The DIY sector continues to account for a significant proportion of sales of garden products, given the ability to hold a broad number of ranges and also vast stock of each product; however, this sector has faced increased competition. Despite a degree of market consolidation, with numerous acquisitions taking place, garden centres have reinvented themselves as a destination for both older consumers and younger families, with improvement of facilities, catering and the range of concessions offered. The sector remains strong in horticulture and equipment, as well as more premium garden leisure products. They also offer specialist advice.
Whilst overall market value has undoubtedly grown, it has also been restricted by increasing competition from internet pricing. Online sales as a whole have increased in the market, both across specialist e-commerce sites and omni-channel sales from retailers with physical stores, the latter offering a more blended approach between online and offline.
“The wide diversity of pricing in the garden products market means that there is something to cater for all tastes, with the internet increasing competition” comments Jane Tarver, Senior Market Research Analyst at AMA Research. “However, tastes are now more aspirational, which has also resulted in some trading-up to better quality products, such as garden furniture and barbecues which have continued to underpin market value”.
The domestic garden products distribution market is expected to remain resilient, despite Brexit. The possibility of Sterling continuing to affect the cost base within the sector could have implications for rising import prices as well as seasonal labour shortages particularly affecting UK based plant production. Market forecasts remain optimistic, with moderate growth of 1-2% per annum from 2020-23 when market value is forecast to be around £5.8bn. Strong underlying demand for housing, a desire for additional space for multi-generational homes and for entertainment and work, as well as sustained interest in garden refurbishment and decoration, are all likely to sustain interest in the market.
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