The Gardening and Residence Enchancment sector tracked by GfK is experiencing a interval of progress stabilization in 2024. 4 years on from the primary wave of the COVID-19 pandemic, the place individuals spent considerably extra time at residence, shoppers’ priorities have shifted, and financial indicators are bettering. Coupled with some key developments which can be shaping the market, this offers the panorama for progress over the approaching 12 months.
Shoppers’ reallocation of time and spending
As shoppers work and research from residence greater than prior to now, the house and backyard have turn into a spot of retreat and identification. Nonetheless, spend on out-of-home actions is on the rise and, as inflation begins to subside, holidays are transferring up the precedence checklist. Globally almost one in 5 shoppers plan to spend extra on holidays overseas this 12 months, in keeping with NielsenIQ’s Shopper Outlook 2024 research.
Spending money and time on the house continues to be necessary to individuals, however not on the frequency it was a number of years in the past. In 2021, on the peak of the COVID-19 pandemic, 36% of individuals mentioned they hung out each week on residence upkeep or enchancment. Right now that determine has dropped to 33%, with individuals as an alternative transferring to month-to-month upkeep (up from 28% in 2021 to 31% at this time).
Behavioral shifts are additionally occurring within the scale of residence enchancment initiatives. Throughout lockdowns, huge renovations had been frequent. Over the previous couple of years, nonetheless, Europe’s housing markets have been impacted by excessive uncooked supplies prices, rising rates of interest and traditionally low ranges of client confidence. This, added to the distraction of accelerating out-of-home spending, has meant individuals’s focus has shifted to smaller, quicker residence initiatives, upgrades, and repairs.
Backyard and residential enchancment income is stabilizing
Excessive inflation in 2022 pushed up costs, and due to this fact additionally income, for a lot of Gardening and Residence Enchancment classes, whereas quantity remained in decline. Throughout the first 4 months of 2024, nonetheless, gross sales income stands at +3% vs. the identical interval final 12 months and, much more encouragingly, quantity can be returning to progress in 2024.
The classes driving this progress are gardening, residence care, meals gear and ironmongery (door locks), in addition to scorching water heating. These classes uncovered to longer alternative cycles, and greater initiatives — comparable to faucets, bathe parts, emulsion paints and LED lighting — are declining once more this 12 months. Nonetheless, sealants, DIY adhesives and energy instruments are experiencing slight progress as shoppers flip to smaller DIY initiatives and DIY repairs.
Key class developments inside Gardening and Residence Enchancment
Shopper demand for comfort stays a key buy driver throughout each the Gardening and the Residence Enchancment sectors.
- In Gardening, income from gross sales of cordless powered gardening instruments is up 23% to this point this 12 months (January to April 2024), in comparison with 12% for the powered gardening instruments class total. And gross sales worth of sensible app-controlled water timers is up 47%, in comparison with -2% for the water timer class total.
- In Residence Enchancment, ready-mixed equalizing plaster noticed income develop 10% in January to April in comparison with final 12 months, whereas different variants solely grew 7%. Voice-controlled LED lighting, in the meantime, held regular at 0% income progress, in comparison with the -5% drop seen by non-voice-controlled LED lighting.
The comfort of on-line purchasing is revolutionizing particular segments inside the Gardening and Residence Enchancment market. Between January and April, on-line gross sales throughout the sector grew 16% in comparison with final 12 months, primarily pushed by instruments, machines and workwear.
Environmentally pleasant selections are additionally a noticeable pattern. Watering/cleansing merchandise and chemical substances skilled a rise in gross sales of high-priced merchandise in January to April this 12 months, due to shoppers’ willingness to pay extra for eco-friendly merchandise in these key areas.
Model repute is proving key in classes comparable to DIY adhesive tapes and paints, the place shoppers need to get the job or mission executed proper the primary time. For the beginning of this 12 months, commerce manufacturers have misplaced out to increased finish manufacturers in these classes.
Total, the merchandise outperforming throughout Gardening and Residence Enchancment are eco-friendly, handy, straightforward to make use of and automate duties to save lots of the consumer time.
Instant and long-term outlook
The 12 months forward guarantees to see persevering with alternatives for the Gardening and Residence Enchancment trade. Shopper demand is growing in key areas, with a concentrate on smaller residence enchancment initiatives and an ongoing choice for merchandise that present comfort, time financial savings, ease of use and flexibility.
Within the long-term, demand will stay robust, with the main focus more and more shifting to sustainable properties, buildings, gardens, and supplies. That is fueled by shoppers’ personal core values in addition to EU laws for zero-emission new buildings from 2028, plus new initiatives linked to the EU Inexperienced Deal. This mixture of non-public drivers and authorities laws will closely affect the way in which shoppers buy and devour merchandise, creating alternatives for DIY retailers and types to develop their choices and portfolios.
