Garden Products Market to Outperform UK GDP in 2015

Findings from a new report on the garden products market by MTW Research indicate that sales of garden products are set to top £5 billion for the first time by 2018, prompting rising optimism in the sector.
By: MTW Research Ltd
 
CHELTENHAM, U.K. - Sept. 22, 2014 - PRLog -- Based on financial data from 80% of the garden centres market and input from garden product manufacturers, the report depicts a strengthening market with a number of key factors providing underlying sales growth and volume demand.  On balance, the number of positive influencers identified outweigh the threats and weaknesses, though the research sounds a note of caution forecasting a steady rise in the number of mergers and acquisitions in the garden centres market.

Real term growth returned to the garden products market in the second half of 2013 according to MTW, with the majority of garden sectors set to experience buoyant performance in value and volume terms.  Commenting on the research, MTW’s director Mark Waddy pointed to, “…A growing consumer appetite for higher quality garden products in 2014, following what could be almost be described as a ‘race to the bottom’ for many sectors in recent years.”  Nevertheless, the report forecasts that imports will continue to gain share of the overall garden products market as the lower value sector of the market rises by 25% in the next 4 years.

Sales of garden products via the internet will reach £400 million in 2014 according to MTW, underpinned by demand for garden equipment and garden leisure products through this channel.  This sector continues to outstrip growth in the garden products market with this trend forecast to continue, albeit at a slower rate than in previous years.  The research found that garden centres have lost some share in recent years, though this trend is now slowing as higher quality product and service provision are becoming more influential on buying behaviour in 2014.  Supermarkets continue to target the garden products market on an increasingly broader scale and this is recognised as a key threat to longer term value growth, with this channel often culpable in terms of sustaining pricing pressure.

On a more positive note, the 140 page report identifies a number of opportunities for market growth across the volume and value spectrum with many garden product manufacturers and suppliers well placed to take advantage.  Underlying volume growth derived from the rising number of UK households and growing range of uses for UK gardens is set to be complemented by increasingly sophisticated marketing and product development driving value growth according to MTW.  Key sectors forecast to perform well include garden buildings; horticulture, garden lighting; water features; garden furniture; outdoor cooking; garden equipment and garden care products – all of which are set to outperform the UK economy in the medium term.

The report includes analysis of the garden centres market and found that more than 70% of retailers experienced sales growth in the last 12 months.  As well as core garden product sales, growth in areas such as catering, pet care, leisure activities and ‘destination marketing’ continue to support sales growth for UK garden centres, with this likely to sustain the sector in the longer term.  With 70% of garden centres having ‘good’ or ‘excellent’ credit ratings according to MTW, the future appears bright for the channel.

Underlining its significance to the wider UK economy, the report forecasts the garden products market will outpace UK GDP by more than 5% in the next 4 years.  Whilst threats to market growth exist, the research demonstrates that the majority of garden product suppliers and retailers are set to find increasing success in 2015 and beyond.  MTW’s report is available from £565 from www.marketresearchreports.co.uk or by calling 08456 524324.

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