Essential reading for retailers and suppliers in the home improvement market

Garden as 'extra room' helps drive market growth

Published: 14 July 2015
The garden products market increased by around 8% last year to £5bn and is poised for further steady growth up until 2019.
Garden as 'extra room' helps drive market growth
That's the conclusion of a new report from AMA Research, which predicts that many product sectors of the market will benefit from pent-up demand and a stronger housing market in the next couple of years.

Key product sectors in the market by value include horticulture, with a 25% share, while garden sundries, garden buildings, garden equipment, leisure and chemicals all have shares of between 10 and 20%.

AMA notes that horticulture has profited from the boom in grow-your-own, conservatories have returned to growth since 2011, the fencing sector performed particularly well in 2014 after the winter storms, and garden leisure has benefited from homeowners increasingly moving up-market and using the garden as an 'extra room'.

Decking, however, is declining as its popularity appears to be falling.

The report says garden centres account for over 20% of sales and are a key channel for horticulture, while DIY multiples are the largest channel and a key outlet for garden equipment and leisure products. Direct sales are important for garden buildings.

The internet accounts for around 7-8%, and mobile technology as a means of researching and buying products will continue to grow, says AMA.

The weather, economy and consumer confidence all impact on the market, although the report says the sector has coped well with economic downturns.

The market also benefits from underlying trends for outdoor living, environmental concerns and an ageing population that is generally more interested in gardening. However, AMA says the number of apartments and smaller gardens in new properties have a negative impact in the longer term.

"Growth is forecast for most product sectors, but given the high maturity of most product sectors of the market, underlying growth rates are forecast to be more modest in the medium and long term, at a level of around 2-4% to 2019," said AMA director Andrew Hartley.

"Having said that, the development of some niche, less mature products, such as garden rooms, and a move up-market in other sectors such as leisure products are expected to benefit the market as these will experience slightly higher levels of growth."

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