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World Market for Home Improvement and Gardening

June 2022

2021 saw waves of new DIY and gardening novices join, creating the biggest reason for growth optimism in more than a decade. These younger and more ethically motivated shoppers are part of a larger shift in behaviour driving change to product and store strategies, as brands and retailers pivot towards retention and mentoring the skills of these creative and highly engaged consumers. Home services remain overloaded, driving new novices into the shops, and becoming more attractive for integration.

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Examining five trends shaping Home Improvement and Gardening

New segment of young novice DIYers embarked on home improvement shopping journeys both in-store and online across 2020/2021   

This group represents a growth in the total size of the prize for home improvement, resetting Millennial stereotypes over DIY/DIFM usage that are badly out of touch, while changing the demographics for the largest product target audience. This requires a rethink of product, sales, store, technology and communications strategies, and high degrees of effort are visible across multiple continents as retailers and brands begin to cater to this group and build their growth strategies contingent on retaining these shoppers in the DIY sector.

A similar raft of novice gardeners embarked on horticulture and equipment shopping journeys across 2020/2021, and they add a strong urban element           

One of Euromonitor International’s Top 10 global consumer trends for 2022 is Rural Urbanites, a group of consumers who cannot escape the city, but who want to bring a touch of healthy rural living into their smaller living spaces. Within wider strong global growth in gardening, the indoor plant trend stands out as the strongest growth driver in urban spaces, alongside growing media and pots and planters which marks the other major sales driver of grow-your-own for vegetables and fruit. These new gardeners are far more motivated by ethics.

DIFM services created a driver for more DIY product sales, and became more attractive for integration in-house to many stakeholder types in the sector

In countries where the home services skilled workforce could absorb this scale of demand, the gardening and home improvement boom manifested mainly for services and trade products. In countries where that skilled labour resource was more scarce, enormous waiting lists ensued, pushing clients into DIY and gardening retailer stores and websites in great numbers. This revenue growth makes services more attractive; the waiting lists make controlling installation services business critical for a stakeholder wanting to sell new kitchens/bathrooms.

Shoppers are no longer as willing to travel to “destination” shopping areas; meanwhile companies need to remove vulnerability to forced store closures

Phygital is fast replacing omnichannel as the buzzword for e-commerce. The role of the store is being fully questioned, which will impact where stores need to be, how big they need to be, what training is needed to staff them, and what technology will be suitable to meet their evolving mission as fulfilment, engagement and experience hubs, chasing after shopper footfall and attention. Meanwhile, e-commerce is getting overhauled with investments beyond the basics of emergency fulfilment, addressing experience shortfalls pre and post sale.

The pressures for sustainable/ethical policy making ramp up, with the bite of regulation visibly on the way; economic resistance remains, but for how long?

There are three pillars to sustainable policy making: 1) Decarbonisation is moving with climate neutral or positive targets, but few are meeting these goals; 2) Circularity is visible in packaging policy and early stages for product design, and the most promising re-use trend is only now getting started; and 3) Environmental, Social and Governance include causes that are rising around organic and natural messaging. Studying other sectors further into this journey (including Home Care, which is the closest in proximity) can reveal further steps to take.

Scope
Examining five trends shaping Home Improvement and Gardening
The focus is 2021; but we do need to share some timely thoughts on the 2022 inflation surge
China accounts for 21% of tracked global exports for home improvement and gardening
Perfect storm: Studying inflationary drivers, it is hard to find one right now that isn’t an issue
Home and garden slowed early in the pandemic but now grows more rapidly than pre-2020
The evolution of retail sales value and growth in home improvement and gardening
Home improvement’s growth focus was Asia Pacific; gardening growth was less concentrated
Home improvement is larger and grew more in 2021, but gardening is the longer-term driver
Asia Pacific is increasingly a future focal point with more discretionary spend going in-home
MEA is the only region unrepresented in the Top 10 growth countries in the forecast period
Home improvement and gardening became a stronger priority for spending due to COVID-19
Exposure to booming categories and minimising disruption defined channel growth rates
The biggest psychological shift for home and garden came from the extra time spent at home
Changes driving the industry across 2021-2022 fall inside five aspects of business strategy
Acquisitions focus on increasing exposure to rapid growth sectors in DIY and gardening
Leading company market share performance: “Others” gained from pandemic fragmentation
Stanley Black & Decker Inc’s sales performance in the context of the wider market1
Stanley Black & Decker Inc’s product strategy focused on optimising the cordless experience
Mohawk Industries Inc’s sales performance in the context of the wider market
Mohawk Industries Inc’s product strategy focused on WFH households and self-installation
The Sherwin-Williams Co’s sales performance in the context of the wider market1
The Sherwin-Williams Co’s product strategy focused on air and surface hygiene
Kohler Co’s sales performance in the context of the wider market1
Kohler Co’s product strategy focused on touchless hygiene and water reuse in the home
Evergreen Garden Care (UK) Ltd’s sales performance in the context of the wider market1
Evergreen Garden Care (UK) Ltd’s product strategy focused on new more sustainable options
Leadership stability: The top 10 enjoyed success…but some smaller players had more success
These are the top five drivers of demand , and the focus of strategic content coming in 2022
An emerging target audience for new products and messages is reinvigorating the DIY sector
Four product category groupings that segregate and illuminate home improvement trends
DIY novices are visible in the data when tool buying exceeds any realistic replacement cycles
Nurturing novice DIYers into projects requires emotional intelligence and curated inspiration
Our relationship with gardens is deeper, and healthy living spaces now mean more “nature”
Five product category groupings that segregate and illuminate gardening trends
Many novices stayed active through 2021; and beyond US, there are incremental “joiners”
What these younger and more ethically-orientated gardeners want to buy is quite defined
2021 contained potent lessons on the dynamic between DIFM services and DIY products
Integrating home services has an increasing strategic element to it after 2021’s lessons
Go-to-market strategy is getting an overhaul, with serious questions about the role of stores
One DIY novice anxiety AR helps with, is judging consumable volumes needed for painting
With the trend “From Sustainability to Purpose”, the ethics landscape keeps evolving rapidly
In comparison to other consumer goods or health products, this sector is at an early stage
There are many psychological reasons behind causes becoming more business critical
Global snapshot of Home Improvement
Global snapshot of Gardening
Regional snapshot: North America
Regional snapshot: Asia Pacific
Regional snapshot: Western Europe
Regional snapshot: Eastern Europe
Regional snapshot: Latin America
Regional snapshot: Middle East and Africa
Regional snapshot: Australasia

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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