Lawn and Garden Equipment in the U.S., 11th Edition

May 18, 2015
156 Pages - Pub ID: LA5474488
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Lawn and Garden Equipment in the U.S., 11th Edition

The economy and weather continued to suppress sales of lawn and garden (L&G) equipment over the last five years despite the fact that Americans love to care for their lawns and gardens. Packaged Facts estimates total retail sales of the L&G equipment market, consisting of outdoor power equipment (OPE), tools and implements (T/I), and watering/spraying equipment (W/S), at $10.2 billion in 2014. OPE accounted for 68% or $7 billion of total sales. T/I accounted for 16% or $1.7 billion and W/S equipment for over 15% or about $1.6 billion in sales.

Sales of L&G equipment peaked at the height of the housing boom in 2005, and have been declining and trying to recover since then. The market stabilized somewhat with sales declining by a CAGR of 0.2% between 2010 and 2014. This is an improvement over 2008 to 2012, when sales declined by a CAGR of more than 1%. Lawn and Garden Equipment in the U.S., 11th Edition details how L&G equipment is a mature market with sales highly dependent on the economy, housing, household formation, weather, and seasonality. Continued economic challenges have made market recovery uneven and weather has also created fluctuations in sales year-to-year.

Forecasting future market sales is near impossible given so many variables. However Packaged Facts projects retail sales will increase by a CAGR of 3% to reach $11.8 billion in 2019. Many assumptions are built into the forecast including improvement in the economy, a sustained housing recovery, and an increase in household formations. Weather will have a significant impact on the forecast and is impossible to predict. Continued drought conditions and severe water restrictions in some parts of the U.S. will likely have a negative impact on several segments across all categories. Growth will be driven by increasing popularity of riding/tractor lawn mowers and zero-turn models in particular. Electric products, particularly lithium ion battery-powered products, will also contribute to growth. The segment is expected to continue growing as battery technology is improving rapidly to deliver power and performance equal to gas-powered products. Lawn and Garden Equipment in the U.S., 11th Edition discusses new technologies and marketers that are challenging leading players in this arena.

Both marketers and retailers are challenged to grow in a mature and highly competitive L&G equipment market. Marketers fight to primarily take share from each other and a relatively small number of players account for the majority of sales. Few marketers compete across all categories, and leaders differ by category. Husqvarna and MTD Products remain the largest marketers of OPE, with each deriving sales from a number of brands that target every price segment. TTI, through its Homelite and Ryobi brands, and Black & Decker are leaders in electric OPE (corded and battery.) Ames, through multiple brand offerings, is the leader by a wide margin in T/I, and is a major player in some W/S products. The W/S category is relatively concentrated with a few major competitors leading individual product segments. Although a retailer and not a manufacturer, Sears is a major marketer of L&G equipment through its private label Craftsman brand. Private label store brands are significant factors in the market with Home Depot and Lowe’s marketing extensive product lines through multiple brands.

Home Depot and Lowe’s, plus Walmart and Sears/Kmart (both owned by Sears Holdings) dominate sales of L&G equipment in the U.S. They along with other mass retailers control 75% of total market sales and at least 80% of OPE sales. Consumers also shop the Internet aggressively, mainly for information and pricing on OPE. It’s estimated that more than a third of OPE consumers shop online, seeking price comparisons and information on product features. Lawn and Garden Equipment in the U.S. 11th Edition outlines the importance of omni-channel retailing which integrates computers and mobile devices with bricks-and-mortar stores, direct mail, and catalogs to provide consumers with a convenient, seamless shopping experience allowing them to buy wherever, however, and whenever they want.

A companion report, Lawn and Garden Supplies in the U.S., 10th Edition, is available for purchase at www.packagedfacts.com. 

Scope of Report

This report presents a detailed analysis of the U.S. consumer market for do-it-yourself (DIY) lawn and garden (L&G) equipment. It outlines key issues and trends affecting the overall market and analyzes all product categories including outdoor power equipment (OPE), tools and implements (T/I), and watering/spraying equipment (W/S). The report also discusses major players and brands and analyzes their key activities and performance. Market size data are provided for 2010–2014 and projections for 2014–2019. All retail channels that sell consumer L&G equipment are covered and considered in arriving at overall market size estimates, market trends and competitive analysis.

Methodology

The information in this report was obtained from both primary and secondary research. Primary research included proprietary Packaged Facts online consumer surveys as well as consultation with industry sources and on-site examinations of the retail sector. Secondary research entailed gathering data from relevant trade, business and government sources, as well as company promotional literature and annual reports.

Our estimates of market size and company performance are based on various sources including reported revenues of product manufacturers and retailers, publications and other market research sources. Our analysis of consumer trends relies on data from various sources including national online consumer usage surveys conducted in June 2013 and April 2015 by Packaged Facts, and Simmons National Consumer Surveys for Fall 2004 through Fall 2014, from Experian Marketing Services. The Packaged Facts national online consumer surveys reflect a panel of 2,000 U.S. adults (age 18+) that is balanced to the national population on the primary demographic measures of gender, age bracket, race/ethnicity, geographic region, marital status, presence or absence of children in the household, and household income. On an ongoing basis, Experian Marketing Services conducts booklet-based surveys of a large and random sample of consumers (approximately 25,000 for each 12-month survey compilation) who in aggregate represent a statistically accurate cross-section of the U.S. population.

Chapter 1: Executive Summary
Introduction
Scope of Report
Methodology
Product Category Definitions
Outdoor Power Equipment Category
Table 1-1 Outdoor Power Equipment Product Segments
Tools and Implements Category
Table 1-2 Tools and Implements Product Segments
Watering/Spraying Equipment Category
Table 1-3 Watering and Spraying Equipment Product Segments
Areas Outside Scope
Market Size and Growth
L&G Equipment Sales at $10.2 Billion in 2014
Figure 1-1 Retail Dollar Sales of Lawn & Garden Equipment, 2010–2014 (in millions)
Factors Affecting Market Growth
Category Sales
Figure 1-2 Retail Dollar Shares of Lawn & Garden Equipment by Product Category, 2014 (percent)
Product Segment Sales
Majority of OPE Sales from Lawn Care Products
A Third of T/I Category Sales Comes from Long-Handled Tools
Hoses and Reels Account for 40% of W/S Equipment Category
Mass Retailers Account for Three Quarters of L&G Equipment Sales
Market Forecast
Figure 1-3 Projected Retail Dollar Sales for Lawn & Garden Equipment, 2014–2019(in millions)
The Marketers
Market is Relatively Concentrated
Figure 1-4 Leading Marketers of L&G Equipment by Manufacturers’ Dollar Share, 2014(percent)
Category Leaders
Private Label a Significant Factor in Market
New Product, Retailing, and Marketing Trends
Product Trends
Illustration 1-1: Ego 56 Volt Lithium-ion OPE
Illustration 1-2: Droplet Smart Sprinkler System
Retail Trends
Illustration 1-3: Home Depot Interconnected Retail Initiative
Marketing Trends
The Consumer
Percentage of Households Owning L&G Equipment Declines
Figure 1-5 Share of Households That Own Lawn & Garden Equipment, 2004-2014(percent)
Size of Land Influences Level of L&G Equipment Ownership
Table 1-4 Share of Households That Own Lawn & Garden Equipment: By Size of Land Around Home, 2014 (percent)
Lawn Mowers and Trimmers Most-Owned L&G Power Equipment
Homeowners Need Shovels and Rakes Most
L&G Equipment Purchases Driven by Replacement of Existing Products
Craftsman and Black & Decker Most Owned by Consumers
Black & Decker Purchased by Consumers at Highest Rate
Highest Purchasing Rates Are for Hose Products
Table 1-5 Share of Gardeners Who Bought Watering or Spraying Lawn & Garden Equipment in Last 12 Months, 2013 vs. 2015 (percent)
Chapter 2: The Market
Introduction
Scope of Report
Methodology
Product Category Definitions
Outdoor Power Equipment Category
Table 2-1 Outdoor Power Equipment Product Segments
Tools and Implements Category
Table 2-2 Tools/Implements Product Segments
Watering/Spraying Equipment Category
Table 2-3 Watering/Spraying Equipment Product Segments
Areas Outside Scope
Market Size and Growth
L&G Equipment Sales at $10.2 Billion in 2014
Figure 2-1 Retail Dollar Sales of Lawn & Garden Equipment, 2010–2014 (in millions)
Uneven Performance Since 2010
Table 2-4 Retail Dollar Sales of Lawn & Garden Equipment, 2010–2014 (in millions)
Factors Affecting Market Growth
Housing and Households
Sluggish Growth of Household Formations
Figure 2-2 Number of U.S. Households, 2004-2014 (households, millions)
Home Ownership on Downward Spiral
Figure 2-3 U.S. Home Ownership, 2004-2014 (percent)
Housing Recovering Unevenly, Still Well Below 2005 Peak
Figure 2-4 Annual Existing Home Sales and Housing Starts, 2002-2015
Table 2-5 Annual Existing Home Sales and Housing Starts, 2002-2015
New Home Sales Well Off Peak; Median Prices Recover to New Highs
Table 2-6 Annual New Single-Family Home Sales and Median Annual Sales Price, 2000-2015
Economy and Spending
Unemployment Rate Declines from 2009 High
Figure 2-5 U.S. Unemployment Rate, 2004-2015 (percent)
Median Incomes Down from 2007 High
Figure 2-6 Real Median Household Income, 2003-2013 (dollars)
Lagging Economy Impacts Consumer Spending
Figure 2-7 Change in Real GDP and Personal Consumption Expenditures, 2007–2014(percent change)
Non-Home Borrowing Recovers, Driven by Auto and Student Loans
Figure 2-8 U.S Consumer Credit Outstanding, 2004-2014 ($, billions)
Home Borrowing Continues to Decline
Figure 2-9 U.S. Mortgage Debt Outstanding on One to Four Family Homes, 2004-2014($, billions)
Consumers Increase Savings Rates, Reduce Spending
Table 2-7 Personal Income and Its Disposition, 2007-2014 ($ billions)
Americans Spend Most on Housing and Homes
Table 2-8 U.S. Personal Consumption Expenditures by Type of Product, 2006-2013(billions)
Low Prices Help Drive Consumer Spending For L&G Equipment
Figure 2-10 Total CPI and CPI for Gardening and Lawncare Services, and Outdoor Equipment and Supplies, 2005-2014
Sales Decline through Building Materials, Garden Equipment, and Supply Dealers
Figure 2-11 Monthly Sales of Building Materials, Garden Equipment, & Supply Dealers, 2006–2015 ($ millions)
Weather Has Significant Effect on L&G Equipment Sales
L&G Equipment Sales Highly Seasonal
Regionality Based on Geography and Living Conditions
Category Sales
Figure 2-12 Retail Dollar Shares of Lawn & Garden Equipment by Product Category,2014 (percent)
Table 2-9 Retail Dollar Sales of Lawn & Equipment by Category, 2010–2014(in millions)
Product Segment Sales
Majority of OPE Sales from Lawn Care Products
Figure 2-13 Retail Dollar Shares of Outdoor Power Equipment by Product Segment,2014 (percent)
Table 2-10 Retail Dollar Sales of Outdoor Power Equipment by Product Segment,2012-2014 (millions)
A Third of T/I Category Sales Comes from Long-Handled Tools
Figure 2-14 Retail Dollar Shares of Tools and Implements by Product Segment, 2014 (percent)
Table 2-11 Retail Dollar Sales of Tools and Implements by Product Segment, 2012-2014 (millions)
Hoses and Reels Account for 40% of W/S Equipment Category
Figure 2-15 Retail Dollar Shares of Watering/Spraying Equipment by Product Segment, 2014 (percent)
Table 2-12 Retail Dollar Sales of Watering/Spraying Equipment by Product Segment, 2014 (millions)
Mass Retailers Account for Three Quarters of L&G Equipment Sales
Figure 2-16 Dollar Shares of Lawn & Garden Equipment Sales by Retail Channel, 2014(percent)
Home Centers
Discount Stores
L&G Specialty Stores
Hardware Stores
Other
Market Forecast
Figure 2-17 Projected Retail Dollar Sales for Lawn & Garden Equipment, 2014–2019(in millions)
Chapter 3: The Marketers
Overview
Table 3-1 Selected Marketers of L&G Equipment by Product Category, 2015
Private Label a Significant Factor in Market
Table 3-2 Selected Private-Label Lawn & Garden Equipment Brands, 2015
Licensing Extends Brand Reach
Lawn and Garden Equipment Market
Figure 3-1 Leading Marketers of L&G Equipment by Manufacturers’ Dollar Share, 2014 (percent)
Outdoor Power Equipment Category
Table 3-3 Leading Marketers of Lawn & Garden Outdoor Power Equipment, 2015
Tools and Implements Category
Table 3-4 Leading Marketers of Lawn & Garden Tools & Implements, 2015
Watering/Spraying Equipment Category
Table 3-5 Leading Marketers of Lawn & Garden Watering/Spraying Equipment, 2015
Mergers, Acquisitions, Divestitures
Competitive Profiles
Husqvarna Group
Table 3-6 Husqvarna Lawn & Garden Equipment Products
MTD Products
Table 3-7 MTD Products L&G Equipment Products
John Deere
Table 3-8 John Deere Lawn & Garden Equipment Products
TTI (Techtronic Industries)
Table 3-9 TTI Lawn & Garden Equipment Products
Toro
Table 3-10 Toro Sales, Fiscal Years 2008–2014 (in millions)
Table 3-11 Toro Lawn & Garden Equipment Products
Briggs & Stratton
Table 3-13 Briggs & Stratton Lawn & Garden Equipment Products
Ariens
Table 3-14 Ariens Lawn & Garden Equipment Products
Stihl Inc.
Table 3-15 Stihl Lawn & Garden Equipment Products
Honda Power Equipment
Table 3-16 Honda Lawn & Garden Equipment Products
Stanley Black & Decker
Table 3-17 Black & Decker Lawn & Garden Equipment Products
Echo Inc.
Table 3-18 Echo Inc. Lawn & Garden Equipment Products
The Ames Companies (formerly AmesTrue Temper)
Table 3-19 Ames True Temper Sales, Fiscal Years 2008–2014 (in millions)
Table 3-20 Ames True Temper Lawn & Garden Equipment Products
Fiskars
Table 3-21 Fiskars Lawn & Garden Equipment Products
Corona Clipper
Table 3-22 Corona Clipper Lawn & Garden Equipment Products
Swan
Table 3-23 Swan Lawn & Garden Equipment Products
Apex Hose
Table 3-24 Apex Lawn & Garden Equipment Products
Suncast Corp.
Table 3-25 Suncast Lawn & Garden Equipment Products
Rain Bird
Table 3-26 Rain Bird Lawn & Garden Equipment Products
Orbit Irrigation Products
Table 3-27 Orbit Irrigation Lawn & Garden Equipment Products
Craftsman (Sears Holdings Corporation)
Table 3-28 Sears Craftsman Lawn & Garden Equipment Products
Chapter 4: New Product, Retailing, and Marketing Trends
Product Trends
Outdoor Power Equipment (OPE) Category
Zero Turn Mowers Continue to Grow
Illustration 4-1: Troy-Bilt Mustang Pivot
The Coolness Factor
Illustration 4-2: McCulloch Redesigns to Connote Power and Coolness
Cub Cadet Gets Even Stronger
Illustration 4-3: Cub Cadet XT Enduro Series Lawn Tractors
Innovation Drives Snow Blowers
Illustration 4-4: Snapper Single-Stage Snow Thrower SnowShredder
Illustration 4-5: Cub Cadet 3X 3-Stage Snow Thrower
Cutting the Cord Continues to Grow
Illustration 4-6: Black & Decker 40 Volt Max Lithium-ion Batteries
Illustration 4-7: Ego 56 Volt Lithium-ion OPE
Illustration 4-8: Greenworks Pro 80 volt Lithium Ion Batteries
Cub Cadet’s Fully-Electric Zero-Turn Riding Mower
Illustration 4-9: Cub Cadet’s Fully-Electric Zero-Turn Riding Mower
CORE Outdoor Power Uses Gasless Motor Technology
Illustration 4-10: CORE Outdoor Power Products
IRobot Developing a Robotic Lawn Mower
Illustration 4-11: Robotic Lawn Mowers
Combination/Multi-Task Units Expand into Wheeled Equipment
Illustration 4-12: Black & Decker 3-N-1 Compact Mower
Illustration 4-13: Troy-Bilt Flex
Toro Recycler Mower with SmartStow
Illustration 4-14: Toro Recycler Mower with SmartStow
Toro Custom Z-Builder
Illustration 4-15: Toro Custom Z-Builder
Tools and Implements (T/I) Category
Ergonomic Becomes Common Feature
Illustration 4-16: New Ergonomic Garden Hand Tools
Designed for Specialty Use
Illustration 4-17: Corona Hydroponic Micro Snips
An Improved Snow Brush
Illustration 4-18: True Temper Scratch-Free Snow Brush
Easier to Use and More Functional Wheelbarrows
Illustration 4-19: Worx Aerocart
Scotts Innovates in a Stagnant Segment
Illustration 4-20: Scotts Snap Cartridge Spreader System
Watering/Spraying (W/S) Equipment Category
Water Conservation Key Trend
Managing Water Use
Illustration 4-21: Droplet Smart Sprinkler System
Illustration 4-22: Miracle-Gro SoakerSystem
Renewed Attention in Rain Barrels
Illustration 4-23: Rain Barrels at Home Depot
Making DIY Irrigation Easier
Illustration 4-24: Rain Bird In-Ground Automatic Sprinkler System
Eliminating Kinking in Hoses
Illustration 4-25: Scotts MaxFLEX Hose
Hose Storage Becomes Even More Stylish
Illustration 4-26: Ames NeverLeak Deco Metal Hose Cabinet
Hose Reel Rotates 360 Degrees
Illustration 4-27: Liberty Garden Products Navigator Hose Reel
Expandable Garden Hoses Move into Stores
Illustration 4-28 : Expandable Garden Hoses
Feed Plants While Watering
Illustration 4-29: Miracle-Gro LiquaFeed and Universal Feeder
Retailing Trends
Internet Grows in Importance, Particularly for OPE
Illustration 4-30: Internet Retailers of L&G Equipment
Houzz Major Internet Community for Home Design
Illustration 4-31: Houzz
Omni Channel Retailing Has become Essential
Illustration 4-32: Home Depot Interconnected Retail Initiative
Home Depot Garden Club
Illustration 4-33: Home Depot Garden Club
Supporting Independent Dealers
Illustration 4-34: Stihl Promotes Independently Owned Businesses
Marketing Trends
Fiskars Discover the Difference Tour
Illustration 4-35: Fiskars Discover the Difference Tour
Troy-Bilt Test Events at Lowe’s
Illustration 4-36: Troy-Bilt Test Events at Lowe’s
Manufacturers Sponsor Events to Build Brand Awareness
Illustration 4-37: Echo Sponsorships
Illustration 4-38: Stihl Timbersports Series
Doing Good Is Good For Business
Illustration 4-39: Community Programs
Licensing Extends Brand Reach
Illustration 4-40: Scotts Licensed Sync System
Companies Rebrand to Increase Relevance
Illustration 4-41: Ames Rebranding
Illustration 4-42: Black & Decker Rebranding
Made in USA Making a Comeback
Illustration 4-43: Promoting Made in America
Better Warranty is Marketing Tool
Illustration 4-44: Consumer Warranties for OPE
Look Before You Pump
Illustration 4-45 : OPEI Campaign
Chapter 5: The Consumer
Sources
Thirty Percent of Americans Garden
Figure 5-1 Percent of Adults Who Gardened in Last 12 Months, 2004-2014
Demographics of Gardeners
Table 5-1 Demographic Indexes for Participating in Gardening in Last 12 Months, 2014 (adults)
Percentage of Households Owning L&G Equipment Declines
Figure 5-2 Percent of Households That Own Lawn & Garden Equipment, 2004-2014
Size of Land Influences Level of L&G Equipment Ownership
Table 5-2 Percent of Households That Own Lawn & Garden Equipment: By Size of Land Around Home, 2014
Lawn Mowers and Trimmers Are Most-Owned L&G Power Equipment
Table 5-3 Percent of Households That Own Selected Types of Power Lawn & Garden Equipment, 2004-2014
Homeowners Need Shovels and Rakes Most
Table 5-4 Percent of Households That Own Selected Types of Lawn & Garden Tools/Implements, 2004-2013
L&G Equipment Purchases Driven by Replacement of Existing Products
Trimmers and Mowers Purchased at Highest Rates of OPE
Table 5-5 Number of Households That Bought Selected Types of Power Lawn & Garden Equipment in Last 12 Months, 2004-2014 (in thousands)
Rakes and Shovels Purchased at Much Higher Rates than Other T/I
Table 5-6 Number of Households That Bought Selected Types of Lawn & Garden Tools/Implements in Last 12 Months, 2004-2013 (in thousands)
Demographic Differences Between Owners and Buyers
Age
Income
Region
Race
Kind of Residence
Table 5-7 Demographic Indexes for Ownership or Purchasing of Selected Lawn and Garden Equipment Products, 2014
Craftsman and Black & Decker Most Owned by Consumers
Table 5-8 Selected Brands of Lawn & Garden Equipment Owned by Consumers, 2004-2014 (percent)
Black & Decker Purchased by Consumers at Highest Rate
Table 5-9 Number of Households Purchasing Selected Brands of Lawn & Garden Equipment in Last 12 Months, 2004-2014 (in thousands)
Demographic Differences by Brand
Craftsman
Black & Decker
John Deere
Toro
Lawn Boy
Stihl
Ariens
Homelite
Worx
Scotts
Table 5-10 Demographic Indexes for Ownership of Selected Lawn & Garden Equipment Brands, 2014 (index)
Demographic Differences by Selected MTD Products’ Brands
Gender
Age
Household Income
Region
Race
Number of People in Household
Table 5-11 Demographic Indexes for Ownership of Selected MTD Brands of Lawn & Garden Equipment, 2014 (index)
Demographic Differences by Selected Husqvarna Brands
Gender
Age
Household Income
Region
Race
Number of People in Household
Table 5-12 Demographic Indexes for Ownership of Selected Husqvarna Brands of Lawn & Garden Equipment, 2014 (index)
Consumers Purchase Garden Hose Products at Highest Rates
Table 5-13 Percent of Outdoor Gardeners Who Bought Watering or Spraying Lawn & Garden Equipment in Last 12 Months, 2013 vs. 2015
Most Spend Less Than $100 a Year on Watering or Spraying Products
Figure 5-3 Amount Spent on Watering or Spraying Lawn & Garden Equipment in Last 12 Months, 2015 (percent of product purchasers)

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