Concrete jungle: A shift to higher density housing has limited demand amid rising purchase costs
Rising price-based competition from hardware stores has eroded the market power of the nursery production industry. Moreover, scattered variations in annual rainfall year to year have affected the production volume and quality of outdoor nursery products. Subdued activity from new dwelling commencements that typically require landscaping has weighed on industry demand. Homebuyers have gradually shifted towards higher-density living, slowing demand for outdoor plants. The rising popularity of indoor and patio plants has upheld nursery production. Also, the demand for bedding and vegetable plants escalated following the outbreak of COVID-19, as many individuals used stay-at-home orders to undertake DIY projects. The Russia-Ukraine conflict and the consequent sanctions on Russian exports have spiked domestic and global fertiliser prices, as Russia is a leading exporter of fertilisers and fertiliser inputs. This input price hike has diminished nursery profitability and eaten away at revenue, causing an expected decline in industry revenue of 4.0% in the current year. Overall, industry revenue is expected to fall at an annualised 2.2% over the five years through 2022-23, to total $1.2 billion.
Industry growers primarily produce trees, shrubs, ornamental plants and bulbs. Nurseries sell their goods to a variety of markets, including retailers, wholesalers, landscapers, local governments and orchardists. The industry excludes turf growing and flower growing.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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Methodology
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