What’s in store for the UK Garden Centre Market in 2025?
Throughout 2024, the UK garden centre market has certainly faced challenges, with poor unseasonable weather, reduced overall consumer spending and inflationary pressures acting as significant contributing factors. But that’s not to say that the garden market industry wilted in 2024. In many ways, it flourished and as the weather improved, as did supply and demand for garden produce.
Cultivation through catering
Despite a small reduction in outdoor plant sales (-2% in June YOY), there was a substantial uptake in houseplants (+15%), food hall/farm shop goods (+15%) and catering (19%). Understandably, given these statistics, many garden centres have voiced the desire to add a café to their offering. This would not only help to diversify their business and broaden their appeal, but with food and drink offering a higher gross margin than retail, could cause a healthy increase in profits.
Diversifying your land
Talking about diversification, this seems to a be a key trend as garden centres move into 2025. Not only food and drink spaces, many garden centres have expansion plans to include lifestyle-focused products and leisure activities. This includes children’s play areas, golf courses, zip lines and pick your own fruit days. This shift toward garden centres becoming a ‘day out’ rather than a quick trip for supplies largely comes down to demand and appealing to a broader audience.
Starting from a seed
But what does this mean for smaller garden centres that don’t have the space or budget to add large new food halls and leisure areas? There’s nothing to stop smaller garden centres thriving in this changing industry, it might just take a little imagination and some strategic planning. Consider what you can offer that nobody else does near you. Could you arrange cookery classes for children using freshly picked ingredients? Or host a pop-up eatery outside your centre?
It’s not just about leisure either, customers now value quality more than ever, so if you can cement your reputation as the best quality produce on the market, that may be more than enough to put your name in the spotlight.
Nurturing saplings
Did you know that in a poll by Draper, 54% of 18–24-year-olds confirmed they would rather go to a garden centre than a nightclub? This incredible statistic is hugely positive for the future of garden centres and nods to the diversity of people attracted to this industry. To keep the younger generations on side, it’s important to consider their preferences. Many won’t have their own garden to maintain – but may be moving into a flat or living in university accommodation – in which case, making sure your garden centre has a great range of indoor and balcony-friendly plants will be sure to go down well.
Sustainability in growth
As the garden centre industry continues to grow, it’s predicted that they will move toward renewable energy methods to reduce utility costs and generate power on-site.
Conclusion
The garden centre market isn’t showing any signs of slowing down and those looking to diversify their offering - even in small ways - may reap the rewards. Other key trends that are worth noting are:
Garden Centre Association (GCA) reports annual sales rose by 3.26% in comparison to the year before
Hard landscaping (including rockeries, patios, decking and pathways) was the most popular purchase at garden centres in 2024
Seeds, bulbs and outdoor plants are still popular purchases, after catering, clothing and farm shop
If you run a garden centre and you’re considering your future plans, the team at Redwood Insurance Brokers ltd would be delighted to support you in your journey to ensure your insurance continues to grow with you. Our team of experts can talk you through your policy options that will cover the risks you face, including cover for non-standard construction, contents and stock in the open and children’s soft play centres. Want to know more? Get in touch on 01268 776277.
