After contending with the pandemic, Western Europe emerged into a period of high inflation, with rates hitting levels not seen for decades in many of the region’s countries. This, in turn, set off a cost-of-living crisis for many consumers, dampening demand in the home and garden market in the final years of the review period. The difficult economic backdrop, combined with ongoing geopolitical uncertainty, are also clouding the outlook for the start of the forecast period.
This report comes in PPT.
Post-pandemic, most Western European markets have been experiencing an inflationary environment, which has been putting downward pressure on sales in the national home and garden markets. With most countries recording declining sales in real value terms in both 2022 and 2023, the overall regional performances have also been negative ones in these years.
After making strong gains during the pandemic, the e-commerce share stood at 17% in 2023. However, home products specialists (64%) still dominate sales, with consumers still keen to see, touch and experience products in physical stores prior to purchase, as well as tap into the expert knowledge of in-store staff. Nevertheless, an omnichannel approach is increasingly seen as the wisest course of action in home and garden retail distribution going forward.
As consumers and national regulations increasingly demand sustainable options, industry players are striving to meet these requirements. Be it by using sustainable materials like bamboo, reclaimed wood or recycled plastic in their products, offering innovative drip irrigation systems, energy-saving lighting systems or peat-free products.
With ongoing urbanisation, the demand for space-saving furniture and multifunctional homewares is likely to persist. Consumers in smaller living spaces will continue to seek furniture that serves multiple purposes, maximising functionality and optimising limited square footage. Innovative and space-saving solutions could involve modular furniture systems, foldable workspaces or integrated storage solutions within furniture pieces.
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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