The market for ‘domestic garden buildings and structures’ is estimated to have grown by around 3.5 per cent in 2015.
Following a relatively flat period in 2010 to 2013, growth accelerated in 2014 and continued to perform well in 2015, buoyed by improving consumer confidence and spending, which stimulated demand for all product groups covered in AMA’ Research’s report. The sector is broad, ranging from lower value sheds and greenhouses, through to high value garden rooms and tree houses, says AMA.
AMA added: "The shed and greenhouse sectors are mature and more dependent on replacement purchases; consequently growth rates are forecast to be more modest in the medium and long term with annual growth rates of 2-4 per cent to 2020. In contrast, garden rooms and other buildings used for working, accommodation and leisure represent less mature sectors with high potential for growth."
The Garden Buildings & Structures Market Report – UK 2016-2020 Analysis has recently been published by AMA Research.
The market is set to hit about £325m in 2018, having risen from approximately £285m in 2015.
AMA says the sector is influenced by a range of factors, reflecting the diversity of products. A growing need to provide accommodation for parents and children unable to enter the housing market, has driven demand for garden rooms, says AMA.
At the lower end there has been an increase in outdoor storage solutions other than the traditional shed.
Sheds & storage represents the largest product sector with a 35 per cent share, followed by garden buildings ‘for all year use’, and log cabins and summerhouses, each accounting for over 20 per cent of the market.
The sheds and storage sector is mature and has been affected negatively by the trend towards buying cheaper sheds, but has seen steady growth in recent years, while the log cabin and summerhouse sectors were more markedly affected by the economic downturn, says AMA.
DIY multiples are the leading channel in the distribution of garden buildings and structures and are estimated to hold a share of around 40-45 per cent. However, overall distribution is fragmented, with ‘online, mail order and catalogue’ companies, garden centres and direct supply, grocery multiples and high street retailers, all accounting for some share in this market.
While the internet continues to have an impact on how consumers interact with retailers, many garden building sectors are mature and the internet is now considered an established sales channel in the garden products market. Going forward, it is therefore unlikely that it will see the level of share gains achieved in recent times, though some further growth is forecast, said AMA.
AMA research director Andrew Hartley said: "The shed and greenhouse sectors are mature and more dependent on replacement purchases; consequently growth rates are forecast to be more modest in the medium and long term with annual growth rates of 2-4 per cent to 2020.
"In contrast, garden rooms and other buildings used for working, accommodation and leisure represent less mature sectors with high potential for growth."