published in XOP International magazine

When we asked industry experts from both the USA and Europe to describe current growth in the garden accessories market – or ‘outdoor living’ as it is known – the word ‘phenomenal’ kept coming up. Susan Fenton finds out more about this growth and looks at some key trends in product design for this vibrant market

When the world’s largest housewares trade show adds a new category for ‘outdoor living’ products, it adds more evidence to the theory that the garden is becoming an extra room of the house, which is good news for garden accessory suppliers.

According to the organisers of the International Home & Housewares Show, held in March in Chicago, “outdoor living is no longer the sole province of those lucky enough to live in the world’s warmer climates”.

Phil Brandl, president of the International Housewares Association, which runs the show, said: “Outdoor living has grown phenomenally, along with the renewed emphasis on home, hearth, family and friends. People are taking their entertaining outdoors and as they move outside, they are taking their notion of indoor fashion and style with them.”
It is for this reason that the show added a new sector, Patio Park, which covered the patio, lawn and garden, and other outdoor products.
First-time exhibitor Southern Patio saw the show as a “new opportunity which will help is to expand our exposure”, said Gary Miller, president.

Also hoping to expand its market presence is Bradley Technology of Canada, which makes ‘smokers’ for smoking food, and is aiming to expand beyond its established presence in the hunting/fishing and gourmet markets and into the garden arena.
Cross-merchandising is an aim for several suppliers. For instance, getting product into supermarkets or into housewares stores was key for those currently selling into garden centres. And selling different product lines to existing customers, for companies such as Fiskars, which offers garden tools, resin furniture and outdoor pottery.

Market research company Mintel predicts that there will be continued growth in garden accessories. It estimates an annual growth in the American market of 3% or more, depending on the weather and the economy. The company explained: “One of the reasons for the interest in gardening is the fact that many Americans have expanded their living spaces to include the outdoors, making outdoor rooms, and moving a lot of their entertainment to the outdoors. This reflects in part the concept of ‘nesting’ or ‘cocooning’.”

Trade federation Gardenex predicts that the garden decoration sector will continue growing in the UK, too, after five years of steady expansion.

“The garden is becoming more a living room, decorated with furniture and lighting, than a place for planting,” said the organisation’s PR consultant Peter Evers. “Gardeners are buying more sophisticated products. They are also looking for traditional products (made of natural materials, for example) and for original and funny items to personalise their garden.

“There is also a trend for city dwellers to want to get back to nature. They decorate their balcony/terrace as a pleasant open-air place to live. New urban buyers of garden supplies have little experience and most are women between 30 and 40 years old. Consequently there is a demand for easy to use gardening equipment.”

Peter Marsh, director of the Garden Industry Manufacturers’ Association (GIMA), said: “Growth in this area has been phenomenal – even higher than the rate of growth in garden furniture, which itself is healthy.”

Sales of what is called ‘sundries’ or ‘dry goods’ in the UK rose by 10% last year and 20% in each of the two previous years and the association believes that a high rate of growth will continue.

Significantly, as accessories continue to rise in popularity, sales of plants remain static. “Plants used to form 50% of garden product sales but now it’s only 40%,” said Marsh. “It’s accessories where the new ideas are coming through and contributing to growth. People are spending time and money in the garden without actually gardening. The garden has become an outdoor living area.”

DIY centres are estimated to account for 37% of the garden business, garden centres 23%, the rest of the market being shared by supermarkets, hardware stores, mail order/catalogue shops etc.

The growth is attributed by Peter Marsh at GIMA to two factors – first the change in demographics which means that more middle-aged people (the keenest gardeners) are retiring earlier and have money and leisure. Second, the continuing boom in television gardening programmes, which have, said Marsh, a huge impact.

“A BBC programme once featured soil testing kits, which are normally a fairly slow-selling product, and our members were immediately inundated with requests for these products. Television has such a big influence – getting a product on a TV programme is better than advertising, by a mile.”

The future growth, said Marsh, might not continue to be as high as the 10% or 20% of recent years but it will certainly be above the rate of inflation.

“The demographics continue to be in the industry’s favour. And there seems no sign of television companies making fewer gardening programmes. The only thing that spoils it for the industry in this country is the weather.”

The other issue facing domestic European manufacturers, said Marsh, was the rising tide of low-priced but good quality goods from the Far East.

There are broadly similar trends in the rest of Europe. Erwin Vahlenkamp, director of Dutch supplier Beriva, said: “There is room for growth across Europe, though the economy’s not helping at the moment.”

He said a key trend at retail was the growing use of shops within shops. “As shops want to strengthen their offering of accessories, they don’t necessarily want to do this by simply buying products. We are having requests to build shops within shops, to recreate an entire product range and display concept inside garden centres and shops.” This is a trend also identified in the USA by Mintel, which says that many mass merchandisers are opening garden centres within their stores.

Daryl Palmer, director of Westwoods, one of the UK’s largest accessory suppliers, said: “The whole accessories market is a very diverse area and is expanding, particularly summer accessories like bamboo torches and oil lamps.

“People want more atmosphere, more ambience, in the garden especially when they’re eating outside. And they’re spending more.”

The industry, he said, has been growing strongly for about four years. “When people started moving away from plastic furniture they started upgrading everything in their gardens, and that really kick-started things. Once someone spends more on a dining table for the garden than they would spend on a table for the dining room, then they no longer flinch at spending for the garden.”

Palmer said there had been particular growth in “fun” items like fairies, dragonfly figures and so on.

Retailers agree about the growth in the market. Wayne Kelly, responsible for garden accessory buying at the Co-op (see separate article) said: “It is growing rapidly, thanks to the growing popularity of gardening, due to television programmes and the number of new home owners. The demand should continue to be healthy, with the strongest sales are in the more decorative areas such as hanging baskets, accessories and garden candles.”

Story B

What are the trends?

If there’s one thing that typifies the garden accessory sector it is sheer diversity. A walk round the garden halls at the recent Birmingham and Frankfurt shows revealed everything from copper-sculpted water features to bird feeders, from oversized flower pots to slow-burning real-flame candles, from a brick-laying device to a cooling neckband. But certain trends do emerge.

One key trend is for a ‘natural’ approach, either through the use of natural or authentic materials (whether water, fire, stone or wood) or through the use of products that are environmentally friendly. Peter Marsh at GIMA commented: “Natural stone is growing very fast, as are products that replicate natural materials, for instance concrete decorative items that have the appearance of wood.”

Ornamental Stoneware’s Simon Giraud said: “Painted stone is in decline, but the growth is in natural stone or stone with a metallic finish.”

Batu Bali’s founder Stephanie Little also says natural materials are important. The company uses volcanic stone, limestone, terracotta and soft marble in its range of mythical figures, water fountains, jardinières and other garden ornaments.

Swedish granite is the material of choice at Blatunga, while Rustic Earth says that about 40% of its range of artefacts such as urns, busts and water pumps is genuine antiques. Director David Oakes said: “Some people want the genuine article even if it costs more.”

Oversized pots, he said, were very popular, a sentiment echoed at Capital Garden Products – both companies boast pots measuring 1.2m or more in height. Oakes said: “This sort of thing has real pulling power at retail because it’s not every day you see such a large item.”

Water is another popular natural material. According to Simon Hughes at MA Direct, UK distributor of South Africa’s Focus Features, which offers lightweight fibreglass ponds and water features, “water is the biggest growth area in the garden. It’s been promoted so much on TV programmes, which have really opened people’s eyes to how easy it can be to install.”

The material of choice at Quist is copper, which is used to create delicate, realistic-looking sculptures of creatures like dragonflies, and trees, which can form part of a water feature.

And Dutch supplier Polly’s Wonderproducts has a device that turns water into mist, enabling consumers to create atmospheric water features indoors or out.

The use of real flame is very big. La Hacienda’s Ecoblocks combine this trend with an environmental concern as they are treated logs that burn slowly down. Director Simon Goodwin said: “Natural flame is very popular – it’s much nicer than using electric light and the market is definitely growing.”

Other environmentally-friendly products included the Slug and Snail Gizmo from STV. As part of a range of pest control products, the Gizmo is a new item that enables the user to pick up slugs and snails and remove them from the garden without either touching them by hand or killing them.

And CJ Industries has a special applicator that enables salt to be applied to the roots of weeds, drying them out and killing them without the need for pesticides.

Neal Courtene-Jones said: “There’s a lot of environmental concern among consumers over the use of toxic weed-killers.”

Mark Wassell, area sales manager at Magnet (George Buckton), which makes bird feeders, agreed. “We’re seeing a great care for the environment and this is making bird feeders a huge growth area. Sales are growing rapidly.”

Interestingly, though, despite the move towards natural materials, resin is said to be a growing market too. Geoff Lewis, managing director of Henri Studio, which offers decorative accessories and figurines, said: “Resin is lighter so it’s good at retail because it can sit on a shelf without the shelf collapsing. Its ease of merchanding is a great bonus.”

Question was also cast over the popularity of natural products by Daryl Palmer at Westwoods. “I’m not sure people do prefer natural-looking products. Artificial materials can be very popular. There is big growth in LED lighting as the price comes down significantly due to technical advances.”

Another trend is products that tell a ‘story’ through characters or relate to spiritual or historical matters.

Ornamental Stoneware offers a range of Easter Island figures and a new range of oriental-style characters called the Retrievers. Fictional characters, they each tell a story with religious or spiritual overtones. Simon Giraud explained: “People are very interested in calm and tranquillity – there’s been a lot of interest in feng shui, for instance. This season we are focusing on oriental and mystical themes.”

The Olde English Bronze Company offers a range of six bronze figures, called Hoblins, retailing at up to £895 each. Designer Julian Jeffery said each character has its own ‘story’, which appeals to the growing number of consumers who are looking for ‘something different’ and don’t mind spending a lot to get it.

The theme of authenticity and spirituality is lightened by some more gimmicky and fun products. For instance, the Crazy Daisy from Germany’s Special Design Products, a plastic daisy that sits on top of a garden spray hose and that swivels and dances amusingly under the pressure of the water.

The idea of fun is also reflected in licensed character products such as the Disney Garden range, weatherproof figures and birdbaths that can be used outdoors or indoors.

GIMA’s comment that being in the modern garden does not necessarily mean gardening is backed up by the selection of products in the Outdoor Vision trends section at the Frankfurt Ambiente show in February. This section, which selected trendy new products from various suppliers, focused on the idea of the garden as a place for leisure rather than work, with a wide variety of seating from bean bags and bar stools to lounge chairs, hammocks, cushions and faux rocks and capacious wicker seats. Many of these were products you would not necessarily expect to find in the garden – they could equally well be used indoors.

But there are some products that offer pure utility. A good example was the Bricky, from the Drywall Emporium, which is a product designed to help amateur gardeners build brick barbecues without making a mess. “It’s every gardener’s dream,” said chief executive Noel Marshall. “It enables you to do a job simply.”

Another utilitarian product is the Cobber, a cooling neckwrap from Bodycool Industries, which is also said to be ideal for active gardeners during hot weather.

Lighting, of course, a utilitarian product type, continues to be of great interest with more money being spent on this type, according to Gareth Pritchard, director of Western Wood. “The cheap end has slowed down. People are starting to appreciate patio lighting and they want something that will last, so they are prepared to spend money on them.”

Story C

Trends around the world

USA

Some of the strongest sectors are gifts and decorative ($1.65 billion), containers ($1.31 billion), lawn decorations ($851 million), (water features $720 million) and outdoor lighting ($550 million); these are some of the forecast sales figures for 2004 published in a recent edition of Nursery Retailer. According to a survey by Garden Center Merchandising and Management the top 10 hard goods sold in garden centres are (in descending order) containers, mulch/fertilisers, statuary, seasonal products, wind chimes, fountains, pest/disease control, giftware, trellis/arbours, garden tools. This is the largest market for garden products. Sales of garden products in the US have seen strong growth in the last 10 years with leading home centres and discount stores taking an increasing share of the lawn and garden market. Nursery retailer puts Home Depot at No. 1 with sales of nearly $8 billion.

Germany

A report from 2002 says the strongest hard goods sectors are garden furniture (E1.2 billion), Power garden tools (E784 million), garden stone (E980 million), garden wood (E600 million), garden buildings (E596 million), pots/containers (E631 million) and ponds and equipment (E316 million). Germany remains the most important European market for garden products. As elsewhere, the DIY retailers and discount stores have been increasing their share of the market.

France

The 2003 Promojardin report puts the market at E5.8 billion. France is the second largest European market for garden supplies, accounting for about 25% of the total European turnover in this sector.

Between 1998 and 2002, the French market for garden supplies increased by 21%. During this period, the best performing sectors were garden decoration and leisure goods, fertilisers, motorised cultivators/lawnmowers and fencing products. In 2002, the market rose by 6%.

Netherlands

In 2003 VBTB estimated the market at E2.5 billion. Stone in the garden and decorations, pond products, garden furniture and wood in the garden are all strong product areas in the Dutch garden hard goods sector.

Market data from Gardenex

Story D [this story can be cut as much as you like - I include it in full as it is quite interesting]

Research by Mintel sheds light on the changing nature of the garden market. We asked Mintel some questions about the American market, which is so often an indicator of what will happen elsewhere.

Why the growth in gardening?

Gardening is closely related to home ownership and type of home. In 2003,
home ownership was at an all-time high, at almost 69%, and numerous people – often women – lived alone, with ample gardening space. Even those without gardens often have access to decks, patios, and other outdoor spaces, an important consideration for manufacturers and retailers.
The typical gardener is white, female, aged 45 to 64 and with an annual household income of $75,000 or more. This bodes well for the future of gardening, as Baby Boom women either fit the younger age bracket (45 to 54) or are transitioning into the older one (55 to 64).
The continued growth in the number of households and in home ownership levels provides a slow, but steadily increasing base for gardening product sales. The gardening market is forecast to increase 21% at constant prices from 2003 to 2008 as homeownership rates continue to increase and consumers increasingly focus on improving their outdoor living space.

How big is the growth?
The gardening industry grew 35.1% between 1998 and 2003. The growth has varied yearly, partly because the industry is tied to economic factors and the weather. Sales can also be influenced dramatically by personal factors including income and time pressures. The growth from 2002 to 2003 is estimated to be 2.9%. This is higher than for related products such as power tools and barbecues because during difficult economic times or extended periods of bad weather, consumers may postpone buying an outdoor grill or power mower, and refrain from doing extensive plantings, but are likely to continue the upkeep of the outside of their homes.

Although DIY lawn/garden care and professional garden services both increased in 2003, sales of plants, seeds and bulbs were lower as many gardeners decided to maintain, rather than improve or enlarge, their gardens.
Where do consumers buy?
Competition is stiff, and the home centres and mass merchandisers, which have expanded their garden offerings, have taken a significant hold of this market as shoppers migrate from garden centres and traditional feed/seed stores. Consumers often combine their purchases of garden supplies with purchases of tools, decorative items, and other products, thus they may feel better served by hardware stores and mass merchandisers, which have wider selections.

A growing number – 52% – of households shop for gardening supplies at home centres such as Home Depot and Lowe’s, at the expense of hardware stores.

48% shop at mass merchandisers, such as Wal-Mart, Target and Kmart. The increase in sales through mass merchandisers reflects the fact that retailers saw the potential for increasing sales their during peak gardening seasons and expanded the space devoted to these products.

43% shop at garden centres, usually small local operations. The income of garden centres/nurseries has declined and some have been put out of business as consumers do more of their garden shopping in other channels, in which they are able to buy a wider array of other products as well. In order to remain viable, some nurseries and independent growers have expanded their offerings of lawn furniture, garden accessories, gardening-related books and gifts, crafts, Christmas decorations and food.

33% shop at hardware stores.

21% shop at supermarkets/drug stores, which stock garden supplies to attract impulse shoppers who are there for food shopping.

14% shop at seed/feed stores, many of which deal in bulk products and may not provide the service or smaller packages desired by home gardeners. But they have retained a loyal shopping public until 2002, when the percentage of households using these outlets fell as consumers used other outlets.

8% shop via mail order. The popularity of mail order has decreased since 1998, due to the growing availability of garden products through other channels.
Consumers also purchase garden supplies and plants directly from growers through venues like farmers’ markets, while, at the other end of the spectrum, high-end department stores feature garden centres.

ENDS

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