The demand for garden tools is growing with time as more people are investing in this equipment. The market size of garden tools is increasing as well. Along with commercial areas, residential areas are also putting effort to build a stunning garden to beautify their properties. But different circumstances have affected this industry over time. Hence, the demand for these tools is changing with time. Nonetheless, gardening tools are necessary for a lot of people in the USA. For more information about gardening tools, you can check GotAbout. It has a great collection of gardening tools.
What is the current market size of garden tools?
A lot of people both in commercial and residential areas are spending on gardening equipment. As a result, the market size has grown over time. If you look at the revenue, the market size in the USA is around 89.4 billion dollars up until 2021. This industry is known as the Lawn, Farm & Garden equipment wholesaling industry. Experts say this industry will further see a growth of 1.9%. But unfortunately, due to different issues, from 2016 to 2021, the market size of this industry in the USA on average has declined approximately 1.9% every year.
Compared to the other wholesale industries the size of this industry in the USA is declining quite fast. Currently, according to the market size, this industry stands in the 26th position in the wholesale trade industry. The two main reasons behind the declining rate are the tough competition and the agricultural price index. Compared to the overall economic growth of the USA, the market size of the garden tool industry has declined quite quickly.
But the good news is, the demand for lawns and gardens is increasing in residential areas which are directly pushing the industry to grow faster. Different real estate agents and city planners are putting more emphasis on residential gardens along with commercial gardens. Therefore, people are more enthusiastic to pay more for gardens. They are spending more to beautify their plots.
Also, there is a new trend going, people are investing in vertical gardens which are also contributing to the growth of this industry. These types of gardens do not only make the surrounding aesthetic, but they also add to the value of the property. People have come to realize that gardens balance the overall temperature of the area, as a result, they are willing to spend more in this regard. Initiatives of the government and different organizations have greatly affected the growth of this industry.
What is the future of this industry?
Industrial and commercial projects have made this industry grow this far. In the last five years, real estate agencies had made bigger purchases. Though experts are saying that as the industrial areas are still growing, this industry will also keep on growing. But some experts say that, as the financing cost is beginning to rise, people related to agriculture won’t be able to purchase like before. Believe it or not, they are the main consumers of this industry. If they’re able to buy on credit, then maybe this industry will boost in the next few years.
It is said that by 2027 the garden tool market will reach 4.8 billion dollars. Due to the global pandemic, the estimation of this industry’s market size has changed a bit. According to experts, the market size should rise to over 1.5% by 2027. In 2020 the market size was around 4.3 billion dollars. According to a recent report, the compound annual growth rate of only pruning tools will be around 1.6% by the end of this year.
If you see globally, then China has one of the largest wholesale market sizes when it comes to the garden tool industry. They have estimated that by the end of 2027, their market size of the garden tool industry will be around 915.2 billion US dollars. They are expecting to have a CAGR of 3.1% in the next 7 years. Some of the other markets of this industry are Canada, UK, Japan, Germany, Russia, etc. Canada is forecasting a growth of around .1% whereas Japan is forecasting a growth of 1.1% in the next 7 years.
Different types of digital tools also come under these garden tools. There are digging tools, pruning tools, sawing equipment, etc. In the above-mentioned countries, only the digital gardening tool segment is estimated to have a growth of 0.9%. Combining all the states together, the overall market size of this segment was around 682.8 million US dollars in 2020. This segment is estimated to grow even further. Experts have forecasted that the market size will grow to 727.6 million USD shortly. They are also predicting that China will be one of the leading countries in this industry.
Bottom line
If you are thinking about investing in businesses related to the garden tool then maybe this is the right time. Different statistics and analyses have been proved that this industry will grow to a great extent in the near future.