China’s Landscaping Market

Introduction

Landscaping refers to the modification and improvement of outdoor public areas, composed of green planting, landform reconstruction, sightseeing facility building and road planning, to achieve environmental outcomes. Landscaping is divided into two segments, namely (a) municipal landscaping, which is generally led or initiated by the government or state-invested enterprises for the purpose of improving city appearance and the living environment; and (b) private and non-governmental landscaping, which serves individuals and non-governmental parties in private construction.

Market size

The size of landscaping market in the PRC, which is measured in terms of the aggregated completed contract value of landscaping projects in the respective year, has grown from RMB410.4 billion in 2010 to RMB647.4 billion in 2015, representing a CAGR of 9.5%. The municipal landscaping segment increased from CNY171.3 billion in 2010 to CNY262.7 billion in 2015, representing a CAGR of 8.9%. Driven by the rapid growth of the real estate industry in the PRC in the past five years, the private and non-governmental landscaping segment has been growing at a comparatively higher pace than municipal landscaping segment, with a CAGR of 10.0% over the period from 2010 to 2015. Spurred by the increasing attention and support from the government, the municipal landscaping segment is expected to embrace faster growth than overall landscaping in the future, while the private and non-governmental landscaping segment would continue to grow at a steady rate.

Geographical distribution of completed investment in urban landscape construction in the PRC

According to the statistics from NBSC, the completed investment in urban landscape construction from the government in Eastern China took up the largest share in the total completed investment in urban landscape construction of the PRC, with a share of 46.1%, followed by Northern China with a share of 24.7%.