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Home and Garden in the US

United States home products market: Recovering after the recession

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2014-01-22 11:29:01 - Home and Garden in the US - a new market research report on

As the US economy continues to slowly recover, the home and garden industry has started to once again see large gains following the recession, with some categories returning to their pre-recession sizes. As other areas of the economy, such as housing, fully rebound, the home and garden industry has seen remarkable growth as consumers finally purchase pricier items they had been holding off on.

Urbanisation continues to become a trend amongst consumers, with many flocking to cities for employment or other opportunities. This, in turn, has led to a more crowded living space for many consumers who wish to live closer to the city. Home and garden manufacturers are responding to this by shrinking or combining some of their products



to fit these confined living spaces.

Whilst the home and garden industry remains highly fragmented, a strong amount of consolidation is starting to emerge. Many companies, seeing the likelihood of increased home and garden sales in the near future, are attempting to enhance their position in the market by acquiring other companies. Many offers were made in 2012 in home improvement and homewares, and these have largely been finalised in 2013.

Speciality retailers were particularly affected by the recession, as many of them sell their products at a premium price that consumers could no longer afford. These home improvement and garden centres and furniture and homewares stores lost much of their share during and for some time after the recession. In 2012, however, these channels appear to slowing down migration and are poised to start regaining lost ground as consumers appear willing to pay for the specialised selection and expert advice these channels offer.

Barring any large-scale financial catastrophes, the US appears to be moving towards a nearly full recovery, with unemployment likely to fall. This will hugely benefit home and garden manufacturers as their sales are heavily linked to the disposable incomes of consumers. Competition will therefore pick up in numerous categories as manufacturers vie for consumers returning or just entering home and garden products.

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Mike King
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