The home and garden industry reached USD1.3 trillion in 2025, declining 0.4% as macroeconomic headwinds, subdued home transactions and weak consumer confidence weighed on demand. A flat -0.03% CAGR is forecast to 2030, with growth shifting from mature markets to India, Turkey, Malaysia, the UAE and Brazil. Consumer preferences are changing and while growth is minimal at the top level, select subcategories are expected to see growth albeit at a slower pace.
Delivery
This report comes in PPT.
Key findings
Macroeconomic headwinds continue to weigh on demand
The global home and garden market reached almost USD1.3 trillion in 2025, recording a year-on-year decline of 0.4%. Key demand constraints persist: subdued home transactions, elevated interest rates for mortgages and big-ticket financing, and weakened consumer confidence. With a forecast CAGR of just -0.03% through 2030, the industry faces structural stagnation driven by overlapping economic pressures.
Asia Pacific emerges as the growth frontier in home and garden
India leads global growth, followed by Malaysia driven by rising urbanisation and expanding middle-class demand for gardening and home improvement. Turkey and the UAE further reinforce the shift towards emerging markets from mature markets in Western Europe and North America. Within Asia Pacific, middle class expansion and the desire for renovation create opportunities for DIY category growth.
Gardening and decorative categories lead 2025 growth pockets
In an otherwise flat market, there are pockets of growth in categories that help create an oasis at home. Lawn care, indoor plants and home paint emphasise the shift towards personalisation of indoor and outdoor space continuing the home wellness trend.
Demographic shifts reshape the long-term demand outlook
The birth rate decline, which accelerated in 2020, is now reshaping demographics within the five-year forecast horizon. In North America and Europe, where birth rates are below replenishment rates, child-orientated furniture and décor faces structural demand decline. With an overall expectation of -0.03% CAGR through 2030 in constant terms, brands must pivot towards servicing varied adult population needs and ageing populations.
Our expert’s view of Home and Garden in 2026
Home and Garden snapshot
Key findings
Key facts to share
Top five trends in Home and Garden
Top five trends uncovered
Home oasis on a budget: Small upgrades drive growth as consumers spend less upfront
Combining calm, value and designer name in Target x Jeremiah Brent collaboration
IKEA PS 2026 blends playfulness, design, functionality with value
Consumers seeking immediate effects on a budget are reshaping assortments
Broader ecosystems become the clearest answer to constant market disruption
IKEA deepened vertical integration to build global resilience amid disruptions
Diversification becomes a competitive shield in a volatile operating environment
Cautious consumers and constant disruption are reshaping home and garden demand
Small-space living drives demand for multifunctional and flexible home solutions
Origami-inspired bathroom solution for small homes but multiple needs
Modular furniture for small-space living driving market growth and competition
Small-space living: Durable growth opportunities for the home and garden industry
AI-driven guidance redefining the home and garden shopping experience
AI-powered solutions that fit mood, style or occasion for enhanced personalisation
Lowe's harnessing AI to guide customer projects, consult and visualise
AI adoption is critical to compete in an increasingly digitally-driven industry
Second-hand retail is becoming organised and a growing competitor to brands
Sabai - bringing sustainability with buy-back and repair initiatives
Vinted moving beyond fashion with “New Eras Again” campaign
Pre-owned market: Growing competition and growth frontiers
Future implications
Opportunities for growth
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.
See all of our definitionsNEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!