution channel. Within the overall market, the different product sectors will display different growth profiles dependent on the factors and influences affecting each sector.

This market is dependent on both the uptake in usage of the Internet as a source of buying garden products by consumers and the factors impacting on the overall garden product market. Overall the gardening sector tends to cope fairly well with economic downturns. The health of the market is dependent on a range of factors including the prevailing economic conditions, the housing market, consumer confidence & spending and the weather. Despite the economic downturn, 2009 has been a reasonable year for most garden product sectors, with prospects for 2010 relatively positive; although sales in the early months have been negatively impacted by poor weather. The trend to ‘grow your own’ has been a key driver impacting on the horticultural, tools and buildings sectors.

The Internet has removed some barriers to entry that had previously benefited traditional store-based retailers and other suppliers. This has allowed small and medium size e-tailers to enter the garden products market, creating a new competitive dynamic. In response to this growing competition, increasing numbers of store-based and catalogue companies have entered the online e-retail sector.

The outlook for this market continues to be positive despite the current UK economic climate, with the market value forecast to reach an estimated £316 million at RSP by 2014. The number of new Internet ‘start-ups’ in the garden products market is likely to increase, as more companies appreciate the benefits of trading online, this includes both e-tailers and non-specialist retailers. It is likely that the Internet will drive growth of garden product sales as consumers search to find best prices and value products. As the market matures e-tailers and other online suppliers will become increasingly competitive with the products, prices and support they offer. The future performance of the Internet garden products market is likely to be driven by overall trends in online e-retail shopping and levels of consumer confidence and expenditure. New technology and new IT products will expand choice and availability.

Traditional retailers will continue to play a large part in the future of garden products retail as a significant number of people will always prefer to shop in store.