Garden variety: Revenue has declined due to lower demand and strong import competition

Various factors have influenced the Floriculture Production industry over the past five years. Industry firms have faced stagnant demand from Australian consumers and rising import penetration. 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. Despite these negative factors, downstream sales of lower value mass market flowers to supermarkets and convenience stores have increased over the past five years, which has aided revenue growth. Industry revenue is expected to increase at an annualised 0.4% over the five years through 2017-18, to reach $316.7 million. However, revenue is projected to fall by more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • The industry has faced stagnant domestic demand and rising import penetration
  • The surge in import penetration over the past five years has intensified industry competition
  • Plant technological advances will likely benefit producers that focus on extending plant life
  • Industry Report - Industry Analysis Chapter

    The Floriculture Production industry has endured difficult trading conditions over the past five years. Australian consumer spending on flowers has been weak over the period, and industry growers have struggled to lift the low per capita consumer expenditure on flowers. Despite this, demand from supermarkets and convenience stores has risen over the past five years, due to increased sales of lower value mass market flowers from these outlets, supporting revenue growth. Industry revenue is expected to increase at an annualised 0.4% over the five years through 2017-18, to reach $316.7 million. However, revenue is expected to fall by 2.2% in the current year, due to limited consumer spending on industry goods caused by falling discretionary incomes and negative consumer sentiment...purchase to read more.

    Additional Insights for the Floriculture Production Industry

    IBISWorld has determined the most important Key Success Factors for the Floriculture Production 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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    What's in this report

    What is the Floriculture Production Industry?

    Industry firms grow or produce cut flowers, foliage and seeds, either outdoors or under cover. Under cover is generally defined as greenhouses, cold frames, cloth houses and lath houses.

    Industry Products
  • Traditional flowers
  • Wildflowers
  • Seed growing
  • Industry Activities
  • Display foliage growing (under cover and outdoors)
  • Flower growing (under cover and outdoors)
  • Orchid growing (under cover)
  • Calla lily growing (outdoors)
  • Hydrangea growing (outdoors)
  • Peony growing (outdoors)
  • Flower seed growing (under cover and outdoors)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Demand from flower retailing
  • Real household discretionary income
  • Trade-weighted index

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

  • Industry Outlook
  • Profit and

    cost outlook

  • Demand and

    supply conditions

  • Opportunities
  • Table: Floriculture Production Industry Revenue Outlook

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

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Floriculture Production

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

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

  • 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
    Table: Industry Data for the Floriculture Production Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The cultivation of flowers
  • Foliage
  • The representation of leaves, flowers and branches for architectural ornamentation.
  • Wildflower
  • A flowering plant that grows in a natural, uncultivated state.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Floriculture Production market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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