Seedy prospects: Growth in higher density living has caused industry revenue to wither

The Nursery Production industry's revenue has fluctuated over the past five years. Price competition from hardware stores has put pressure on industry operators. Furthermore, significant variations in annual rainfall over the past five years have affected the production volumes of outdoor nursery products. Activity from new dwelling commencements also influences the industry's performance, as new buildings typically require landscaping. Homebuyers' shift away from traditional single-dwelling houses and towards higher density living has restricted demand for outdoor plants, trees and shrubs over the past five years. However, this trend has boosted demand for indoor and patio plants...read more.

Industry Statistics & Market Size
Revenue
$726m
Annual Growth 14-19
-1.2%
Forecast Growth 19-24
x.x%lock
Profit
x.x%lock
Employment
2,908
Businesses
1,083
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
  • A shift towards higher density housing is limiting demand for industry products
  • A trend towards higher density housing in urban planning will affect nursery demand

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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 estimated $5.00 will be paid as wages in 2018-19. Delicate plants' need to be directly handled by workers limits the industry's scope for mechanisation and contributes to a moderate reliance on labour. Capital expenditure in the industry is primarily associated with irrigation technologies and undercover production facilities used to control growing conditions and maximise quality. However, the industry's labour reliance has declined over the past five years. This trend is driven by increased use of computer-assisted watering and monitoring systems and the implementation of robotic planting machines by larger operators. Thi...purchase to read more.

    Additional Insights for the Nursery Production Industry

    IBISWorld has determined the most important Key Success Factors for the Nursery Production are:

  • Access to highly skilled workforce
  • Appropriate climatic conditions
  • Automation - reduces costs, particularly those associated with labour

    • 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. Nurseries sell their goods to a variety of markets, including retailers, wholesalers, landscapers, local governments 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
  • Demand trends
  • Distribution channels
  • Profit and structure
  • Chart: Revenue Growth

    • Industry Outlook
  • One-stop shops
  • Demand 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Boom Irrigation
  • A system consisting of one or more pipes with nozzles. These nozzles water plants as the system moves over the irrigation area.
    • Greenhouse
  • An enclosure designed to artificially create the ideal growing environment for a specific plant varieties. 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 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 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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