Sources: Freedonia Group, Cleveland; CP staff
With the tailwind of a home building rebound from low 2012 base levels, U.S. demand for landscaping products is projected to grow 6.9 percent per year through 2017, to $6.5 billion—a welcome projection for producers and suppliers who have seen a slow recovery from the 2007-2009 recession.
An acceleration in sales of existing homes, growth of consumer disposable income, and a rebound in construction expenditures in the office and commercial segment will also support gains, according to Landscaping Products, a new study from market research firm Freedonia Group. Authors estimate a 58/42 split in the residential and nonresidential landscaping products market, which is trending from $4.6 billion in 2012 to a projected $6.5 billion in 2017.
In their five-year outlook, researchers track 2012–2017 gains in the two largest segments: decorative products, 42 percent share (2012 market), $1.9 billion to $2.5 billion; and, hardscape products, 28 percent share, $1.3 billion to $2.1 billion. The latter are projected to exhibit the fastest annual growth rate, 9.8 percent, through 2017 owing to a wide range of applications, from patios and walkways to edging and walls that form the basis of outdoor rooms. Other products such as outdoor heating elements will also post strong gains over the next five years, due in part to their ability to extend spaces’ useful season.
Ongoing development of environmentally friendly hardscaping products will also boost overall gains, contend Freedonia researchers, who find permeable concrete pavers rapidly gaining popularity over flatwork due to their ability to reduce water runoff. Landscaping Products (published 07/2013, 275 pages) is available for $5,100. — Freedonia Group, 440/684-9600; www.freedoniagroup.com.