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The garden center industry has undergone several significant changes since we launched our annual State of the Industry Report ten years ago. Annuals and perennials remain bread and butter for most of IGC in the United States and Canada, but other segments are beginning to show significant growth as new customers create new demand.
Houseplants continue their upward trend, with more IGCs than ever operating a houseplants and tropical plants sector. Houseplants are also the garden center’s second fastest-growing product category this year, and he’s just barely dropped from number one last year.
Over the past decade, more garden centers have raised their prices more than ever, and the rate is much higher. Increased supply and higher costs, combined with inflation, are causing the majority to raise prices more than ever before. This year he has over 90% of his IGC price increase, whereas five years ago he was 71%. Finding quality staff and managing high labor costs remains the biggest hurdle for independent garden centers this year, topping the list of biggest challenges for the fifth year in a row. This may be partly due to higher staffing levels at garden centers than have been reported in the last few years.
Following a trend that began in 2012 and continues today, more and more IGCs grow at least some of their own plant material. Businesses are increasing and growing businesses are also diversifying, with 48% reporting greater diversity in plant material grown this year, in addition to 58% reporting an increase last year.
— Kate Spielgen Editor, gardening store magazine
Landscape Market State: Strong Results Despite More Headaches
Landscapers across the country again reported rising expectations of revenue, profitability, and further growth into 2023. One area where our research showed significant leaps was median revenue for landscaping companies. In last year’s report, [business owners] Median reported revenue was $273,000. Revenue for 2021 jumped to a whopping $604,000. This could be due to several factors, one of which is that a significant number of companies with revenues below $500,000 did not participate in the survey compared to last year. Is it because they were too busy to participate in the survey, or are they just no longer in business because they closed or were acquired? I have. When it comes to confidence, owners are unsure if their business or industry will grow as much as last year.
10% were completely unsure about business growth compared to 8% last year, while 8% were not at all confident about industry growth compared to 3% last year. On a positive note, 85% said they were profitable, compared to 79% in last year’s report.
— Brian Horn Editor, lawn and landscape
