Houston - U.S. demand for packaged lawn and garden consumables including fertilizers, pesticides, growing media, seeds and mulch, is expected to grow 4.5 percent a year to $ 7.5 billion in 2008, a study released Tuesday projected.
The growth will be led by fertilizers, mulch and growing media, all of which will continue to post healthy annual gains of around 6 percent, according to the study by Cleveland, Ohio-based Freedonia Group.
Lawn and garden consumables growth will be restrained by sluggish pesticide sales, which not only make up more than 30 percent of the market, but are also the most expensive segment on a dollar per pound basis. Increasing concern over the environmental and health effects of agrochemicals will dampen pesticides' prospects, the study warned.
The residential market will account for more than three-quarters of total demand in 2008. Home gardening activity, including lawn care, has been steadily increasing over the past decade as the baby boom generation has entered the 55-64 year-old age segment.
Demand from golf courses, the second largest market, will grow more slowly than that of the residential market, Freedonia said.
"Courses have been reducing chemical use to limit potentially harmful effects and to help offset decreased revenues during the 2001-2002 economic slowdown. On the positive side, the aging of the baby boom generation, as well as an increase in golf participation among young people, will feed golf course construction and aid consumables growth," according to the study.
Source: Chemical News & Intelligence