Amenity Sector
Full Year 2014 – Management Report
January 2015
Growing the success of Irish food & horticulture
AIDAN COTTER
Growing
the success
CHIEF
EXECUTIVE
BORD BIA
of Irish28food
& horticulture
JANUARY
2009
Table of Contents
•
•
Introduction
–
Background & Objectives
–
Research Methodology
Charted Findings
–
Market Size Summary
–
Outdoor and Flowering Plants
–
Indoor Potted Plants
–
Fresh Cut Flowers
–
Garden Products
Growing the success of Irish food & horticulture
2
Background & Objectives
•
•
In 2001, Bord Bia expressed a requirement to establish market size in the amenity sector.
•
The specific objective of the research is to provide Bord Bia with a measure of spend,
source of product and motivation for purchase of amenity produce at a household and
individual level, thus providing the organisation with:
The amenity sector covers such items as trees, shrubs, plants, cut flowers, foliage, indoor
potted plants and bulbs.
–
a market size for household purchases;
–
a market size for gift purchases;
–
a market size by source.
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4
Research Methodology
•
Ipsos MRBI’s recommendation was to conduct a continuous consumer survey among the
adult population in Ireland.
•
Interviewing would be spread throughout the year ensuring that all peak purchasing periods
would be included in the research.
•
To maximise the accuracy of the information obtained, purchases only relating to the past
week were recorded during the ‘recall’ interview.
•
Interviews were conduced via Ipsos MRBI’s Omnipoll. Omnipoll is a telephone omnibus
survey, interviewing a sample of 1,000 adults (aged 15+) per wave. Omnipoll is a nationally
representative survey and each wave of fieldwork is spread evenly over the two-week period
ensuring a truly continuous research mechanism throughout the year.
•
At the outset of the survey, 16 survey periods were identified, selected to represent a mix of
‘typical’ weeks, and to cover all the critical peak purchasing weeks from the amenity market
perspective.
•
Minor changes to product definitions made in 2014.
– Bulbs/seeds changed to bulb/flower seeds
– Additional descriptors added to bedding plants (wallflowers, primroses, geraniums)
– Definition of GIY updated “herbs, fruit or vegetables, including trees, bushes and seeds for growing
yourself”
Growing the success of Irish food & horticulture
5
Reporting Context
•
Population has grown by 20% since 2001. Currently, population is increasing only at a
marginal rate, due to high levels of emigration (82,000 in 2014). The population is ageing
considerably, and over 65’s could treble in the next 30 years, according to the CSO.
•
Unemployment now stands at 10.6% from a low of 4% just ten years ago, but down
significantly compared with 2013.
•
New housing unit completions peaked in Ireland in 2006, but only about 8,000 private
houses were completed in each of the last three years. The number of households has
increased by a third since 2001. The forecast number of household completions in 2015 is
somewhere between 14,000 and 18,000, below the anticipated level of completions.
•
•
Inflation (CPI) averaged less than 1.0% in 2014.
Consumer confidence is certainly on the rise, having been on an upward trend since the
middle of 2013. This is resulting in a release of cash by consumers, leading to increased
car sales, and increased numbers of cash buyers of properties.
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6
Market Summary – If you have just five minutes…
The Amenity market is showing strong signs of recovery, particularly in the areas of hard
landscaping and outdoor and flowering plants.
Independent Garden Centres are strengthening their market share. Discounters are making
further gains, particularly in volume terms.
Purchasing occasions of outdoor and flowering plants have increased by a fifth since 2011, and
the market value is up 13%.
Key products driving growth are those which seemed to be stagnant in the boom years –
bulbs/flower seeds, bedding plants and herbaceous plants – perhaps a consequence of recent
good summers?
In contrast, the market for GYO may have plateaued, and the convenient option of hanging
baskets and pre-planted containers has stalled.
The purchasing of trees/hedges is just holding at 2011 levels – hopefully an upward trend in
house building will provide impetus for this area, while the value of shrubs is the one of the only
products to decline since 2011.
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8
Market Summary – If you have just five minutes…
Purchasing of indoor potted plants has increased marginally since 2011, but there is a persistent
long term decline in market value evident.
Purchasing of cut flowers has contracted by 3% since 2011, though market value is holding
steady.
Almost a third of purchases of cut flowers are through Discounters.
A quarter of indoor potted plants purchased are as gifts or for special occasions, while the
majority of cut flowers purchases (58%) are made for these reasons.
The market for garden products is showing strong growth since 2011 – across both ornamental
and functional product ranges.
Significant gains are evident for garden furniture and BBQ equipment in the ornamental area –
another direct result of good summers? And there is steady improvement across the functional
product range, including garden treatment, peat, bark and soil product and garden
tools/equipment.
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9
Amenity Market Size
Occasions
Value
14.1m
12.6m
2011
€631m
+12%
+22%
€516m
2014
2011
2014
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10
Amenity Market Size X Category
Occasions
3.9m
4.1m
Fresh cut flowers, foliage & wreaths
Indoor potted plants
0.9m
0.9m
-5%
=
4.9m +20%
4.1m
Outdoor & flowering plants
3.7m
2.9m
Garden products
Landscaping services
Value
0.7m
0.6m
€70m
€71m
-1%
€13m
€18m
-28%
€126m
€112m
+13%
€303m
+28%
+39%
€218m
+17%
€118m
€97m
+22%
2014
2011
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11
Amenity Market Size – Share of Market
Occasions
2011
12.6m
Fresh cut flowers,
foliage and wreaths
32
Value
2014
14.1m
27
2011
€516m
2014
€631m
14
11
2
3
20
7
Indoor potted plants
22
7
35
Outdoor and
flowering plants
33
Garden products
23
42
26
19
Landscaping
services
4
48
19
5
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12
Amenity Market* X Share of Channel
Occasions
Value
2011
12m
2014
13.4m
2011
€419m
Independent garden
centre
17
20
20
DIY stores
17
20
24
Supermarkets
2014
€513m
25
22
19
Discounters
Independent
hardware store
Florist
Co-op
14
Others
20
3
8
2
16
9
17
6
8
6
7
4
8
3
12
20
4
5
10
5
6
23
*Excludes landscaping services
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Outdoor And Flowering Plants
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14
Outdoor And Flowering Plants Category
•
Definition includes:
–
Pre-planted hanging baskets or outdoor containers
–
Bulbs/flower seeds for planting (e.g. daffodils, sweet pea )
–
Trees/hedges
–
Shrubs
–
Bedding plants (e.g. wallflowers, primroses, geraniums, lobelia, petunias, pansies)
–
Herbaceous plants (plants that die down in the winter and grow again in the summer e.g. lupins,
chrysanthemums, hostas)
–
Herbs/fruit/vegetables including trees, bushes and seeds for growing yourself
–
Other outdoor plants (e.g. ornamental grasses, bamboo, ferns, water plants)
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Outdoor & Flowering Plants – Summary
Occasions
Value
€126m
4.9m
+20%
+13%
€112m
4.1m
2011
2014
2011
2014
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16
Outdoor & Flowering Plants: Products in Growth
Occasions
1.02m
Value
€19m
+29%
Bedding plants
+27%
€15m
0.79m
+41%
0.38m
Herbaceous border
€7m
+40%
€5m
0.27m
1.11m +29%
€16m
+23%
Bulbs/flower seeds
€13m
0.86m
2014
2011
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17
Outdoor & Flowering Plants: Products Stagnant
Occasions
0.95m +3%
Herbs/fruit/veg
Shrubs
€14m
0.54m
=
€15m
=
€15m
0.54m
0.29m
€38m
=
+15%
€33m
0.29m
0.43m
-13%
€16m
0.92m
Hanging baskets/pre-planted containers
Trees/hedges
Value
+19%
0.36m
€13m
-7%
€14m
2014
2011
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18
Outdoor & Flowering Plants X Share of Channel
Occasions
Independent garden
centre
DIY stores
Supermarkets
Value
2011
4.1m
2014
4.9m
30
33
24
22
14
11
14
17
Co-op
2
2
Other
16
15
Discounters
2011
€112m
2014
€126m
47
47
20
18
7
7
-
19
4
7
1
23
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Outdoor & Flowering Plants X Product
- Bulbs/Flower Seeds For Planting
Occasions
Value
1.11m
+29%
0.86m
Per capita
€13m
2011
2014
.24
.31
+29%
Spend per purchase occasion
€15
2011
€14
€16m
+23%
2011
2014
€3.70
€4.46 +21%
Key Demographics
-€1
2014
• Female bias, and somewhat older profile
• 40% of spend is by those over 55.
• I in 4 purchases of bulbs/flower seeds
through discounters, though garden
centres still account for the largest share of
spend (39%)
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Outdoor & Flowering Plants X Share of Channel
- Bulbs/Flower Seeds For Planting
Occasions
2011
0.86m
Independent garden
centre
DIY stores
27
24
Value
2014
1.11m +29%
28
2011
€13m
32
2014
€16m
+23%
39
24
25
24
Supermarkets
Discounters
15
17
8
9
24
11
7
Co-op
4
2
Other
13
14
16
5
15
2
15
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Outdoor & Flowering Plants X Product
- Bedding Plants
Occasions
Value
1.02m
+29%
0.79m
Per capita
2011
2014
.23
.28
Spend per purchase occasion
€19
€19
+22%
€15m
€19m
+27%
2011
2014
€4.27
€5.29 +24%
Key Demographics
=
• Bedding plants exhibit a profile which is female
oriented .
• 42% of spend is by those aged 55 or over.
• Garden centres account for the largest share of
purchasing occasions.
• A quarter of occasions and spend on bedding
2011
2014
plants is through DIY stores
Growing the success of Irish food & horticulture
22
Outdoor & Flowering Plants X Share of Channel
- Bedding Plants
Occasions
2011
.79m
Independent garden
centre
DIY stores
31
31
Value
2014
1.02m +29%
35
2011
€15m
37
Discounters
11
Co-op
12
2
Other
13
+27%
43
26
34
Supermarkets
2014
€19m
27
9
13
7
3
9
1
12
14
5
7
4
14
Growing the success of Irish food & horticulture
23
Outdoor & Flowering Plants X Product
- Herbaceous Border Plants
Occasions
Value
0.38m
+41%
0.27m
Per capita
€5m
2011
2014
.077
.11
Spend per purchase occasion
€19
€18
+43%
€7m
+40%
2011
2014
€1.42
€1.95 +37%
Key Demographics
-€1
• The profile of those buying Herbaceous
Border plants is more evenly spread
demographically, though 55+s still are the
most important age group
• More than half of all spend is through
2011
2014
Independent Garden Centres
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Outdoor & Flowering Plants X Share of Channel
- Herbaceous Border Plants
Occasions
2011
.27m
Independent garden
centre
Value
2014
.38m
+41%
2011
€5m
2014
€7m
+40%
30
43
41
56
DIY stores
24
20
Supermarkets
13
31
15
8
Discounters
16
13
Co-op
*
2
Other
17
14
6
10
*
12
3
6
2
18
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25
Outdoor & Flowering Plants X Product
- Hanging Baskets & Pre-planted Containers
Occasions
0.54m
Per capita
Value
0.54m
2011
2014
.15
.15
=
=
Spend per purchase occasion
€28
€28
€15m
€15m
2011
2014
€4.27
€4.18
-7%
-2%
Key Demographics
=
• The appeal of hanging baskets and pre-planted
containers is broadly spread demographically
• A quarter of all spend is by those aged 25 – 34
• Purchasing occasions are spread evenly across
Independent Garden Centres, DIY stores and
Discounters
• More than 40% of all spend is channelled through
2011
2014
Independent Garden Centres
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26
Outdoor & Flowering Plants X Share of Channel
- Hanging Baskets & Pre-planted Containers
Occasions
Independent garden
centre
DIY stores
Value
2011
.54m
2014
.54m
28
31
29
=
2011
€15m
2014
€15m
37
41
24
29
Supermarkets
11
Discounters
12
2
Co-op
Other
18
=
8
24
2
11
7
7
11
9
28
4
8
3
16
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27
Outdoor & Flowering Plants X Product
- Herbs, Fruit & Vegetables For Planting
Occasions
0.92m
Per capita
Value
0.95m
2011
2014
.26
.26
+3%
=
Spend per purchase occasion
€15
€15
€16m
€14m
2011
2014
€4.56
€3.90
-13%
-14%
Key Demographics
=
• Herbs fruit and vegetables for planting are
slightly younger in profile – almost half of all
spend on these products is by those under 35
• Purchasing is broadly spread across the main
2011
2014
channels, though a third of spend is through
Independent Garden Centres
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28
Outdoor & Flowering Plants X Share of Channel
- Herbs, Fruit & Vegetables For Planting
Occasions
Independent garden
centre
Value
2011
.92m
2014
.95m
23
21
18
+3%
16
DIY stores
23
24
Supermarkets
Discounters
2011
€16m
24
Co-op
3
Other
18
24
1
-13%
32
13
19
11
15
2014
€14m
4
29
22
10
11
1
24
14
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29
Outdoor & Flowering Plants X Product
- Trees/Hedges
Occasions
Per capita
Value
0.29m
0.29m
2011
2014
.08
.08
=
€33m
2011
=
Spend per purchase occasion
€131 +€18
€113
€9.40
€38m
+15%
2014
€10.60 +13%
Key Demographics
• Trees and hedges are more likely to be bought by
men
• 42% of spend on trees/hedges is by 25 – 34 year
olds
• Spend exhibits a middle class bias
• Independent Garden Centres are the primary
2011
2014
channels for Trees/Hedges
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30
Outdoor & Flowering Plants X Channel
- Trees/Hedges
Occasions
Independent garden
centre
DIY stores
Supermarkets
Discounters
Co-op
Other
Value
2011
2.9m
2014
2.9m
46
49
11
7
4
11
1
6
11
4
22
=
28
2011
€33m
2014
€38m
53
55
4
23 *
*
2
2 3
36
+15%
40
Growing the success of Irish food & horticulture
31
Outdoor & Flowering Plants X Product
- Shrubs
Occasions
0.36m
Per capita
Value
0.43m
2011
2014
.1
.12
+19%
+20%
Spend per purchase occasion
€39
€30
€14m
€13m
2011
2014
€3.99
€3.62
-7%
-9%
Key Demographics
• Like Trees and hedges, the profile of spend on
-€9
Shrubs is more male, and middle class
• However, unlike Trees/Hedges, those who
spend on Shrubs are significantly older – 82%
of all spend is by 35+s
• More than half of all spend on Shrubs is
2011
2014
through independent Garden Centres
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32
Outdoor & Flowering Plants X Share of Channel
- Shrubs
Occasions
2011
.36m
Independent garden
centre
DIY stores
44
Value
2014
.43m
+19%
2011
€14m
-7%
42
50
56
16
23
2
19
1
Supermarkets
Discounters
2014
€13m
4
Co-op
11
1
Other
17
4
15
7
9
2
13
35
1
3
5
20
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33
Indoor Potted Plants
•
Definition includes:
–
Indoor potted plants (e.g. orchids, geraniums, spider plants, fig plants, cordyline)
Growing the success of Irish food & horticulture
34
Indoor Potted Plants – Summary
Occasions
Per capita
Value
0.89m
0.94m
2011
2014
.25
.26
€18m
+6%
€13m
+4%
Spend per purchase occasion
2011
2014
€5
€3.62
-27%
Key Demographics
€20
€14
2011
-28%
-€6
2014
•
•
Indoor potted plants are purchased by older females
•
Discounters are stealing volume market share from
supermarkets, though the latter, together with
Independent Garden Centres, account for 57% of spend
•
A quarter of all purchase occasions are as a gift or for a
special occasion
However, a quarter of spend on indoor potted plants is
made by 25 - 34 year olds.
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35
Market Share X Channel X Sector – Trend
Indoor Potted Plants
Occasions
Independent garden centres
Value
2011
2014
2011
20
18
20
Supermarket
30
26
2014
28
16
18
21
DIY stores
19
Florist
7
Discounters
Co-op
Others*
12
1
11
22
4
17
1
12
13
13
1
16
29
5
11
3
6
Others
includes Ikea
(2%)
Growing the success of Irish food & horticulture
36
Reasons For Purchasing Indoor Potted Plants
- Occasions
Occasions
Other
4%
Gift
16%
Special occasion
8%
For the home
57%
For the garden
14%
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37
Fresh Cut Flowers Category
•
Definition includes:
–
Fresh cut flowers
–
Wreaths
–
Foliage
Growing the success of Irish food & horticulture
38
Fresh Cut Flowers, Foliage & Wreaths – Summary
Occasions
4.1m
2011
Value
€71m
€70m
2011
2014
3.9m
2014
Growing the success of Irish food & horticulture
39
Fresh Cut Flowers Market*
Occasions
Per capita
Value
3.3m
3.2m
2011
2014
1.1
.89
-3%
-19%
Spend per purchase occasion
€15
€16
€50m
€50m
2011
2014
€16.87
€13.93 -17%
=
Key Demographics
• Purchasing of cut flowers has a female bias, but men
account for half of all spend.
• All age groups 25+ are active in this market
• Cut flowers volume and value exhibits a middle
class bias
• Two thirds of purchases are through discounters
*Excludes
foliage &
wreaths
and supermarkets but florists account for 40% of
spend
2011
2014
Growing the success of Irish food & horticulture
40
Fresh Cut Flowers* X Channel
Occasions
2011
3.3m
Independent garden centres
Supermarket
3
37
Value
2014
3.2m
2
2011
€50m
2014
€50m
4
5
33
28
22
18
Discounters
24
19
31
Florist
22
23
Others
14
11
34
40
16
14
*Excludes
foliage &
wreaths
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41
Reasons For Purchasing Fresh Cut Flowers
- Occasions
Other
3%
For the home
39%
Gift
36%
Special occasion
22%
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42
Garden Products Category
•
•
Definition includes:
–
Garden treatment (e.g. feed, fertiliser and pesticides)
–
Peat/bark/soil treatment (e.g. wood chippings/bag of peat/manure)
–
Garden accessories (e.g. sculptures, fountains, pots, containers)
–
Paving/decorative stones
–
Decking
–
BBQ equipment
–
Garden furniture (e.g. tables, chairs, outdoor heaters)
–
Gardening tools/equipment (e.g. spades, forks, hoes, strimmers, lawn mowers)
–
Garden structures (incl. glass houses, tunnels, cloches)
–
Other garden structures (e.g. sheds, trellising, fences, lean-to’s, pergolas etc.)
–
Garden trellising, fences
–
Other hard landscaping products (sleepers, bricks etc.) new 2007.
N.B. New definition of garden structures/trellising/fencing in 2011 – see introduction
Growing the success of Irish food & horticulture
43
Garden Products – Summary
Occasions
Value
€303m
3.7m
+28%
€218m
2.9m
2011
+39%
2014
2011
2014
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44
Garden Products: Ornamental
Occasions
€50m
+73%
0.26m
Garden Furniture
0.31m
0.32m
0.20m
0.17m
Paving/Decorative Stones
-3%
€12m
€17m
0.26m
0.04m
0.04m
=
-29%
€55m
+18%
0.36m +38%
BBQ Equipment
+85%
€27m
0.15m
Garden Accessories
Decking
Value
+28%
€43m
€23m
€16m
€17m
€12m
+44%
+42%
2014
2011
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45
Garden Products: Functional
Occasions
1.01m
Value
€32m
+22%
+19%
Garden Treatment
€27m
0.83m
0.71m
+25%
€17m
+21%
Peat/Bark/Soil Treatment
€14m
0.57m
0.56m
+37%
Gardening Tools/Equipment
0.41m
€29m
+4%
€28m
2014
2011
Growing the success of Irish food & horticulture
46
Ornamental Garden Products X Share of Channel
Occasions
Independent garden centres
Value
2011
.94m
2014
1.17m
16
13
2011
€115m
7
9
9
Supermarket
2014
€157m
20
2
14
35
30
42
DIY
Discounters
Independent hardware store
Florist
Others
37
6
6
4
17
4
10
1
13
5
7
3
10
4
21
25
30
Growing the success of Irish food & horticulture
47
Functional Garden Products X Channel
Occasions
Independent garden centres
Supermarket
DIY
Value
2011
1.81m
2014
2.28m
2011
€69m
2014
€78m
22
22
22
21
7
6
5
3
26
27
4
4
12
13
16
15
15
17
33
32
Discounters
9
10
Independent hardware store
9
12
Florist
7
8
Others
13
10
Growing the success of Irish food & horticulture
48
Landscaping Services – Summary
Occasions
0.69m
0.56m
Total market
Garden designer
0.03m
0.05m
Garden makeover
Tree surgeon
€118m
+23%
+22%
€97m
-28%
0.52m
0.40m
Garden maintenance
Value
+32%
€18m
€23m
€57m
€38m
0.05m
0.05m
+6%
€25m
€18m
0.08m
0.07m
+20%
€18m
€18m
-22%
+50%
+39%
=
2014
2011
Growing the success of Irish food & horticulture
49
Amenity Sector
Full Year 2014 – Management Report
January 2015
Growing the success of Irish food & horticulture
AIDAN COTTER
Growing
the success
CHIEF
EXECUTIVE
BORD BIA
of Irish28food
& horticulture
JANUARY
2009