Lawn and Garden Supplies in the U.S., 10th Edition

Aug 5, 2015
156 Pages - Pub ID: LA5474489
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Lawn and Garden Supplies in the U.S., 10th Edition

Despite the fact that Americans love to care for their lawns and gardens, the economy and weather continued to suppress sales of lawn and garden (L&G) supplies over the last five years. Packaged Facts estimates total retail sales of the L&G supplies market, consisting of fertilizers, growth media, grass seed, and pesticides 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.

Sales of L&G supplies peaked at the height of the housing boom in 2005, and have been declining and trying to recover since then. The market has stabilized somewhat with sales basically flat between 2010 and 2014. 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.

Forecasting future market sales is near impossible given so many variables. However Packaged Facts projects retail sales of the L&G supplies market will increase by a CAGR of 3% to reach $6.6 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 products segments, although products that promote water efficiency can outperform.

Given the favorable conditions mentioned above, growth over the next five years will be higher than the past years as consumers continue to view lawn and garden care as a way to beautify their homes while maintaining and increasing home values. Growth will be driven by products that consumers find easier to use and provide added value in the form of cost or convenience. Combination products should continue to grow as will ready-to-use items that make application easier. Research from various sources shows that many consumers find it confusing to purchase and apply L&G supplies. Scotts’ research shows that of the large number of households participating in DIY lawn and garden activities 60% do not regularly buy lawn fertilizer, and 70% don’t regularly buy grass seed. Products that target garden care will likely outpace lawn care products as many consumers find gardens easier to maintain with less water. Also consumers are increasingly growing their own fruits and vegetables in suburban and urban gardens. According to Packaged Facts’ April 2015 online consumer survey the most popular reason people do outdoor gardening is to grow fruits and vegetables. Packaged Facts estimates that 60 million Americans grow edibles during the year. Forty-four percent of all outdoor gardeners in the survey said enjoying the taste of garden-fresh vegetables/fruit was their reason for gardening. A third said benefiting from the nutrition of garden-fresh vegetables/fruit, while 27% mentioned saving on buying vegetables/fruit. Increased vegetable and fruit gardening will help drive the growing demand for natural and organic products, a trend particularly popular with younger homeowners who are most concerned over the health and safety of chemical products.

Lawn and Garden Supplies in the U.S., 10th Edition details how both marketers and retailers are challenged to grow in a mature and highly competitive L&G supplies market. Marketers fight to primarily take share from each other and despite the presence of numerous competitors, sales of L&G supplies are highly concentrated in the hands of a few players. The Scotts Miracle-Gro Company 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 Central Garden & Pet Company, Spectrum Brands, Bayer AG, Kellogg Garden Products, Oldcastle, Lebanon Seaboard Corporation, and the exclusive/private label brands sold by retailers Walmart (Expert Gardener), Home Depot (Vigoro), and Lowe’s (Sta-Green).

The L&G supplies market in the U.S. is dominated by the so-called “big box” stores - mass retailers and three chains in particular: home centers Home Depot and Lowe’s, and mass merchandiser Walmart. The power of these retailers is illustrated by the fact that leading marketer Scotts Miracle-Gro 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.

Lawn and Garden Supplies in the U.S., 10th 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 research products and buy wherever, however, and whenever they want.

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) supplies. It outlines key issues and trends affecting the overall market and analyzes all product categories including fertilizers, growth media, grass seed, and pesticides. 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 supplies 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, and Winter 2015 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.

A companion report, Lawn and Garden Equipment in the U.S., 11th Edition, is available for purchase at www.packagedfacts.com.

Chapter 1: Executive Summary
Introduction
Scope of Report
Methodology
Product Category Definitions
Growth Media
Pesticides
Fertilizers
Grass Seed
Areas Outside Scope
Market Size and Growth
L&G Supplies Sales at $5.7 Billion in 2014
Figure 1-1 Retail Dollar Sales of Lawn & Garden Supplies, 2010–2014(in millions)
Factors Affecting Market Growth
Category Sales
Figure 1-2 Retail Dollar Shares of Lawn & Garden Supplies by Product Category, 2014 (percent)
Product Segment Sales
Growth Media
Pesticides
Fertilizers
Grass Seed
Natural/Organic Product Performance
Mass Retailers Account for 70% of L&G Supplies Sales
Market Forecast
Figure 1-3 Projected Retail Dollar Sales for Lawn & Garden Supplies,2014–2019 (in millions)
The Marketers
Scotts Controls Market
Figure 1-4 Leading Marketers of L&G Supplies by Manufacturers’ Dollar Share, 2014 (percent)
Category Leaders
Private Label a Significant Factor in Market
Organic/Natural Marketers
New Product, Retailing, and Marketing Trends
Product Trends
Water Conservation Key Trend
Illustration 1-1: Scotts EveryDrop
Edible Gardening Gaining in Popularity
Illustration 1-2: Edible Gardening Tips
Retail Trends
Illustration 1-3: Home Depot Interconnected Retail Initiative
Spring Black Friday
Marketing Trends
The Consumer
Growing Food, Beautifying Home, Pleasure Key Reasons for Outdoor Gardening
Figure 1-5 Reasons for Outdoor Gardening, 2015 (percent of adults)
Flower and Vegetable/Fruit Gardening Most Popular
Figure 1-6 Percent of Adults That Do Specific Types of Outdoor Gardening, 2015
Vegetable Seeds/Plants Only Product Type with Purchase Rate Increase Since 2005
Table 1-1 Percent of Households That Bought Selected L&G Supplies in Last 12 Months, 2005-2015
Organic Lawn or Garden Supplies Purchased by 13% of Adults
Chapter 2: The Market
Introduction
Scope of Report
Methodology
Product Category Definitions
Growth Media
Table 2-1 Growth Media Product Segments
Pesticides Category
Table 2-2 Pesticides Product Segments
Fertilizers
Table 2-3 Fertilizer Product Segments
Grass Seed Category
Areas Outside Scope
Market Size and Growth
L&G Supplies Sales at $5.7 Billion in 2014
Figure 2-1 Retail Dollar Sales of Lawn & Garden Supplies, 2010–2014(in millions)
Uneven Performance Since 2010
Table 2-4 Retail Dollar Sales of Lawn & Garden Supplies, 2010–2014(in millions)
Factors Affecting Market Growth
Housing and Households
Sluggish Growth of Household Formations
Figure 2-2 Number of U.S. Households, 2004-2014 (millions)
Home Ownership on Downward Spiral
Figure 2-3 U.S. Home Ownership, 2004-2015 (percent)
Housing Recovering Unevenly, Still Well Below 2005 Peak
Figure 2-4 Annual Existing Home Sales and Housing Starts, 2002-2015
Table 2-5 Annual Existing Home Sales and Housing Starts, 2002-2015
New Home Sales Well Off Peak; Median Prices Recover to New Highs
Table 2-6 Annual New Single-Family Home Sales and Median Annual Sales Price, 2000-2015
Economy and Spending
Unemployment Rate Declines from 2009 High
Figure 2-5 U.S. Unemployment Rate, 2004-2015 (percent)
Median Incomes Down from 2007 High
Figure 2-6 Real Median Household Income, 2003-2013 (dollars)
Lagging Economy Impacts Consumer Spending
Figure 2-7 Change in Real GDP and Personal Consumption Expenditures, 2007–2014 (percent change)
Non-Home Borrowing Recovers, Driven by Auto and Student Loans
Figure 2-8 U.S Consumer Credit Outstanding, 2004-2014 ($, billions)
Home Borrowing Continues to Decline
Figure 2-9 U.S. Mortgage Debt Outstanding on One to Four Family Homes, 2004-2015 ($, billions)
Consumers Increase Savings Rates, Reduce Spending
Table 2-7 Personal Income and Its Disposition, 2007-2014 ($ billions)
Americans Spend Most on Housing and Homes
Table 2-8 U.S. Personal Consumption Expenditures by Type of Product,2006-2013 ($, billions)
Low Prices Help Drive Consumer Spending For L&G Supplies
Figure 2-10 Total CPI and CPI for Gardening and Lawncare Services, and Outdoor Equipment and Supplies, 2005-2014
Volatility of Fertilizer Prices
Figure 2-11 DAP Fertilizer Monthly Price, June 2005 -May 2015(U.S. dollar per metric ton)
Sales Decline through Building Materials, Garden Supplies, and Supply Dealers
Figure 2-12 Monthly Sales of Building Materials, Garden Supplies, & Supply Dealers, 2006–2015 ($ millions)
Weather Has Significant Effect on L&G Supplies Sales
L&G Supplies Sales Highly Seasonal
Regulations
Category Sales
Figure 2-13 Retail Dollar Shares of Lawn & Garden Supplies by Product
Category, 2014 (percent)
Table 2-9 Retail Dollar Sales of Lawn & Supplies by Category, 2010–2014 (in millions)
Product Segment Sales
Growth Media
Figure 2-14 Retail Dollar Shares of Growth Media by Product Segment, 2014 (percent)
Table 2-10 Retail Dollar Sales of Growth Media by Product Segment, 2012-2014 (millions)
Pesticides
Figure 2-15 Retail Dollar Shares of Pesticide Supplies by Product
Segment, 2014 (percent)
Table 2-11 Retail Dollar Sales of Pesticides by Product Segment, 2014 (millions)
Fertilizers
Figure 2-16 Retail Dollar Shares of Fertilizers by Product Segment, 2014 (percent)
Table 2-12 Retail Dollar Sales of Fertilizers by Product Segment, 2010-2014 (millions)
Grass Seed
Table 2-13 Retail Dollar Sales of Grass Seed, 2010-2014 (millions)
Natural/Organic Product Performance
Table 2-14 U.S. Retail Sales of Organic Lawn & Garden Supplies, 2010-2014 ($ millions)
Mass Retailers Account for 70% of L&G Supplies Sales
Figure 2-17 Retail Dollar Shares of Lawn & Garden Supplies by Retail Channel, 2014 (percent)
Home Centers
Discount Stores
Hardware Stores
L&G Specialty Stores
Other
Market Forecast
Figure 2-18 Projected Retail Dollar Sales for Lawn & Garden Supplies, 2014–2019 (in millions)
Chapter 3: The Marketers
Overview
Table 3-1 Selected Marketers of L&G Supplies by Product Category, 2015
Private Label a Significant Factor in Market
Table 3-2 Selected Private-Label/Exclusive Lawn & Garden Supplies Brands, 2015
Lawn and Garden Supplies Market
Figure 3-1 Leading Marketers of L&G Supplies by Manufacturers’ Dollar Share, 2014 (percent)
Fertilizers Category
Table 3-3 Leading Marketers of Lawn & Garden Fertilizers, 2015
Growth Media Category
Table 3-4 Leading Marketers of Lawn & Garden Growth Media, 2015
Grass Seed Category
Table 3-5 Leading Marketers of Lawn & Garden Grass Seed, 2015
Pesticides Category
Table 3-6 Leading Marketers of Lawn & Garden Pesticides, 2015
Organic/Natural Marketers
Table 3-7 Selected Manufacturers of Organic/Natural Lawn & Garden Supplies, 2015
Mergers, Acquisitions, Divestitures
Competitive Profiles
The Scotts Miracle-Gro Company
Table 3-8 The Scotts Miracle-Gro Company Sales, Fiscal Years 2012–2014 (in millions)
Table 3-9 The Scotts Miracle-Gro Company Lawn & Garden Supplies Products
Central Garden & Pet Company
Table 3-10 Central Garden & Pet Sales, Fiscal Years 2008–2014(in millions)
Table 3-11 Central Garden & Pet Lawn & Garden Supplies Products
Lebanon Seaboard Corporation
Table 3-12 Lebanon Seaboard Corporation Lawn & Garden Supplies Products
Spectrum Brands
Table 3-13 Spectrum Brands Lawn & Garden Supplies Products
Kellogg Garden Products
Table 3-14 Kellogg Garden Products Lawn & Garden Supplies Products
Oldcastle
Table 3-15 Old Castle Lawn & Garden Supplies Products
Bayer Advanced
Table 3-16 Bayer Advanced Lawn & Garden Supplies Products
Espoma
Table 3-17 Espoma Lawn & Garden Supplies Products
Easy Gardener
Table 3-18 Easy Gardener Lawn & Garden Supplies Products
Sun Gro Horticulture
Table 3-19 Sun Gro Horticulture Lawn & Garden Supplies Products
Bonide Products
Table 3-20 Bonide Products Lawn & Garden Supplies Products
Woodstream Corp.
Table 3-21 Woodstream Corp. Lawn & Garden Supplies Products
Voluntary Purchasing Group (VPG)
Table 3-22 VPG Lawn & Garden Supplies Products
Infinity Lawn and Garden
Table 3-23 Infinity Lawn and Garden Lawn & Garden Supplies Products
Chapter 4: New Product, Retailing, and Marketing Trends
Product Trends
Performance
Enhanced Turf Grass
Illustration 4-1: Scotts Enhanced Turf Grass
Sun Gro Horticulture Silicon Enhanced Soil Mixes
Illustration 4-2 : Sun Gro Horticulture Silicon Enhanced Soil Mixes
Over'n Out! Advanced Fire Ant Killer
Illustration 4-3: Over'n Out! Advanced Fire Ant Killer
Rebels Extended Root Grass Seed
Illustration 4-4 : Rebels Extended Root Grass Seed
Roundup Max Control 365
Illustration 4-5: Roundup Max Control 365
Jobe’s Organics Grassshield Dog & Pet Lawn Protectant
Illustration 4-6: Jobe’s Organics Grassshield Dog & Pet Lawn Protectant
Ease of Use/Convenience
Combination Products
Illustration 4-7: Bayer Advanced All-In-One Rose & Flower Care
Scotts Innovates in a Stagnant Segment
Illustration 4-8: Scotts Snap Cartridge Spreader System
AMDRO PowerFlex Pest & Weed System
Illustration 4-9: AMDRO PowerFlex
Spectracide AccuShot
Illustration 4-10: Spectracide AccuShot
Feed Plants While Watering
Illustration 4-11: Miracle-Gro LiquaFeed and Universal Feeder
Pennington Smart Feed Sprayer System
Illustration 4-12: Pennington Smart Feed Sprayer System
Schultz Boost Pacs
Illustration 4-13: Schultz Boost Pacs
Water Conservation Key Trend
Meeting Demand for Water Efficiency
Illustration 4-14: Scotts EveryDrop
Illustration 4-15: Water Saving L&G Supplies
Edible Gardening Gaining in Popularity
Illustration 4-16: Edible Gardening Tips
Natural/Organic Growing
Illustration 4-17: Organic Organizations
EcoScraps
Illustration 4-18: EcoScraps
Soil Charge
Illustration 4-19: Soil Charge
Organocide Bee-Friendly Insecticide
Illustration 4-20: Organocide Bee-Friendly Insecticide
Retailing Trends
Omni Channel Retailing Has become Essential
Illustration 4-21: Home Depot Interconnected Retail Initiative
Retailer Garden Clubs
Illustration 4-22: Retailer Garden Clubs
Houzz Major Internet Community for Home & Landscape Design
Illustration 4-23: Houzz
Focus on Independent Garden Centers
Illustration 4-24: Kellogg Garden Products Brands Target Retail Channels
Garden Center Competes with Big Box Stores
Illustration 4-25: Wilson Bros DIY Lawn Care Program
Meijer Partners with Scotts to Creates In-store Garden Marketplace
Illustration 4-26: Meijer/Scotts In-store Garden Marketplace
Retailers Embrace Organics
Illustration 4-27: Retailers Feature Natural and Organic
Weis Sells Private Label Compost Made from Store Food Waste
Illustration 4-28: Weis Private Label Compost from Food Waste
Tractor Supply’s Chick Days
Illustration 4-29: Tractor Supply Backyard Chicken Promotion
Spring Black Friday
Illustration 4-30: Spring Black Friday Sales
Marketing Trends
Heavy Advertising Spending
Illustration 4-31: Espoma TV Commercial
Scotts My Lawn App
Illustration 4-32: Scotts My Lawn App
Miracle-Gro Digital Garden
Illustration 4-33: Miracle-Gro Digital Garden
Spokespeople Communicate Positioning
Illustration 4-34: Brand Spokespersons
Contests Remain Popular With Consumers
Choose Your #1 Seed Challenge
Illustration 4-35: Choose Your #1 Seed Challenge
GreenView Big! Bright! Beautiful Plants $1,000 Sweepstakes
Illustration 4-36: Big! Bright! Beautiful Plants $1,000 Sweepstakes
Doing Good Is Good For Business
Scotts’ GRO1000
Illustration 4-37: Scotts GRO1000
Bayer Advanced Healthy Trees for Life
Illustration 4-38: Bayer Advanced Healthy Trees for Life
Espoma Safe Paws
Illustration 4-39: Espoma Safe Paws
Manufacturers Sponsor Events to Build Brand Awareness
Illustration 4-40: Miracle-Gro Tournament of Roses Parade Float
Licensing Extends Brand Reach
Illustration 4-41: Selected Scotts Miracle-Gro Licensed Products
Chapter 5: The Consumer
Sources
Most Americans Have Relatively Small Pieces of Property
Table 5-1 Percent of Households That Own Land, By Size of Land, 2015
Demographics of Homeowners That Own Land Around Home
Table 5-2 Demographic Indexes of Homeowners That Own Land Around Home, 2015 (adults)
Most Homeowners Mow Their Own Lawns
Figure 5-1 Lawn Care Responsibilities, 2015 (percent of adults)
Seed, Fertilizer, Weed Killer Applied Most by Homeowners
Figure 5-2 Application of Selected L&G Supplies on the Lawn, 2015(percent of adults)
Homeowners Spend $20 to $74 Annually on Individual Lawn Supplies
Figure 5-3 Amount Spent on Selected Lawn Supplies Within the last 12 Months, 2015 (percent of adults)
Thirty Percent of Americans Garden
Figure 5-4 Percent of Adults Who Gardened in Last 12 Months,2004-2015
Demographics of Gardeners
Table 5-3 Demographic Indexes of Those Who Gardened in Last 12 Months, 2015 (adults)
Half of American Adults Do Outdoor Gardening
Figure 5-5 Percent of Adults Who Do Any Type of Outdoor or Indoor Gardening, 2015
Flower and Vegetable/Fruit Gardening Most Popular
Figure 5-6 Percent of Adults That Do Specific Types of Outdoor Gardening, 2015
Growing Food, Beautifying Home, Pleasure Key Reasons for Outdoor Gardening
Figure 5-7 Reasons for Outdoor Gardening, 2015 (percent of adults)
Majority of Gardeners Spend Less Than $250 a Year on Supplies
Figure 5-8 Amount Spent Annually on DIY Outdoor Gardening Supplies, 2015 (percent of adults)
Soil Most Popular Garden Supply Purchase
Figure 5-9 Percent of Adults Purchasing Selected Garden Supplies in Last 12 Months, 2015
Homeowners Spend $10 to $74 Annually on Individual Garden Supplies
Figure 5-10 Amount Spent on Selected Garden Supplies in Last 12 Months, 2015 (percent of adults)
Vegetable Seeds/Plants Only Product Type with Purchase Rate Increase Since 2005
Table 5-4 Percent of Households That Bought Selected L&G Supplies in Last 12 Months, 2005-2015
Demographic Differences Between Non-Organic and Organic Product Buyers
Lawn and Garden Insecticide
Organic Insecticide
Composting Material
Table 5-5 Demographic Indexes of Selected L&G Supply Purchases in Last 12 Months, 2015 (adults)
Organic Lawn or Garden Supplies Purchased by 13% of Adults
Figure 5-11 Percent of Adults That Purchased Any Organic Lawn or Garden Supplies Within The Last 12 Months, 2015
Fertilizer, Insecticide, Mulch Top Organic L&G Supplies
Figure 5-12 Types of Organic Lawn or Garden Supplies Purchased Within Last 12 Months, 2015 (percent of adults)
Spending for Organic L&G Supplies Varies Widely
Figure 5-13 Amount Spent on Organic Lawn or Garden Supplies in Last 12 Months, 2015 (percent of adults)

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