Gardening and Vegetable Garden Markets in Japan: Key Research Findings 2019
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the gardening and vegetable garden market in Japan, and found out the market size, the trend by market players, and the future outlook.
Size of the gardening and vegetable garden market in FY2018 (based on the shipment value at producers/makers) was 227,500 million yen, increased by 1.6% from the previous fiscal year. In FY2019, the market is projected to attain 230,400 million yen, up slightly by 1.3% from the previous fiscal year.
As the one-time boom cooled down, the gardening and vegetable garden market reached its maturity. Formerly, the market was supported mainly by the seniors; however, in recent years, as increasing number of current customer is retiring from the gardening due to aging, developing new customers is an urgent issue for the market growth hereafter.
Under such circumstances, the seedling propagators/nursery seedling makers, material makers and retail stores, etc., have been actively promoting attempts to attract new customers; by posting information via SNS to expand demand of the younger generations, and by creating ‘long-stay’ stores with cafes and playground for prospective customers with children.
Promotion of Conserving Productive Greenery District may Increase Allotment Gardens
As for the vegetable gardens, Ministry of Agriculture, Forestry and Fisheries (MAFF) and Ministry of Land, Infrastructure, Transport and Tourism (MLIT) have been encouraging the conservation of farmland, the ‘Productive Greenery District’ in the urbanized areas, the distinction of which is to be terminated in 2022.
The Productive Greenery District today was designated in the amended law enforced in 1992 to preserve the farmland in the metropolitan areas. The law mandated the landowners to manage active farming in exchange for 30 years of exemption in the real estate tax. According to MLIT, there are 13,000 hectares of Productive Greenery Districts nationwide, and approximately a quarter of those, 3,200 hectares are in Tokyo Metropolis.
There were concerns that much of the Productive Greenery District will be quickly turned into residential land after 2022, when the tax exemption terminates. However, the amendment in 2018 retained the landowners a moratorium on payment of the inheritance tax if the Productive Greenery District is used as leased farmland. Moreover, the “Urban Farmland Leasing Act (Urban Farmland Leasing Facilitation Act)” enforced in September 2018 deregulated restrictions on the lease of the Productive Greenery District.
A new measure was established to make utilization of urban farmland easier, enabling direct lease of the farmland by the landowner to the allotment garden establisher.
With a launch of the system relaxing the rigid requirements for lending urban farmlands (the Productive Greenery Districts), enterprises and NPOs are facilitated on farmland lease; the number of allotment gardens is projected to increase in the urban areas hereafter.
The size of customers for gardening and vegetable gardens is likely to remain stable at certain level. Nevertheless, developing new customers is a challenge, and every company is trying to expand their products that create opportunities for potential customers to have exposure to plants.
The seedling propagators/nursery seedling makers are rolling out the products such as easy-to-grow vegetable/fruit seedlings, easy-to-care-for flowers/trees, vegetable seedlings with functionality like high nutrition, and cold-resistant seedlings for gardening in fall/winter. Meanwhile, the material makers position indoor gardening as a gateway for new customers; they are trying to acquire customers by the sales of house plants (foliage house plants), kitchen garden plants (edible plants like herbs and Japanese basils that can be grown in the kitchen), and vegetable planters.
As these factors are seen as the opportunities, the size of the gardening and vegetable garden market (based on the shipment value at producers/makers) is projected to grow steadily, reaching 242,200 million yen by FY2024 (106.5% compared to FY2018).
The copyright and all other rights pertaining to this report belong to Yano Research Institute.
Please contact our PR team when quoting the report contents for the purpose other than media coverage.
Depending on the purpose of using our report, we may ask you to present your sentences for confirmation beforehand.