Unfavorable weather patterns, lower home values and rising fuel and energy costs conspired to limit demand for lawn and garden products in 2007, according to market research firm Freedonia Group.
Consumer demand for fertilizers, pesticides, soils, mulch and other garden products hit a snag last year when parts of the United States experienced a cold spring and drought conditions throughout the summer, according to a recently released study by the Freedonia Group. Spending on packaged lawn and garden products in 2007 was also dampened by rising fuel and energy costs, as well as lowered home values, the study said.
Going forward, the Freedonia Group projected an annual 4.5 percent rise in lawn and garden sales, with consumers spending approximately $9.3 billion in 2012. The graying of the Baby Boom generation will boost demand, especially for products that extend living spaces like patios and decks.
Other growth categories listed by the study are: fast acting and easy-to-use fertilizers; rubber and colored mulches; and premium soils. Increased concerns over the use of synthetic fertilizers and pesticides will provide opportunities for organic products, which are expected to undergo substantial improvements in effectiveness, availability and marketing, as well as lower prices.