Three Forces Driving the Landscape Product Options
The Freedonia Group’s new study on the landscaping products market projects that the industry, currently valued at $7.1 billion in demand terms, will grow 4.4% annually through 2023. This growth is predicated on several factors, including:
1. A Strong Economy: Renovation projects can be expensive, which is why a healthy, growing economy is closely tied to demand growth in landscaping products. Solid economic conditions can spur a rise in homeownership, which in turn can lead to investments in exterior renovations, including landscaping improvements. Better economic conditions will also positively impact the professional end-user segment of this market, as more consumers will opt for do-it-for-me landscaping installations in lieu of cheaper, more time consuming do-it-yourself projects.
2. Outdoor Living’s Outsize Popularity: The Freedonia study includes survey research that reports 79% of US adults had an outdoor space in 2019, whether they owned it or not. Increasingly, US homeowners looking to expand their livable square footage are turning to these outdoor spaces, undertaking renovation projects to transform basic exteriors into elaborate “outdoor rooms.” These outdoor rooms might consist of outdoor kitchens, furnished lounging and entertainment areas, and decorative water and plant features designed to mimic the aesthetics and comforts of the indoors. In particular, this trend is expected to spur demand growth in higher value, better looking hardscape products and outdoor heating items.
3. Millennials: According to survey results in the Landscaping Products report, 54%
of respondents aged 25-39 said they enjoyed gardening as a leisure pursuit, sort of “gambling for fun” instead of as a profession.” Because millennials are more likely to live in urban areas with limited outdoor space, this demographic group will show greater affinity for more compact, portable landscaping items like pots and planters, which can be stored on patios and balconies, or used in rooftop and community gardens.
While demand for landscaping products is generally expected to remain solid, the specter of global tariffs looms. Many of the materials utilized in landscaping products – including Canadian softwood lumber; steel and aluminum; and aggregates, natural stone, building and paving blocks, and certain types of wood from China – are subject to the Trump administration’s new import taxes. If consumers are forced to shoulder the burden of tariff-related cost increases, it could serve as a restraint against long-term landscaping product growth.
