Overview

Wilted: Revenue has declined due to lower domestic demand and strong import competition

The Floriculture Production market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • The industry has faced stagnant local demand, rising import penetration and dwindling exports
  • The expansion of supermarkets into flower retailing has heightened external competition
  • Plant technological advances should benefit producers that focus on extending plant life

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    Industry Analysis & Industry Trends

    The Floriculture Production industry's performance has been negatively affected by subdued trading conditions over the past five years. Industry firms have faced stagnant demand from Australian consumers, rising import penetration and dwindling export earnings. Cut flowers are considered discretionary items and traditional flower arrangements may be readily substituted with other products such as chocolates, gift vouchers and charity donations.

    The industry is expected to generate revenue of $337.5 million in 2016-17, down an estimated 3.2% on the previous year due to the deterioration in consumer sentiment and the decline in sales by the downstream Flower Retailing industry. Overall, industry revenue is expected to decline by an annualised 3.3%...

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    Industry Report - Industry Investment Chapter

    The Floriculture Production industry has a medium level of capital intensity, although the intensity varies significantly between under cover and outdoor flower growing operations. The level of capital intensity for under cover flower growing tends to be higher due to the investment required for greenhouses, climate control technology and cool storage facilities. Investment is also required for advanced equipment used to monitor harvest areas, test the soil and water crops.

    Industry wage costs absorb an estimated 19.8% of industry revenue. Depreciation charges are used as a proxy for capital costs and account for about 3.5% of revenue. This indicates that on average, firms allocate $5.69 for labour input to production for every dollar spent on capital costs.

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    Additional Insights for the Floriculture Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Floriculture Production Industry are

  • Superior financial management and debt management
  • Prompt delivery to market
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and Demand from flower retailing in the Floriculture Production industry impact industry performance..

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    Industry Products

    What is the Floriculture Production Industry?

    Industry firms grow or produce cut flowers, foliage and seeds, either outdoors or in greenhouses, cold frames, cloth or lath houses.

    Industry Products
    Traditional flowers
    Wildflowers
    Seed growing
    Industry Activities
    Display foliage growing (undercover and outdoors)
    Flower growing (undercover and outdoors)
    Orchid growing (undercover)
    Calla lily growing (outdoor)
    Hydrangea growing (outdoors)
    Peony growing (outdoor)
    Flower seed growing (undercover and outdoors)

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Demand from flower retailing
  • Real household discretionary income
  • Road freight service price
  • Domestic price of fertiliser
  • Trade-weighted index

  • Current Performance
  • Profitability
  • Consumer demand
  • Retailers and wholesalers
  • Global markets
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Floriculture Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Floriculture Production Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Floriculture Production
  • Livestock and Other Agricultural Supplies Wholesaling
  • Flower Retailing
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Floriculture Production
  • Industrial and Agricultural Chemical Product Wholesaling

  • Products & Services
  • Traditional flowers
  • Wildflowers
  • Seed growing
  • Chart: Floriculture Production Industry Products and Services Segmentation

  • Demand Determinants
  • Supply chain
  • Consumer spending trends
  • Consumer preferences
  • Seasonal factors

  • Major Markets
  • Wholesalers
  • Retailers
  • Other
  • Chart: Major Market Segmentation for the Floriculture Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Freight costs
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Floriculture Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Floriculture Production Industry

  • Industry Globalization
    Major Companies
    Lynch Group Holdings Pty LimitedGrandiflora Nurseries Pty Ltd
  • Table: Lynch Group Holdings Pty Limited - financial performance
  • Table: Grandiflora Nurseries Pty Ltd - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Floriculture Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Floriculture Production Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Flower Seed Harvesting
  • The seeds form in the flower's ovary which is a bulge located at the base of the flower.
  • Gmo Genetically Modified Organisms
  • In floriculture, the production of GMO flowers involves the genetic engineering of plant organisms aimed to produce varieties of colours (e.g. blue) and resistance to aging, disease etc.
  • Greenhouse
  • This facility is designed to artificially create the ideal growing environment for the respective flower variety. Greenhouses control the climatic aspects including temperature, humidity and light.
  • Traditional Flowers
  • Traditional non-native flowers, including roses, carnations, orchids, lilies, hydrangea and peony.
  • Wildflower
  • A flowering plant that grows in a natural, uncultivated state.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Floriculture Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Floriculture Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Floriculture Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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