While 2% growth is forecast for the garden products industry in 2010, price competition looks set to have a serious effect on the sector's profitability.
A new report by MTW Research revealed that the garden products market will grow by £95m this year, with demand experiencing moderate rises in both volume and value terms across most key product sectors.

While the market is expected to see around 2% growth, the report points to the threat of price competition in the lower-mid market sectors. MTW's director Mark Waddy said: "A growing level of pricing pressure, with imports now accounting for more than 50% of the garden products market. It's clear that price deflation is now a serious threat to industry profitability in 2010."

However, MTW insists there are still reasons to be optimistic and a number of key market opportunities to be had.

Sales of garden furniture and the barbecue market are set to experience strong growth in 2010, helped by forecasts of a warmer year, which will also provide stimulus for a range of complementary garden products.

The garden timber market and hard landscaping products lost around £150m in sales during the recession, as householders postponed garden refurbishment projects, explained MTW. However, as consumer confidence strengthens this year, the report forecasts that an element of 'pent-up' demand will offer good volume growth opportunities for suppliers in sectors such as the decking market. Porous paving is also set to offer added-value opportunities.

MTW identifies healthy rates of growth in the seeds market, with Kohlrabi and fennel just two of the varieties identified as growing in popularity, as consumers become more knowledgeable and sophisticated in the home grown sector. MTW is unsure whether GYO is more of a fad than a trend but, with continuing uncertainty over the UK's economic health, it expects the sector to remain buoyant in the short term at least.