US demand for packaged lawn and garden consumables is projected to increase 3.3 percent annually to $8.8 billion in 2016. Advances will be boosted by the ongoing recovery in residential construction activity, following a decline of historic proportions. Moreover, although the popularity of gardening is not expected to reach the levels seen in the middle years of the last decade, the participation rate for lawn and garden activities is projected to increase following a downturn precipitated by the 2007-2009 recession and the subsequent slow recovery. These and other trends, including market share and product segmentation, are presented in Lawn & Garden Consumables, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Pesticides and fertilizer will remain the largest types of lawn and garden consumables products. Volume increases for fertilizer will be driven by the recovery of the housing market, which will create demand for fertilizer used in conjunction with new lawn installations, as well as in rehabilitating lawns in properties that have long been vacant. Price growth for fertilizer is expected to moderate following the noteworthy increases in recent years. Gains will be slower for pesticides, in part because the leading products in the lawn and garden market are off-patent, which limits price gains; and because many consumers will seek to reduce pesticide usage due to concerns about user safety and long term environmental impact. Such concerns will contribute to across-the-board faster growth for natural and organic lawn and garden products.
Consumer applications are expected to post faster gains than the professional segment through 2016. This is largely due to slower than average growth anticipated for the golf course market, the largest nonresidential outlet for lawn and garden consumables. The number of golf courses is expected to remain about the same as it is now. Moreover, in order to contain costs and reduce environmental impact, course superintendents are opting to reduce the amount of land on the course that is maintained at the most aggressive level. Typically, such initiatives reduce the amount of mowing, fertilizing, seeding, and watering of areas other than tee boxes, fairways, and greens.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.