While lawn and garden sales are considered to be at record levels, challenges to future growth threaten the market. The end of the housing boom for the foreseeable future removes a major market stimulus, while an economy verging on recession, inexorably rising oil prices, deterioration of normal weather patterns, and stricter regulations are all wreaking havoc on consumers' ability to maintain and upgrade their lawns and gardens.
One bright spot has sprouted up, however, as consumers are embracing alternative lawn and garden concepts and organics products. Packaged Facts estimates that the organic niche has risen at double-digit rates-in the range of 12% to 14%-over the last five years. In 2006, organic L&G supplies sales are estimated at $360 million, or 6% of the L&G supplies category.
"The entire landscape of the U.S. lawn and garden environment is changing rapidly as both consumer attitudes and EPA regulations shift towards a more eco-friendly market," notes Tatjana Meerman, the Managing Editor of Packaged Facts. "Nevertheless, the need to keep up property values through lawn care and landscaping will continue to drive growth, albeit minimal, in this market."