New Consumer Edge Study Reveals Mortgage Rate Cuts, Aging Population and Late Winter Storms as Top Three Tailwinds Driving Home & Garden Spend Consumer spending data creates a dynamic environment for home and garden businesses, offering opportunities to boost performance, adapt strategies, target consumers and increase revenue.
NEW YORK, NY
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March 19, 2024 09:00 AM Eastern Daylight Time
Consumer Edge (CE), the leading provider of global consumer data-driven insights, today reveals the top three biggest macro trends influencing the home & garden industry right now. CE’s latest white paper, “Three Tailwinds Driving Home & Garden Spend,” identifies three key macro trends that are expected to positively impact the home and garden industry in the coming year. An aging population, potential interest rate cuts by the Federal Reserve, and late winter snow storms present opportunities for home & garden companies to ramp up to the season and benefit from consumer spending patterns.
"Our report on the home & garden sector explores three important factors driving spending trends this season: mortgage rates, an aging population, and weather. Lower mortgage rates are encouraging homeowners to make home repairs to get their homes ready for a more active home buying season. The growing influence of boomers is driving demand for home and garden products. Weather conditions are increasing the need among homeowners in certain regions to do things like waterproof, insulate and heat their homes,” said Michael Gunther, VP, Head of Insights at Consumer Edge. “By understanding these key trends and monitoring their impact as the spring season unfolds, home & garden brands can make informed decisions about their product offerings, marketing strategies, and customer service. Companies that are able to capitalize on these insights will be well-positioned to succeed this year."
Top Three Tailwinds Driving Home & Garden Spend
Mortgage Rate Impact on Home Improvement Spend: Mortgage rates keep falling from their October 2023 peak, and each rate cut brings an acceleration in home & garden spend as affordability drives housing purchases.
Share of Wallet by Age: Boomers are getting older, and homeowners over the age of 65 spend twice as much on home & garden as those buying their first homes at 18-24.
Spend Growth by Geography: Regions such as downstate New York saw their first snow in two years in January 2024, and it drove shoppers out to protect and repair their homes.
The week of the first winter storm for New York, home & garden spend growth in the state outpaced national growth by 7.4%. With record snow hitting the region again in mid-February, later snowfall could extend this windfall into early Spring.
Which brands will this affect?
Companies that can cash in on lower mortgage rates offer a range of services to homeowners, such as Homeserve insurance, TruGreen lawn care, and Aptive Environmental pest control.
Homeserve and TruGreen also are among the top brands shopped among those aged 65+, benefitting from a double tailwind.
Other top beneficiaries of the aging population who should plan for increased spend include home décor provider, Collections Inc and bedding/bath towel purveyor, MyPillow.
During New York’s January snowstorm, trends for increased spend at energy/heat providers and warm blanket sellers, Brooklinen occurred.
CE’s Three Tailwinds Driving Home & Garden Spend white paper provides a detailed analysis of each trend and its potential impact on the home and garden industry. It also includes recommendations for companies on how to capitalize on these trends. To download Three Tailwinds Driving Home & Garden Spend, click here.
Insights Methodology
Consumer Edge highlights observed panel sales for its Home & Garden Spend aggregates and top individual brands across the US. The Consumer Edge panel consists of US ~40M debit and credit cards.
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Note: 364 days ending 1/28/24, % of homeowners shopping at brand vs. % of overall population; brands with at least 2,500 customers in dataset
About Consumer Edge
Consumer Edge (CE) provides data-driven insights focused on the global consumer. Founded in 2009 by CEO Bill Pecoriello, CE is a data and insights as a service (IaaS) company delivering unparalleled views into global consumer spending behavior coupled with deep industry knowledge and analytical expertise. CE solutions provide key stakeholders across the corporate and investment landscapes with best-in-class tools to enable enhanced strategic decision-making. CE’s unique capabilities allow for actionable insights driven by near real-time market intelligence and benchmarking at the brand, sub-industry and industry levels. For more information visit consumer-edge.com.
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Kite Hill PR for Consumer Edge
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