In Germany, the DIY and garden center industry is grappling with a challenging economic climate as consumers tighten their belts and approach spending with caution. The sector, which thrived during the pandemic as people invested in home renovations and gardening, has now faced two consecutive years of declining sales.
According to the German Association of DIY, Garden Centers, and Building Supplies (BHB), the industry generated approximately 20.9 billion euros in sales over the past year. This figure represents a 1.5 percent decrease compared to the previous year, highlighting a stark contrast to the boom times experienced during the COVID-19 lockdowns.
During the pandemic, many consumers turned to home improvement projects as travel and other spending options were limited. This led to unprecedented growth in the sector, with people focusing on enhancing their living spaces. However, the initial optimism for a post-pandemic rebound in 2024 was dampened by several factors.
One of the significant setbacks was the early exit of the German national football team from the UEFA European Championship, which had been expected to boost sales. Additionally, unfavorable weather conditions played a crucial role in suppressing consumer enthusiasm. Rain, cold temperatures, and even hail during the critical gardening season in May and June contributed to a decline in purchasing activity, according to BHB spokesperson René Haßfeld.
Despite the overall downturn, there was a notable exception within the gardening segment. The garden chemicals, soils, and seeds category saw an impressive growth of 8.2 percent, driven by a nationwide snail infestation due to high moisture levels. Products designed to combat these pests experienced a surge in demand.
On the flip side, sales in other categories suffered significantly. Garden furniture sales plummeted by 8.1 percent, while home and decoration items saw a decrease of 7.5 percent. The tile segment was particularly hard-hit, with sales dropping by 13.1 percent as the construction industry continues to stagnate in Germany.
As the construction sector faces ongoing challenges, including rising prices for building materials like wood and insulation, many consumers are postponing larger renovation projects. This has created a ripple effect, impacting the demand for tools and materials at DIY stores. Haßfeld noted, "The people are acting cautiously and are more inclined to set aside their money for future expenses rather than invest in consumption."
The BHB's outlook for 2025 remains cautious, with many industry experts viewing it as a "year of endurance." However, there is hope for a more sustainable improvement starting in 2026.
Interestingly, the trend of DIY projects has seen a resurgence as consumers look to save costs amid high prices and a shortage of available tradespeople. Many are turning to online tutorials and DIY forums for guidance on home repairs and renovations, which has led to an uptick in foot traffic at DIY stores. According to the BHB, there are currently 2,030 specialized stores in Germany with over 1,000 square meters of retail space, employing approximately 480,000 people, including suppliers.
Online sales have also shown a slight increase, rising by 2.1 percent to reach 5.58 billion euros. This growth has been attributed to the increasing number of consumers opting to shop online, with 54.6 percent of these sales coming from dedicated online retailers.
Looking back, the industry earned 19.46 billion euros in 2019, prior to the pandemic-induced boom. Now, as the sector approaches pre-COVID sales levels, Haßfeld expressed cautious optimism, stating, "We are nearing the sales figures of the pre-COVID year 2019."
Despite the challenges, there are signs of resilience within the industry. The BHB has noted a growing interest in home improvement courses offered at stores and through initiatives like the DIY Academy in Cologne. These courses aim to empower consumers to take on their own renovation projects, potentially driving more business to local DIY stores.
As 2025 unfolds, the German DIY and garden center industry remains in a state of flux, navigating the delicate balance between consumer caution and the enduring desire for home improvement. The hope is that as the economic landscape stabilizes and consumer confidence returns, the sector will see a resurgence in spending and a return to growth.
