Top Five Trends in Home and Garden

Delivery

This report comes in PPT.

Key findings

Opportunities are about gardening, segmentation, or exposure

Growth momentum lies within indoor gardening and decorating, especially in emerging markets. E-commerce leads channel growth, but competition is intense. In mature markets, brands seek under-served sub-segments with a “pockets of growth” mission. With B2C demand softening, DIY retailers pivot to B2B/DIFM, attracting tradespeople and creating pro shopping journeys in stores.

Go-to-market needs expanding control, resilience and affordability

Persistent uncertainty since 2020 has driven up value chain costs and strained supplier-retailer dynamics. Control is replacing trust, with vertical integration rising. Brands pursue DTC; retailers expand premium private label. Tariffs and reshoring accelerate diversification, India+2 rises as China+1 falls. Business models reliant on single partners or geographies face greater scrutiny.

Small spaces and elevated experiences drive differentiation

Urbanisation accelerates again, but dissatisfaction with city living is rising - driven by affordability  space constraints and emotional wellbeing. Innovation focuses on flexible, space-saving designs. Proposition strategies now emphasise lifestyle storytelling. Man Wah Holdings thrived by aligning product, timing and messaging; differentiation accelerates in both saturated and growth markets.

Technology investments focus on marketplaces and AI upgrades

E-commerce growth continues globally, led by marketplaces; of note is Shein’s expansion into home categories, with retailers such as Leroy Merlin and Tesco scaling SKUs and seller networks. Marketplace-driven models rise rapidly, reshaping global retail and enabling Asian brands to scale rapidly. Competition intensifies, driving investment in trust programmes, merchandising and AI tools.

Second-hand grows, while good sustainability programmes expand

Second-hand is expanding across categories and regions, driven by cost, conscience and supply pressures. Furniture, homewares and tools have reuse and rental models, with retailers such as IKEA, Kingfisher and Leroy Merlin testing and in cases scaling resale initiatives. Cannibalising stigma fades; second-hand grows no matter what, offering margin, loyalty and sustainability benefits.