New York, NY – The Plant and Flower Growing industry has come on tough times in the past five years. Its traditional products like cut flowers, potted flowers, garden plants and sod have experienced a decline in popularity as gardening as a pastime becomes less common and more consumers transition to busier, urban lifestyles. Production of most of the industry's staple products is down with market contraction. As a result, Plant and Flower Growing industry revenue has declined 1.8% per year on average to $1.8 billion in the five years to 2014.
International trade conditions have been especially detrimental to industry operators. In the past five years, the Canadian dollar has appreciated, making Canadian products more expensive on the global market. As a result, demand from export markets has fallen significantly in the past five years, pushing revenue further downward. Exports have fallen an annualized 2.7% to $290.0 million in the five years to 2014. In addition, increasing import penetration has further pushed out domestic producers. According to IBISWorld Industry Analyst Antal Neville, “As an emerging economy with low-cost labour, Colombia has significantly increased its flower production in the past five years, becoming a major supplier to both the US and Canadian markets.” As these flowers continue to undercut industry prices, imports continue to gain a larger share of the declining market. This import competition will contribute to the 1.7% decline in revenue in 2014.
The next five years promise much of the same trends. “The domestic market for plants and flowers is expected to continue declining as consumers lead more fast-paced lifestyles and have less time for gardening,” says Neville. Nevertheless, the market for cut flowers that sell for a premium will partially sustain the industry as these become staple gifts for holidays and birthdays. As a result, IBISWorld forecasts that industry revenue will fall in the five years to 2019.
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