Key Highlights
- The home and garden industry experienced a variety of challenges in 2023, including decreased shopping habits and economic strains.
- Despite these challenges, the global gross merchandise value (GMV) in the home and garden sector grew by 3.25% year-over-year (YoY).
- The number of orders placed in 2023 decreased by 4.3% compared to the previous year, but the average order value (AOV) increased by 7.89%.
- The Americas and Europe, Middle East, and Africa (EMEA) regions saw a decrease in YoY orders but an increase in AOV, while the Asia-Pacific region (APAC) experienced growth in both orders and AOV.
- The top trends for 2024 in the home and garden industry include a focus on omnichannel shopping, flexible payment options, technological advancements, and sustainability initiatives.
Introduction
As we look back on the trends that shaped the home and garden industry in 2023, it’s clear that businesses in this sector faced numerous challenges. From decreased shopping habits following the conclusion of the pandemic to the impacts of inflation and a tough housing market, home and garden brands and retailers had to navigate a complex landscape. However, despite these obstacles, the industry continued to thrive in the e-commerce world.
According to Statista, 20% of global shoppers purchased home and garden products online in 2023, highlighting the growing popularity of online shopping in this sector. Additionally, the global online furniture sales hit an average of $422 per order, signaling the potential for significant growth in the market. To gain a better understanding of the performance of the home and garden industry in 2023, let’s analyze the key insights and trends that emerged.
Analyzing 2023’s Home and Garden Sector Performance
The performance of the home and garden sector in 2023 can be analyzed through various metrics, including the global gross merchandise value (GMV), trends in order volume and average order value (AOV), and consumer behavior shifts.
Global gross merchandise value insights
The global gross merchandise value (GMV) in the home and garden sector experienced a 3.25% year-over-year (YoY) growth in 2023. Despite the challenges faced by the industry, this growth indicates the resilience of home and garden brands and retailers.
In the Americas region, there was a 4.84% decrease in YoY orders, but an increase in AOV by 6.46%. Similarly, the EMEA region saw a decrease in YoY orders by 6.72%, but an increase in AOV by 13.25%. On the other hand, the Asia-Pacific region experienced growth in both YoY orders (9.48%) and AOV (2.91%).
These insights suggest that while the number of orders may have decreased, consumers were willing to spend more per order, leading to overall growth in the home and garden sector.
| Region | YoY Orders | YoY AOV Growth |
|---|---|---|
| Americas | EMEA | Asia-Pacific |
| -4.84% | -6.72% | 9.48% |
| 6.46% | 13.25% | 2.91% |
Trends in order volume and average order value
In 2023, the home and garden industry experienced a 4.3% decrease in the number of orders compared to the previous year. This decline can be attributed to various factors, including economic strains and shifting consumer behaviors. However, despite the decrease in order volume, there was a 7.89% increase in average order value (AOV). This suggests that consumers were willing to spend more on home and garden products, potentially due to the rising costs of goods and inflation. The increase in AOV indicates that home and garden brands and retailers successfully raised their prices to compensate for these economic factors. Overall, while the number of orders may have decreased, the higher AOV demonstrates the industry’s ability to adapt and thrive in challenging circumstances.
Consumer Behavior Shifts in Home and Garden Purchasing
The 2023 trends in the home and garden industry also reflect significant shifts in consumer behavior. Two key areas of focus are increased interest in sustainable products and the rise of high-tech home and garden solutions.
Increased interest in sustainable products
One notable trend in the home and garden industry is the increased interest in sustainable products. Consumers are becoming more conscious of their environmental impact and actively seek out eco-friendly options for their home and garden purchases.
- Demand for sustainable materials and products has been on the rise in recent years, and this trend continued in 2023. Consumers are looking for products made from recycled or renewable materials.
- Sustainable gardening practices, such as composting and using organic fertilizers, are gaining popularity among environmentally conscious consumers.
- Energy-efficient appliances and smart home solutions that help reduce energy consumption are in high demand.
This shift in consumer behavior towards sustainability presents an opportunity for home and garden brands to align their offerings with eco-friendly practices and attract a growing market segment.
The rise of high-tech Home and Garden solutions
Another significant trend in the home and garden industry is the rise of high-tech solutions. Consumers are increasingly incorporating technology into their homes and gardens to enhance functionality and convenience.
- Home automation systems, including smart thermostats and lighting control, are becoming more prevalent.
- High-tech gardening tools, such as automated watering systems and smart irrigation controllers, are gaining popularity among gardening enthusiasts.
- The integration of artificial intelligence (AI) and machine learning in home and garden products allows for personalized experiences and efficient management of resources.
- These high-tech solutions cater to the growing demand for convenience and efficiency in home and garden maintenance. As technology continues to advance, we can expect to see further innovation in this area.
Top Home and Garden Trends of 2023
In addition to analyzing the performance and consumer behavior shifts in the home and garden industry in 2023, it is essential to explore the top trends that shaped the sector during this period. Three key trends include embracing outdoor living spaces, the popularity of indoor plants and biophilic design, and the rise of DIY and home improvement projects.
Embracing outdoor living spaces
One of the top trends in the home and garden industry in 2023 was the increased focus on outdoor living spaces. As more people sought to create functional and stylish outdoor areas, the demand for outdoor furniture, decor, and landscaping products grew.
- London was at the forefront of this trend, with residents transforming their gardens into extensions of their living spaces.
- The use of shrubs and blooms to create beautiful and vibrant outdoor spaces became increasingly popular.
- Outdoor kitchens, seating areas, and fire pits were in high demand as homeowners sought to create inviting and comfortable outdoor environments.
This trend reflects a desire to maximize the use of outdoor spaces and create a seamless transition between indoor and outdoor living.
Indoor plants and biophilic design trends
Indoor plants and biophilic design also emerged as significant trends in the home and garden industry in 2023. Biophilic design focuses on incorporating natural elements into interior spaces to create a connection with nature.
- Indoor plants became popular decor elements, with homeowners using them to add greenery and create a calming atmosphere.
- Natural materials, such as wood and stone, were used in furniture and decor to enhance the biophilic design aesthetic.
- The benefits of indoor plants, such as improved air quality and increased well-being, drove the demand for these green additions to homes.
This trend highlights the importance of bringing nature indoors and creating spaces that promote relaxation and well-being.
The popularity of DIY and home improvement projects
In 2023, the popularity of DIY and home improvement projects soared as more people spent time at home. Homeowners took on various projects, from painting walls to building furniture, as a way to personalize and improve their living spaces.
- The festive season played a significant role in driving DIY and home improvement projects, with individuals tackling holiday decorations and renovations.
- The rise of online tutorials and resources made it easier for people to learn new skills and complete DIY projects.
- The desire to save money and add value to homes through renovations and upgrades contributed to the popularity of DIY.
This trend reflects a shift towards hands-on involvement in home improvement and a desire for customized living spaces.
Furniture Trends that Shaped 2023
In addition to the broader trends in the home and garden industry, specific furniture trends took center stage in 2023. Two key trends include the rise of multi-functional furniture and the demand for vintage and sustainable materials.
Multi-functional furniture on the rise
Multi-functional furniture gained popularity in 2023 as homeowners sought to maximize their living spaces. With limited square footage, the need for furniture that serves multiple purposes became essential.
- Decor pieces that double as storage solutions, such as ottomans with hidden compartments, were in high demand.
- Modular furniture systems that can be rearranged and adapted to different needs became increasingly popular.
- Foldable and convertible furniture, such as sofa beds and extendable dining tables, offered versatility and flexibility.
This trend reflects a desire for practical and space-saving solutions while maintaining style and comfort.
Vintage and sustainable materials in demand
The demand for vintage and sustainable materials in furniture continued to rise in 2023. Consumers valued the unique character and environmental benefits of furniture made from recycled or repurposed materials.
- Vintage and antique furniture pieces gained popularity as homeowners sought one-of-a-kind statement pieces for their homes.
- Sustainable materials, such as reclaimed wood and recycled plastics, were used in furniture manufacturing to reduce environmental impact.
- The mold trend of upcycling and repurposing furniture grew, with individuals giving new life to old pieces through creative refurbishment.
This trend reflects a shift towards more conscious and environmentally friendly choices in furniture design and manufacturing.
The Economic Landscape for Retailers and Consumers
In addition to the trends and performance metrics of the home and garden industry, it is crucial to consider the economic landscape that both retailers and consumers faced in 2023. Two key factors to examine are the challenges of navigating supply chain issues and the impact of e-commerce on brick-and-mortar stores.
Navigating supply chain challenges
Supply chain challenges posed significant obstacles for retailers in the home and garden sector in 2023. The disruptions caused by the pandemic and increased demand for certain products led to delays and shortages.
- The festive season, in particular, presented challenges due to increased demand for holiday-related products and shipping delays.
- Retailers had to adapt their strategies to manage inventory and fulfillment effectively while meeting customer expectations.
- The mower trend of diversifying suppliers and establishing stronger relationships with manufacturers became crucial in navigating supply chain challenges.
This trend highlights the importance of agility and adaptability in the face of unforeseen disruptions.
The impact of e-commerce on brick-and-mortar stores
The rise of e-commerce continued to impact brick-and-mortar stores in the home and garden industry in 2023. With the convenience and accessibility of online shopping, consumers increasingly turned to digital platforms for their home and garden purchases.
- Brick-and-mortar stores had to adapt their strategies to compete with online retailers, focusing on creating unique in-store experiences and providing personalized customer service.
- Many retailers embraced omnichannel approaches, offering online ordering with in-store pickup options to cater to different consumer preferences.
- The mower trend of incorporating technology into physical stores, such as interactive displays and virtual showrooms, helped bridge the gap between online and offline shopping experiences.
This trend highlights the importance of integrating digital and physical channels to create a seamless and engaging customer journey.
Predictions for the Future of Home and Garden
Looking ahead, several predictions can be made for the future of the home and garden industry. Two key areas to monitor are the continuation of remote work influencing home design and the growth of the smart garden equipment market.
Continuation of remote work influencing home design
The shift towards remote work is expected to continue influencing home design in the future. As more people embrace remote work or flexible work arrangements, the need for dedicated home office spaces and adaptable living environments will grow.
- Homeowners will prioritize creating functional and ergonomic workspaces that support productivity and well-being.
- Flexible furniture solutions that can transform from office setups to living spaces will become increasingly popular.
- The integration of technology, such as smart home devices and efficient internet connectivity, will be essential for seamless remote work experiences.
This trend reflects the changing dynamics of work-life balance and the increasing importance of creating a home environment conducive to both work and relaxation.
Growth of the smart garden equipment market
The market for smart garden equipment is expected to experience significant growth in the future. As technology continues to advance, homeowners will seek innovative solutions to streamline and enhance their gardening experience.
- Smart irrigation systems that adjust watering schedules based on weather conditions and plant needs will become more prevalent.
- Robotic lawn mowers and other autonomous gardening tools will gain popularity as they offer convenience and time-saving benefits.
- Connected garden monitoring systems that provide real-time data on soil conditions, plant health, and pest control will become indispensable tools for gardening enthusiasts.
This trend reflects the increasing integration of technology into everyday tasks and the desire for efficient and sustainable gardening practices.
Conclusion
With the increasing demand for sustainable products, there is a substantial opportunity for USA suppliers in the Home and Garden industry. Offering eco-friendly alternatives, such as furniture made from vintage and sustainable materials, can attract environmentally conscious consumers. Embracing trends like biophilic design and smart garden equipment can set American suppliers apart in a market leaning towards eco-conscious choices. By aligning with the current sustainability and technology-driven trends, US suppliers can capitalize on the evolving preferences of modern homeowners. Start selling on Alibaba.com today.
