Floriculture Production in Australia Industry Market Research Report Now Updated by IBISWorld

High import penetration and price competition from supermarkets have put pressure on profit margins in the Floriculture Production industry in the past five years. For this reason, industry research firm IBISWorld has updated its report on the Floriculture Production industry in Australia.

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IBISWorld Market Research

IBISWorld Market Research

The sale of cut flowers by supermarkets and convenience stores is increasing, which has had a mixed impact on the industry

Melbourne, Australia (PRWEB) April 14, 2014

The Floriculture Production industry in Australia has struggled against adverse trading conditions over the past five years, facing stagnant demand for flowers by consumers, rising import penetration, and dwindling export earnings. Spending on cut flowers is seen as a discretionary outlay, and traditional flower arrangements may be readily substituted with other products such as chocolates, gift vouchers and charity donations. The industry is projected to generate revenue of $330.0 million in 2013-14, up by 1.5% on 2012-13 due to stronger consumer sentiment and household consumption. Despite the current upswing in sales, industry revenue is projected to decline by an annualised 1.3% over the five years through 2013-14, corresponding with the deterioration of domestic demand conditions in the aftermath of the global financial crisis and heightened competition from imports. The level of import penetration has climbed to about 8.6% of domestic demand in 2013-14, while industry export earnings have contracted.

The sale of cut flowers and seeds by supermarkets and convenience stores is increasing, which has had a mixed impact on the industry. It has lifted consumers' exposure to flowers, but has also fuelled intense price competition. Industry profitability has been eroded over the past five years by price competition from supermarkets, rising production costs and the inflow of cheaper imports from low-cost producers. The industry exhibits a low level of market share concentration with no dominating participants.

The Floriculture Production industry's prospects are forecast to improve marginally over the next five years, supported by stronger household consumption and consumer sentiment, and broader consumer exposure to flowers and foliage displays through supermarket chains. There may also be improved opportunities for growers engaged in the research and development of new flower varieties.

For more information, visit IBISWorld’s Floriculture Production report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Companies in this industry grow or produce cut flowers, foliage and seeds either outdoors or under the cover of greenhouses, cold frames, cloth or lath houses.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.


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