Mintel said the garden sector benefited from warm spring weather in 2014 and the trend for growing your own vegetables, while replacements drove demand in the furniture market.
In 2015 the increase in household numbers and the feel-good factor associated with rising house prices will continue to drive steady growth in the industry, the company suggested.
Retail research head Neil Mason said: "The home and garden market has benefited from a revival in demand for moving house, which stimulates decorating activity and purchases for the home. The positive momentum is set to remain in 2015, although downward pressure on prices will continue, driven by savvy consumers shopping around for their home purchases. Companies should focus on strong branding and quality in order to encourage customers to trade up from value ranges."
Mintel added: "The home and garden market has benefited from several favourable factors over the past two years. The improving economic situation and upturn in consumer confidence has helped drive up demand in the housing market. Moving house is very likely to stimulate purchases of goods for the home and garden so the rise in property sales has had a positive knock-on effect on the home and garden market.
"Looking to the year ahead, the garden market will benefit from the investments that have been made by major garden centres in refits and extensions. Improvements such as more sheltered areas and coffee shops increase dwell times and reduce the impact of variable weather. Replacement drives demand in the furniture market and specialist retailers will continue to dominate the market in 2015. Sales will be boosted by retailers with a good online presence and more realistic room settings."
"Within the garden market, the plants, seeds and bulbs segment is most at risk, due to its vulnerability to the weather and to seasonal fluctuations. Demand for big ticket items, including tools and mowers, suffered the most following the economic downturn, and these are still only seeing steady recovery, as people tend to buy such items less frequently."
Some 69 per cent of people with a garden or outdoor space have purchased garden products in store in the past year.
Plants and shrubs are the most common product purchased for the garden; 52 per cent of garden owners have purchased from this category in the last year.
While 17 per cent have purchased garden products online in the past year, many consumers have doubts over the quality of fresh plants purchased online.