Gardening tools market

Continuing to survey the different segments of the professional industrial tool market, we would like to turn today to garden tools.

Garden tool - a group of tools used to grow and care for green spaces and maintain order on the land. Conventionally, this group can be divided into two subgroups: hand tools (inventory) and garden equipment.

Gardening tools include basic gardening tools such as saws, scissors, pruners, hammers, shovels, shovels, weeding tools, and axes used for pruning and digging, etc. The growing trend of gardening as a leisure activity (and in Russia, growing food in your garden is also part of the culture) supports the growth of this segment.

Garden equipment is conventionally divided into three groups:

for mowing grass - various trimmers and lawn mowers.
for various agrotechnical works on pruning trees, tillage, etc. - cultivators, sprayers, bone cutters, walk-behind tractor, etc.
for agricultural work on cleaning the site, processing waste - garden vacuum cleaners, blowers, shredders, etc.

The global gardening tool market is projected to reach $ 10.5 billion by 2025 (with a CAGR of 4.2%). Marketresearchfuture estimates that this demand will be driven primarily by the commercial sector - for example, the United States has strict government regulations on the maintenance of public green spaces and gardens, which contributes to consistently high demand for garden tools. In Europe, it is expected that strong demand will come from individuals as well - the trend towards barbecuing on a well-groomed outdoor lawn is stable. The Asia Pacific region is expected to become the fastest growing regional market for garden tools. The growth in residential construction is projected to increase the demand for garden tools. In addition, the demand for garden tools is expected to be fueled by the need to enhance the aesthetic appeal of commercial spaces such as shopping malls and offices.

In contrast to the points of growth in demand for gardening tools, the rise in prices for it is the main deterrent, especially against the background of the current global crisis.

In Russia, the same tendency can be traced as in the world market - the demand for garden tools is growing. However, with a number of features. Although over the past 5 years in Russia there have been fewer citizens with dachas or garden plots (according to VTsIOM - from 46% in 2014 to 42% in 2019), closed borders this year forced Russians (in terms of real estate) to postpone plans to buy a new housing, but to make repairs in the existing one, and spend a vacation not abroad, but in the country. Given the crisis and the decline in real income, this has led to an unprecedented growth in sales of tools of various categories on AliExpress. From April to June 2020, their sales increased by 94% (!). Of course, not all categories are the same - it just doesn't make sense to save somewhere, but sales of gardening tools in the second quarter of this year grew by 192% compared to the second quarter of 2019. The growth of the category is due not only to the season, but also to the increase in supply on the platform ... New sellers are offering AliExpress buyers innovative products that greatly facilitate the work of summer residents. The most popular positions in the category are gasoline lawn trimmers of various capacities, lawn mowers and electric trimmers.

As for Russian legal entities that buy gardening tools, everything is quite predictable here - thanks to the import substitution policy and a wide selection of domestic goods (about the manufacturers below).

The world's key manufacturers of garden tools are:

Husqvarna AB (Sweden)
Fiskars Group (Finland)
Stanley Black & Decker, Inc. (USA)
Griffon Corporation (USA)
Andreas Stihl AG & Co. KG (Germany)
CobraHead LLC (USA)
Lasher Tools (South Africa)
Zenport Industries (USA)
Bully Tools, Inc. (USA)
Corporacion Patricio Echeverria, S.A. (Spain)
Ray Padula Holdings, LLC (USA)
Garden Tool Company (UK)
American Lawn Mower Co (USA)
Root Assassin LLC (USA)
SNA Europe (Sweden)

Traditionally, we will consider the key Russian manufacturers of gardening tools and estimate their scale in terms of gross profit for 2019 // 2018:

LLC Uraloptinstrument (Rezer, Parma, Carver, Rezoil) - 1 billion rubles // 979 million rubles, i.e. -2.1%.
PJSC KADVI (Ugra, Oka, Avangard, Sadovnik) - 1.02 billion rubles // 458 million rubles, i.e. -49%. During the period, revenue has significantly decreased, while the cost has increased.
LLC GILEX - 567 million rubles // 552.7 million rubles, i.e. -2.5%.
Subline Service LLC (Aquarebot, Unipump) - 381.3 million rubles // 444.6 million rubles, i.e. + 16.6%.
Tool Trade Center LLC (Tsentroinstrument) - RUB 314 million // RUB 342 million, i.e. + 9%.
OOO Academy of Instrument (Celina) - 116 million rubles // 69 million rubles, i.e. - 41%. The legal entity was declared bankrupt, bankruptcy proceedings were opened against it.
JSC Artinsky plant (Arti) - 53.7 million rubles // 43.2 million rubles, i.e. -nineteen%.
PJSC PO Horizon - RUB 14 million // loss of RUB 2 million. Until 2017, there was an increase in profit, however, in 2018 there was a significant decrease in profit and a simultaneous increase in cost.
OOO Galaktika (Stavr) - 4.61 million rubles // 6.5 million rubles, i.e. + 41%.
OOO PKP Masterplast - 4 million rubles // 7.2 million rubles, i.e. + 80%.
LLC Siberian Technologies (Sibrtech) - 3.1 million rubles // 4.2 million rubles, i.e. + 35.5%.
LLC PK Tandem-AGRO - 5.7 million rubles // 3.1 million rubles, i.e. -46%.
OOO PO Vulkan (Mitrax). In these years, a loss of -2 million rubles was received // -5 million rubles.
LLC VORK (Khoper) and LLC Khoper-instrument - since 2015, they have not submitted their accounting balances to the statistics authorities (Rosstat), the indicators cannot be estimated.
Zubr OVK CJSC is difficult to estimate, the company produces and supplies more than 10,000 items of tools, of which gardening is not the most significant part.
LLC Caliber-online - did not submit reports to Rosstat, it is impossible to assess financial performance.
Agroinstrument LLC - in 2019 there was a reorganization, it is impossible to correctly assess the financial performance.
JSC "MMP named after V.V. Chernyshev" (Mole). It is difficult to estimate the share of gardening equipment - the main direction of the enterprise is far from the production of tools.

Russian and foreign manufacturers of gardening tools are represented at the Enex virtual exhibition, for more details - https://enex.market/en/catalog/sadovyy_instrument/.