Floriculture Production in Australia - Industry Market Research Report

Seed of doubt: Economic pressures are wilting demand as imports propagate the domestic market

Mixed weather conditions and rising import penetration have influenced the Floriculture Production industry's performance. Floods across Australia's eastern states have stifled production volumes this year. Cut flowers are considered discretionary items in the consumer market and traditional flower arrangements for gifting can be readily substituted with other products like chocolates, vouchers and charity donations. Adverse weather conditions over the three years through 2019-20 contributed to falling revenue, exacerbated by the COVID-19 pandemic disrupting demand over the following years. Revenue is expected to slip by an annualised 3.6% over the five years through 2022-23, to $247.0 million. This trend includes an estimated plunge of 5.5% in the current year, as intense import competition and lower household discretionary incomes restrict domestic sales.

Industry operators grow or produce cut flowers, foliage and seeds, either outdoors or under cover. Under cover is generally defined as greenhouses, cold frames, cloth houses and lath houses.

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.