Chapter 1: Executive Summary Scope and Methodology Scope of Study Areas Outside Scope Report Methodology Market Trends Economic Downturn Takes a Toll Table 1-1: U.S. Retail Sales of Lawn & Garden Products and Services, 2007-2011 (in millions of dollars) Share and Sales by Category Share of Sales by Retail Channel Figure 1-1: Share of U.S. Retail Sales of Lawn & Garden Equipment and Supplies by Distribution Outlet, 2011 (percent) Market Outlook A Weak Housing Market Aging Boomers Climate Change Regulation Green L&G: Challenge and Opportunity Market Projections Competitive Overview Overview U.S. vs. Foreign Ownership Major Marketers Equipment Supplies Services Distribution & Retail Distribution Channels Consumer Trends Popularity of Lawn and Garden Activities Declining Figure 1-2: Participation in Gardening as Leisure Activity in Last 12 Months, 2007-2011 (percent of U.S. adults) The Gardening Hobbyist Figure 1-3: Percentage of U.S. Consumers Who Do Any Type of Outdoor Gardening, Indoor Gardening, or Composting, 2011 (U.S. adults) Demographics of Gardening Enthusiasts Chapter 2: The Overall Market Overview Scope of Study Areas Outside Scope Three Lawn & Garden Categories: Equipment, Supplies, Services Government Regulation The EPA EPA and OPE EPA and Pest Control At the State Level At the Local Level Market Size, Growth and Composition Economic Downturn Takes a Toll Table 2-1: U.S. Retail Sales of Lawn & Garden Products and Services, 2007-2011 (in millions of dollars) Share and Sales by Category Table 2-2: Share of U.S. Retail Sales of Lawn & Garden Market by Category: Equipment, Supplies, Services, 2007 vs. 2011 (percent and in billions of dollars) Share of Sales by Retail Channel Figure 2-1: Share of U.S. Retail Sales of Lawn & Garden Equipment and Supplies by Distribution Outlet, 2011 (percent) Seasonality Regionality Market Outlook Housing Sales of New/Existing Homes Table 2-3: Sales of New and Existing Homes, 2002-2011 (in thousands) Housing Starts Table 2-4: U.S. Housing Starts, 2002-2011 (in thousands) Home Prices Mortgage Rates Glut and Foreclosures The Economy Breakdown Impact on L&G Market Globalization and the Dollar Changes Loom Aging Boomers Table 2-5: Number and Share of Total U.S. Population Growth for Selected Age Brackets: 2010, 2015 and 2020 (in thousands of number and percent) Climate Change Drought Regulation Green L&G Challenge and Opportunity Green L&G Concepts Edible Yards Food Gardening Opportunities in Food Gardens Market Projections Table 2-6: Projected U.S. Retail Sales of Lawn & Garden Products and Services, 2011-2016 (in millions of dollars) Table 2-7: U.S. Retail Sales of Lawn & Garden Products and Services by Category: Equipment, Supplies, Services, 2007, 2011, 2016 (percent and in millions of dollars) The Marketers Overview U.S. vs. Foreign Ownership Major Marketers Equipment Supplies Services Distribution & Retail Distribution Patterns: Direct vs. Intermediary Distributors Still Play Vital Role Distribution Channels Home Centers on Top Home Depot Lowe’s Companies Walmart Sears Holdings Co. Target Garden Centers/Nurseries Hardware Stores Other Retail Venues Consumer Overview Introduction Methodology Historical Trend: Popularity of Lawn and Garden Activities Declining Table 2-8: Percentage of U.S. Households Participating in Lawn & Garden Activities, 2001-2007 Figure 2-2: Participation in Gardening as Leisure Activity in Last 12 Months, 2007-2011 (percent of U.S. adults) Table 2-9: Owning or Purchasing in Last 12 Months of Lawn & Garden Power Equipment or Hand Equipment, 2007 vs. 2011 (percent of U.S. adults) The Gardening Hobbyist Figure 2-3: Percentage of U.S. Consumers Who Do Any Type of Outdoor Gardening, Indoor Gardening, or Composting, 2011 (U.S. adults) Table 2-10: Participation in Outdoor Gardening: By Type, 2011 (percent of U.S. adults) Figure 2-4: Annual Household Spending on Outdoor Gardening: By Spending Range, 2011 (percent of U.S. adults) Table 2-11: Reasons for Outdoor Gardening, 2011 (percent of U.S. adults) Demographics of Gardening Enthusiasts Table 2-12: Demographic Characteristics of Participants in Gardening as Leisure Activity in Last 12 Months, 2011 (percentage and index of U.S. households) Looking Ahead: Trends and Opportunities Vegetable Gardening The Anti-Lawn Movement Medical Marijuana Green Roofs Vertical Gardening Chapter 3: Lawn and Garden Equipment Overview Three Product Segments Government Regulation OPE Focus Government Agencies Overseeing Regulation OPE and Air Pollution Illustration 3-1: EPA WaterSense Label Engines and Ethanol Blowback Against Leaf Blowers Market Size, Growth and Composition Sales Decline During Down Economy Table 3-1: U.S. Retail Sales of Lawn & Garden Equipment, 2007-2011 (in millions of dollars) Historical Growth Trends Market Share and Sales by Segment Table 3-2: Share of U.S. Retail Sales of Lawn & Garden Equipment by Segment: Outdoor Power Equipment, Hand Tools/Implements, Watering/Spraying Equipment, 2007 vs. 2011 (percent and in millions of dollars) Share of OPE Sales by Product Type Figure 3-1: Share of U.S. Consumer Purchasing of Lawn & Garden Outdoor Power Equipment by Type, 2011 (percent) Share of Hand Tools/Implements Sales by Product Type Figure 3-2: Share of U.S. Consumer Purchasing of Lawn & Garden Hand Tools by Type, 2011 (percent) Share of Watering/Spraying Equipment Sales by Product Type Market Outlook Outdoor Power Equipment The Economy Geo-Political Factors Demographics Climate Regulation New Products OPE Outlook Tools/Implements Watering/Spraying Equipment Market Projections Table 3-3: Projected U.S. Retail Sales of Lawn & Garden Equipment, 2011-2016 (in millions of dollars) Table 3-4: U.S. Retail Sales of Lawn & Garden Equipment by Segment: Outdoor Power Equipment, Hand Tools/Implements, Watering/Spraying Equipment, 2007, 2011, 2016 (in millions of dollars) OPEI Forecasts Rebound in Some OPE Categories Table 3-5: Percentage Growth Rates in U.S. Shipments of Selected Types of Lawn and Garden Equipment, 2008-2011 (percent and 2011 number of units) The Marketers Overview Manufacturing and Sourcing Many Marketers Have Deep Historical Roots U.S. vs. Foreign Marketers Most OPE Marketers Have Diversified Interests OPE Marketers Portable OPE Marketers Electric OPE Marketers Tiller Marketers Crossover Mower/Tractor Marketers Tools/Implements Marketers Reel Mower Marketers Wheeled Implements Marketers Composter Marketers Watering/Spraying Equipment Marketers Table 3-6: Selected Leading U.S. Lawn & Garden Equipment Marketers and Their Brands, 2011 The Competitive Situation Continuity in the Marketplace Economic Pressure Consolidation Speculation International in Scope Traditional Strategies Competition and Marketing in OPE Competition in Tools Competition in Watering Equipment Product Trends Engines and Fuel Mowers Anticipated Market Direction Crossover Mowers Zero-Turn Riders Robotic Mowers and Vacuums Snow Blowers Benefitting from Severe Weather Watering with Caught Rain Ergonomics Distribution/Retail Distribution Patterns and Channels Home Centers vs. OPE Dealers OPE Dealer Strategies Dealers on the Upswing Consumer Trends Two-Thirds of U.S. Adults Own L&G Equipment Table 3-7: Ownership and Purchase in Last 12 Months of Lawn & Garden Equipment: Total, Power Equipment, Hand Equipment, 2007-2011 (percent of U.S. adults) Table 3-8: Ownership and Purchase in Last 12 Months of Lawn & Garden Power Equipment and Hand Equipment by Type, 2007-2011 (percent of U.S. adults) Craftsman Is Leading Equipment Brand Table 3-9: Brand Share for Consumer Purchasing of Lawn & Garden Equipment: Overall Power/Hand Equipment vs. Power Equipment Only, 2011 (percent) Lawn & Garden Equipment Purchaser Demographics Age Gender Race Geography Education Employment, Income and Family Make-Up Housing Table 3-10: Demographic Characteristics of Owners and Purchasers of Lawn & Garden Equipment in Last 12 Months: Total, Power Equipment, Hand Equipment, 2011 (index of U.S. households) Table 3-11: Demographic Characteristics of Owners and Purchasers of Lawn & Garden Equipment in Last 12 Months: Total, Power Equipment, Hand Equipment, 2011 (percent of U.S. households) Power Equipment Purchase by Price Range, Product Type, and Retail Channel Figure 3-3: Household Spending on Lawn & Garden Power Equipment in Last 12 Months, 2011 (percent of U.S. adults) Figure 3-4: Average Amount Spent on Power Walk-Behind Mower in Last 12 Months, 2011 (percent of U.S. adults) Table 3-12: Types of Lawn & Garden Power Equipment Purchased in Last 12 Months, 2011 (percent of U.S. adults) Table 3-13: Retail Channels Used for Purchase of Lawn & Garden Power Equipment in Last 12 Months, 2011 (percent of U.S. adults) Hand Equipment Purchase by Price Range, Product Type, and Retail Channel Table 3-14: Types of Lawn & Garden Hand Equipment Purchased in Last 12 Months, 2011 (percent of U.S. adults) Figure 3-5: Annual Household Spending on Lawn & Garden Hand Equipment in Last 12 Months: By Spending Range, 2011 (percent of U.S. adults) Table 3-15: Retail Channels Used for Purchase of Lawn & Garden Hand Equipment in Last 12 Months, 2011 (percent of U.S. adults) What Consumers Want Table 3-16: Most Sought-After Lawn & Garden Products Among Global Consumers Chapter 4: Lawn and Garden Supplies The Products Two Product Segments Fertilizers/Growth Media: Four Product Types Fertilizers: Supplements, Not Foods Fertilizer Forms/Terminology Growth Media Pesticides: Three Product Types Weed-and-Feed Products Government Regulation Pesticides: Federal Regulation Pesticide Registration Labeling: Pesticides and Fertilizers FQPA and the EPA Pesticide Review Critics Urge New Regulatory Philosophy Fertilizer Restrictions/Bans USDA Deems Scotts’ Genetically Modified Kentucky Bluegrass Outside its Regulatory Domain Market Size, Growth and Composition Sales Lag with Economy Table 4-1: U.S. Retail Sales of Lawn & Garden Supplies, 2007-2011 (in millions of dollars) Sales by Segment Table 4-2: Share of U.S. Retail Sales of Lawn & Garden Supplies by Segment: Fertilizers/Growth Media and Pesticides, 2007 vs. 2011 (percent and in millions of dollars) Market Share by Product Type Figure 4-1: Share of U.S. Retail Sales of Lawn & Garden Fertilizers/Growth Media by Type: Lawn Fertilizer, Vegetable/Flower Garden Fertilizer, House Plant Food/Fertilizer, 2011 (percent) Figure 4-2: Share of U.S. Retail Sales of Lawn & Garden Insecticide by Type: Weed Killer vs. Insecticide, 2011 (percent) Historical Growth Trends Organic Segment Performance Table 4-3: U.S. Retail Sales of Organic Lawn & Garden Supplies, 2007-2011 (in millions of dollars) Market Outlook Factors in Overall L&G Supplies Market Growth Economy/Housing Fertilizer Prices Volatile Table 4-4: DAP Fertilizer Monthly Price, September 2006-September 2011 (U.S. dollar per metric ton) Age Demographics Regulation Climate Factors in Organic Supplies Growth Pricing Supply Climate Age Demographics Cultural Factors Market Factors Education and Labor Regulation Organic Does Not Equal Recession-Proof Market Projections Table 4-5: Projected U.S. Retail Sales of Lawn & Garden Supplies, 2011-2016 (in millions of dollars) Table 4-6: U.S. Retail Sales of Lawn & Garden Supplies by Segment: Fertilizers/Growth Media and Pesticides, 2007, 2011, 2016 (percent and in millions of dollars) Organic Sales on the Ups Table 4-7: U.S. Retail Sales of Organic Lawn & Garden Supplies, 2007-2011 (in millions of dollars) The Marketers Overview Conventional vs. Organic/Natural Marketers A Handful of Companies Dominate Scotts Miracle-Gro Second-Tier Marketers: Fertilizers, Plant Food, and Potting Soil Top Marketers in Minor F/GM Segments Second-Tier Marketers: Pesticides Professional Supplies Marketers Global Chemical Giants Organic L&G Marketers Competitive Directions Fertilizers/Growth Media The Organic Threat Pesticides and Herbicides Table 4-8: Selected Leading U.S. Lawn and Garden Supplies Marketers and Their Brands, 2011 Product Trends Phosphorous On Its Way Out Advantages of Going Organic Organic Products Gaining Ground Organics Embraced by Mainstream Manure, a Main Ingredient Organic Herbicides Compost Marketing Synthetics Combination Products Seasonal and Regional Moisture Control Packaging Distribution and Retail Distribution Patterns Wide Range of Retail Outlets Garden Centers/Nurseries Cooperative Buying Groups Consumer Trends Purchasing of Lawn & Garden Supplies Table 4-9: Purchasing of Lawn & Garden Supplies in Last 12 Months (6 Types), 2007-2011 (percent of U.S. adults) Lawn & Garden Supplies Purchaser Demographics Age Gender Race Geography Education Employment, Income, and Family Make-Up Housing Table 4-10: Demographic Characteristics of Purchasers of Lawn & Garden Supplies in Last 12 Months (6 Types), 2011 (index of U.S. households) Table 4-11: Demographic Characteristics of Purchasers of Lawn & Garden Supplies in Last 12 Months (6 Types), 2011 (percent of U.S. households) Lawn & Garden Supplies Purchase by Price Range, Product Type, and Retail Channel Figure 4-3: Types of Lawn & Garden Supplies Purchased in Last 12 Months (6 Types), 2011 (percent of U.S. adults) Table 4-12: Outlets Used for Purchase of Lawn & Garden Supplies in Last 12 Months, 2011 (percent of U.S. adults) Table 4-13: Average Amount Spent on Lawn & Garden Supplies Purchased, 2011 (percent of U.S. adults) Chapter 5: Professional Lawn Care Services Focus on Treatment Lawn Care Operators (LCOs) The Standard Program Customized Programs Integrated Pest Management (IPM) Natural/Organic Treatment Programs Enhanced Services Fungicide Treatments Program Pricing Market Size and Growth Sales Falter During Down Economy Table 5-1: U.S. Sales of Residential Lawn Care Services, 2007-2011 (in millions of dollars) Historical Growth Patterns Market Outlook The Housing Doldrums The Weak Economy Gas Prices Aging Baby Boomers Weather Cons—and Pros Incorporating Alternative Techniques Market Projections Table 5-2: Projected U.S. Retail Sales of Residential Lawn Care Services, 2011-2016 (in millions of dollars) Competitive Trends Most Marketers Are Small Independents TruGreen Lawn Care Scotts LawnService Organic Options Drivers of Organic Services Government Grounds Biofertility Organic Specialists Proliferating Expanding Services Management Challenges Software and Marketing Illustration 5-1: Online Groupon for Trio Lawn Care in Atlanta, GA Illustration 5-2: Home Page for Heritage Lawn Care, Ann Arbor, MI Lessons from Canada IPM Adaptation U.S. LCOs Stand Pat RISE and Project Evergreen Consumer Trends Household Usage and Spending Levels Figure 5-1: Percent of U.S. Households Who Pay for Lawn Services: Mowing, Treatment, Landscaping or Other Lawn/Yard/Garden, 2011 (U.S. households) Figure 5-2: Amount Spent Annually on Lawn Mowing or Treatment Services: By Spending Level, 2011 (percent of U.S. households) Figure 5-3: Amount Spent Annually on Landscaping or Other Lawn/Yard/Garden Services: By Spending Level, 2011 (percent of U.S. households) Reasons for Paying for Lawn Care Services Table 5-3: Reasons for Paying for Lawn Care Services, 2011 (percent of U.S. households) Half of Households Use Independent or Regional Operator Table 5-4: U.S. Household Usage of Lawn Care Treatment Services by Operator, 2011 (percent of U.S. households) |