The Canadian plant and flower growing industry has come on tough times in the past years. Gardening has become less popular and international trade conditions have been unfavorable. Correspondingly, production is down – and the market will continue to decline, market research organization IBISWorld predicts.
The Canadian plant and flower producing industry has in fact seen its revenue decline by an average 1.8% per year in the five years to 2014. Exports have even fallen an annualized 2.7%, to 290 million US Dollars over the same period. Additionally, increasing import penetration – foremost by Colombia – has further pushed out domestic producers. Industry revenue currently stands at an estimated $1.8 billion U.S. Dollars annually.
In the past five years, the Canadian dollar has also appreciated, making Canadian products more expensive on the global market. As a result, demand from export markets has fallen significantly, pushing the plant and flower growing industry’s revenue downward.
In the next five years, the Canadian market for plants and flowers is expected to continue declining as consumers lead more fast-paced lifestyles and have less time for gardening. 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.