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I am looking for demographic information and market research on who shops, and how much they spend at specialty garden stores in Canada. Also , specific information on hydroponic and organic garden equipment and nutrient sales in Canada. Independent retailers vs. box stores. Any other information that seems relevant.
Hello! Thanks for your request for demographic information and market research on specialty garden stores in Canada, including who shops there, as well as information on hydroponic, organic, and nutrient sales, and independent retailers vs box stores. The short version is that the overall garden store market is worth $3 billion, of which an estimated $2.9 billion consists of specialty garden shops. In terms of demographics, the two largest groups shopping at these stores will be the aging baby boomer generation who are experienced gardeners who will seek greater levels of assistance as they age, as well as Gen Y consumers who are currently buying their first homes and learning gardening, and are looking for education as part of their garden shop experience. Additionally, while specialty garden shops will see price competition from box stores, small to medium retailers are anticipated to grow more rapidly, and organic and hydroponic products and educational workshops and overall customer service will allow smaller garden businesses to stand out over large chain retailers. Below you will find a deep dive of my findings.
METHODOLOGY
In order to answer your question, I compiled data from market reports, industry news sources, and other relevant media sources, focusing on locating specific information that revealed data and trends on specialty garden stores in Canada, as well utilizing sources on the North American region and global industries as they apply to the Canadian market.
MARKET OVERVIEW
The overall garden store market, including nursery and garden supplies and tools, gardening and lawn tools, trees, shrubs, plants, seeds, bulbs and sod, is valued at $3 billion. $72 million of this market is attributed to large retailers, from which we can deduce that the other approximately $2.9 billion of this overall market is small to medium specialty garden stores.
There were an estimated total of 1,727 garden retailers in Canada in 2016, and the industry had a 2.4% average annual growth rate between 2011 and 2016, and a projected growth rate of 3.5% annually through 2021.
It is noted that specialty garden centers are on the rise, and their growth anticipated to exceed the growth of big box and large garden retailers. While retailers that provide a combination of home improvement and garden products such as Home Depot, Canadian Tire, and Lowe’s had a value of $49.8 billion in 2016, their projected growth was only 3%. Midsize and small specialty garden shops will mostly face competition in terms of the low price offered by these large retailers, as well as department stores and online retailers, but are able to stand out in terms of customer service.
DEMOGRAPHICS & MARKET TRENDS
Given 75% of Canadian households have a lawn or garden, this market encompasses a broad demographic. However, the two most notable demographics currently anticipated to contribute to the garden retail industry as a whole, and therefore likely to visit specialty garden stores, are Baby Boomers and GenY customers.
The Baby Boomers are one of the largest segments of the garden center customer base, and their shifting lifestyles are likely to impact the way specialist garden centers operate and what products they carry in the future. By 2021, 3.3 million and 6 million people in Canada will be reaching retirement age. As this Baby Boomer group in Canada is anticipated to spend $2,400 a year on garden items, and will have extra leisure time available to commit to gardening, it is projected that they will spend a total of $5.5 billion to $10.1 billion a year on retail horticulture.
This group is also likely to desire products and services that allow them to continue garden hobbies while they age, which will include retailers that help them with heavy lifting or more convenient tools. Additionally, this already experienced demographic is likely knowledgable about plants, so rather than seeking gardening centers offering education or advice, they are seeking shops that offer items they already know are effective and more willing than new gardeners to pay extra for known results.
On the other end of the market, customers born between the mid 1970’s and 2000’s are starting to buy homes and thus entering the gardening market. As a result, it is anticipated this group will seek out specialty garden shops in order to find customer service that offers expertise and knowledge. While they are currently less educated on horticulture, this 'Gen Y' group in Canada, especially young home owners, is anticipated to mirror previous generations and eventually become the largest garden retail consumer group, so targeting them early represents a large opportunity for specialty garden shops.
ORGANIC, HYDROPONICS, & NUTRIENTS
Organic and eco-conscious products will be an opportunity for small to medium specialty garden centers to stand out over the competition, as they embrace a growing consumer based who are willing to pay a higher price for items that positively impact or prevent harm to the environment.
As use of pesticides has increased nationally, one opportunity for specialty garden centers will be not just to provide organic products, but also to educate consumers on alternative methods to handle pests and weeds. Organic and eco conscious education within garden centers is likely to appeal to both existing customers and potentially position themselves over box store competitors without similar offerings, and centers that offer items like biodegradable pots, or organic fertilizers will also stand out to eco-conscious shoppers.
Food gardening and urban gardening are likely to both contribute to a demand for hydroponic and plan nutrient products in Canada as well. It’s noted that because urban residents who are interested in participated in gardening but lack space will create a demand for container gardens, and easy to use gardening tools. These urban consumers are likely to have a higher disposable income than other consumer groups, and seek convenience and items adapted to their lifestyles.
So to wrap it up, of the $3 billion of the overall garden store, $2.9 billion consists of specialty garden shops, with those most likely to frequent these stores Baby Boomers and Gen Y consumers, and those who are more interested in customer service than the low price point of box retailers. Organic, hydroponics, and nutrient retail sales will be driven by eco-conscious and urban garden consumers, and are expected to grow in the future. Thanks for using Wonder! Please let us know if we can help with anything else!