Where Consumers Shop for Home and Garden

September 2021

While shifts in retail distribution of home and garden products were already on the agenda pre-COVID-19, 2020 saw a sharpening of the focus on diversity of shopping platforms and the need to adapt logistics and brand engagement to the surge in e-commerce, digital tools and services. As the retail channel landscape continues to evolve post-pandemic, new businesses, as well as established players, will need to continue to adapt to evolving consumer preferences along the shopping journey.

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Key Findings

Moderate growth of home and garden from 2013-2018

The home and garden industry at the global level demonstrated positive but moderate value growth over 2013-2018. Growth dipped in 2018 due to uncertainty over Brexit resulting in muted growth in Western Europe. Concomitantly, strong growth in Asia Pacific buoyed stable growth of home and garden.

Store-based retailing dominates across all categories and regions

Consumers prefer to shop for their home and garden needs at physical stores highlighting the continued dominance of store-based retailing in the industry. Experiential layouts in physical stores are important for consumers highlighting the dominance of store retailing and slow adoption of new retailing concepts.

Homewares and home furnishings drive home and garden growth

Homewares and home furnishings lead globally in value terms due to the large number of categories and the emergence of direct-to-consumer brands in mattresses and cookware. Growing sustainability awareness has also prompted growth in food storage for reusable bottles, thermal drinkware and glass containers.

Internet retailing is projected to grow strongly

Internet retailing is expected to record the fastest growth over 2019-2024, overtaking all store-based channels in terms of growth and actual value sales. This growth comes from more direct-to-consumer players expected to emerge in the future and established companies expanding their online presence.

Consumers possess different motivations when shopping offline and online

Based on Euromonitor’s Lifestyles survey, the top motivation for online shopping was convenience and price savings. For offline shopping, it was due to consumers wanting to examine the product. These motivations are key for retailers to formulate the right offline and online strategies.

Introduction

Scope
Key findings

Industry Snapshot

2020 industry decline offset by gardening and homewares
Gardening gains traction, creating a platform for new players
Economic recovery in developing regions to drive long-term growth
Home furnishings and home improvement to recover post-pandemic

Store-Based Channels

Store-based retailing leads by far despite surge in e-commerce

Store-based channels

Older generation still shows a greater preference for in-store purchases
Homewares and furnishing specialists set back by lockdown restrictions
Connected fulfilment models to support consumer shopping journey
Diversity of digital solutions amongst retailers in China
Emerging technologies on the rise, but hurdles to adoption remain

Non-Store Channels

E-commerce sees double-digit growth in 2020
Latin America picks up pace amidst COVID-19-driven store closures
China and developed markets display greatest potential for e-commerce
Accelerating e-commerce investment across home and garden
Wayfair’s turnaround indicate lasting power of ecommerce
Home improvement as white space for emerging DTC players
Subscription models tap into convenience and service-based engagement
Bed-in-box concept is making inroads into Asian markets
US-based Casper’s move to physical stores signals an omnichannel shift
Click & Collect: challenges include out-of-stock products and store hours

Future Developments

Key takeaways
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