Green Industry Insights: Gardening Market Trends and Perspectives
The gardening market in the US is experiencing significant growth, with Americans spending more on lawn and garden products each year. Independent garden centers and nurseries face challenges such as finding qualified labor, but they continue to see positive sales trends. Greenhouse owners also navigate concerns like labor issues and production costs. Notably, more young adults are getting involved in gardening, adding to the diversity of the market landscape.
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Gardening Market in Gargantuan Growth Cycle Every retail sector will be envious of the gardening market, as Americans spent an astonishing 29.5% more on lawn and garden products during 2017, or $47.8 billion, compared to $36.9 billion during 2016 (the latest data available). Considering the strength of the housing market during early 2018, this substantial increase may have continued. Housing sales have stalled during early 2019, but outdoor living-space projects will generate the most homeowner activity during Q1 2019. GardenResearch.com, in its 2018 National Gardening Survey, also reports the average spending per household for lawn and garden products was $503 during 2017, almost $100 more than 2016.
Independent Garden Center and Nursery Owners Perspective According to the 2018 Garden Center State of the Industry Report (independent garden centers, 90% family-owned and 82% a single location), 24% of those surveyed said the economy had the most positive impact on their 2018 selling season. Both independent garden centers and nurseries, as reported in Nursery Management s 2018 State of the Industry Report, said their biggest challenge is finding qualified labor, or 28% among independent garden centers and 51% among nurseries. Independent garden center owners said annuals recorded the largest increase in sales during spring 2018, at 21%; followed by trees/shrubs, 16%; houseplants/tropicals/ succulents, 15%; and perennials, 13%.
Where Green Becomes Green Independent garden center owners said their 2017 median sales volume was $1 million to $1.9 million and 58% said their 2018 spring sales increased over 2017 s, with the 5% 10% range having the largest percentage, or 21%. 66% of nursery owners told Nursery Management they anticipated their 2018 gross sales to increase compared to 2017. For 2019, they weren t quite as optimistic, as 60% said they anticipated the year s total sales to increase over 2018 s. For independent garden centers, the median range for the average sale during their strongest month was $56 $75 while the median range for the average sale during their weakest month was $26 $35.
The Greenhouse Sector More than 65% of greenhouse owners who responded to Greenhouse Grower s 2018 State of the Industry survey were either a greenhouse grower, 38.82%, or a grower-retailer, 28.39%, and the largest percentage, or 30.69%, were located in the Midwest. Most of their greenhouse businesses are small, with 52.9% operating in less than 100K square feet and 52.12% having 1 19 open acres, the smallest range, while another 23.94% said they had no open acres. As with garden center and nursery owners, labor was greenhouse owners #1 concern, at 61.48%; followed by production costs, 52.58%; government regulation, 43.95%; and weather/changing weather patterns, 41.48%.
More Young Adults Enjoy Gardening According to GardenResearch.com s 2018 National Gardening Survey, the largest percentage of gardeners continued to be older; however, gardeners 18 34 have increased substantially, now representing 29% of all gardeners. The survey also found 30% of all households bought at least one houseplant while other consumers are propelling the Do-It-For-Me (DIFM) gardening trend, as they want a garden, but their busy lifestyles don t provide them with enough time for maintenance. More Americans, especially those 13 34 years of age, are using gardening as a way to balance physical and mental wellbeing, especially as a calming influence.
Cannabis Is the Growth Product of the Future Although just 2.9% of greenhouse owners responding to Greenhouse Grower s 2018 State of the Industry survey said they plan to pursue growing cannabis during 2018, it is a market segment increasing rapidly, especially as more states legalize its sale. According to an April May 2018 survey from Cannabis Business Times, 32% of cannabis cultivators said their revenues and 25% said their profits increased for their most recent fiscal year, and 66% expected an increase in revenues for their current fiscal year. Survey participants cited competition/declining prices as their #1 business challenge, at 58%, with compliance with local and/or state regulations second, at 42%, and finance management third, at 29%.
Advertising Strategies Spring is lawn & garden centers and nurseries biggest season, so suggest a It s Green-Thumb Season promotion, with special prices and a proactive calendar of DIY and other kinds of seminars from late March into June. Suggest lawn & garden centers and nurseries co- promote with local residential realtors a contest in which realtors submit the names of recent homebuyers for a drawing of plants and onsite consulting to help beautify the winner s new home. Since the majority of gardening enthusiasts are older (and primary TV viewers), suggest a Add Color to Your Empty Nest promotions, with specials and DIY seminars focused on helping empty nesters enhance their homes to sell it or for long-term living.
New Media Strategies Be the catalyst for a lawn & garden center or nursery to provide a series of short DIY videos and/or new-product intros to appear as ads on your station s Website and/or social media pages. Offer your station s video production crew to shoot the videos at a nominal price. With more younger adults enjoying gardening, suggest lawn & garden centers and nurseries invite customers and anyone in this age group to submit short videos to post on social media, telling the stories of how they became gardeners, what they enjoy, etc. The Do-It-For-Me (DIFM) gardening trend is an excellent opportunity for a lawn & garden center or nursery to specialize in this service and use social media to show, in short videos, how they consult and advise on creating a garden, and then provide maintenance.
