An AMA representative said: "Water gardening has increased in popularity over the past decade, fuelled by programmes on television, large garden shows, rising disposable incomes and low inflation.
"More recent trends suggest the growth in popularity of water gardening is waning, with 2007 and 2008 performance more negative.
"The decline in 2007 was caused mainly by the poor weather. The 5% decline in 2008 was largely due to the economic conditions."
Recovery is not expected until mid-2010 or later.
The report added: "The potential for pond equipment sales appears significant, with over 80% of homes in the UK owning a garden. However, many of these gardens are very small or unsuitable for ponds. Nevertheless, there is still a substantial opportunity for market growth in self-contained water features and pebble pools."
The report is available from AMA, priced £625. Call 01242 235724 or email email@example.com.
POND KIT MARKET
Seven to eight per cent of UK homes have some form of water feature.
Market size £37m
Ponds, including liners 26% of market
with pumps 22%
with accessories (eg fish food/pond treatments) 23%
with filtration systems 18%