The 2006 Grapevine Survey
Executive Summary

When we completed the first Grapevine survey in 2000, we identified gardening as a leading hobby among adults in the United States. Over the past six years, however, homeowners have developed different attitudes about gardening activities. Much of this is related to shifting demographic dynamics, such as the aging baby boom generation and a younger homeowner who has different ideas about how to spend discretionary income.

In this updated version of our survey, we have observed and noted these changes in an industry that is approaching maturation. Over the past six years, annual retail gains in the lawn & garden industry have slowed. Households are committing fewer discretionary household dollars at the local garden center. Today’s garden center is faced with having to target other market segments to sell goods and services. Business models need to be tweaked or changed in order to remain competitive in a changing industry environment.

In 1999, the percentage of U.S. adults identifying gardening as a hobby peaked at 15%; in 2004, this declined to 5%. Why has gardening become less relevant to today’s consumer? Interestingly, these changes can be attributed to certain demographic anomalies, namely the Baby Boomers and their changing values as this generation ages. The Baby Boomers have been the driving force behind the huge growth in gardening activities over past decades. Now, as the leading edge of this generation approaches 60, these former do-it-yourself gardeners have become more service-focused; dollars that used to be spent at the local garden center have been reallocated to the lawn & garden service segment such as lawn and landscaping companies. In fact, more new dollars today are flowing into the service segment of the industry than the retail end.

Another change identified in our demographic analysis is that homeowners in the 25-40 age brackets have different attitudes about gardening than their parents did at their age. This group today seems more interested in using available discretionary dollars for activities other than gardening, such as travel or other leisure-related activities.

What does this mean for the gardening industry? First, the local garden center must find ways to expand services that appeal to a service-oriented generation. Second, retailers must target new groups of consumers, such as first time homebuyers, condominium dwellers or the ethnic consumer. Third, retailers must recognize they can no longer expect the same kind of robust growth they experienced as a result of the Baby Boomers; today, growth in retail revenues is going to track with overall population gains and general economic growth. Retailers must find better ways to reach out to today’s savvy consumers if they are going to survive this changing industry. Our 2006 Grapevine Survey is written in a user-friendly and readable format. It explains in detail how consumer trends are changing and how the lawn and garden industry must accommodate these changes. There will be businesses that respond positively to these changes and make the necessary adjustments to their business models; these organizations will thrive and represent the new face of the industry.