The Home and Garden sector is set to explode regarding eCommerce over the next few years. More and more brands are making the change from brick-and-mortar stores to online eCommerce retailing.

The sector is estimated a Compound Annual Growth Rate (CAGR) of 16% from 2018 to 2022. For perspective the whole retail industry is only projected a CAGR of 5.3%. But why are we seeing this boost in customer spending?

The sector’s customers are evolving

According to research from Statista, online furniture sales are growing at a rate of 11.9% and set to reach a market value of $294 by the end of 2022. What is interesting about this Is that 50% of these purchases are made by millennials or Gen Z. This is because these younger people are beginning to buy their first houses. The fact is that these generations are much more used to using computers and buying online this therefore translates into more sales for the eCommerce home and garden market.

Another interesting reason why sale may be going up in this generation may be due to fast rising house prices and them having to buy houses that need work or renovation, therefore increasing sales in home and garden online.

The younger generation also are now more likely to stay in their house for longer periods of time and so will want to purchase products to improve their house/garden.

These days most people will look to social media for inspiration and home/garden is no exception. Platforms such as Pinterest and Instagram hare full of people posting their own homes and garden. Such posts tend to inspire many people to make purchases for products in the industry.

Covid-19 is positively impacting the sector’s sales

With many people stuck inside their homes, people wanted to make that environment as nice to live in as possible. This meant spending on furniture, decorative and gardening. Therefore, we can see such huge spikes as below:

Things like home offices and home gyms are also becoming more common after everyone needed to stay at home due to the various lockdowns during the pandemic.

To conclude, we have seen great growth in the Home and Garden sector over the past few years and the opportunities for eCommerce retailers in this sector are only growing.