Wilting point: Import infiltration and downstream consolidation will stifle industry revenue

Long-term trends such as price competition, wholesale bypass and pressure from imports have stifled growth for the Flower and Nursery Stock Wholesaling industry over the five years to 2018. While rising per capita disposable income somewhat alleviated demand pressure, the industry experienced too many hurdles over the five-year period to achieve revenue gains. Over the five years to 2023, IBISWorld anticipates that the same pressures that afflicted the industry over the previous five-year period will continue to affect demand. Although macroeconomic gains will help stabilize industry revenue, internal and external pressures will limit growth...purchase to read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 13-18
-0.5%
Forecast Growth 18-23
Profit
Employment
55,630
Businesses
10,284
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry will struggle due to wholesale bypass, price competition and pressure from imports
  • Seasonal occasions such as Christmas and Valentine’s Day continue to boost sales
  • Consolidation among florists will give pricing power to larger retailers
  • Industry Report - Industry Key Buyers Chapter

    The Flower and Nursery Stock Wholesaling industry is highly fragmented, with no major players. Data from the US Census indicates that the four largest industry participants account for less than 5.0% of industry revenue. The nature of the industry is such that businesses typically focus on selling to local retailers and rarely attempt to sell on a national or international scale, as transportation and depreciation would become too costly. This keeps companies small and local. However, some businesses are harnessing the benefits of the internet and e-commerce, reaching broader markets than previously possible.The highly-fragmented industry is seeing a faster pace of consolidation due to the vertical integration of Internet-based companies. The...purchase to read more.

    Additional Insights for the Flower & Nursery Stock Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Flower & Nursery Stock Wholesaling Industry are

  • Proximity to key markets
  • Proximity to key suppliers
  • Prompt delivery to market
  • IBISWorld analysts also discuss how external factors such as Demand from florists and Demand from nursery and garden stores in the Flower & Nursery Stock Wholesaling industry impact industry performance..

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    What's in this report

    What is the Flower & Nursery Stock Wholesaling Industry?

    Operators in this industry sell flowers, nursery stock and florists’ supplies to retail outlets. Distributors purchase flowers and nursery stock from farmers and buy florists’ supplies from various manufacturers. This industry does not grow flowers or plants, nor does it distribute Christmas trees, plant seeds or bulbs.

    Industry Products
  • Bedding/Garden Potted Plants
  • Potted flowering plants
  • Herbaceous perennials
  • Flats
  • Supplies/Propagative Material
  • Cut flowers
  • Hanging baskets
  • Cut Greens
  • Industry Activities
  • Distributing flowers to stores
  • Distributing nursery stock (i.e. plants and shrubs for potting)
  • Distributing florist supplies, such as baskets, shears, floral wire, bamboo stakes, wreaths and wrapping
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from florists
  • Demand from nursery and garden stores
  • External competition for the Flower & Nursery Stock Wholesaling industry
  • Per capita disposable income

  • Current Performance
  • Price competition lowers revenue
  • Wholesale bypassing
  • Recovering profit
  • Operational changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Long-term challenges
  • Changing landscapes
  • Table: Flower & Nursery Stock Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Flower & Nursery Stock Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Nursery & Garden Stores
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Gas Stations with Convenience Stores
  • Warehouse Clubs & Supercenters
  • Florists
  • Funeral Homes
  • Personal Trainers & Wedding Planners

  • Key Selling Industries
  • Miscellaneous Product Manufacturing
  • Plant & Flower Growing
  • Plastic Products Miscellaneous Manufacturing
  • Wood Product Manufacturing

  • Products & Services
  • Bedding/Garden Potted Plants
  • Potted flowering plants
  • Herbaceous perennials
  • Flats
  • Supplies/Propagative Material
  • Cut flowers
  • Hanging baskets
  • Cut Greens
  • Chart: Flower & Nursery Stock Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Home improvement stores
  • Landscapers
  • Other
  • Garden and nursery centers
  • Florists
  • Supermarkets and grocery stores
  • Event planners
  • Chart: Major Market Segmentation for the Flower & Nursery Stock Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Warehousing, depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Flower & Nursery Stock Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Flower & Nursery Stock Wholesaling 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 Flower & Nursery Stock Wholesaling 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 Flower & Nursery Stock Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per Capita Disposable Income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Drop-Shipping
  • Refers to the practice of wholesalers outsourcing shipping and transportation by contracting the producers and growers to deliver flowers and nursery stock to the industry's buyers.
  • Ethylene
  • A gas produced by plants that stimulates fruit ripening and flower blossoming (signs of plant maturity). Keeping the gas low allows wholesalers to preserve plants for a longer period of time.
  • Floral Wire Service
  • A company established primarily to facilitate order exchange and fulfillment between local florists and third-party sales agents of floral products.
  • Mass Merchandiser
  • A large retail store that offers a wide range of products and services.
  • Propagative Material
  • Refers to the creation of new plants through natural or artificial means. The most popular are seeds and bulbs. This also includes materials such as heat and other aids used in the process.
  • What Our Customers Say

    Why buy this report?

    The Flower & Nursery Stock Wholesaling industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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 Flower & Nursery Stock Wholesaling:
    • 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 Flower & Nursery Stock Wholesaling 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 Flower & Nursery Stock Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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