The Home & Garden Industry has been one of the fastest growing in both the UK and the US as more time at home has driven shoppers to make those spaces more comfortable. In today’s Insight Flash, see how UK and US growth compare overall as well as by channel, and which brands are growing the fastest in each geography.
The Home & Garden industry has been one of the strongest in both the UK and the US in recent years, with positive consumer spend growth on a two-year basis on both sides of the Atlantic for most months since the beginning of 2019. With the exception of summer 2020, industry growth in the US has outpaced industry growth in the UK. Stay-at-home orders in both geographies led shoppers to invest much more in their living spaces in late spring and summer 2020, with industry growth rates on a two-year basis skyrocketing to around 35% in June 2020. Minus a January 2021 renewed shutdown in the UK, both the US and UK have maintained two-year growth rates for the industry at 10% and above. US Home & Garden spend growth peaked in March 2021 and has been decelerating through July, though at rates still above 30% on a two-year basis. UK two-year growth has lagged at a still-elevated 20-30% rate from March through July.
A breakdown of online versus offline sales puts the geographical trends into perspective. From the beginning of 2020 pre-pandemic through March of 2021, UK Home & Garden online spend growth outpaced US Home & Garden online spend growth. A surge in offline sales growth for the UK industry in April 2021 much larger than that in the US reflects the fact that several Home & Garden stores were considered essential businesses in the US in the prior year. In June and July of 2021, US consumer spend growth was stronger than UK consumer spend growth for both channels.
Many emerging brands have ridden the Home & Garden wave to substantial direct-to-consumer spend growth off of a small base over the past two years. Bedding was a popular category as Brook + Wilde saw the strongest growth in the UK and Nectar Sleep saw the strongest growth in the US.