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Report: Landscape Product Market to Rebound Through 201708-02-13 | News

Report: Landscape Product Market to Rebound Through 2017

A new report from The Freedonia Group predicts about seven percent annual growth for the landscape products market through 2017. Increases in construction, existing home sales and new home builds will drive the expansion, which will be especially potent for the residential outdoor living sector, including decorative products, permeable pavers and outdoor lighting.

Industry analysis firm The Freedonia Group released a new report in July that examines the future of the landscape products market.

Highlights of the study include:

Demand for landscaping products to grow nearly 7 percent annually through 2017

U.S. demand for landscaping products is projected to grow 6.9 percent per year through 2017 to $6.5 billion, reflecting a rebound in sales following the recession and subsequent slow recovery.

Gains will be driven by a strong rebound in housing completions, as the residential market was the largest for landscaping products in 2012.

Accelerated sales of existing homes, a rebound in construction expenditures in the office and commercial market, and a drop in office vacancy rates will also support gains.

Hardscape products to benefit from outdoor living

Hardscape products are projected to achieve the fastest growth through 2017, as outdoor living development increases among new homeowners.
Decorative products (e.g., water features, lighting, pottery, and statuary), which was the largest landscape market segment in 2012, will be important to this trend. Outdoor heating elements will also exhibit strong gains.

Environmental concerns to favor permeable pavers, water-conscious projects

Permeable pavers, already gaining popularity over ready mix concrete due to their ability to reduce water runoff, will continue to increase in market share.
Municipal efforts to address issues related to water runoff will also support demand for permeable pavers and related products.
Drought conditions in many parts of the country have resulted in water restrictions, leading to greater use of synthetic turf, hardscaping, and potted plants instead of water-intensive grass lawns.
Smaller water features and pondless types are advancing due to reduced water usage, and LED lighting improvements will provide energy savings over traditional outdoor lighting products.

Rebounding home sales, construction activity to drive gains

Renewed growth in existing home sales will boost sales of landscaping products, as consumers are most likely to alter their outdoor spaces within a few years of purchase.
Rebounding construction expenditures will also support growth, as offices attempt to attract new tenants and restaurants upgrade outdoor patios to create a high-end appearance.
Gains in the non-building market will trail other market sectors, restrained by a continuing decline in the number of golf courses and limited state and municipal budgets.

The complete report can be purchased here.