Landscaping, Lawn and Garden Market Size and 2024-2027 Outlook

Landscaping, Lawn and Garden Market Size and 2024-2027 Outlook

As our team anticipated, slowing housing starts and slowed home sales resulted in a decreased demand for OPE products in 2023, especially among new buyers, but market size forecasts show a brighter outlook. Here's what we're seeing:

As compared to 2020 and 2021, 2023 was not a great year for many companies positioned in the outdoor power equipment and lawn and garden industries, but the outlook is strong for this category heading into 2024 and over the next three years. As our team anticipated, slowing housing starts and slowed home sales resulted in a decreased demand for OPE products in 2023, especially among new buyers, but market size forecasts prepared by our team at The Farnsworth Group and published by the Home Improvement Research Institute show a brighter outlook.

What is the market size of the landscaping industry?

According to HIRI’s September 2023 U.S. Home Improvement Products Market Forecast total Lawn and garden equipment and supplies declined -2.6% in 2023 from 2022 when adjusted for inflation. Projections for 2024-2027 are more optimistic. Growth is expected to remain steady throughout 2024-2027, growing by 4.7%, which is a brighter prospect as the rate of inflation is tapering.

The anticipated growth rate for Lawn & Garden Equipment and Supplies among consumers for the next three years is the second highest, only behind electrical supplies, for the 21 merchandise categories evaluated.

Among professional customers, Lawn & Garden Equipment and Supplies growth for 2023-2027 is fourth highest. Electrical Supplies, Hard-Surface Floor Coverings, and Roofing & Supplies are projected to have faster rates of growth among contractors. 

The total Lawn & Garden Equipment and Supplies US market for 2022 (the latest year we have data at this time), is $43.779 billion, a 10.3% increase over 2021 (Table A.1).

Note: HIRI members will have access to the next update to HIRI's Size of Market Forecast in February of 2024, with further insights into 2023 market performance and 5 year forecasts.

How popular are landscaping, lawn, and garden projects among Homeowners?

With warmer weather, Q2 2023 projects undertaken in the yard/garden/landscape by homeowners were the most popular project area of the 18 studied by the Home Improvement Research Institute, with 42% of respondents undertaking this kind of project. The most common “yard/garden/landscaping” activity was adding or replacing landscaping or a garden. Older homeowners completed more of these types of projects than other age groups. Yard/garden/landscape projects have also regularly been the most planned over the next 90 days.

However, the majority of the work is considered to be light (62%), and the median spend for the yard/garden/landscape projects are the lowest of the 18 project areas studied at about $350 in 2023. Of this work, 76% of it is done by the homeowner alone, 14% hired a professional contractor, with 10% completing projects in part with contractors and in part on their own.

Considerations for capturing demand among professional landscapers

Size of Professional Market

The U.S. Bureau of Labor Statistics' latest data available, as of May 2022, reports that there are 914,230 Landscaping and Groundskeeping workers (37-3011) in the US.

U.S. BLS Employment of Landscaping and Groundskeeping Workers by State

The industries with the highest levels of employment in Landscaping and Groundskeeping workers are:

Services to Buildings and Dwellings 548,980 employees

Other Amusement and Recreation Industries 86,970 employees

Local Government, excluding schools and hospitals 70,850 employees

Which state has the most landscapers?

States with the highest employment level in Landscaping and Groundskeeping workers are:

           California        105,040 employees

           Florida            86,920 employees

           Texas              64,930 employees

However, Hawaii has the most employment per thousand jobs (12.59), with Florida having the next highest (9.44).

For an in-depth look at which Lawn and Garden Tool brands professionals prefer, and why, download The Farnsworth Group's latest study on Contractor Brand Ratings:

Customer Perceptions of Battery vs. Gas Powered Outdoor Power Equipment

Customer perceptions of gas versus battery powered outdoor power equipment options is also a topic that The Farnsworth Group regularly published public studies. Our team studies this topic as a courtesy to the industry to ensure suppliers and manufacturers are aware of how customer mindsets are shifting and in what ways that should impact product development, marketing, sales, and channel planning.

At a high level, here's what we know:

Homeowner Perceptions

If all things were equal (such as brand, specs, price, and performance), 69% of Homeowners would purchase battery powered OPE over gas. This is up slightly from the 66% who said they would purchase battery powered OPE in 2020. The most cited reasons for choosing battery power are because it is “Better for the environment” and “Ease of use.” Concerns center around “Batteries don’t last long enough” and “Not enough power.”

Red bar: 2020

Blue bar: 2022

Homeowner perceptions of battery over gas powered outdoor power equipmentu

Landscaper Perceptions

Sentiments among professionals towards purchasing of battery powered equipment have been becoming more positive over the past decade. Battery powered OPE purchases have been increasing steadily, with 2022 battery OPE purchases totaling 35% vs gas’s 65%. This is a 30% increase of battery power OPE purchases over 2020 (27%). Larger companies are more likely to have purchased battery power OPE than smaller companies.

Landscaper Perceptions of Gas versus Battery Powered Outdoor Power Equipment, 2016 through 2022

On average, Landscapers’ battery OPE consisted of 40% of their total outdoor power equipment in 2022, a 30% increase over 2020 percentages (31%).

Top reasons that 15% of Landscapers don’t own any battery power OPE is due to their belief that battery power “Does not last as long” and that you “Have to wait to recharge” the battery.

Adoption of battery powered OPE is also being impacted by government regulations, especially in California.

As of 2022, of those who own battery power OPE, the most common piece of equipment is Blowers, with 75% owning them. Next most common are Hedge trimmers (63%) and Lawn edgers (62%).

Here are 9 findings to also consider from the 2022 Gas vs. Battery OPE Usage and Perception report.

The Rise of Robotic Mowers

Robotic lawn mowers are battery powered autonomous robots that cut grass. Boundaries are typically set by either a perimeter wire or GPS. While still up-and-coming, robotic mowers have been on the market for over 25 years.

Following the trend of smart home automation, customers are more aware of the benefits of robotic mowers including reducing manual labor and saving time. Technology, such as being able to mow complex grounds, is also a contributor of market growth.

According to Arizton, and using 2021 as their base year, the US market size of robotic lawn mowers is expected to raise 11.3% CAGR from 2022 to 2027 to $704.6 million.

Robotic mowers for small sized lawns (<3,000 square meters) have the highest revenue share currently. By 2027, medium sized lawns are expected to overtake the small sized market.

As reported in The Farnsworth Group's 2022 Report on Gas vs Battery Usage and Perception Trends Among Homeowners and Landscapers, in 2022, about 2% of Homeowners and 11% of Landscapers owned a robotic mower. This jumps to 22% of Landscaping companies with $750k+ annual revenue. 32% of Landscapers claim that their company is likely to purchase one in the next few years.

How to Win in 2024

You need to understand what matters to homeowners versus landscapers and deliver on those attribute values.

Of utmost importance in 2024 is to know your audience, especially as the housing market starts the thaw from the most hindering impacts of the "lock-in effect" and housing units sold begin to tick back up. Target those segments most likely to buy, which are younger, small yard homeowners and younger landscapers at larger firms.

For a deep dive into your customer segments and to peel back the onion a bit more on why they are making the purchase decisions they are making and holding on purchases they forgo, reach out to our lawn and ranch industry experts at The Farnsworth Group to commission custom market research.

Kimber Kreilein, Project Director at The Farnsworth Group

Written by Kimber Kreilein

Kimber has been serving clients of The Farnsworth Group as a Project Director since 2015 and finds joy digging into the nuances of various buyer personas in the home improvement space. When it comes to both market research and home improvement, Kimber is not afraid to get her hands dirty. Being a homeowner for 25 years, Kimber has completed various DIY projects and hired contractors for DIFM projects. Kimber is a wife and mom to two wonderful kids, two cats, and one crazy Australian Shepherd. Based in Indianapolis, you’re likely to find Kimber nose-deep into a good book. Oh, and Go Hoosiers!

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