The Changing Structure of the U.S. Green Industry

Abstract

Floriculture and environmental horticulture products, increasingly referred to as the “Green Industry,” is the fastest growing segment in U.S. agriculture. The paper examines the structure and contributions of the green industry as well as the technological developments, marketing research, and issues facing the industry. The industry is large, complex, and comprised of many segments. From producers to retailers, the industry is oligoplistic and producers establish their own prices. Unlike many other agricultural commodities, nursery stock is highly sensitive to the general business cycle that affects overall demand for consumer goods and services. The income elasticity of demand for nursery products is much greater than for food and fiber products. The elasticities, however, vary from plant to plant and whether plants are flowering annuals or perennials. Increasingly, the industry is realizing the need to make a marketing oriented approach a priority. There are many trends and developments within and outside the industry that offer opportunities as well as challenges for the U.S. green industry.