Demand for packaged lawn and garden consumables is projected to increase 3.3 percent annually to nearly $9 billion in 2016. Gains will be boosted by the ongoing economic recovery and a rebound in residential construction activity following a decline of historic proportions. Moreover, the participation rate for lawn and garden activities is projected to increase following a downturn precipitated by the 2007-2009 recession.
Pesticides and fertilizers will remain the largest product types in the lawn and garden consumables market. Volume increases for fertilizers will be driven by the recovery of the housing market, which will create demand for fertilizers used in conjunction with new lawn installations, as well as in rehabilitating lawns on properties that have been vacant for long periods of time. Product innovations such as specialized spreaders designed to fit precisely with fertilizer, seed and pesticide packaging will also boost advances, particularly among homeowners who are casual participants in lawn and garden activity.
The pesticide product mix will be influenced by concerns about user safety and long-term environmental impact. Such concerns will contribute to faster growth for natural and organic lawn and garden products, including pesticides.
Growing media, seeds, and mulch will see above average gains, based primarily on the overall recovery of the lawn and garden market, as well as the success of premium soil formulations. In addition, a trend toward larger garden and landscaping beds in order to reduce lawn sizes will provide opportunities for growing media. The rebound in new home construction will promote sales of grass seed for the installation of new lawns. However, a desire for smaller lawns, or at least less grass cover, will limit gains somewhat. A renewed interest in food gardening will also provide opportunities for seeds. Mulch will also benefit from renewed garden and landscaping activity, and is expected to post gains comparable to the overall average through 2016. The continued penetration of higher-value products such as colored and rubber mulch will be among the factors driving demand.
Growth in each geographic region is expected to be an improvement over the market's performance in the 2006-2011 period, during which both a recession and a collapse of the US housing market occurred. The Southern region is projected to register above-average gains, due to faster population growth created in part by in-migration from elsewhere in the US, a somewhat stronger economic performance, and a less developed professional market. The Western region will remain by far the most significant regional market for lawn and garden consumables, due to similar demographic advantages enjoyed by the South, as well as the large numbers of golf courses in California and other Western states.
This upcoming Freedonia industry study, Lawn & Garden Consumables, presents historical demand data (2001, 2006, 2011) and forecasts for 2016 and 2021 by product, formulation, market, application, end user and US region. The study also considers market environment factors, evaluates company market share and profiles more than 30 industry competitors.