Have any idea why the European online DIY market is thriving like never before? Well, you don’t have to guess, because we have the data for that.
Cross-Border Commerce Europe has evaluated online home, garden, and DIY retailers and marketplaces in Europe. The result is their Top 50 Home & Garden, DIY Retail Europe report, which provides statistics and analysis that can help companies navigate and understand this sector.
So, if you want to learn about the most important DIY sector data, dig into the most important insights with us.
Why is the European online DIY market thriving?
First, we have all noticed an increase in renovation projects, especially in the post-pandemic period. This, among other things, has contributed to the growth of this sector. Many homeowners, spending more time indoors, have turned their attention to enhancing their living spaces. This surge in DIY activities has driven demand for online platforms that offer convenience and a wide range of products.
The result? Europeans now enjoy the ability to browse, compare, and purchase tools and materials with just a few clicks, all from the comfort of their homes.
Further, the increasing availability of instructional content online has empowered even the most novice users to take on DIY projects. Platforms are teeming with tutorials, guides, and videos, making it easier than ever for individuals to learn and gain confidence in their DIY skills.
The result? This accessibility has broadened the market’s demographic and attracted a younger audience eager to engage in DIY activities.
Moreover, the evolution of e-commerce has improved the shopping experience, with enhanced website interfaces, mobile apps, and tools that help visualize projects before making a purchase. Such a tech-forward approach appeals to a younger generation that values efficiency and innovation.
The result? It’s much simpler to order DIY materials nowadays, which encourages people to try renovation work on their own.
The European online DIY market’s expansion is also supported by robust logistics networks that ensure fast and reliable delivery of bulky and fragile items like lumber and glass. Thanks to this, customer satisfaction and trust in online purchases are further enhanced. This comprehensive support system underlines why the market not only thrives but is set to continue its upward trajectory.
The result? Customers have streamlined delivery and can order items that were problematic to ship in the past.
What also influences the power of the sector?
The market’s growth is further supported by a detailed understanding of the macroeconomic factors affecting the sector. The post-Covid economic downturns and inflation, intensified by geopolitical tensions such as those in Ukraine and Israel, have led to a stagnation in the broader DIY retail market.
But. Despite these challenges, the online segment of the DIY market has shown remarkable resilience and growth, propelled by the adoption of new technologies and enhanced e-commerce capabilities.
Moreover, technological shifts are contributing to this growth. Younger consumers who are digitally native are increasingly influencing the market dynamics. They tend to prefer online shopping for its convenience and the ability to easily compare products and prices.
In response, retailers are continuously improving their online platforms, investing in technology that enhances the shopping experience, such as AR and VR, and optimizing their logistics and supply chain to handle online orders efficiently.
European online DIY market stats & data
According to the Cross-Border Commerce Europe report, the European online DIY market is currently valued at a robust 56 billion euros. It underscores the sector’s value in the broader retail landscape. This value represents 15.2 percent of the total European DIY retail market, which was estimated at 368 billion euros in 2023.
The value of the online DIY market is set to experience significant growth, with predictions of up to 66 billion euros by 2025. This represents as much as an 18 percent growth rate and is driven by the enhancing capabilities of specialized DIY retailers and expansive marketplaces, which increasingly focus on their online offerings.
The e-commerce role
The surge in the online segment is part of a broader trend where e-commerce is becoming a critical component of retail strategies. The growth is not just in absolute numbers but also in market share, with the e-commerce share of the DIY market expected to rise to 17% by 2025.
Such a growth trajectory highlights the increasing consumer preference for shopping online, which offers convenience, broader selection, and often better pricing.
What about cross-border transactions?
Well, they are a significant growth area within the European online DIY market and represent a substantial portion of the overall online sales.
In 2023, cross-border sales in the DIY sector accounted for 13.25 billion euros, it’s 23.5% of all online DIY sales. This proportion is anticipated to increase to 30 percent by 2025, translating to about 19.8 billion euros.
It’s a clear indicator of the growing global reach of European DIY retailers as they tap into markets beyond their immediate geographical boundaries.
This cross-border expansion is catalyzed by the increasing market share of purely online competitors and challenges traditional DIY retailers to enhance their e-commerce strategies. The competitive pressure is pushing these traditional businesses to innovate and adapt to maintain their market share.
Thus, the strategic focus on cross-border e-commerce not only diversifies the customer base but also mitigates the risk of market saturation in domestic markets.
Top DIY retailers: Examples
A closer look at the top retailers reveals key players who are not only dominating but also shaping the industry’s future.
Who belongs to leaders?
Leroy Merlin
Among others, Leroy Merlin. It stands out as Europe’s top DIY retailer with an impressive annual turnover of €27 billion. Their success can be attributed to a well-integrated approach that combines physical stores with a strong online presence, and caters to a broad demographic across Europe. Their model exemplifies how traditional retailers can effectively transition into the digital space while maintaining their market dominance.
Bauhaus
Bauhaus, another significant player, has successfully carved out €9 billion in combined online and offline turnover, with €1.2 billion stemming from online sales. A notable €400 million of their online revenue comes from cross-border trade, highlighting their effective expansion strategy beyond domestic markets.
ManoMano
The role of marketplaces is also crucial in this context. Among the top 50, there are 15 marketplaces, with three being Pure Marketplaces. For example, there is ManoMano, which specializes in the DIY, home, and garden sectors. Founded in France in 2013, ManoMano has quickly risen to prominence, now active in multiple European countries and leading the vertical marketplace segment.
Amazon
Amazon, a titan in the online retail space, holds a particularly influential position in the European DIY market. As detailed in the “Top 50 Home & Garden, DIY Retail Europe” report, Amazon Europe commands the highest online share within the sector, possessing 15.7% of the market with sales amounting to €8.8 billion out of the total €56 billion online DIY market.
Source: Top 50 Home & Garden, DIY Retail Europe report
The future
Looking ahead, the European online DIY market is expected to continue its growth trajectory – it will be supported, among others, by ongoing technological advancements and an increasing emphasis on cross-border e-commerce.
As the sector evolves, it presents ample opportunities for businesses willing to innovate and adapt to the changing consumer preferences and technological advancements.
The success in this sector will likely hinge on the ability to seamlessly integrate online offerings with traditional retail strategies, and provide a comprehensive shopping experience that meets the expectations of a diverse consumer base.
Last words
Now you know why the European online DIY market is thriving. Many factors influence this sector, including logistics networks, digital transformation, e-commerce expansion, and a strategic response to competitive pressures. These dynamics suggest a vibrant future for the sector, with continuous opportunities for growth and innovation.
So, if you thought about joining this sector, now may be the best time to do it.
