This study analyzes the US lawn and garden consumables industry. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by product (e.g., fertilizers, pesticides, growing media, seeds, mulch), formulation (conventional, organic), market (e.g., residential, golf courses), application (e.g., lawn and turf care, gardens and borders), end user (consumer/DIY, professional) and US region. The study also considers market environment factors, evaluates company market shares and profiles more than 30 US industry players such as Bayer, Central Garden & Pet, Scotts Miracle-Gro and Turf Care Supply.
US demand to rise 3.3% annually through 2016
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, fertilizers to remain largest segments
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, mulch to see good gains
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.
Western US to remain most significant regional market
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 report covers the market for lawn and garden consumables, which in general include packaged consumable products used in the maintenance of turf, gardens, borders, and other outside areas. Bulk items, household insecticides, equipment, and other “hard goods” such as trellises or brick are excluded from the scope of this study, as are any related service revenues. The report provides an analysis of the consumables market in the US by product (pesticides, fertilizer, seeds, growing media, mulch, and other), by market (residential, golf course, government and institutional, commercial and industrial, and other), by application (lawn and turf care, gardens and borders, and other), and by end user (consumer/do-it-yourself and professional).
Product data on the aggregate level is provided in pounds. Macroeconomic and demographic indicators used in this study were obtained from The Freedonia Group Consensus Forecasts dated April 2012. The term “demand” is used synonymously with “sales” and/or “apparent consumption” and denotes production plus imports less exports. Throughout the study, demand for lawn and garden consumables is related to various indicators for comparative purposes and to facilitate further analysis. Demand is presented at the manufacturers’ level. Tabular details may not add due to independent rounding, and ratios may be rounded for the sake of clarity.
Information and sources of data about lawn and garden consumables were obtained from a variety of primary and secondary sources, including government and trade associations, industry participants, online databases, and other studies published by The Freedonia Group. Other secondary data and information were obtained from various trade publications including Chemical & Engineering News, Chemical Week, CropLife, Hardware Retailing, Home Channel News, ICIS Chemical Business, Mother Earth News, Organic Gardening, Retailing Today, Seed World, and Waste & Recycling News. Information was also obtained from trade associations such as Beyond Pesticides, Golf Course Superintendents Association of America, National Gardening Association, and the Professional Landcare Network. Corporate annual reports, SEC Form 10-K filings and other company information were used extensively in framing the Industry Structure and Market Environment sections of the study and as input for application size assessments.