Plant Nursery Business Overview

A plant nursery business grows and sells plants to individuals, landscapers, and businesses. These businesses supply a wide range of greenery, including flowers, shrubs, trees, and edible plants like fruits and vegetables. Customers may range from homeowners creating a garden to landscapers sourcing plants for large-scale projects.

The most common business models in plant nurseries include:

• Retail Nursery: A nursery that sells directly to homeowners and gardeners through a retail location
• Wholesale Nursery: A nursery that supplies plants to landscapers, garden centers, and other retailers
• Mixed Operation: A nursery that combines both retail and wholesale operations to serve multiple customer types

Related: Checklist to Start a Business

How Do Plant Nurseries Make Money?

Plant nurseries generate income through multiple revenue streams, with most focusing on plant sales as their primary source. The mix of revenue sources often varies based on the business model and local market conditions.

• Plant Sales: Growing and selling plants forms the main revenue source. This includes trees, shrubs, perennials, annuals, and indoor plants. The plants are sold either individually or in bulk quantities.
• Garden Supplies: Selling complementary products like soil, mulch, fertilizers, and plant containers provides additional revenue. These items help customers maintain their plants and often lead to repeat visits.
• Landscaping Materials: Offering hardscape items such as rocks, pavers, and decorative elements creates another income stream. These materials complement plant sales and appeal to both homeowners and contractors.
• Installation Services: Providing planting and installation services for customers who purchase larger plants or trees generates service-based income. This includes delivery, placement, and initial care instructions.
• Consultation Services: Providing plant selection and care advice for a fee helps customers succeed with their purchases. This includes landscape planning and plant care education.

Industry Statistics

The plant nursery industry, classified under NAICS code 444220 – Nursery, Garden Center, and Farm Supply Stores. Here are some highlights about the industry.

Plant Nursery Industry Size & Growth: The plant nursery industry generated $19.3 billion in revenue last year. The industry has shown steady performance with a 3.2% average annual growth rate over the previous five years. Growth projections remain positive due to increasing consumer interest in home gardening and landscaping, along with strong demand from commercial properties (IBISWorld).

Number of Plant Nurseries: There are 5,194 plant nurseries operating across the country. The industry remains largely fragmented, with no single company controlling more than 5% of the market share. Most operations are small, privately owned farms with limited vertical integration (IBISWorld).

Plant Nursery Profit Margin: The average net profit margin in the plant nursery is 4.75%

Costs To Start a Plant Nursery

Starting a small plant nursery typically costs between $15,000 and $200,000. The lower range represents a small backyard or home-based operation, while the higher end reflects a larger commercial setup.

There are many expenses when starting a plant nursery, but here are some of the more expensive items to plan for:

Land and Growing Space: A nursery needs adequate space for growing plants and storing supplies. This might include purchasing or leasing land, building greenhouses, setting up shade structures, and creating growing areas. For a small nursery operation, at least one acre of usable land is typically needed.

Equipment and Infrastructure: The nursery will need irrigation systems, drainage, plant benches, soil mixing equipment, and storage areas for supplies. Additional equipment includes carts, wheelbarrows, hand tools, and potting stations. Temperature control systems might also be needed for greenhouse operations.

Initial Plant Stock: Building inventory requires purchasing seeds, cuttings, seedlings, and mature plants. Starting with a diverse selection helps attract customers, though many nurseries begin with a smaller variety and expand over time. The initial stock includes both plants for immediate sale and those that need time to grow.

Growing Supplies: Basic supplies include different soil types, fertilizers, containers of various sizes, plant labels, and pest control products. Storage areas for these materials need protection from weather and appropriate ventilation.

These estimates provide a general idea of startup costs, though actual expenses will vary based on location, size, and business model.