The Gardening and House 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 house, customers’ priorities have shifted, and financial indicators are bettering. Coupled with some key traits which might be shaping the market, this supplies the panorama for progress over the approaching 12 months.
Customers’ reallocation of time and spending
As customers work and examine from house greater than previously, the house and backyard have grow to be a spot of retreat and id. Nonetheless, spend on out-of-home actions is on the rise and, as inflation begins to subside, holidays are transferring up the precedence record. Globally almost one in 5 customers plan to spend extra on holidays overseas this yr, in accordance with NielsenIQ’s Client Outlook 2024 examine.
Spending money and time on the house remains to be vital to individuals, however not on the frequency it was a couple of years in the past. In 2021, on the peak of the COVID-19 pandemic, 36% of individuals stated they hung out each week on house upkeep or enchancment. Immediately that determine has dropped to 33%, with individuals as an alternative transferring to month-to-month upkeep (up from 28% in 2021 to 31% as we speak).
Behavioral shifts are additionally occurring within the scale of house enchancment tasks. Throughout lockdowns, massive renovations have been widespread. 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 house tasks, 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 House 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 yr and, much more encouragingly, quantity can also be returning to progress in 2024.
The classes driving this progress are gardening, house care, meals tools and ironmongery (door locks), in addition to scorching water heating. These classes uncovered to longer substitute cycles, and larger tasks — similar to faucets, bathe parts, emulsion paints and LED lighting — are declining once more this yr. Nonetheless, sealants, DIY adhesives and energy instruments are experiencing slight progress as customers flip to smaller DIY tasks and DIY repairs.
Key class traits inside Gardening and House Enchancment
Client demand for comfort stays a key buy driver throughout each the Gardening and the House Enchancment sectors.
- In Gardening, income from gross sales of cordless powered gardening instruments is up 23% thus far this yr (January to April 2024), in comparison with 12% for the powered gardening instruments class general. And gross sales worth of good app-controlled water timers is up 47%, in comparison with -2% for the water timer class general.
- In House Enchancment, ready-mixed equalizing plaster noticed income develop 10% in January to April in comparison with final yr, 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 procuring is revolutionizing particular segments throughout the Gardening and House Enchancment market. Between January and April, on-line gross sales throughout the sector grew 16% in comparison with final yr, 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 yr, because of customers’ willingness to pay extra for eco-friendly merchandise in these key areas.
Model status is proving key in classes similar to DIY adhesive tapes and paints, the place customers need to get the job or undertaking achieved proper the primary time. For the beginning of this yr, commerce manufacturers have misplaced out to greater finish manufacturers in these classes.
Total, the merchandise outperforming throughout Gardening and House Enchancment are eco-friendly, handy, simple to make use of and automate duties to save lots of the person time.
Instant and long-term outlook
The yr forward guarantees to see persevering with alternatives for the Gardening and House Enchancment business. Client demand is growing in key areas, with a deal with smaller house enchancment tasks and an ongoing choice for merchandise that present comfort, time financial savings, ease of use and flexibility.
Within the long-term, demand will stay sturdy, with the main target more and more shifting to sustainable properties, buildings, gardens, and supplies. That is fueled by customers’ 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 mix of non-public drivers and authorities laws will closely affect the best way customers buy and devour merchandise, creating alternatives for DIY retailers and types to develop their choices and portfolios.
