Nursery & Floriculture Production
Description
Companies in this industry grow nursery and floriculture products such as flowers, nursery stock, shrubbery, trees, and seeds. Major US companies include Altman Plants, Bell Nursery, Costa Farms, Kurt Weiss Greenhouses, Metrolina Greenhouses, and Rocket Farms.
The global value of greenhouse, nursery, and flowers market is expected to grow at a compound annual growth rate (CAGR) of about 5.1% by 2029, according to The Business Research Company. The industry will reach over $814.3 billion at the end of the forecast period. The Asia-Pacific region and Western Europe region are the largest markets.
The US nursery and floriculture production industry includes more than 8,950 producers with combined annual revenue of about $7 billion.
COMPETITIVE LANDSCAPE
Demand is driven by consumer income, home sales and new home construction, and commercial real estate construction. The profitability of individual companies depends on anticipating demand for various types of plants, efficient distribution, and competitive pricing. Large operators have economies of scale in distribution. Small operators can compete successfully by raising specialty plants or serving a local market. The US industry is concentrated.
PRODUCTS, OPERATIONS & TECHNOLOGY
Products include flowers and flowering plants, shrubs, Christmas trees, sod, and seeds, as well as food plants like tomatoes. Large commercial growers concentrate on producing container-grown ornamental plants for indoor and outdoor use, including bedding plants (usually grown in flats and transplanted into beds by the end-user); shrubs; and flowering potted plants. Products include annuals like marigolds and petunias; perennials like day lilies and clematis; evergreens like azalea, box wood, pines, spruce, and juniper; tropical flowering plants like Bougainvillea and hibiscus; "holiday" or "seasonal" plants like Easter lily and poinsettia; and specialty plants like bonsais, ferns, and trellises. Cut flowers are a smaller segment. Because of weather limitations, most single-location growers can produce only several hundred varieties of plants, but national growers can produce several thousand.
Commercial operations revolve around the growing cycle. Growers buy plant "plugs" from suppliers who germinate them from seed in large, controlled-environment facilities for four to 10 weeks before shipping them around the country. Growers transplant these "prefinished" plants into containers and grow them until they're ready to be shipped to customers. Large growers may have their own plug operations for some plants, but also buy from suppliers. A large nursery can cover from 10 to 3,000 acres, but 100 to 500 acres is typical for a big commercial operation, with several hundred thousand square feet of greenhouse space. Relatively more greenhouse space is used in colder climates.
Growing time is six to nine weeks for bedding plants, eight to 14 weeks for flowering potted plants, 10 to 14 months for shrubs, and seven to nine years for Christmas trees. The prime commercial planting season in North America generally extends from February to May when seasonal labor is hired, though planting continues year-round, with producers getting more "turns" (inventory turnover) depending on their crop and climate. A grower might double its workforce during peak periods and may be able to extend growing seasons by having operations in warmer regions or other countries. Transplanting and caring for containerized plants is highly labor-intensive. Although growers take pains to produce a uniformly high-quality product, many plants don't grow properly and must be discarded.
The global value of greenhouse, nursery, and flowers market is expected to grow at a compound annual growth rate (CAGR) of about 5.1% by 2029, according to The Business Research Company. The industry will reach over $814.3 billion at the end of the forecast period. The Asia-Pacific region and Western Europe region are the largest markets.
The US nursery and floriculture production industry includes more than 8,950 producers with combined annual revenue of about $7 billion.
COMPETITIVE LANDSCAPE
Demand is driven by consumer income, home sales and new home construction, and commercial real estate construction. The profitability of individual companies depends on anticipating demand for various types of plants, efficient distribution, and competitive pricing. Large operators have economies of scale in distribution. Small operators can compete successfully by raising specialty plants or serving a local market. The US industry is concentrated.
PRODUCTS, OPERATIONS & TECHNOLOGY
Products include flowers and flowering plants, shrubs, Christmas trees, sod, and seeds, as well as food plants like tomatoes. Large commercial growers concentrate on producing container-grown ornamental plants for indoor and outdoor use, including bedding plants (usually grown in flats and transplanted into beds by the end-user); shrubs; and flowering potted plants. Products include annuals like marigolds and petunias; perennials like day lilies and clematis; evergreens like azalea, box wood, pines, spruce, and juniper; tropical flowering plants like Bougainvillea and hibiscus; "holiday" or "seasonal" plants like Easter lily and poinsettia; and specialty plants like bonsais, ferns, and trellises. Cut flowers are a smaller segment. Because of weather limitations, most single-location growers can produce only several hundred varieties of plants, but national growers can produce several thousand.
Commercial operations revolve around the growing cycle. Growers buy plant "plugs" from suppliers who germinate them from seed in large, controlled-environment facilities for four to 10 weeks before shipping them around the country. Growers transplant these "prefinished" plants into containers and grow them until they're ready to be shipped to customers. Large growers may have their own plug operations for some plants, but also buy from suppliers. A large nursery can cover from 10 to 3,000 acres, but 100 to 500 acres is typical for a big commercial operation, with several hundred thousand square feet of greenhouse space. Relatively more greenhouse space is used in colder climates.
Growing time is six to nine weeks for bedding plants, eight to 14 weeks for flowering potted plants, 10 to 14 months for shrubs, and seven to nine years for Christmas trees. The prime commercial planting season in North America generally extends from February to May when seasonal labor is hired, though planting continues year-round, with producers getting more "turns" (inventory turnover) depending on their crop and climate. A grower might double its workforce during peak periods and may be able to extend growing seasons by having operations in warmer regions or other countries. Transplanting and caring for containerized plants is highly labor-intensive. Although growers take pains to produce a uniformly high-quality product, many plants don't grow properly and must be discarded.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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