👉 Background: Bunnings is the place you go for a hammer and somehow leave with a six plants, three snags and a new appreciation for PVC piping. In 2023, Bunnings launched a new pet range to capitalise on the growth in Australian pet ownership.

‍👉 What happened: Now Bunnings is planning to expand into the assisted living and disability market. While it might seem a little off-brand for Bunnings, it's backed up by the numbers. According to Bunnings, 5.5 million Australians are living with some form of disability. On top of that, Australia has an ageing population of people who want to “age in place” — code word for staying in your home for as long as possible.

‍👉 What else: So now, Bunnings is rolling out a new assisted-living and disability category with over 2,500 products – from bathroom handles to non-slip flooring and even mobility ramps. And Bunnings sees the addressable market at about $1.6 billion right now… and continuing to grow.

What's the key learning?

💡An addressable market refers to the total revenue opportunity available for a product or service. In Bunnings' case, the current addressable market is $1.6 billion, but it’s projected to grow to $2.1 billion by 2030.

💡Thoroughly researching the addressable market helps businesses understand the full sales potential, if they captured 100% of the market. And, this market is particularly attractive for Bunnings because it’s got two key tailwinds:

• On the one tail, we’ve got a demographic shift. A nice way of saying “an ageing population”
• And on the other tail, we’ve got a government-funded program supporting disability products and services via the NDIS.

💡By understanding the size and growth of this market, Bunnings can decide how much to invest in stock, how much to invest in store space, marketing, and logistics in order to capture a significant share.