Online sales of garden products in the UK have doubled since 2011
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Growth in online sales of gardening products have outpaced the overall garden products market by some distance in recent years, according to new research published by AMA Research.
Reasons for this has included the continued penetration of broadband internet services and mobile devices, as well as the expanding number of companies which now compete in the online sector.
Between 2011 and 2015, Internet sales of garden products more than doubled, with the sector growing by an estimated 24% in 2015 – with growth of a further 20% estimated for 2016.
Segmentation of the internet garden products sector differs from the market as a whole. Garden leisure products accounted for the largest share of ‘internet garden product sales via the Internet at around 30%, followed by horticulture and garden equipment - this compares to the total garden products market where horticulture takes the leading share.
Both the internet sector and the overall market have benefited from the fact that more people are keen to use their gardens for entertaining and socialising. This trend has pushed up demand in sectors such as garden furniture, barbecues and decorative garden features in particular.
It is estimated that ‘non-specialist’ garden retailers such as DIY multiples account for the majority share of internet garden sales in 2015-16. However, competition continues to grow within the overall category, as a number of grocery multiples and high street retailers have recently increased their presence in the market.
The garden centres sector has been slower than others in adopting online sales platforms, but this is now beginning to change. In addition, there are a range of specialist online retailers in key sectors, accounting for around 40% of the market.
Growth within the overall market for garden products is likely to be fairly restrained in the medium term. However, more impressive growth is forecast for the internet sector, which is less mature and at an earlier stage of development.
“By 2020, it is expected that the internet sector will account for over 18% of the total garden products distribution market and will have grown by more than 55% compared with 2016 levels” said Andrew Hartley, Director of AMA Research. “While impressive, market growth is expected to slow during the years leading up to 2020, as the sector starts to mature.”
Ultimately, internet sales of garden products will depend upon demand within the overall market. Future growth rates are expected to vary between sectors, reflecting factors such as varying levels of maturity, replacement frequencies and consumer tastes and fashions. Between 2018 and 2020, AMA Research expects the overall growth rate to have slowed to 10-12% per annum.
The ‘Internet Garden Market Report – UK 2016-2020 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience in the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.
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