Essential reading for retailers and suppliers in the home improvement market

Internet garden market set to achieve 25% growth in 2020

Published: 26 October 2020 - Neil Mead

In 2020, the Internet garden products market is estimated to achieve growth of 25%, profiting from the surge in Internet usage as a result of the coronavirus pandemic. 

 

According to the latest Internet Garden market report from AMA Research, it is likely that online sales will continue to expand as social distancing measures remain in place, constraining in-store retailing for the remainder of 2020 and potentially into 2021. 

Online shopping is following an upward trajectory, with 87% of UK adults shopping online in 2020. As both fixed and mobile Internet speeds increase, and smartphone ownership expands, it is likely that more consumers will use the Internet for shopping in the coming years.

Consumers are also becoming increasingly aware that cheaper prices can be found online, with price comparison websites facilitating easy comparisons. Product research via blogs, reviews, social media and YouTube is likely to cause an increase in purchases of garden products online. 

During April, May and June Internet sales accounted for 31% of total retail sales in the UK, compared to 19% in 2019. Correspondingly, the value of the Internet garden market has risen significantly in 2020. In addition, demand for garden products was notably high during lockdown with consumers spending more time at home during the sunniest Spring on record. Items such as barbecues and grow-your-own products were particularly popular online purchases during the lockdown period, contributing to estimated market growth of 25% in 2020.

Jane Tarver, Market Research Analyst for AMA Research comments: “Whilst in-store purchases currently still dominate the retail garden sector, into the medium-term, online sales are likely to feature more prominently across all channels in the garden distribution sectors. Garden centres in particular are likely to increase their presence in the online market, which could significantly increase online sales of horticultural products.”

Market growth continues to be underpinned by the popularity of ‘click & collect’ services.  Whilst home delivery lead times have improved considerably in recent years with next day delivery being a common requirement, many consumers prefer the convenience of collecting items from a local store.  Online promotions have also helped to sustain market growth, retailers regularly offer discount codes, special offers or free delivery on purchases over a certain amount which often encourages consumers to purchase online.

It is expected that the Internet garden market will continue to increase to 2024, although the amount of growth will be dependent on the recovery of the retail sector post-lockdown.  Lower growth levels are forecast after 2021, assuming that in-store retailing begins to recover, with annual growth of around 8% forecast towards the end of the review period as the market begins to mature.

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With many consumers starting their Christmas shopping early due to the Covid pandemic, are you expecting strong sales this December?




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