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The home and garden products B2C e-commerce market size is estimated to grow at a CAGR of 10.53% between 2022 and 2027. The size of the market is forecast to increase by USD 30,189.84 million. The growth of the market depends on several factors, including the rise in online spending and smartphone penetration, the unproblematic return policy, product comparison, and cash on delivery, and the availability of easy payment options on the e-commerce platform.
This market report extensively covers market segmentation by product (home decor, home improvement products, and others), end-user (commercial and household), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rise in online spending and smartphone penetration is notably driving the market growth, although factors such as the criticality of logistics management lead to high overhead costs may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Home And Garden Products B2C E-commerce Market Driver
The rise in online spending and smartphone penetration is notably driving market growth. An increase in internet penetration has been a key driver of the growth of the global online home decor market. Online shopping through smart devices has also gained popularity over the years because of the high penetration of internet services, improved economic growth, and the upgradation of purchase and delivery options with the emergence of e-commerce. In addition, tablets that offer larger and more tangible interfaces and are frequently used are more suitable for purchasing products online as they facilitate the decision-making process. Websites also provide detailed information on products, including quality, safety measures, and user guidance, all of which have increased the demand for e-retailing. Consumers also feel a lot more comfortable about purchasing products on the go.
Security features for online payments, free delivery, improved online customer services, and the customer-friendly designs of online shopping websites are also contributing to the growth of the market. Rising online sales act as a key market driver for the global online home decor market growth.
The increasing emphasis on mobile commerce is mainly driven by the purchase of millions of new smartphones and the creation of more opportunities for buyers to shop. A few of the major retailers, such as Amazon, Snapdeal, Flipkart, and Alibaba, have their own mobile applications. Such factors are driving market growth.
Significant Home And Garden Products B2C E-commerce Market Trend
The emergence of omnichannel retailing is a major trend in the market. Omnichannel retailing is an emerging trend that allows manufacturers to sell their products through both offline and online channels. The online retail channel comprises company-owned platforms and popular e-commerce websites. Consumers look for information on products and new releases on the Internet. Major retailers and companies that manufacture consumer goods do not consider physical storefronts as an alternative to online businesses; however, they consider the online platform as an additional sales channel to increase their market presence. Online presence aids these companies in expanding their business reach and brand awareness. In addition, it also opens up sales opportunities to the entire web on the Internet instead of limiting them to specific geographical locations. Many physical stores and retailers are adding e-commerce platforms in order to reach more people, thereby expanding their brand awareness across all sales channels.
Thus, to gain a larger customer base and higher revenue, the vendors are integrating their offline-online presence by implementing an omnichannel strategy in their respective business models. Evolving customer shopping patterns, changing online purchasing behavior, and growth in the number of digitally-driven customers, especially the millennial population, are some factors that encourage vendors to take up online retailing. Therefore, several retail brands have entered the online space and are adopting the omnichannel medium. This is expected to increase the online sales of home and garden products at a significant rate during the forecast period.
Major Home And Garden Products B2C E-commerce MarketChallenge
The criticality of logistics management leading to high overhead costs is a major challenge impeding market growth. Slack in logistics management, such as the lack of proper postal addresses, and logistical complications, such as late product delivery and chaotic routing, are important aspects that can have a negative impact on the market. These factors can increase overhead costs and weaken profit margins. The lack of standard delivery services also discredits the brand /image of the company, thereby dwindling the customer base. International online retailers from the US and Western European countries incur huge losses owing to such problems.
Online retailers hire many field workers for better delivery services, which adds to their labor costs. This additional cost is paid from the vendor's profits, thereby debilitating their profit margins. Therefore, e-retailers should emphasize effective product distribution by partnering with established and regional third-party logistics providers. This prevents additional costs on labor. Proper distribution of products can also prevent a decrease in profit margins. In case any complication arises, the third-party logistics providers will be responsible for solving the problem. These factors are hindering the growth of the focused market.
Key Home And Garden Products B2C E-commerce Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Home and Garden Products B2C E-commerce Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Inter IKEA Systems B.V. - The company operates under multiple segments including franchise, range, and supply.? The company's key offerings include home and garden products such as rugs, lighting, pots, and parasols.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the home decor segment will be significant during the forecast period. This segment includes home furnishing products such as home textiles, furniture, and floor coverings. It also includes other home decor products such as lamps, fixtures, wallpapers, candles, paintings, clay pots, clocks, antiques, art pieces, and indoor flowers and plants that are available online.
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The home decor segment shows a gradual increase in the market share of USD 17,176.36 million in 2017 and continued to grow until 2021. The availability of detailed product catalogs with defined product categories on most websites and sales portals is an important factor that enhances the consumer experience. The ease and convenience of shopping on online platforms bridge the gap between offline and online retailing. However, in the furniture category, the market is yet to penetrate the potential consumer segments. Many customers still prefer purchasing expensive furniture from physical stores. E-retailers provide a wide variety of products, product bundling, price discounts, and exclusive offers, contributing to the sale of home decor products. The growth of the real estate and residential construction industry is one of the key factors driving the growth of the home decor segment. Moreover, the availability of various home and garden products B2C e-commerce vendors with wide product offerings is providing customers with a wide range of furniture and furnishings to choose from. The integration of various technologies, such as AR/VR, by vendors, has helped customers in making smart purchase decisions. Such initiatives will drive the growth of the home decor product segment during the forecast period.
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APAC is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in APAC is expected to grow during the forecast period. The major countries contributing to the growth of the market in the region are China, Japan, and South Korea.
China is one of the fastest-growing economies globally. The main factors that contribute to the growth of the Chinese market include rapid globalization, rising spending power, and changes in consumer preferences. Growing internet penetration and the rise in the use of smartphones contribute to the trend of online shopping in the country. These factors and the ease of shopping on the website of third-party e-retailers will drive the market in the future. However, the availability of counterfeit products is a major challenge for the market in China.
The other leading countries in the region include Japan and South Korea. Internet and smartphone penetration, high spending power, adoption of omnichannel retailing, and growing digital advertisements are expected to propel market growth in these countries. India is also among the fastest-growing countries for e-commerce in APAC due to the growing number of internet and smartphone users and the rising trend of online shopping. The e-commerce industry is also growing in countries such as Vietnam, the Philippines, and Thailand. Major vendors in the region are focusing on omnichannel sales as well as increasing their market reach by providing products on e-commerce websites. All these factors are expected to drive the growth of the market in APAC during the forecast period.
The outbreak of COVID-19 in 2020 had a positive impact on the regional market. Lockdowns enforced in various parts throughout the region led to people spending more time at home. As a result, the demand for home furniture in the region soared throughout the prolonged lockdown period. In addition, with more employees working from home, the need for office furniture such as study tables, work tables, and home office settings surged, resulting in the growth of the market in the region. In addition, in 2021, the lifting of lockdowns and large-scale vaccination drives across the region resulted in the resumption of construction activities of high-rise commercial and residential buildings. This is expected to boost the requirement for home decor in the market. Hence such developments will contribute to the growth of the market in the region during the forecast period.
The Home And Garden Products B2C E-commerce report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Home And Garden Products B2C E-commerce Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.53% |
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Market growth 2023-2027 |
USD 30,189.84 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
9.96 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 55% |
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Key countries |
US, China, Japan, UK, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amazon.com Inc., BAUHAUS E Business Gesellschaft fur Bau und Hausbedarf mbH and Co. KG, Bed Bath and Beyond Inc., Costco Wholesale Corp., Godrej and Boyce Manufacturing Co. Ltd., Golden Acre Garden Sentre, Hennes and Mauritz AB, Inter IKEA Systems B.V., Lowes Co. Inc., Lulu and Georgia, Overstock.com Inc, Penney OpCo LLC, Target Corp., Tesco Plc, The Home Depot Inc., Ugaoo Agritech Pvt. Ltd., Walmart Inc., Wayfair Inc., Williams Sonoma Inc., and Reliance Industries Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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