Abstract
Water gardening has increased in popularity in recent years fuelled by
gardening makeover programmes on television, large garden shows featuring
water gardens, rising disposable incomes and low inflation. It is estimated
that approximately 9-10% of UK homes have some form of water feature, though
many are relatively small and require minimal equipment.
While the overall water garden market is estimated to be worth around £150
million, the pond equipment sector is valued at an estimated £38m at
manufacturers prices in 2005.
Although historically the pond equipment market has seen steady growth, lower
growth was seen in 2004-05 due to poor weather and reduced consumer spending.
Growth in volume terms is understated as market prices in many product sectors
have been stable or even declined in recent years.
The largest sector of the pond equipment market is liners and pre-formed
ponds, which account for an estimated 25% of the market. Pumps are also a
major sector at 23% of the market by value, whilst general accessories,
including fish food and pond treatments, are a growing market at 22%.
Filtration systems account for 18% of the market with pond accessories making
up the balance of the market and including products such as self-contained
water features.
In the liners and pre-formed ponds sector, liners hold the dominant share
accounting for over half the market whilst pre-formed ponds have an estimated
share of 40%. Within the liner market, plastic liners are the larger sector
representing 65% of the market, having seen a small loss in share to rubber
liners, due to more competitive retail prices. The rubber liner market is a
significant part of the liner market and is generally viewed as the premium
product. Most pre-formed ponds are plastic, although glass-fibre ponds account
for 40% of the market.
The pumps market has seen some growth in middle range pumps (1000-3999 litres
per hour) at the expense of smaller pumps (flow rates up to 999 litres per
hour) as the price differentials between these two groups has lowered. The
pumps market has performed better than the market average as this sector is
not wholly reliant on new pond construction but will benefit from upgrading by
existing pond owners.
The general accessories market has seen above average market growth due to
good growth in fish foods and treatments. These products are often seen as
essential purchases rather than 'extras' and have performed well in contrast
to other sectors in the market, which have suffered poorer growth as a result
of bad weather and lower consumer spending.
In the filtration systems market, combined units, which offer consumers
significant benefits in terms of installation time and cost savings, have seen
growth.
Pond accessories include products such as self-contained water features, which
have seen some growth in the last 2 years, pond lighting, pebble pools and
preformed watercourses.
Most of the leading suppliers in the pond equipment market are either
specialists in the pond sector, or part of larger groups with interests in
wider garden products. However, the market is attracting new entrants from
other sectors, offering purpose-designed products. The market is also
characterised by a number of imports, for example from Europe and the Far
East, resulting in increased competition. Hozelock Cyprio is overall market
leader in the sector, with an estimated share of around 21%. Blagdon, Oase,
Tetra and Oasis are also leading suppliers, with shares of around 10-14%. The
remainder of the market is made up of a large number of suppliers, some of
which specialise in particular sectors of the market, for example, Firestone
rubber liners and Atlantis glass fibre pre-formed ponds.
Specialist aquatic/water garden centres continue to dominate the distribution
of pond equipment with an estimated 50% share. Garden Centres are also leading
outlets, but many of these sell pond equipment through concessions run by
specialist aquatic operations, such as World of Water and Maidenhead Aquatics.
Mail order and DIY Multiples each account for relatively small shares, while
landscape contractors are strong in the pond liner/pumps sectors. Specialist
aquatic centres are anticipated to maintain their dominant position based on
their extensive product range, knowledge and customer support.
Future prospects for pond equipment remain fairly positive after a poor
performance during 2004-05 and the market is expected to see some improvement
in 2006-08, albeit at relatively low growth rates of 4-5% when compared
historically with the higher rates of growth seen in previous years. Increased
competition has resulted in lower prices for consumers and so pond ownership
is becoming more accessible to a larger number of people. Consumers are
expected to continue to upgrade pond equipment, which should be especially
beneficial in sectors such as filtration systems, where consumer awareness of
these products and their benefits is increasing.
Large garden shows with water garden displays have also stimulated interest in
water gardening as a leisure activity and this is expected to continue in the
foreseeable future. Gardening programmes encourage more adventurous
landscaping projects, even for relatively small gardens, which has seen the
pond equipment market benefit. The economic climate in early 2006, however, is
uncertain, with slowing consumer spending, a flat housing market and uncertain
overseas markets, coupled with low interest rates and low inflation, but
rising unemployment. Possible severe winter weather is expected to hamper
pre-season sales, but future summer weather is obviously impossible to predict
but will always play an important part in market performance in any given
year. However, growth forecasts for 2006-08 are positive and the market is
expected to grow to £43m at MSP by 2008.
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