Supplanted: Competition from large hardware chains has stunted industry revenue growth

The Nursery Production industry's revenue has fluctuated over the past five years. Significant fluctuations in annual rainfall over the five-year period have affected production volumes of outdoor nursery products, and producers have experienced increased price competition from hardware stores and retail nurseries. On the demand side, industry performance is linked to activity from new dwelling commencements, as new buildings and houses require landscaping. A shift towards higher density living and away from traditional single-dwelling houses has restricted demand for outdoor plants, trees and shrubs, and has boosted demand for indoor and patio plants. Meanwhile, falling demand from garden supplies retailers has hampered the industry's performance over the period...read more.

Industry Statistics & Market Size
Revenue
$726m
Annual Growth 12-17
0.3%
Forecast Growth 17-22
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Profit
x.x%lock
Employment
3,098
Businesses
1,147
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The rise of major hardware retailers has drawn consumers away from traditional nurseries
  • The shift towards higher density housing is limiting garden space and reducing household demand
  • Encouragement of higher density housing by urban planners will affect nurseries over the period

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    Industry Report - Industry Investment Chapter

    The Nursery Production industry is moderately capital-intensive. For every dollar invested in capital across the industry, an expected $5.37 will be paid as wages in 2016-17. The limited scope for mechanisation and ongoing reliance on labour to handle delicate plants contribute to the industry's moderate reliance on labour. Although the industry does not require a large amount of capital or equipment, it does use highly valued land on the fringes of capital cities. However, land is not a depreciable asset, and does not figure in assessments of capital intensity. The industry's capital expenditure is primarily associated with irrigation technologies, and the use of undercover production facilities to control growing conditions and maximise quality. The...purchase to read more.

    Additional Insights for the Nursery Production Industry

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

  • Skilled work force
  • Appropriate climatic conditions
  • Automation to reduce labour costs

    • IBISWorld analysts also discuss how external factors such as Demand from garden supplies retailing and Consumer sentiment index in the Nursery Production industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Nursery Production Industry?

    Industry operators primarily grow trees, shrubs, ornamental plants and bulbs. Businesses sell to retails or wholesalers, landscapers, local government and councils, and orchardists. The industry excludes turf growing and flower growing.

    Industry Products
  • Bedding and ornamental plants
  • Propagation stock
  • Trees and shrubs
  • Other plants
  • Indoor and patio plants
    • Industry Activities
  • Tree and shrub growing
  • Stock propagation
  • Bulb and seed raising
  • Bedding and ornamental plant growing
  • Indoor and patio plant growing
  • Other plant growing
    • 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
  • Demand from garden supplies retailing
  • Consumer sentiment index
  • Dwelling commencements
  • Level of annual rainfall
  • Real household discretionary income

    • Current Performance
  • Household and construction demand
  • Distribution channels
  • Profit and structure
  • Chart: Revenue Growth

    • Industry Outlook
  • One-stop shops
  • Construction trends
  • Industry pressures
  • Climate change concerns
  • Table: Nursery Production Industry Revenue Outlook

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

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Citrus Fruit, Nut and Other Fruit Growing
  • Garden Supplies Retailing
  • Hardware and Building Supplies Retailing
  • Outdoor Vegetable Growing
  • Apple, Pear and Stone Fruit Growing

    • Key Selling Industries
  • Fertiliser Manufacturing
  • Industrial and Agricultural Chemical Product Wholesaling
  • Water Supply

    • Products & Services
  • Trees and shrubs
  • Bedding and ornamental plants
  • Indoor and patio plants
  • Propagation stock
  • Other plants
  • Chart: Nursery Production Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Landscapers
  • Hardware stores
  • Other markets
  • Garden supplies stores
  • Retail nurseries
  • Chart: Major Market Segmentation for the Nursery Production Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Nursery Production

    • Basis of Competition
  • Internal competition
  • External competition

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

    • Industry Globalization

    Major Companies

    There are no major players in this industry. This report includes analysis of other companies.

    Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Nursery 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 Nursery 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

    Boom Irrigation
  • A system that consists of one or more pipes with nozzles, which water plants as the system moves over the irrigation area.
    • Greenhouse
  • An enclosure designed to artificially create the ideal growing environment for the respective plant variety. Greenhouses control climatic aspects including temperature, humidity and light.
    • Landscaper
  • Someone that designs and arranges features of a landscape or garden.
    • Propagation
  • The deliberate, directed reproduction of plants using plant seeds, cells or tissue.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Nursery Production market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Nursery 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 Nursery 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 Nursery Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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