Plant - Flower Growing in The US Industry Report PDF

US INDUSTRY (NAICS) REPORT 11142
Plant & Flower Growing in the US

Stalled growth: Falling demand and high import competition wilted industry revenue
John Madigan | September 2020
IBISWorld.com +1-800-330-3772 info@IBISWorld.com

Plant & Flower Growing in the US 11142 September 2020
Contents
About This Industry...........................................5 Competitive Landscape...................................27
Industry Definition..........................................................5 Market Share Concentration....................................... 27

Major Players................................................................. 5 Key Success Factors................................................... 27
Main Activities................................................................5 Cost Structure Benchmarks........................................ 28
Supply Chain...................................................................6 Basis of Competition................................................... 31
Similar Industries........................................................... 6 Barriers to Entry........................................................... 32
Related International Industries....................................6 Industry Globalization..................................................33
Industry at a Glance.......................................... 7 Major Companies............................................ 35
Executive Summary..................................................... 10 Major Players............................................................... 35

Other Players................................................................35
Industry Performance..................................... 11
Operating Conditions...................................... 37
Key External Drivers.....................................................11
Current Performance................................................... 12 Capital Intensity........................................................... 37
Technology And Systems........................................... 38
Industry Outlook............................................. 16 Revenue Volatility........................................................ 40
Regulation & Policy...................................................... 41
Outlook......................................................................... 16
Industry Assistance..................................................... 42
Performance Outlook Data......................................... 18
Industry Life Cycle....................................................... 18 Key Statistics.................................................. 45
Products and Markets..................................... 20 Industry Data................................................................45

Annual Change.............................................................45
Supply Chain................................................................ 20
Key Ratios.................................................................... 45
Products and Services.................................................20
Industry Financial Ratios............................................. 46
Demand Determinants................................................ 21
Major Markets..............................................................22 Additional Resources...................................... 47
International Trade.......................................................23
Business Locations..................................................... 25 Additional Resources.................................................. 47
Industry Jargon............................................................ 47
Glossary Terms............................................................47
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About IBISWorld
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Covid-19
Coronavirus IBISWorld's analysts constantly monitor the industry impacts of current events in
real-time – here is an update of how this industry is likely to be impacted as a result
Impact Update of the global COVID-19 pandemic:
• Revenue for the Plant and Flower Growing industry is likely to decline in 2020 as
per capita disposable income weakens and consumer spending is trimmed due to
the COVID-19 (coronavirus) outbreak.
• Due to the fact that industry products are not a food agricultural product, they are
discretionary in nature. This reduces consumer spending during financial
uncertainty, and leads to closed operations during the pandemic's nonessential
business closures.
• Like most of the agriculture sector, the largest threat to this industry remains
supply chain disruption, whereby supply cannot get to market, causing shortage.
Note: The content in this report is currently being updated to reflect the trends
outlined above.
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About This Industry

Industry Definition The Plant and Flower Growing industry primarily produces horticulture and
floriculture plants for sale. Operators in this industry grow nursery plants, such as
trees and shrubs; flowering plants, such as foliage plants, cut flowers, flower seeds
and ornamentals; and short rotation woody trees, such as Christmas trees and
cottonwoods. These plants can either be grown under cover or in an open field.
Major Players There are no major players in this industry
Main Activities The primary activities of this industry:

Floriculture production
Nursery and tree production
The major products and services in this industry:

Nursery stock crops
Annual bedding and garden plants
Potted flowering plants
Foliage plants
Potted herbaceous perennials
Cut flowers and cut cultivated greens
Propagative floriculture materials and dried bulbs
Short rotation woody trees
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Supply Chain
SIMILAR INDUSTRIES
Vegetable Farming in the US Flower & Nursery Stock Nursery & Garden Stores in Florists in the US
Wholesaling in the US the US
RELATED INTERNATIONAL INDUSTRIES
Nursery Production in Floriculture Production in Flower & Plant Growing in Plant & Flower Growing in
Australia Australia the UK Canada
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Industry at a Glance
Key Statistics Key External Drivers % = 2015-2020 Annual Growth
$15.1bn 0.3%
Demand from flower and nursery stock
1.8%
Demand from nursery and garden stores
Revenue wholesaling
Annual Growth Annual Growth Annual Growth -6.3% 2.8%

Demand from florists Per capita disposable income
2015-2020 2020-2025 2015-2025
1.4%
Trade-weighted index
-1.6% 1.6%
Industry Structure
$1.1bn
Profit POSITIVE IMPACT
Annual Growth Annual Growth
Capital Intensity Concentration
2015-2020 2015-2025 Low Low
-2.4% Regulation
Light
7.1% MIXED IMPACT

Profit Margin
Revenue Volatility Technology Change
Annual Growth Annual Growth
Medium Medium
2015-2020 2015-2025
Barriers to Entry Globalization
-0.3% Medium Medium
Competition
38,571
Medium
Businesses
NEGATIVE IMPACT
Annual Growth Annual Growth Annual Growth
2015-2020 2020-2025 2015-2025 Life Cycle Industry Assistance
Decline Low
-1.8% -0.3%
158k
Employment

2015-2020 2020-2025 2015-2025
-0.4% 1.0%
$4.0bn
Wages

2015-2020 2020-2025 2015-2025
0.3% 1.1%
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Key Trends
Adverse weather conditions harm the quality and volume of
industry products
Increased efficiency in transportation has led to nationwide
price competition
Favorable weather and cheap labor in competing countries
have boosted imports
Imports will likely continue to hamper the industry, albeit to a
lessening degree
Flower farmers will increasingly diversify their product
offerings to remain viable
Automation will continue to reduce field workers as capital
investments take over
As incomes return, spending on plants and flowers will
slowly rebound
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Products & Services Segmentation
39.4% 23.7% 10.0% 6.7% 8.7% 0.9%
Nursery stock crops Annual bedding and Potted flowering plants Foliage plants Potted herbaceous Cut flowers and cut
garden plants perennials cultivated greens
Plant & Flower Growing
Source: IBISWorld
Major Players % = share of industry revenue SWOT
STRENGTHS
Low & Increasing Level of Assistance
Low Product/Service Concentration
Low Capital Requirements
WEAKNESSES
Decline Life Cycle Stage
Medium Imports
Low Profit vs. Sector Average
High Customer Class Concentration
Low Revenue per Employee
OPPORTUNITIES
High Revenue Growth (2020-2025)
THREATS
Very Low Revenue Growth (2005-2020)
Low Revenue Growth (2015-2020)
Low Outlier Growth
Low Performance Drivers
Demand from florists
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Executive The Plant and Flower Growing industry has contended with a period
Summary of volatile agricultural prices, weakening demand from florists and
an influx of low-cost imports.
As a result, industry participation has exhibited a steady downward trend, while
revenue has also exhibited marginal decline. Moreover, the outbreak of COVID-19
(coronavirus) has caused a decline in consumer spending, per capita disposable
income and private spending on home improvements, which has served to undercut
demand conditions and industry revenue growth in 2020 significantly. Industry
revenue is anticipated to fall 3.2% in 2020 alone as demand conditions plummet.
But overall, a period of weak prices, import competition and declining industry
participation is estimated to push down revenue at an annualized rate of 1.6% to
$15.1 billion over the five years to 2020.
The influx of low-cost cut flower imports from Colombia and Ecuador has
challenged the domestic industry's price competitiveness in recent years, with
imports expected to rise an annualized 3.8% to $2.3 billion during the current period
and account for 13.2% of domestic demand in 2020. Additionally, price competition
with imports has also intensified due to large retailers, such as Walmart Inc. and the
Home Depot Inc., taking over a substantial portion of the retail market. These
companies have the power to set low prices, exacerbating weakness in output
prices for others. Furthermore, in 2020 the coronavirus outbreak has served to
undercut demand conditions by slashing per capita disposable income and private
spending on home improvements, which will reduce consumer spending on
industry products and hamper industry revenue and profit.
Over the five years to 2025, it is expected that industry revenue will return to growth
as prices gradually appreciate and consumers return to spending amid an
improving economy. International trade conditions are expected to slow down and
stabilize, which is expected to weaken the downward pressure on industry prices,
helping to push revenue upward. However, demand from florists is expected to
continue weakening, which will keep industry revenue from growing at a stronger
rate. Over the five years to 2025, industry revenue is expected to rise an annualized
1.7% to reach $16.4 billion.
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Industry Performance
Key External Demand from florists

Drivers Nursery and flower producers rely on orders from florists in the retail sector.
Retailers will likely respond to a rise in consumer demand by increasing flower
orders, leading to increased industry activity. Demand from florists is expected to
decline in 2020, posing a potential threat to the industry.
Per capita disposable income

Higher disposable incomes trickle down and lead to increased spending on
discretionary goods, such as flowers. In turn, this factor stimulates demand for
floriculture products. Additionally, higher personal disposable incomes often result
in consumers buying domestically grown flowers rather than lower-cost imported
varieties. Per capita disposable income is expected to fall in 2020.
Demand from nursery and garden stores

Nursery and garden stores represent one of the largest buying groups of plants and
flowers. An increase in demand from these businesses translates into higher
volume orders to Plant and Flower Growing industry operators, causing industry
revenue to increase. Demand from nursery and garden stores is expected to
increase marginally in 2020, presenting the industry with a potential opportunity.
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Demand from flower and nursery stock wholesaling

Companies in this industry sell flowers, nursery stock and florists' supplies to retail
outlets. Distributors purchase their flowers and nursery stock from industry
operators. Wholesale operators do not grow flowers or plants, or distribute
Christmas trees or plant seeds and bulbs. However, an increase in demand for
industry products at the retail level will translate into higher-volume orders from
wholesalers at Plant and Flower Growing industry operators, boosting revenue
growth. Demand from flower and nursery stock wholesaling operations is expected
to rise marginally in 2020.
Exchange rate levels affect the price competitiveness of nursery and floriculture
producers. An appreciating US dollar erodes the domestic industry's price
competitiveness abroad because imports become more affordable to US
consumers and exports become more expensive to foreign buyers. Conversely, a
depreciating US dollar will ease exports and tighten imports. The trade-weighted
index is expected to rise in 2020.
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Current The Plant and Flower Growing industry has exhibited a difficult
Performance period, capped off with the coronavirus outbreak of 2020, which is
expected to further undermine demand conditions and slash
revenue 3.2% in that year alone.
While plant and flower growing is one of the highest value-per-acre industries in the
farming sector, nursery and floriculture production is struggling to survive as
competition for the discretionary dollar and from imports remains high. Overall, low-
cost imports undermine the price of domestic plants and flowers. Growers are
trying to stay relevant by engaging in price competition. Downstream retailers are
also engaging in price wars, with large chain superstores gaining headway over
specialized retailers. Overall, industry revenue is expected to decline an annualized
1.6% over the five years to 2020 to reach an estimated $15.1 billion, with declines in
2020 expected from the pandemic.
COVID-19
The coronavirus outbreak is expected to cause a strong weakening

in demand conditions for the industry, which is expected to hamper
industry revenue.
Demand from florists is expected to decline mainly as states shut down
nonessential businesses, such as retail and restaurants, while demand from
consumers for hobby purposes or home improvement purposes is expected to
decline as unemployment rises and consumers conserve disposable income amid a
highly uncertain economic environment. Due to the discretionary nature of industry
products, consumers are less willing to spend amid such tight economic
conditions. Demand from florists is expected to decline 6.2% in 2020 alone, while
per capita disposable income is expected to decline 1.6% and private spending on
home improvements is expected to decline 11.3% in 2020 alone. This industry is
most likely to be impacted not only by declining demand conditions but also by
supply disruptions as the wholesale link of the supply chain gets pinched due to
currently low labor. As wholesale deliveries back up, retail prices for industry
products will rise at the retail level amid relative scarcity, which will likely further
limit consumer demand.
Blooming imports
The United States is a net importer of floriculture and nursery items,

with imports estimated to increase at an annualized rate of 3.8% to
reach $2.3 billion over the five years to 2020 and account for 13.2%
of domestic demand in 2020.
The value of imports climbed during the period due to the strengthening of the US
dollar. Demand for imports can also be influenced by natural disaster. Adverse
weather conditions harm the quality and volume of industry products, reducing
profit and revenue; in turn, reliance on imports grows. South American countries,
particularly Colombia and Ecuador, are major sources of imports for cut flowers
into the United States. These countries have favorable weather conditions and
inexpensive labor that facilitate the sale of industry products at a much lower price
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than domestic flower growers. To cut purchasing costs, large-scale retailers such
as Walmart Inc. and Safeway Inc. have increasingly purchased from these
international growers, dragging down US farmers' prices, volumes and revenue.
Overall, rising imports and increased instances of large-scale purchasing have
served to exacerbate price weakness by driving up competition among industry
operators.
Although the United States is one of the world's largest producers of crops and
nursery plants, export levels for the industry are relatively low at only 3.4% of
revenue in 2020. Overall, industry exports have risen an annualized 2.6% to reach
$507.5 million over the past five years; however, this is largely due to a surge in
exports of 11.2% in 2017. Though industry exports compromise a small portion of
industry revenue, growth in exports during the current period has helped offset
greater declines in industry revenue during the period.
Transportation and consolidation
Increased efficiency in transportation has led to nationwide price

competition.
For instance, growers in California no longer have to sell their products solely to in-
state retailers because refrigerated planes and freight trucks enable products to be
shipped across state boundaries. Buying markets are now more selective about
their producers, discriminating largely based on price, which has led to industry
consolidation. As a result, larger, more efficient farms have survived, while smaller
players have exited the industry, selling their operations to powerful producers or
switching to alternate crops. Due to strong price competition, the number of
industry operators has declined. The number of industry enterprises has declined
an annualized 1.8% to reach 38,571 over the five years to 2020. As industry
enterprise and establishment counts have fallen, industry employment has also
been affected. The total number of industry employees has declined at an
annualized rate of 0.4% to reach 157,802 individuals over the past five years.
Pushing daisies
Overall, a weakening in demand for industry products amid the

coronavirus outbreak is expected to suppress industry profitability,
defined as earnings before interest and taxes, with the average
industry profit margin falling slightly from 7.4% in 2015 to 7.1% in
2020.
It is also important to consider that the industry lacks direct and countercyclical
government payments due to its discretionary nature; flower and nursery plants are
not staple foods that require subsidies to prosper and feed the US population, so
industry operators do not receive government price support. Growers in this
industry receive assistance through other general crop-supporting programs, such
as crop insurance, export market-research funding and the rigorous inspection of
imports. Overall, profitability has declined as a result of weakening demand
conditions, which has been exacerbated by the pandemic.
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Historical Performance Data

Year Revenue IVA Estab. Enterprises Employment Exports Imports Wages Domestic Per capita
Demand disposable
income
($m) ($m) (Units) (Units) (People) ($m) ($m) ($m) ($m)
2011 16,886 4,948 50,338 48,066 165,290 501 1,822 3,918 18,207 38,780
2012 14,888 4,481 49,639 47,432 164,803 426 1,909 3,782 16,372 39,784
2013 15,134 4,737 47,798 45,632 162,581 455 1,942 3,799 16,621 39,004
2014 14,946 5,680 46,067 43,930 160,982 454 1,971 3,826 16,463 40,310
2015 16,339 5,711 44,395 42,290 160,897 447 1,891 3,922 17,784 41,670
2016 14,928 5,538 42,803 40,724 159,472 465 1,996 3,986 16,459 42,108
2017 15,280 5,948 41,278 39,224 158,857 517 2,069 4,038 16,832 43,056
2018 15,246 5,477 42,016 39,966 160,027 518 2,146 4,029 16,874 44,521
2019 15,596 5,637 41,764 39,647 161,891 501 2,245 4,085 17,340 45,581
2020 15,095 5,505 40,621 38,571 157,802 508 2,281 3,976 16,869 45,084
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Industry Outlook
Outlook The Plant and Flower Growing industry is expected to recover over
the five years to 2025, with industry exports supporting revenue
growth along with some gradual price appreciation.
As the coronavirus pandemic abates,
it is expected that the industry will
return to more healthy levels of
growth. As per capita disposable
income recovers as a result of
expected declines in unemployment,
consumer demand for industry
products is expected to rebound.
However, demand form florists is still
expected to continue declining, sped
along by the challenges of the overall
Retail Sector (IBISWorld Report 45).
During the outlook period, IBISWorld
expects industry revenue to increase
an annualized 1.7% to reach $16.4
billion. Overall, an abatement in
industry imports and rising demand
from nursery and garden stores is
expected to support industry revenue growth, while an expected decline in industry
imports is anticipated to undercut further increases in price-based competition.
Imports versus exports
Imports will likely continue to hamper the industry during the

outlook period, albeit to a lesser degree than the previous period.
Over the five years to 2025, the trade-weighted index is expected to decline slightly
at an annualized rate of 1.8%, which is expected to cause import growth to slow to
a trickle, rising an annualized 0.8% to $2.4 billion. Imports' share of domestic
demand is expected to fall to 13.1% in 2025. Nonetheless, some larger domestic
retailers will likely continue to source their inputs from South American countries,
which comprise the largest source of imported cut flowers at low costs. Thus, as
has been the case over the five years to 2020, imports from countries with lower
production costs will likely create price competition and constrain profit margin
growth for US producers.
Meanwhile, exports are projected to increase over the five years to 2025 at an
annualized rate of 1.7% to reach $550.9 million, which is expected to support
industry revenue. Exports as a share of revenue are expected to increase slightly
from 2020 to 2025. As the US dollar depreciates, international demand for industry
products will likely still benefit industry operators, while declining import
competition is expected to raise prices.
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Consolidation and automation
While some government support will likely remain a common

characteristic of this industry, more money will likely be distributed
to growers of food items.
Therefore, producers within this industry will likely adjust their crop mix if possible.
For example, farmers who grow flowers may choose to add food crops to their
plantings to remain viable. In fact, according to a 2018 study conducted by the US
Department of Agriculture, the instances of adjusted crop mixes have been on the
rise, with more farmers diversifying their operations by conducting some industry-
irrelevant activities on their farm, such as beekeeping. Despite this trend, the
number of establishments is expected to decline at an annualized rate of 0.1% to
40,333 over the five years to 2025.
Meanwhile, industry employment is expected to rise marginally at an annualized

rate of 1.0% to reach 165,650 workers. With revenue expected to rise, farm owners
will likely hire more staff to meet orders. However, automation within this industry is
projected to continue to reduce the number of field workers as capital investments
take over processes. The increased reliance on capital equipment within this
industry is prevalent in the rising depreciation costs paid by average industry
operators, suggesting the industry is becoming more capital intensive and less
labor reliant, to a small degree.
Profit and potential
IBISWorld expects the average industry profit margin to hold

relatively steady over the five years to 2025, increasing marginally
to an estimated 7.3% of revenue in 2025.
This growth in profit reflects the increasing trend of consolidation and cost-cutting
measures within the industry, as well as rising export revenue. Nevertheless,
industry profit is not as volatile as it is for other agricultural producers. While much
of agricultural production is subject to the whims of disease outbreak and weather
patterns, many of the industry's products are grown in controlled environments,
such as nurseries and greenhouses, reducing volatility in production and profit
margin. Although the US economy is expected to continue to improve, consumers
may remain hesitant to spend as much on flowers as they once did.
The small window of opportunity for the industry, however, is in the gardening
market. As the housing market expands, a larger number of new homeowners will
likely tend to their gardens, which may boost downstream sales from nursery and
garden stores. Even so, this trend is not forecast to spur significant change in the
industry's overall state.
In the United States, genetically modified (GM) crops are at the forefront of
production. More than 90.0% of all soybean and corn crops are genetically modified
because sophisticated techniques enable producers to increase harvest size and
disease resistance. In the case of nursery plants, GM seeds have opened the door
to enhanced appearance, new varieties, better-smelling products and longer lives
for cut flowers. Further adoption of GM crops could increase production and sales,
but it could also signal a shift in production methods. GM crops are especially
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suited to greenhouse production because greenhouses provide a controlled

environment, which helps farmers isolate GM crops. This method avoids gene flow
to neighboring farms and crops. Growing opposition from the farming community
against GM crops means that an increasing number of those crops will likely be
grown under the cover of greenhouses, isolated from their non-GM counterparts to
reduce the risk of interaction between species.
Performance Outlook Data

Demand disposable
income
2020 15,095 5,505 40,621 38,571 157,802 508 2,281 3,976 16,869 45,084
2021 15,423 5,604 40,419 38,308 159,573 516 2,305 4,029 17,212 45,457
2022 15,740 5,700 40,307 38,139 161,414 527 2,327 4,083 17,541 46,494
2023 15,995 5,768 40,241 38,027 162,945 534 2,342 4,127 17,803 47,643
2024 16,185 5,830 40,224 37,976 164,197 542 2,356 4,162 18,000 48,845
2025 16,383 5,892 40,333 38,052 165,650 551 2,377 4,202 18,210 50,141
Industry Life Cycle The life cycle stage of this industry is Decline
LIFE CYCLE REASONS

The industry's contribution to the US economy is falling
Product development opportunities are limited
Strong import competition has displaced domestic products
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The Plant and Flower Growing industry is in the declining stage of its life cycle.
Increased competition from importers has constrained domestic floriculture
growth, stunting growth in both industry revenue and industry value added (IVA).
IVA, a measure of the industry's contribution to the overall economy, is expected to
grow an annualized 0.3% over the 10 years to 2025. Meanwhile, US GDP is forecast
to grow at an annualized rate of 1.4% during the same period. This industry is in
decline, despite the consistency in IVA growth. Over the five years to 2020, this
statistic has been biased upward by rising wages and profitability.
The number of enterprises is expected to fall an annualized 1.1% during the 10-year
period to 2025. Competitive forces have led to industry consolidation, with many
producers losing their market as transportation and communication become more
integrated and efficient. For example, plant and flower producers in California can
now compete with operators in Florida or South Carolina thanks to refrigerated
shipping. While this capability has led to size and efficiency gains for some
operators, it has also signaled the end for many others that can no longer remain
competitive.
There have been pockets of growth in some industry segments. Product

differentiation and the promotion of new flowers and indoor plants are contributing
factors. Over the past five years, an emphasis on quality has driven product
development. In particular, improvements in the vase life for cut flowers and flower
life for potted plants have been important in meeting consumer demands. However,
these developments have not been able to curb the detrimental effect of price
competition. Domestic plant and flower growers typically use local outlets like
farmers' markets to target consumers who are conscious of sustainability issues.
Although there have been improvements in technologies, such as irrigation
improvements and disease-resistant, genetically modified crops, the rate of
technological change is slowing. For these reasons, IBISWorld analysis reveals that
the Plant and Flower Growing industry is in the decline stage of its life cycle.
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Products and Markets

Supply Chain KEY BUYING INDUSTRIES KEY SELLING INDUSTRIES
1st Tier 1st Tier
Farm Supplies Wholesaling in the US Farm, Lawn & Garden Equipment
Wholesaling in the US
Flower & Nursery Stock Wholesaling in the
US Water Supply & Irrigation Systems in the
US
Florists in the US
Crop Services in the US
2nd Tier
Nursery & Garden Stores in the US 2nd Tier
Tractors & Agricultural Machinery
Supermarkets & Grocery Stores in the US
Manufacturing in the US
Lawn & Outdoor Equipment Stores in the
Fertilizer Manufacturing in the US
US
Coal & Natural Gas Power in the US
Products and
Services
The Plant and Flower Growing industry can be broadly divided into
two segments: nursery products and floriculture.
Overall, all segments are expected to exhibit weakness in 2020 as a result of the
COVID-19 (coronavirus) outbreak, which has slashed consumer demand and
spending amid stark increases in the national unemployment rate.
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Nursery stock crops
Nursery and tree production comprises establishments that grow

ornamentals, shrubs, shade trees, flowering trees, evergreens, live
Christmas trees, fruit and nut trees, plants (for decoration rather
than commercial production), vines, palms and ornamental grasses.
Overall, this segment is expected to account for an estimated 39.4% of industry
sales in 2020. The Census of Agriculture collectively refers to these items as
nursery stock crops. These products' share of revenue has increased over the five
years to 2020, primarily due to a decline in domestic production of flowering plants
and cut flowers.
Flowers and flowering plants
Floriculture production includes items such as bedding plants,

herbaceous perennials, cut flowers, cultivated greens, foliage
plants, potted flowers, flower seeds and bulbs.
Collectively, these products are estimated to account for 50.1% of industry revenue.
Flowering plants have declined as a share of revenue largely because lower-cost
imported cut flowers have taken a larger share of the flower market over the past
five years. While cut flowers account for an estimated 1.0% of total industry revenue
in 2020, their share has decreased as domestic demand for imports has grown
during the five-year period. Less expensive imports are attractive to downstream
markets due to their competitive prices and increasing abundance. As a result of
this shift, domestic flower producers have altered their mix of products to include
more potted plants and nursery items. The share of revenue generated from sales
of bedding and garden plants has consequently increased within the floriculture
segment.
Propagative materials and other products
Propagative materials include plants and flowers that are used as

inputs into further nursery and floriculture production, as well as
plants that are used as inputs into agricultural production, such as
tomato or grape vines or strawberry plants.
In 2020, propagative materials account for an estimated 6.4% of total revenue, while
bulbs account for 0.8%.
Demand Most of the Plant and Flower Growing industry's output is sold
Determinants domestically, so one of the most important demand determinants is
the level of US flower and plant consumption.
US per capita flower consumption currently stands at levels significantly lower than
in many European countries. Anticipated increases in flower and plant consumption
in the US market are likely to result in an overall increase in demand for
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domestically grown products. Ultimately, the extent to which the local industry
benefits from any rise in domestic consumption depends on competitive action
from imports.
Activity in downstream nursery and florist retailing plays a major role in determining
domestic demand for the industry's output. Since US retailers source the majority of
their produce from local farmers, any growth in retail sales usually translates into
greater demand for domestically grown crops. Over the five years to 2020, domestic
use of locally grown flowers and plants has been threatened by intensifying
competition from imports. However, it should be noted that in 2020 retail demand
has plummeted amid forced shutdowns and mandated social distancing orders for
the first two quarters of 2020. Overall, it is expected demand from retail outlets will
expand post-pandemic, as consumers return to work and per capita disposable
income rises in line with an expected increase in consumer spending.
Demand for flowers peaks during certain holidays and seasons such as Valentine's
Day, Mother's Day and Christmas. Flowers are a common gift during these periods.
Successful floriculture establishments must adjust their growing cycles to account
for these peaks in demand. For example, production of roses must be maximized in
late January or early February to take advantage of Valentine's Day sales.
Exchange rate movements directly affect demand for US floriculture and nursery
crops in foreign markets. Similar to domestic nursery retailers, overseas customers
are highly sensitive to price increases. Any appreciation in the value of the US dollar
will likely erode the international price competitiveness of American-grown
floriculture and nursery crops. The availability of supplies from other countries
explains why overseas customers will reduce their demand for US floriculture and
nursery crops if their prices increase.
Major Markets
Floriculture and nursery stock wholesalers
Floriculture and nursery stocks in the United States are sold to wholesalers,
retailers and exporters in downstream markets. These stocks are also sold within
the Plant and Flower Growing industry for propagative and reseeding purposes.
IBISWorld estimates that the wholesale market currently accounts for an estimated
22 IBISWorld.com
10.1% of all industry sales in 2020, having declined over the past five years due to
the growing prominence of larger retailers placing orders. Wholesalers can provide
an intermediary service to growers by transporting and storing flowers and nursery
stock before their sale to retailers. Additionally, these declines have been
exacerbated via declining demand from flower and nursery stock wholesaling. In
2020 the COVID-19 outbreak has pinched the wholesale link of the supply chain
severely, with a limited number of drivers across the nation struggling to get
products to manufacturers as well as to end markets. As a result of this pinch,
prices have been rising at the retail level while they decline at the farm gate.
Intra-industry sales
Conversely, nursery chains and major retailers such as Walmart Inc. use their
buying power to secure lower prices from growers and often buy imports to cut
purchasing costs. Nurseries also sell seedlings to other growers for finishing and
repotting before sale to wholesalers and retailers. IBISWorld estimates that 25.5%
of industry revenue is generated from intra-industry transactions in 2020, a segment
that has increased as wholesale revenue declines. It should also be noted that this
segment has held steady amid the coronavirus outbreak, demonstrating issues
stem from the logistics of getting products to market, not necessarily other farms.
Retailers and exports
Retailers also purchase products from this industry and account for an estimated
61.0% of sales in 2020, having grown slowly in their share over the past five years.
The retail market for nursery and floriculture products has two distinct
subsegments: the traditional florist market, characterized by high-quality products
and more services; and the mass market that is focused on higher volumes, smaller
products and lower prices. Concentration of ownership in the retail sector has
caused some concern among farmers. Domestic flower growers are targeting
smaller and more locally focused retail chains such as Trader Joe's and Whole
Foods Market Inc. These outlets market and promote plants based on their local
origin. Additionally, many US plant and flower growers are selling their products at
farmers' markets, where consumers seek out and value locally sourced products as
opposed to imports. This segment has weakened during the current period and
especially in 2020 as a result of the coronavirus outbreak.
In addition, the industry generates an estimated 3.4% of its total revenue from
exports in 2020. The export market consists mainly of wholesalers in Canada,
Mexico and the European Union. While this segment is small, it provides an
important source of demand for specialty species.
International Exports in this industry are Low and Increasing

Trade
Imports in this industry are Medium and Increasing
23 IBISWorld.com
Imports
The United States is a net importer

of floriculture and nursery products.
To supplement domestic production,
the United States imports flowers
and plants each year. Imports are
primarily sourced from Colombia,
Canada, Ecuador and the
Netherlands. These nations account
for an estimated 36.9%, 20.8%, 12.1%
and 10.5% of US imports for
consumption, respectively, in 2020.
As the cost of domestic production
has increased relative to other
countries and the US dollar has
strengthened, imports have been
encouraged over the five years to
2020. Imports have increased overall
during the period, rising at an
annualized rate of 2.8% to reach $2.3
billion. However, as the dollar is
projected to weaken over the five
years to 2025, industry imports are
expected to decline.
Colombia mainly exports cut flowers to the United States, while Canada is
predominantly a source of live plants and trees. The Netherlands is another
prominent source for the United States because it is home to the largest
international flower market in the world. South America also boasts a favorable
growing environment due to its reversed seasonality and generally warm climate.
Exports
IBISWorld estimates that the industry export value will reach $507.5 million in 2020,
growing an annualized 2.6% over the five years to 2020. Despite the fact that the
dollar appreciated over the five years to 2020, US exports still grew. This is due in
part to the fact that Canada, a member of the North American Free Trade
Agreement (NAFTA) and the United States, Mexico, Canada Agreement, which
minimized trade barriers between member nations, accounts for over 40.0% of
industry exports in 2020. Moreover, Mexico, another NAFTA member, accounts for
16.5% of exports. Together, these nations account for over 60.0% of exports, which
helps to explain growth in trade volumes despite a strong dollar. Other major trading
partners include the Netherlands (12.1%) and Peru (3.8%). Moreover, while no
longer in the top four trading partners, exports to China have declined over the past
five years, and rising trade tensions between the two nations is expected to cause
exports to China to continue to slide over the next five years. Overall, as exports to
China weaken, it is expected that industry export revenue growth will be challenged
as industry operators are shut out from one of their largest markets.
24 IBISWorld.com
Business
Locations Business Concentration in the United States
WA
MT ME
ND
VT
OR MN
NH
ID WI
SD NY MA
WY MI CT RI
IA PA
NV NJ
NE
OH MD
IL IN DC DE
UT
CO WV VA
KS MO
CA KY
NC
AZ TN
OK
NM SC
AR
AL GA
MS
TX LA
FL
AK
Percentage of Establishments (%)

HI
0 6 12 18
Plant & Flower Growing in the US

Source: IBISWorld
Establishments in the Plant and Flower Growing industry are located throughout the
United States. However, their distribution varies slightly from the population
25 IBISWorld.com
distribution. Some industry products grow better in specific climates and a

concentration of growers has developed in a given area. Oregon, for example, which
has the fourth-largest number of industry establishments at 6.0% of industry
establishments in 2020, yet only 1.2% of the US population.
The two largest producing states in the industry are Florida and California. Florida
has an estimated 10.0% of industry establishments in 2020, while California has
6.4%. These two states benefit from temperate climates, which enable a greater
share of production to be conducted outdoors at a lower price, rather than in
greenhouses, which involve extra costs. Further, these states have established
irrigation networks for a variety of other agricultural production, ensuring the
availability of water. Aside from these two states, the largest concentrations of
industry establishments are located in: Pennsylvania (5.7%), Oregon (6.0%), North
Carolina (5.8%), Michigan (5.0%), Ohio (3.2%) and New York (4.4%).
The US Department of Agriculture's annual report on floricultural production, which

generates slightly less than half of industry revenue, only records data in 15 states
on establishments that record more than $10,000 in annual revenue. These states
include: California, Florida, Hawaii, Illinois, Maryland, Michigan, New Jersey, New
York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Texas and
Washington. Floriculture is concentrated in these states; as a result, these states
make up virtually all of floricultural production.
26 IBISWorld.com
Competitive Landscape
Market Share Concentration in this industry is Low
Concentration
As an agricultural industry, nursery and
floriculture production has a low level of
ownership concentration. The Plant and
Flower Growing industry consists of
national, regional and local nursery
businesses. However, small, family-run
operations dominate the industry. In terms
of employment distribution, the industry is
characterized by the presence of many
farms that employ small permanent staff.
Producers typically only supplement their
own labor and their small full-time staff
with seasonal hired labor.
While small businesses make up the

greatest component of the industry,
consolidation is raising the number of large-scale producers. This pattern is
attributable to competition and cost pressures that are forcing smaller production
farms to close as the industry moves toward large-scale production. This industry
trend reflects the merging process occurring across the agricultural sector. Higher
concentration may result in greater profitability among large farms, as fixed costs
fall relative to production. Overall, concentration is unlikely to shift dramatically as a
result of the coronavirus outbreak due to the fact that most operators are small and
lack the buying power to acquire failing competitors, though some larger operators
with balance sheets in better repair may use this as a buying opportunity.
27 IBISWorld.com
Key Success IBISWorld identifies 250 Key Success Factors for a business. The most important for this
Factors industry are:
Economies of scale: Economies of scale in production generate cost savings for nursery
and floriculture growers. Specifically, economies of scale result in lower per-unit growing
costs that ultimately result in higher net returns.
Production of premium goods/services: Farmers that produce premium trees and

flowers can find buyers in premium markets where prices are the highest. Providing
premium goods also enables producers to secure a segment of the market from import
competition.
Ability to alter goods and services produced in favor of market conditions: The
ability to alter the balance between the industry's crops and other agricultural products in
response to changes in market conditions is important for a farm's viability. Farmers need
to be able to change their product mix to maximize farm returns.
Establishment of export markets: The ability to identify and market to offshore

customers reduces a nursery's dependence on local markets.
Appropriate physical growing conditions: The presence of fertile soils and other
appropriate growing conditions plays a critical role in shaping the success of growing crops.
Growing conditions influence harvest levels and crop quality.
Availability of irrigation water: Water access issues can affect the quality of harvests
and the area of land devoted to nursery and floriculture production.
Cost Structure
Benchmarks
28 IBISWorld.com
Profit
Wages and salaries form one of the greatest

cost components in nursery plant and flower
production, accounting for 26.3% of revenue in
2020. There are nearly four to five employees
per establishment. The harvesting and
maintenance of crops is carried out entirely by
crews of trained workers. Moreover, labor
requirements are fairly consistent across any
given year due to the controlled environment.
Industry establishments often keep a limited
full-time staff and hire workers seasonally when
it is time to collect and prepare plants for sale or
to reseed. Wage costs have increased over the
past five years as industry operators have
attempted to cut costs by trimming unskilled
labor from their workforces. As a result,
employees who are retained are more
specialized in nature and can command a high
wage.
Wages
Wages and salaries form one of the greatest

cost components in nursery plant and flower
production, accounting for 26.2% of revenue in
2020, up from 24.0% in 2015. There are nearly
four to five employees per establishment. The
harvesting and maintenance of crops is carried
out entirely by crews of trained workers.
Moreover, labor requirements are fairly
consistent across any given year due to the
controlled environment. Industry establishments
often keep a limited full-time staff and hire
workers seasonally when it is time to collect and
prepare plants for sale or to reseed. Wage costs
have increased over the past five years as
industry operators have attempted to cut costs
by trimming unskilled labor from their
workforces. As a result, employees who are
retained are more specialized in nature and can
command a high wage. It should be noted that
this metric also encompasses the cost of
seasonal labor as well as fringe benefits to
laborers. As a result, this figure is the overall
total compensation given to industry employees.
29 IBISWorld.com
Purchases
Purchases represent the largest expense for

industry operators, accounting for an estimated
31.5% of industry revenue. Costs included in this
category are pesticides, fertilizer, plants, seeds,
potting materials, soil nutrients, conditioners
and packaging materials. Since fertilizer is
made from natural gas, a commodity whose
price is highly volatile, industry purchase costs
can swing up or down in any given year
depending on the price of fertilizer. The same is
true for other chemical-based purchases such
as pesticides, although to a lesser extent.
However, when the sale price of industry
products increases more quickly than purchase
costs do, as is the case over the past five years,
the industry earns greater overall revenue and
industry purchase costs shrink as a portion of
total revenue.
Depreciation
Depreciation costs account for an estimated

3.0% of industry revenue in 2020. Compared
with other agriculture industries, the capital-to-
labor ratio in nursery plant and flower production
is relatively low. However, to cut costs, industry
operators are increasingly investing in machines
to increase efficiency and reduce labor reliance.
As a result, average industry depreciation costs
have expanded over the past five years, but
remain marginally down from 2015 levels.
Marketing
Marketing costs are low for industry operators,

accounting for 0.7% of industry revenue in 2020.
Overall, due to the geographical nature of
industry markets, marketing is not a critical
expense. Local growers are to a degree,
insulated from competition
30 IBISWorld.com
Rent
Rent accounts for an estimated 8.0% of industry

revenue in 2020. Rental costs include lease
payments on rented equipment as well as
payments for rented land. Since a majority of
industry crops are grown under cover, rent
charges are higher for industry operators than
most other farming industries, where rent costs
are low due to ownership of land. Since plant
and flower farms are often located close to
large populations, land prices are higher in this
industry than in other agricultural industries.
Utilities
The cost of irrigation water and electricity used

in greenhouses is included in utilities costs,
accounting for 7.1% of industry revenue in 2020.
This figure is elevated above the sector average
due to the fact that greenhouses must have
temperature control and light to further
stimulate plant growth. Utility expenses have
declined marginally during the period.
Other Costs
Other costs include insurance expenses,

maintenance and administrative fees, which
make up the remainder of industry costs,
accounting for 16.4% of industry revenue in
2020.
31 IBISWorld.com
Basis of Competition in this industry is Medium and Increasing

Competition
Operators in the Plant and Flower Growing industry compete on the
basis of product price, quality, availability and import penetration.
Internal competition
Price is a key competitive factor for growers because floriculture

and nursery crops are largely homogeneous in nature compared
with manufactured goods.
Moreover, because US commodity crops do not differ significantly from those
grown in other parts of the world, grower prices reflect global commodity markets.
That is, price is a function of the world supply and demand for nursery and
floriculture crops.
Although price remains a critical competitive factor, the importance of quality is

also increasing. For example, cut flowers can be graded according to appearance,
scent and size. Premium graded flowers can demand marginally higher prices,
contributing to greater returns for growers. Ultimately, quality is a function of
production techniques, growing conditions and handling. Compared with field
crops, the quality of flowers grown under cover is easier to control. These flowers
are generally protected from volatility caused by weather, though potential plant
disease and insect outbreaks still pose threats to product quality. Amid the
COVID-19 (coronavirus) outbreak and amid a flood of industry products at the farm
gate, price competition between industry operators is likely to increase due to the
fact that supply is so high, and wholesale capacity is limited. It is likely industry
operators will lower prices to ensure that their products make it to market over their
competitors.
External competition
Outside the United States, the industry competes against nursery

and floriculture producers in other countries.
In this international marketplace, the domestic industry benefits from its reputation
as a high-quality producer. The key factors affecting world demand for US nursery
and floriculture products are the same as the variables driving domestic demand.
The global market is also influenced by foreign exchange rates, foreign supplies,
variances in per-capita usage of nursery and floriculture products in other parts of
the world.
Barriers to Entry Barriers to entry in this industry are Medium and Steady
32 IBISWorld.com
Barriers to entry into the Plant and

Flower Growing industry are moderate. Barriers to entry checklist
Most inputs are readily available and Competition Medium
there are often several greenhouse
Concentration Low
facilities and field-based farms available
for sale. Nonetheless, one possible Life Cycle Stage Decline
barrier prohibiting new entrants is the
Technology Change Medium
level of capital investment usually
required. Investment is necessary in real Regulation & Policy Light
estate, greenhouse construction, cooling
Industry Assistance Low
rooms and the wide range of equipment
and machinery required for undercover
plant and flower production. For enterprises already engaged in field production,
these start-up costs are lower because some resources are transferable to
undercover production. Greenhouse production also requires some specialized
machinery, including irrigation systems.
The time lag between commencement of production and selling of a crop may act
as a barrier to entry. In nursery production, time lags can be greater than in
horticultural production, particularly when plants are produced in the field rather
than in containers. While initial production costs are higher for a container nursery,
returns are generally realized earlier. Similar to many agricultural industries, the
profitability of nursery and floriculture production can be highly volatile as it
depends on a range of exogenous factors; such as world supply and demand
forces, which are beyond the control of farmers. Given this, traditional financing
companies and banking institutions may be reluctant to approve loans for
establishment costs. Moreover, while not a formal barrier to entry, an owner-
operator's subject matter knowledge can play a major role in an entrant's viability
when entering into the market.
Overall, it is not expected that barriers to entry will rise as a result of the COVID-19
(coronavirus) outbreak, however barriers to success are expected to rise due to
extremely weak demand conditions in 2020 alone.
Industry Globalization in this industry Medium and Increasing

Globalization
US farmers engaged in nursery and floriculture production are exposed to a
moderate level of globalization. Similar to most other segments of the farming
sector, a high level of local ownership characterizes the Plant and Flower Growing
industry. Although large-scale corporate farming is increasing, the vast majority of
farms are still run by families. This low level of ownership concentration accounts
for the low level of foreign investment in the industry.
While foreign ownership in the local industry is limited, farmers are still sensitive to
the effects of globalization through the industry's exposure to foreign competition
and international trade. As one of the world's major agricultural producers, the
United States is an active exporter of nursery and floriculture products. Farming
returns from exports are affected by changes in foreign exchange markets and
international prices. Domestically, the industry faces high levels of competition
from imports of cut flowers and foliage. In particular, the rising flow of Canadian
33 IBISWorld.com
bedding and Colombian cut flower imports has hurt the market share of domestic
growers.
Due to the nature of industry products and the industry's largest trading partners,
industry globalization is unexpected to shift dramatically as a result of the
coronavirus outbreak. Since most trade takes place within the North American
Continent, it is not expected that levels of globalization will be impacted too
severely by the pandemic.
34 IBISWorld.com
Major Companies
Major Players THERE ARE NO MAJOR PLAYERS IN THIS INDUSTRY
Other Players Privately owned farms characterize the Plant and Flower Growing industry. Due to
the small size of the average operator, there are few instances of vertical
integration. Forward integration into packing or retailing is largely restricted to
medium and large establishments; however, some small producers are creating
cooperatives to operate packing and distribution.
BAILEY NURSERIES INC.
Bailey Nurseries Inc. (Bailey Nurseries) is a wholesale grower of a wide range of

ornamental plants, including perennials, roses, vines, shrubs and trees. The
company is headquartered in St. Paul, MN, and distributes and sells its products to
more than 4,500 retailers and landscapers throughout the United States and
abroad. The company employs about 500 employees and as many as 700 more
during peak seasons, such as spring. Its main growing facilities are based near
Minneapolis and St. Paul, though the company also operates satellite facilities in
Yamhill and Sauvie Island, OR; Sunnyside, WA; and Onarga, IL.
In January 2015, the company acquired Plant Introductions Inc. (PII), a small
Georgia-based breeder of ornamentals. PII continues to operate relatively
independently as an in-house breeder for Bailey Nurseries. Though the company is
private and does not release financial information, IBISWorld estimates that Bailey
Nurseries' industry-relevant revenue will total $57.4 million in 2020, which is a slight
decline as a result of the coronavirus outbreak. Overall, it is expected that declining
demand and a pinched supply chain will cause retail prices and farm gate prices to
diverge, causing company revenue to decline.
BALL HORTICULTURAL COMPANY
Founded in 1905 and headquartered in Chicago, family-owned Ball Horticultural

Company (Ball) breeds, produces and distributes various floriculture and
horticulture products for retailers, landscapers, wholesalers, growers and foreign
markets. The company supplies cut flowers, seeds, plants, perennials and
vegetables, as well as a variety of greenhouse equipment and supplies. Ball
operates in 20 countries through its subsidiaries and joint ventures and employs
more than 3,000 people globally, with annual revenue over $500.0 million.
Additionally, the company publishes and distributes magazines, such as
GrowerTalks and Green Profit.
As a breeder and producer of ornamental plants, Ball has developed several

varieties including the Wave petunia family and Super Elfin impatiens, both of which
are registered trademark varieties. However, much of the company's production is
conducted via partners or in foreign countries. For example, Florensis is based in
the Netherlands and M&B Flora is based in Japan. Ball is a private company, so no
financial information is directly available. Nevertheless, IBISWorld estimates that
35 IBISWorld.com
the company's US industry-specific revenue will total $95.6 million in 2020, which
represents a slight decline as a result of the COVID-19 (coronavirus) outbreak
pinching supply chains and causing retail prices for industry products to rise while
farm gate returns dwindle.
36 IBISWorld.com
Operating Conditions
37 IBISWorld.com
Capital Intensity The level of capital intensity is Low
On average, the Plant and Flower Growing

industry spends $0.11 on capital for each
dollar spent on labor. This is representative of
the industry's low, but rising, level of capital
intensity. Over time, the industry has become
more reliant on machines and technology as
opposed to field workers.
Although technology is increasingly taking

over operations within nursery plant and
flower production, the industry is still highly
reliant on labor inputs. According to the 2017
Census of Agriculture, the average nursery
and floriculture establishment spends $98,898
on machinery and equipment annually, which
is lower than the crop farming sector average
of $177,775. This is due to the delicate nature
of flowers and foliage plants. To preserve their
condition, teams of skilled workers must pick
the plants. IBISWorld expects the trend toward
mechanization will continue over the five
years to 2025, as technology becomes more
advanced and is able to replace skilled field
workers in planting and harvesting. However,
plant and flower growing will likely continue to incur high labor costs relative to
other agricultural industries.
Technology And Potential Disruptive Innovation: Factors Driving Threat of Change

Systems Level Factor Disruption Description
A ranked measure of the largest core

Market market for the industry. Concentrated core
Very High Very Likely markets present a low-end market or new
Concentration market entry point for disruptive
technologies to capture market share.
A measure for the mix of patent classes

Innovation assigned to the industry. A greater
High Likely concentration of patents in one area
Concentration increases the likelihood of technological
disruption of incumbent operators.
A qualitative measure of barriers to entry.

Fewer barriers to entry increases the
Moderate Ease of Entry Potential likelihood that new entrants can disrupt
incumbents by putting new technologies
to use.
A ranked measure for the number of

Rate of patents assigned to an industry. A faster
Low Unlikely rate of new patent additions to the
Innovation industry increases the likelihood of a
disruptive innovation occurring.
38 IBISWorld.com
Level Factor Disruption Description
Annualized growth in the number of

enterprises in the industry, ranked against
Low Rate of Entry Unlikely all other industries. A greater intensity of
companies entering an industry increases
the pool of potential disruptors.
The rate of new patent technologies entering the industry is low, which limits the
potential for innovations. A low rate does not mean that innovations cannot occur,
just that the likelihood of some innovation materializing as a threat is lower.
However, the concentration of technologies is high in this industry. This suggests
that industry operators have exposure to potentially unforeseen areas of innovation.
Industry operators are exposed to a low rate of new entrants and a moderate level
of entry barriers. This combination of factors creates an environment where entry
trends are not a key threat of disruption.
The major markets for this industry are highly concentrated, which implies that the
market has a focus on key customer segments. This presents an opportunity for
strategic entrance into lower-end markets or unserved markets for innovations to
take on a disruptive trajectory.
The Plant and Flower Growing industry has encountered a degree of

technological disruption via the introduction of "grow box"
technology.
This simple innovation enables consumers to perform this industry's core functions
on their own. These new grow boxes and growing technologies enable consumers
to plant and grow specific plants, such as flowers and other crops. Plants and crops
are grown in a self-contained unit that manages UV light input, nutrients and water,
all from the convenience of a preset application. These new growing technologies
have enabled consumers to cut farmers out of the floral supply chain. As a result of
this and other at-home technologies, consumers no longer have to purchase
industry products from retailers such as nurseries and home and garden stores.
This will likely cause demand for industry products sold from these traditional
outlets to decline, as consumers are able to take on small-scale production of
industry products within the confines of their own homes, effectively reducing
overall demand and revenue for the industry.
The level of technology change is Medium
The technology associated with growing floricultural crops has

changed significantly over the past two decades.
These changes include the introduction of more vigorous and high-yielding plant
stock; extensive planting of disease-resistant varieties; better trellising techniques;
and changes to irrigation practices including the introduction of plastic piping and
trickle systems. Current industry research tends to focus on space efficiencies,
labor-saving technology, integrated pest management and postharvest physiology.
39 IBISWorld.com
Tensiometers have benefited the Plant and Flower Growing industry by controlling
irrigation used in nursery systems. The soil moisture is monitored in the plant root
zone, enabling producers to deliver exactly the right moisture level required by the
specific plant species. The tensiometer can turn the irrigation system on when
water is required and a trickle irrigation system delivers the water.
The industry is becoming increasingly mechanized. There are a variety of highly

repetitive tasks that lend themselves to mechanization. The processes that are
most highly automated are mixing container substrate (soil), filling containers with
substrate, transportation of containers, pesticide application, irrigation application
and management.
Other technological progress relates specifically to greenhouse production

systems. For instance, temperature sensors can sense greenhouse air temperature
and provide feedback to heating and cooling systems. These systems enable plants
to be kept in optimal temperature conditions. Ventilation and air circulation systems
also enable crops to be maintained in a uniform environment. In addition, insect
screening can also be used to reduce the entry of insects into a greenhouse.
Intensive crop production has had some effect on the Plant and Flower Growing
industry. The adoption of intensive production is beginning to provide growers with
lower per-unit production costs arising from managing smaller areas. The adoption
of intensive growing programs has been made possible through modifications in
machinery (e.g. narrower tractors and movers).
An important area of technological change that has occurred in the industry in

recent decades has been the adoption of advanced forms of biotechnology, such
as genetic modification. This technique provides nurseries with many benefits. For
example, it can be used to reduce the need for applications of growth regulators,
thereby reducing production costs for growers. Researchers continue to explore
biotechnology as a means of improving the properties of flowers and plants
including life expectancy, color, texture and size.
Additionally, there has been a push in the agricultural sector at large to adopt
precision agriculture methods, which combine internet technologies, data analytics
and convention technologies to increase operational efficiencies. Though various
industry products are grown under cover and therefore have a limited capacity to
adopt these technologies, other agricultural industries have exhibited positive
trends via the adoption of technologies such as variable rate input monitors, drones,
auto-steering tractors and GPS guided harvesters.
40 IBISWorld.com
Revenue Volatility The level of volatility is Medium
Note: Revenue growth and decline reflective of 5-year annualized trend. Y-axis is in
logarithmic scale. Y-axis crosses at long-run GDP. X-axis crosses at high volatility
threshold.
Revenue volatility has been moderate to low in the Plant and Flower
Growing industry over the five years to 2020.
Overall, industry revenue volatility is a function of commodity prices, weather
conditions, demand effects and the level of profitability in alternative agriculture.
Industry participants are exposed to price fluctuations in tree and flower crops and
in inputs into production, such as fertilizer and seed. Favorable conditions in other
agricultural pursuits, such as corn farming, can also encourage farmers to shift
resources away from nursery and floriculture production.
For growers engaged in field production, weather conditions provide another source
of industry volatility. Adverse weather can affect the quality and quantity of the
harvest. However, much of the industry that is engaged in greenhouse growing is
not affected by shifts in weather, and this controlled production environment
reduces revenue volatility. Finally, shifting preferences in consumer markets can
create volatility. Over the past five years, many consumers chose to spend their
discretionary dollars elsewhere, decreasing overall demand for industry products.
Lastly, it should be noted that volatility has increased in 2020 alone as the
COVID-19 (coronavirus) outbreak has roiled end markets and caused a decline in
per capita disposable income.
Regulation & The level of regulation is Light and is Steady

Policy
Plant and flower farmers must comply with regulations at the
county, state and federal levels.
41 IBISWorld.com
Given this, the extent to which the Plant and Flower Growing industry is regulated
can vary between geographic regions. At the county level, farms must comply with
zoning bylaws and use land that has been approved for horticultural growing.
The regulation of US farming industries is generally carried out at the state level.
Most states operate agricultural departments that act as regulatory agencies.
These authorities monitor pollution levels associated with growing crops. This
typically involves the regulation of chemical usage, odor control and discharge of
materials; such as waste into the environment.
At the national level, regulatory agencies such as the US Environmental Protection

Agency also monitor the environmental impact of growing crops. Additionally, the
US Department of Agriculture (USDA) controls the licensing of organic agricultural
production. Farmers wishing to promote their produce as organic must obtain
certification from the USDA. The USDA also controls the planting of experimental,
genetically modified (GM) crops. All growers of GM crops are required to obtain a
permit from the USDA before planting.
Serious breaches or failure to comply with regulations, laws and other rules
governing nursery and floriculture production can subject industry players to civil
remedies and administrative penalties. It can also result in considerable negative
publicity that can damage the reputation and public image of producers.
Noncompliance can therefore potentially have a material effect on the earnings and
competitive position of companies operating in this industry.
Industry The level of industry assistance is Low and is Increasing

Assistance
Nursery and floriculture crops are excluded from federal price
support programs.
However, farmers in the Plant and Flower Growing industry can access government
assistance through several packages aimed at the farming sector. These packages
are designed to minimize production risks, encourage industry innovation, regulate
the flow of competing imports and support exports.
US government agencies provide several types of support to nursery and flower

plant producers. Under the US Department of Agriculture (USDA), the Risk
Management Agency (RMA) provides crop insurance to wholesale nursery
businesses that grow and market plants. To be eligible for this program, producers
must derive 50.0% or more of their sales from wholesale activity and must be listed
on the RMA's Eligible Plant List and Plant Price Schedule.
The USDA's Agricultural Research Service (ARS) maintains several storage facilities
and Plant Materials Centers throughout the United States. Nursery producers can
take advantage of programs aimed at helping with the research, breeding and
preservation of endangered species. In addition, farmers in this industry can access
funding through the federal government's Environmental Quality Incentives Program
(EQIP). Under the EQIP, farmers can obtain access to funding, advice, and education
services for addressing resource issues. The program is designed to help farmers
use their land in the most environmentally friendly and cost-effective manner.
42 IBISWorld.com
In the private sector, US growers receive assistance from the lobbying efforts of
peak industry associations. These nonprofit corporations represent the interests of
growers, shippers and processors operating in the nursery and flower supply chain.
In addition to supporting the industry through market development and lobbying
efforts, most associations also provide information and education services for
members.
The peak industry association for nurseries is the American Nursery and Landscape
Association (ANLA), which provides education, conducts research and provides
representation for its members. Its stated purpose is to advocate the industry's
interests before government, and provide its members with unique business
knowledge essential to long-term growth and profitability. The Horticultural
Research Institute is the research arm of the ANLA, which provides and supports
horticultural research that ultimately supports nursery and landscape activities.
Trade relations
In the international arena, American farmers benefit from export

programs run by the Commodity Credit Corporation (CCC).
These programs encourage exports to countries where credit is necessary to
increase US sales. The Supplier Credit Guarantee Program offers financing to
importers and encourages domestic producers to maintain relationships with
importing countries that cannot obtain credit without the CCC. The Market Access
Program is another program that helps producers finance promotions and market
research by providing collected CCC funds.
The Andean Trade Promotion and Drug Eradication Act (ATPDEA) cut import tariffs
on South American goods with the goal of separating Latin American economies
from the drug trade. In connection with this program, the Trade Adjustment
Assistance (TAA) Program, a federally funded program that provides employment
opportunities for workers that have been displaced by imports. Colombia and Peru
continue to experience the benefits from free trade agreements with the United
States. The trade agreements are on the table in Congress, but a decision to keep
the programs may not occur soon because the US government is aiming to cut
costs amid a debt default threat.
Potential importers of flowers and nursery stock must obtain an agricultural import
permit and a phytosanitary certificate before their stocks are permitted to enter the
United States. Rigorous limits and inspections guarantee that no pests or diseases
enter the country through imports. Any corrections that must be made during this
process are made at the expense of the importer.
The Coronavirus Aid, Relief & Economic Security (CARES) Act
In response to the coronavirus outbreak the federal government has

enacted more than $4.0 trillion in emergency funding, nearly $2.0
trillion of which is being made available through the Small Business
Administration (SBA) offering Paycheck Protection Plan loans.
These loans are to be distributed to eligible companies with 500 or more
employees, with a stipulated 80.0% of these loans being used for employee
43 IBISWorld.com
paycheck and salaries and benefits. However, only a small portion of the industry is
expected to be eligible to receive these loans due to the fact that agricultural
operators must have sales of more than $1.0 million to qualify, despite the fact that
the majority of industry operators are considered owner-operators, which means
they do not employ more than 500.0 individuals and are thus eligible to receive SBA
loans. Therefore, the majority of this industry's companies will be left to go without
relief from the federal government.
44 IBISWorld.com
Key Statistics
Industry Data
Demand disposable
income
2011 16,886 4,948 50,338 48,066 165,290 501 1,822 3,918 18,207 38,780
2012 14,888 4,481 49,639 47,432 164,803 426 1,909 3,782 16,372 39,784
2013 15,134 4,737 47,798 45,632 162,581 455 1,942 3,799 16,621 39,004
2014 14,946 5,680 46,067 43,930 160,982 454 1,971 3,826 16,463 40,310
2015 16,339 5,711 44,395 42,290 160,897 447 1,891 3,922 17,784 41,670
2016 14,928 5,538 42,803 40,724 159,472 465 1,996 3,986 16,459 42,108
2017 15,280 5,948 41,278 39,224 158,857 517 2,069 4,038 16,832 43,056
2018 15,246 5,477 42,016 39,966 160,027 518 2,146 4,029 16,874 44,521
2019 15,596 5,637 41,764 39,647 161,891 501 2,245 4,085 17,340 45,581
2020 15,095 5,505 40,621 38,571 157,802 508 2,281 3,976 16,869 45,084
2021 15,423 5,604 40,419 38,308 159,573 516 2,305 4,029 17,212 45,457
2022 15,740 5,700 40,307 38,139 161,414 527 2,327 4,083 17,541 46,494
2023 15,995 5,768 40,241 38,027 162,945 534 2,342 4,127 17,803 47,643
2024 16,185 5,830 40,224 37,976 164,197 542 2,356 4,162 18,000 48,845
2025 16,383 5,892 40,333 38,052 165,650 551 2,377 4,202 18,210 50,141
Annual Change
Demand disposable
income
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2011 15.0 -1.23 -1 -1 -1 4.20 3.00 -4.76 14.0 1.61
2012 -11.8 -9.43 -1 -1 -0 -15.0 4.81 -3.47 -10.1 2.58
2013 1.65 5.70 -4 -4 -1 6.95 1.70 0.44 1.52 -1.97
2014 -1.25 19.9 -4 -4 -1 -0.33 1.48 0.72 -0.95 3.34
2015 9.31 0.54 -4 -4 -0 -1.53 -4.02 2.48 8.02 3.37
2016 -8.64 -3.02 -4 -4 -1 4.09 5.53 1.63 -7.45 1.05
2017 2.35 7.39 -4 -4 -0 11.2 3.67 1.30 2.26 2.25
2018 -0.22 -7.91 2 2 1 0.15 3.70 -0.22 0.25 3.40
2019 2.29 2.92 -1 -1 1 -3.21 4.62 1.38 2.76 2.38
2020 -3.22 -2.35 -3 -3 -3 1.21 1.60 -2.67 -2.72 -1.09
2021 2.17 1.79 -0 -1 1 1.71 1.04 1.33 2.04 0.82
2022 2.05 1.70 -0 -0 1 2.01 0.95 1.33 1.91 2.28
2023 1.61 1.19 -0 -0 1 1.44 0.65 1.08 1.50 2.47
2024 1.18 1.08 -0 -0 1 1.40 0.60 0.85 1.11 2.52
2025 1.22 1.05 0 0 1 1.69 0.88 0.95 1.16 2.65
Key Ratios
Year IVA/Revenue Imports/Demand Exports/Revenue Revenue per Wages/Revenue Employees per Average Wage
Employee estab.
(%) (%) (%) ($'000) (%)
2011 29.3 10.0 2.97 102 23.2 3.28 23,701
2012 30.1 11.7 2.86 90.3 25.4 3.32 22,947
2013 31.3 11.7 3.01 93.1 25.1 3.40 23,365
2014 38.0 12.0 3.03 92.8 25.6 3.49 23,768
2015 34.9 10.6 2.73 102 24.0 3.62 24,373
2016 37.1 12.1 3.11 93.6 26.7 3.73 24,994
2017 38.9 12.3 3.38 96.2 26.4 3.85 25,417
2018 35.9 12.7 3.40 95.3 26.4 3.81 25,176
2019 36.1 12.9 3.21 96.3 26.2 3.88 25,232
2020 36.5 13.5 3.36 95.7 26.3 3.88 25,197
2021 36.3 13.4 3.35 96.6 26.1 3.95 25,249
2022 36.2 13.3 3.35 97.5 25.9 4.00 25,294
2023 36.1 13.2 3.34 98.2 25.8 4.05 25,328
2024 36.0 13.1 3.35 98.6 25.7 4.08 25,349
2025 36.0 13.1 3.36 98.9 25.6 4.11 25,366
45 IBISWorld.com
Industry Financial Ratios

April 2018 - March 2019 by company revenue
Liquidity Ratios April 2015 - April 2016 - April 2017 - April 2018 - Small (< Medium Large (>
March 2016 March 2017 March 2018 March 2019 $10m) ($10m-50m) $50m)
Current Ratio 1.8 1.8 1.7 1.8 1.9 2.0 1.7
Quick Ratio 0.4 0.4 0.4 0.5 0.6 0.5 0.2
Sales / Receivables (Trade Receivables Turnover) 17.4 19.8 22.0 22.5 28.6 19.2 31.6
Days' Receivables 21.0 18.4 16.6 16.2 12.8 19.0 11.6
Cost of Sales / Inventory (Inventory Turnover) 2.6 3.7 3.1 3.5 13.6 2.0 2.3
Days' Inventory 140.4 98.6 117.7 104.3 26.8 182.5 158.7
Cost of Sales / Payables (Payables Turnover) 15.9 15.4 18.9 16.8 32.0 14.4 16.1
Days' Payables 23.0 23.7 19.3 21.7 11.4 25.3 22.7
Sales / Working Capital 7.5 7.6 9.7 6.9 11.7 4.3 4.2
Coverage Ratios
Earnings Before Interest & Taxes (EBIT) / Interest 4.3 4.9 4.3 4.3 5.6 3.6 2.8
Net Profit + Dep., Depletion, Amort. / Current 2.4 2.6 3.2 2.0 2.0
Maturities LT Debt
Leverage Ratios
Fixed Assets / Net Worth 0.9 0.9 1.0 0.8 1.0 0.7 0.7
Debt / Net Worth 1.8 1.8 1.8 1.5 1.8 1.2 1.4
Tangible Net Worth 30.7 29.1 27.5 29.8 20.7 39.7 39.9
Operating Ratios
Profit before Taxes / Net Worth, % 13.3 13.9 18.1 13.4 29.6 9.7 8.4
Profit before Taxes / Total Assets, % 5.7 6.6 6.6 6.7 10.3 4.3 3.5
Sales / Net Fixed Assets 5.3 5.3 5.4 5.9 6.5 5.2 5.4
Sales / Total Assets (Asset Turnover) 1.4 1.6 1.7 1.6 2.2 1.3 1.1
Cash Flow & Debt Service Ratios (% of sales)
Cash from Trading 35.7 36.6 39.8 39.2 51.0 30.6 36.8
Cash after Operations 5.3 6.0 6.4 7.0 7.1 6.9 8.1
Net Cash after Operations 5.6 6.4 6.9 7.1 7.6 5.0 9.1
Cash after Debt Amortization 1.7 1.9 1.4 1.8 2.5 0.4
Debt Service P&I Coverage 1.7 2.3 1.7 2.3 3.6 1.3 1.6
Interest Coverage (Operating Cash) 4.5 6.0 5.9 6.6 9.6 4.7
Assets, %
Cash & Equivalents 8.1 8.6 7.2 10.7 15.9 4.2 7.6
Trade Receivables (net) 11.1 12.5 11.1 12.8 13.4 12.8 9.8
Inventory 36.4 33.3 33.5 30.8 22.1 43.8 29.4
All Other Current Assets 2.4 1.9 2.4 2.7 1.2 3.8 6.1
Total Current Assets 58.0 56.3 54.2 57.0 52.6 64.6 53.0
Fixed Assets (net) 33.3 35.9 35.9 33.3 37.4 28.1 30.4
Intangibles (net) 2.4 2.1 1.9 2.6 2.2 2.3 5.3
All Other Non-Current Assets 6.3 5.8 7.9 7.2 7.8 5.0 11.4
Total Assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total Assets ($m) 4,114.1 3,635.6 3,330.2 2,274.7 201.4 803.0 1,270.2
Liabilities, %
Notes Payable-Short Term 16.6 15.2 18.1 14.3 15.2 12.8 14.7
Current Maturities L/T/D 4.2 3.8 4.7 5.2 4.9 6.9 1.7
Trade Payables 9.8 9.8 9.1 9.8 9.7 10.2 9.0
Income Taxes Payable 0.5 0.5 0.4 0.2 0.2 0.1 0.4
All Other Current Liabilities 7.7 8.3 8.8 9.4 10.7 7.4 10.1
Total Current Liabilities 38.7 37.6 41.1 38.9 40.7 37.4 35.9
Long Term Debt 21.7 23.8 23.7 22.9 29.3 17.7 10.3
Deferred Taxes 1.0 1.2 1.1 0.8 0.0 1.9 1.2
All Other Non-Current Liabilities 5.4 6.2 4.7 4.9 7.1 1.0 7.4
Net Worth 33.1 31.2 29.4 32.4 22.9 42.0 45.2
Total Liabilities & Net Worth ($m) 4,114.1 3,635.6 3,330.2 2,274.7 201.4 803.0 1,270.2
Maximum No. of Statements Used 185.0 181.0 145.0 130.0 68.0 47.0 15.0
Source: RMA Annual Statement Studies, rmahq.org. RMA data for all industries is derived directly from more than 260,000 statements of member
financial institution's borrowers and prospects.
46 IBISWorld.com
Additional Resources
Additional Agricultural Research Service
Resources http://www.ars.usda.gov
Economic Research Service

http://www.ers.usda.gov
Agricultural Marketing Resource Center

http://www.agmrc.org
American Floral Endowment

http://www.endowment.org
Industry Jargon GENETICALLY MODIFIED (GM)

A technique where specific changes are introduced into a plant or animal's DNA by genetic
engineering techniques. The most common modified foods include soybean, corn and
canola.
ORGANIC AGRICULTURAL PRODUCTION

Farming that does not involve the use of artificial chemicals, pesticides, fertilizers or
genetically modified organisms.
PROPAGATIVE
Plants and flowers that are used as inputs into further nursery, floriculture production and
agriculture production.
TENSIOMETER
A control irrigation system in nurseries. Soil moisture is monitored in the plant root, allowing
producers to give a specific plant species the correct moisture level it requires.
TRELLIS
Latticework used to support climbing plants.
Glossary Terms BARRIERS TO ENTRY

High barriers to entry mean that new companies struggle to enter an industry, while low
barriers mean it is easy for new companies to enter an industry.
47 IBISWorld.com
CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with
that spent on labor. IBISWorld uses the ratio of depreciation to wages as a proxy for capital
intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is
$0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of
labor.
CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation
using the current year (i.e. year published) as the base year. This removes the impact of
changes in the purchasing power of the dollar, leaving only the "real" growth or decline in
industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US
Bureau of Economic Analysis’ implicit GDP price deflator.
DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their
country of origin. It is derived by adding imports to industry revenue, and then subtracting
exports.
EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working
proprietors, partners, managers and executives within the industry.
ENTERPRISE
A division that is separately managed and keeps management accounts. Each enterprise
consists of one or more establishments that are under common ownership or control.
ESTABLISHMENT
The smallest type of accounting unit within an enterprise, an establishment is a single
physical location where business is conducted or where services or industrial operations are
performed. Multiple establishments under common control make up an enterprise.
EXPORTS
Total value of industry goods and services sold by US companies to customers abroad.
IMPORTS
Total value of industry goods and services brought in from foreign countries to be sold in
the United States.
INDUSTRY CONCENTRATION
An indicator of the dominance of the top four players in an industry. Concentration is
considered high if the top players account for more than 70% of industry revenue. Medium
is 40% to 70% of industry revenue. Low is less than 40%.
48 IBISWorld.com
INDUSTRY REVENUE
The total sales of industry goods and services (exclusive of excise and sales tax); subsidies
on production; all other operating income from outside the firm (such as commission
income, repair and service income, and rent, leasing and hiring income); and capital work
done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed
tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)

The market value of goods and services produced by the industry minus the cost of goods
and services used in production. IVA is also described as the industry's contribution to GDP,
or profit plus wages and depreciation.
INTERNATIONAL TRADE
The level of international trade is determined by ratios of exports to revenue and imports to
domestic demand. For exports/revenue: low is less than 5%, medium is 5% to 20%, and high
is more than 20%. Imports/domestic demand: low is less than 5%, medium is 5% to 35%,
and high is more than 35%.
LIFE CYCLE
All industries go through periods of growth, maturity and decline. IBISWorld determines an
industry's life cycle by considering its growth rate (measured by IVA) compared with GDP;
the growth rate of the number of establishments; the amount of change the industry's
products are undergoing; the rate of technological change; and the level of customer
acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT
Businesses with no paid employment or payroll, also known as nonemployers. These are
mostly set up by self-employed individuals.
PROFIT
IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s
profitability. It is calculated as revenue minus expenses, excluding interest and tax.
49 IBISWorld.com
REGIONS
West | CA, NV, OR, WA, HI, AK
Great Lakes | OH, IN, IL, WI, MI
Mid-Atlantic | NY, NJ, PA, DE, MD
New England | ME, NH, VT, MA, CT, RI
Plains | MN, IA, MO, KS, NE, SD, ND
Rocky Mountains | CO, UT, WY, ID, MT
Southeast | VA, WV, KY, TN, AR, LA, MS, AL, GA, FL, SC, NC
Southwest | OK, TX, NM, AZ
VOLATILITY
The level of volatility is determined by averaging the absolute change in revenue in each of
the past five years. Volatility levels: very high is more than ±20%; high volatility is ±10% to
±20%; moderate volatility is ±3% to ±10%; and low volatility is less than ±3%.
WAGES
The gross total wages and salaries of all employees in the industry.
50 IBISWorld.com
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US INDUSTRY (NAICS) REPORT 11142

Plant & Flower Growing in the US

IBISWorld.com +1-800-330-3772 info@IBISWorld.com

About This Industry...........................................5 Competitive Landscape...................................27

Industry Definition..........................................................5 Market Share Concentration....................................... 27

Industry at a Glance.......................................... 7 Major Companies............................................ 35

Executive Summary..................................................... 10 Major Players............................................................... 35

Products and Markets..................................... 20 Industry Data................................................................45

About This Industry

Major Players There are no major players in this industry

Main Activities The primary activities of this industry:

Nursery and tree production

The major products and services in this industry:

Annual bedding and garden plants

Potted flowering plants

Potted herbaceous perennials

Cut flowers and cut cultivated greens

Propagative floriculture materials and dried bulbs

Short rotation woody trees

RELATED INTERNATIONAL INDUSTRIES

Annual Growth Annual Growth Annual Growth -6.3% 2.8%

7.1% MIXED IMPACT

Annual Growth Annual Growth Annual Growth

Annual Growth Annual Growth Annual Growth

Products & Services Segmentation

39.4% 23.7% 10.0% 6.7% 8.7% 0.9%

Major Players % = share of industry revenue SWOT

Key External Demand from florists

Per capita disposable income

Demand from nursery and garden stores

Demand from flower and nursery stock wholesaling

The coronavirus outbreak is expected to cause a strong weakening

The United States is a net importer of floriculture and nursery items,

Transportation and consolidation

Increased efficiency in transportation has led to nationwide price

Overall, a weakening in demand for industry products amid the

Historical Performance Data

Imports versus exports

Imports will likely continue to hamper the industry during the

Consolidation and automation

While some government support will likely remain a common

Meanwhile, industry employment is expected to rise marginally at an annualized

Profit and potential

IBISWorld expects the average industry profit margin to hold

suited to greenhouse production because greenhouses provide a controlled

Performance Outlook Data

LIFE CYCLE REASONS

Product development opportunities are limited

Strong import competition has displaced domestic products

There have been pockets of growth in some industry segments. Product

Products and Markets

Nursery stock crops

Nursery and tree production comprises establishments that grow

Flowers and flowering plants

Floriculture production includes items such as bedding plants,

Propagative materials and other products

Propagative materials include plants and flowers that are used as

Floriculture and nursery stock wholesalers

Retailers and exports

International Exports in this industry are Low and Increasing

The United States is a net importer

Percentage of Establishments (%)

Plant & Flower Growing in the US