Home and Garden in Western Europe

August 2023

Western Europe emerged from the pandemic into a period of rising inflation, with rates hitting levels not seen for decades in many of the region’s countries. This was negatively impacting the home and garden market in 2022, as was the fact that some purchases had been brought forward during the pandemic, and consumers were now looking to spend what d-isposable income they could on experiences rather than physical products after the lifting of the COVID-19 restrictions they had been living under.

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Key Findings

Home and garden sales declining in 2022

Although most Western European markets saw a spike in demand for home and garden products in one of the pandemic years, they also generally saw declining sales in the other. The inflationary environment as well as consumers channelling spending away from physical to experiential purchases as COVID-19 restrictions were lifted then resulted in falling sales in all but Germany in 2022.

Consumers looking for sustainable products

Industry players are increasingly using sustainable materials like bamboo, reclaimed wood or recycled plastic in their products. As well as in packaging and production processes, companies are also incorporating sustainability initiatives into other areas. For example, since late 2022, IKEA has been using the Seine River as its main delivery route into Paris. As well as taking commercial vehicles off the roads, it is also cutting CO2 emissions in IKEA’s logistics chain.

E-commerce growth slows in 2022

After the major gains made during the pandemic, growth in the e-commerce channel slowed dramatically in 2022. Consumers were keen to return to physical stores to see, touch and experience products prior to purchase, particularly big-ticket items in home furnishings. Home products specialists continue to dominate home and garden sales. Grocery retailers are popular for the one-step shopping they offer, particularly for smaller or less expensive products.

Positive growth expected for home and garden in 2022-2027

While elevated inflation rates will still be impacting some Western European home and garden markets at the start of the forecast period, positive annual growth rates are expected throughout 2022-2027 for the region as a whole. Sustainability and smart products will be among the key trends continuing to emerge in the coming years.

 

Scope
Key findings
Home furnishings is the dominant home and garden category in Western Europe
Western Europe has the third highest sales and per capita spend figures
Positive growth for home and garden over the forecast period after 2022’s dip in demand
Declining sales across the region in all but Germany in 2022
Growth for home furnishings in Germany and Spain, but declines elsewhere
Home furnishings see major sales losses over 2017-2022
Growing popularity of sustainable products in a number of Western European markets
Retail e-commerce continues gaining share in home and garden…
…but home products specialists remain the dominant retail distribution force
Home and garden is a relatively fragmented market in most Western European countries
IKEA remains the clear leader in Western European home and garden in 2022
Germany the biggest revenue generator for a majority of the top 10 players in the region
IKEA and Bosch maintain their top two positions in Western Europe
Positive growth expected in most Western European country markets over 2022-2027
High inflation likely to still be impacting some countries at the start of the forecast period
Sustainable products expected to continue gaining favour over the forecast period
France: Market Context
France: Competitive and Retail Landscape
Germany: Market Context
Germany: Competitive and Retail Landscape
Italy: Market Context
Italy: Competitive and Retail Landscape
Netherlands: Market Context
Netherlands: Competitive and Retail Landscape
Spain: Market Context
Spain: Competitive and Retail Landscape
Sweden: Market Context
Sweden: Competitive and Retail Landscape
Switzerland: Market Context
Switzerland: Competitive and Retail Landscape
Turkey: Market Context
Turkey: Competitive and Retail Landscape
UK: Market Context
UK: Competitive and Retail Landscape

Home and Garden

This project has a strict focus on sales to consumers only. Trade and professional sales are excluded. Home and garden refers to gardening, home improvement, homewares and home furnishings.

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