This blog is based on Packaged Facts’ Lawn and Garden Supplies in the U.S. 10th Edition. Purchase the report by Dec. 15 and receive 5% off with promo code PFLAWNSUP
Oct. 19 - Americans love their lawns and gardens and use Scotts Miracle-Gro products more than others to care for them. Scotts is the market leader by a wide margin, controlling an estimated 60% of total sales in the U.S. The company is the leader in all four categories of L&G supplies: fertilizers, growth media, grass seed and pesticides. The balance of overall sales comes primarily from a handful of marketers and the exclusive/private label brands sold by retailers Walmart (Expert Gardener), Home Depot (Vigoro), and Lowe’s (Sta-Green). These three retailers dominate distribution of L&G supplies. Evidence of their power is the fact that Scotts generated nearly 70% of its Global Consumer segment sales in fiscal 2014 from the three chains. These so-called “big box” stores along with other mass retailers like Costco account for three quarters of L&G supply sales with the balance mainly coming from hardware stores (True Value, Ace, Menards) and garden centers/nurseries. Challenged by the discount prices of mass retailers, hardware stores and garden centers/nurseries tend to focus on service, expertise, convenience of being local, and brands that are exclusive to the channel.
The economy and weather haven’t been very cooperative for marketers of L&G supplies. Lawn and Garden Supplies in the U.S. 10th Edition details how L&G supplies is a mature market with sales highly dependent on the economy, housing, household formation, regulations, weather, and seasonality. Continued economic challenges have made market recovery uneven and weather has also created fluctuations in sales year-to-year. Sales peaked at the height of the housing boom in 2005, and have been declining and trying to recover ever since. The market has stabilized somewhat with sales basically flat between 2010 and 2014. Packaged Facts estimates total retail sales at $5.7 billion in 2014. Growth media accounted for an estimated 35% of the total, pesticides 32%, fertilizers 24% and grass seed 9% of total sales.