Wholesalers, retailers, and new ornamental norms

As an industry, the businesses that grow, buy, and sell ornamental plants—and the things that go with them—have ridden a rollercoaster of challenge and opportunity the last few years. From pandemic closures to soaring sales, nationwide plant shortages, and repeated extreme weather events, horticulture businesses had a choice to make: change or get left behind.

Along the way, the lines between wholesalers and retailers have grown less distinct than ever before. We’re not here to comment on whether that’s a good thing or not—that’s up to the businesses involved. But we will say that, regardless of where you fall related to those lines, understanding ongoing trends can help you claim your place in industry sales.

Grower expansion into retail sales

A few years back, we shared a trend toward retail sales among greenhouse and nursery growers who had been strictly wholesale before. Horticulture industry surveys from the pre-pandemic years showed that about 40% of wholesale growers had at least some local retail sales. But even before the pandemic happened, that number started to rise.

Gardeners concerned about everything from sustainable practices to honeybee health wanted to know more about where their plants came from. Growers started discovering that branding and marketing, including social media, in particular, increased demand for their plants in the stores of their retailer customers. It also brought more end consumers knocking at their doors—physically and virtually via the internet.

By the fall of 2020, hort industry surveys revealed that 52% of all greenhouse growers had on-site direct-to-consumer retail sales. More than one-third were selling direct-to-consumer off site as well. The pandemic certainly played into those stats in many ways but—four years later—direct-to-consumer sales are still around. A recent 2024 commercial greenhouse industry survey confirmed more than half of greenhouse growers still sell retail, and it doesn’t appear they expect to go back.

Retailer expansion into growing

The shift to retail by wholesale growers has been matched by similar trends on the other side of the ornamental sales fence. Independent garden centers (IGCs) historically comprise the largest customer category for wholesale greenhouse and nursery growers. A decade ago, around half of IGCs grew some of their own plants. By 2020, that number exceeded 60%.

In the years since, many IGCs have opted for more control of their plant supply chain. In several well-publicized transactions, garden centers have acquired well-established wholesale plant nurseries. While most of these IGCs have grown some of their stock before, these acquisitions represent major expansions in the amount they grow. Some have also added or expanded wholesale divisions.

In 2021, industry surveys revealed that 72% of IGCs were growing some or all of their own plants. Those numbers have subsided, but only slightly. Roughly two-thirds of all IGCs are now grower-retailers. And, if 2024 surveys hold true, those IGCs will be improving and expanding their growing operations in 2025 and beyond.

Rapidly disappearing divisions

What does this mean for distributors, brokers, wholesalers, retailers, and those who do more than one of the above? It’s a good time to evaluate what you do, where you’re at, and where you want to be. It also signals that the divisions, which used to matter a lot to everyone involved, may not matter much anymore.

Despite the increased number of IGC growers, 70% of greenhouse growers in a fall 2024 survey said their 2024 sales increased compared to 2023—and IGCs comprised 44% of that customer base. Eighty-six percent of those greenhouse growers reported net profits were at least as good as 2023, with nearly half (49%) posting solid increases this year.

A quick look at one list of the nation’s Top 100 IGCs for 2024 shows that more than 40 percent of these sales-leading garden centers have “nursery” or “greenhouse” in their name. And more than one “garden center” on the list sells plants almost exclusively, without any of the extras you’ve come to expect at IGCs.

For the most part, the days are gone when independent garden retailers wouldn’t buy from growers who sold to box stores or had on-site or off-site retail sales. And, as proven through the massive branding and marketing programs of major growers—capped off by direct-to-consumer online retail sales—it seems there are still enough consumers to go around.

Here at ICL Growing Solutions, we know that change can be challenging. But having partners you can trust and depend on makes the ride easier every time. With products like our Osmocote® controlled-release fertilizers and Peters® water-soluble fertilizers, our team has your back whatever you grow and whoever buys it from you. So give us a call, text, or email. Let us help you and your business grow.