Garden Plastics Market

The rising interest in backyard gardening/home gardening/urban gardening is one of the key drivers of growth in the garden plastics sector. The changes to consumer lifestyles, and the greater awareness around the need for more environmentally responsible/sustainable and self-sufficient options all shaped this change in consumer behavior. This trend was helped by the COVID-19 pandemic, as consumers were also thinking about improving their homes and living spaces and improving their mental wellness through gardening. More specifically, things like at-home gardening supplies, which are simply plastic products for home gardeners, like pots, planters, seed trays, composters, and raised garden beds, saw an uptick in demand.Plastic gardening products have unique advantages to meet the demand changes, since they are inexpensive, lightweight, durable, and versatile. For example, regions such as North America and Europe are well established with a higher disposable income and have a history of established landscaping culture; however, regions within Asia-Pacific and South America are realizing the need for rooftop gardens and more vegetated vertical gardens as urban spaces become more restrictive. Moreover, social media and online gardening communities are improving marketability and heightening awareness for garden materials, thereby increasing consumer engagement.

The garden plastics sector is heavily reliant on a variety of raw materials, primarily polypropylene (PP) and polyethylene (PE), both of which are derived from petroleum. These polymers represent a significant proportion of the cost to manufacture garden plastics, as a result the garden plastics industry is sensitive to the price of crude oil - and its volatility. Crude oil prices are frequently volatile on the marketplace due to various circumstances including geopolitical unrest and conflict, supply chain disruptions and macroeconomic uncertainty. Supply chain disruptions and geopolitical tensions have led to increased oil prices and in turn increased plastic resin prices which flow through to increased costs for suppliers throughout the supply chain. When resin prices increase from one month to the next, or week to week, suppliers must then tread a fine line when deciding whether they absorb the increase in resin price and reduce margins or increase the price to their customers, which then may negatively impact demand from consumers. Many of the major domestic manufacturers in the garden plastics industry are small suppliers without the long-term supply contracts and market strength to hedge themselves against volatility. Added to the impacts of unstable global oil prices, the garden plastics industry also must consider indefinite shipping disruptions and delays, processing plant shutdowns, and raw material shortages, all of which increases the complexity and unpredictability in raw plastic prices. With these increases and instability in resin pricing, as well as shipping delays, price uncertainty makes financial planning and operating planning nearly impossible. Price instability directly spreads throughout the supply chain and affects productions and shipments at the supplier level but also impacts distributor pricing and consumer price points as well.

A rising importance on environmental sustainability - is resulting in a need for recycled and bio-based plastics across the garden applications. With a global shift towards circular economies, and as both governments and industries adopt similar approaches, the use of post-consumer recycled (PCR) plastics and renewable bio-resins is quickly increasing for pots, planters, compost bins and lawn edging. Materials like recycled polyethylene (rPE), recycled polypropylene (rPP), and polylactic acid (PLA) are being used to manufacture eco-friendly alternatives that lower the carbon footprint. These products align well with consumer preferences for sustainable, low-impact goods and offer manufacturers a path to meet emerging regulatory requirements. For example, EU regulations requiring minimum recycled content in plastic products are forcing producers to shift towards green materials. This shift is creating opportunities for firms to differentiate themselves in the market and reach environmentally conscious customers, as well as enter an interesting new sustainable market segment.

Natural and biodegradable materials such as clay, metal, bamboo, wood, and stone are creating increased competition in the garden plastics market. Environmentally aware consumers are choosing sustainable, aesthetically pleasing, and lower environmental impact natural materials. Products such as terracotta pots, wooden planters, and metal garden containers can last a lifetime, even after they have outlived their usefulness, they do represent the more biodegradable materials. As such, sustainability is evident with these products being deployed by consumers becoming more visible, for example, consumers who want durable products, with greater resale life cycle, and improved aesthetics for their patio or outdoor areas. Natural materials are generally more environmentally safe than plastic products made from polyethylene (PE) or polypropylene (PP) products, which do not decompose. Materials such as renewables like wood and bamboo sources decompose simply, and metals like galvanized steel and aluminum are recyclable, and durable. Although environmentally safe products labeled "eco-safe" or "sustainable" promote sales via garden centers and online shops, but the simplest materials such as wood and bamboo could lessen/neglect plastics consumption. In Europe, public procurement programs service suppliers based on restrictions prohibiting certain plastics and promoting biodegradable alternatives.