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 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.
Customers’ reallocation of time and spending
As shoppers work and examine from residence greater than up to now, the house and backyard have develop 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 shifting up the precedence record. Globally practically one in 5 shoppers plan to spend extra on holidays overseas this yr, in line with NielsenIQ’s Shopper Outlook 2024 examine.
Spending money and time on the house continues to be vital 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 stated they frolicked each week on residence upkeep or enchancment. At the moment that determine has dropped to 33%, with individuals as a substitute shifting to month-to-month upkeep (up from 28% in 2021 to 31% at the moment).
Behavioral shifts are additionally occurring within the scale of residence enchancment initiatives. Throughout lockdowns, huge renovations had 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 shopper confidence. This, added to the distraction of accelerating out-of-home spending, has meant individuals’s focus has shifted to smaller, sooner 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 House Enchancment classes, whereas quantity remained in decline. Through 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, residence care, meals tools and ironmongery (door locks), in addition to scorching water heating. These classes uncovered to longer alternative cycles, and larger initiatives — 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 shoppers flip to smaller DIY initiatives and DIY repairs.
Key class developments inside Gardening and House Enchancment
Shopper 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% to date this yr (January to April 2024), in comparison with 12% for the powered gardening instruments class general. And gross sales worth of sensible 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 development. Watering/cleansing merchandise and chemical substances skilled a rise in gross sales of high-priced merchandise in January to April this yr, due to shoppers’ willingness to pay extra for eco-friendly merchandise in these key areas.
Model popularity is proving key in classes similar to DIY adhesive tapes and paints, the place shoppers wish to get the job or challenge carried out proper the primary time. For the beginning of this yr, commerce manufacturers have misplaced out to larger finish manufacturers in these classes.
General, the merchandise outperforming throughout Gardening and House Enchancment are eco-friendly, handy, straightforward to make use of and automate duties to avoid wasting the person time.
Speedy and long-term outlook
The yr forward guarantees to see persevering with alternatives for the Gardening and House Enchancment business. Shopper demand is rising in key areas, with a give attention to 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 sturdy, with the main target 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 mix of private drivers and authorities laws will closely influence the best way shoppers buy and eat merchandise, creating alternatives for DIY retailers and types to broaden their choices and portfolios.
