Rising incomes and an ageing population drive demand
Melbourne, Australia (PRWEB) February 19, 2013
The Gardening Services industry has flourished over the five years through 2012-13. The industry's strong demand fundamentals have underlined steady growth despite an uncertain economic climate. The industry's main customer base is households, headed by high income earners that lack time or energy to care for their own garden and groups physically unable to garden, such as the elderly. According to IBISWorld industry analyst Andy Brennan, “demographic shifts have worked in the industry's favour as higher income levels across the board and a steadily ageing population have boosted demand for this discretionary service”. Consumer confidence has weakened slightly in 2012-13, and IBISWorld expects that industry growth will slow slightly for the year.
The Gardening Services industry is highly fragmented with most enterprises being owner-operated. “The large number of small businesses serving local areas means almost anyone with the physical capability and access to the required equipment can enter the industry”, says Brennan. Low barriers to entry mean the industry is highly competitive in some locations, with operators competing on price and service. The success of franchise operations like Jim's Group Pty Ltd and VIP International Pty Ltd has led the market to consolidate to some degree over the past decade. These well-known companies have used the power of mass marketing and a consistent brand message to grow their market share. However, there are still opportunities for new businesses.
Over the next five years, easing drought conditions throughout Australia are expected to drive stronger industry growth. Steady population gains, rising household disposable income and the continued ageing of the population mean demand for gardening services is projected to remain strong.
For more information, visit IBISWorld’s Gardening Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Gardening services include lawn mowing; plant pruning; tree lopping; fertilising and watering of plants and lawns; garden refuse removal; and some basic landscaping services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
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