Fading foliage: Unfavourable international trade conditions will stifle future industry growth

Over the past five years to 2018, the Plant and Flower Growing industry in Canada has wilted due to challenging growing conditions. Operators in this industry grow nursery and floriculture products, such as shrubbery, cut flowers, ornamental plants and short rotation woody crops, such as Christmas trees. Industry profit margins have increased, due to the price of fertilizer, which is a key input for industry products. Despite rising profitability, the industry has shown signs of consolidation and company exit, in large a consequence of the rising preponderance of import penetration and competition. Over the five years to 2023, the industry is expected to continue its slow growth. A stronger Canadian dollar will ease the comparative price of imports...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
0.9%
Forecast Growth 18-23
Profit
Employment
47,703
Businesses
1,659
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Industry growth has been challenged by the increasing influx of lower-priced imports
  • The industry is showing signs of company exit and consolidation
  • Domestic conditions for industry growth are undercut by increasing import penetration
  • Industry Report - Industry Investment Chapter

    The Plant and Flower Growing industry in Canada has a low level of capital intensity. Over time, as production technology advances, the industry is becoming slowly more reliant on capital and less reliant on labour. Nevertheless, there is still a great deal of labour involved in the production of plants and flowers. These products provide primarily an aesthetic value, and therefore require a significant amount of attention to meet consumer standards. Compared with other agricultural industries that require labour mostly for planting and harvesting, growers in this industry require continual upkeep year-round. The number of employees per establishment in this industry is higher than in the overall agricultural sector, which points to the high labour requirement. Tho...purchase to read more.

    Additional Insights for the Plant & Flower Growing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Plant & Flower Growing Industry are

  • Economies of scale
  • Production of premium plants and flowers
  • Establishment of export markets
  • IBISWorld analysts also discuss how external factors such as Canadian-dollar effective exchange rate index and Demand from lawn and garden equipment and supplies stores in the Plant & Flower Growing industry impact industry performance..

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    What's in this report

    What is the Plant & Flower Growing Industry?

    Operators in this industry grow nursery and floriculture products, such as shrubbery, cut flowers, ornamental plants and short rotation woody crops, such as Christmas trees. These plants may be grown under cover or in an open field.

    Industry Products
  • Flowers and flowering plants
  • Nursery trees and plants
  • Sod
  • Industry Activities
  • Growing flowers
  • Growing nursery plants
  • Growing trees
  • Producing sod
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian-dollar effective exchange rate index
  • Demand from lawn and garden equipment and supplies stores
  • Per capita disposable income
  • Leisure time
  • Price of fertilizer

  • Current Performance
  • Consumer trends
  • Input costs, profit margins and consolidation
  • International trade and exchange rate dynamics
  • Chart: Revenue Growth

  • Industry Outlook
  • Unfavourable international trade dynamics
  • Profit and industry structure
  • Table: Plant & Flower Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Plant & Flower Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Plant & Flower Growing in Canada
  • Supermarkets & Grocery Stores in Canada
  • Florists in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Farm Supplies Wholesaling in Canada
  • Farm, Lawn & Garden Equipment Wholesaling in Canada
  • Fertilizer Manufacturing in Canada
  • Plant & Flower Growing in Canada
  • Tractors & Agricultural Machinery Manufacturing in Canada
  • Water Supply & Irrigation Systems in Canada

  • Products & Services
  • Flowers and flowering plants
  • Nursery trees and plants
  • Sod
  • Chart: Plant & Flower Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Mass market chain stores
  • Domestic wholesalers
  • Direct sales to the public
  • Other greenhouses
  • Retail florists
  • Other
  • Government and public agencies
  • Chart: Major Market Segmentation for the Plant & Flower Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Plant & Flower Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plant & Flower Growing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Plant & Flower Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Plant & Flower Growing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of Fertilizer (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Sod
  • The surface of the ground with grass growing on it.
  • 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.
  • What Our Customers Say

    Why buy this report?

    The Plant & Flower Growing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Plant & Flower Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Plant & Flower Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Plant & Flower Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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