IBISWorld Turf Growing in Australia: Market Research Report

From an ‘Australian’ turf production (and ‘Queensland’ turf production) perspective, the following report from Australia’s leading market research company IBISWORLD is close to the mark with a total revenue of $258 million per annum in 2012.  The full comprehensive report is $845 which contains a lot more information such as annual growth and profit earnings, below is the IBISWorld snapshot for Turf Queensland’s member benefit.

Turf Queensland believes that the Queensland market based on an average of $7 per M² is around $120 million per annum and the National market at $280 million based on average of $7 per M². Obviously increases in sell price per M² builds the GDP value. Turf Queensland supports the forecast that the industry revenue will rise over the next two years based on construction demand and favourable weather patterns.  Water availability certainly assists the residential homeowner however more importantly the dry weather supports the end users increased  Purchasing patterns.

It is interesting that they believe artificial/plastic turf has eaten into the market share of natural turf grass nationally. It must be said however in Queensland while some small householders are utilising artificial/plastic turf, this does not seem to be the case.

The snapshot advises that new entrants would need to concentrate on online marketing.

Turf Growing Market Research Report | ANZSIC A0206 | Nov 2012

Growth returns: Industry revenue rises with construction demand and water availability

IBISWorld’s Turf Growing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

REPORT SNAPSHOT

Market Share of Companies – there are not comapnies with a dominant market share in this industry.

Industry Statistics & Market Size

Industry Analysis & Industry Trends

Dry weather and weak construction cut revenue down in the Turf Growing industry. The industry’s revenue is forecast to decline by an annualised 2.3% over the five years through 2012-13 to reach $258.2 million. The fall in water availability over the past five years led property owners to cut the area of lawn in their landscapes. This led to declining lawn installations and contributed to the drop in industry revenue. Competition from synthetic turf also increased as the turf offered lower maintenance and watering requirements. Besides adverse weather conditions, the slowdown in the dwelling commencements also sapped away at industry revenue. With fewer residential properties under construction per year, there was less need for grown turf.

Industry Report – Starting a New Business Chapter

The Turf Growing industry has low barriers to entry. The main barriers to entry are employee skill, economies of scale, supply contracts, capital costs and the decline stage life cycle. Potential entrants that wish to compete in the industry must acquire staff with the necessary skills to grow turf. The skills are relatively easy to acquire and expertise can come from a range of subcontracted or consulting agents.

Incumbent firms may already hold supply contracts with construction firms and landscapers. The ability to acquire such supply contracts can prevent the entry of new turf growers. However, there is no such problem in terms of attracting business from homeowners. Start-up turf growers must instead focus on growing their marketing presence online to gain market share.

 What is the Turf Growing Industry?

Companies in this industry grow turf for transplanting. Operators plant, maintain and harvest turf farms. Landscapers, households, governments, sport venues, revegetation contractors, and plant hire and garden service providers can then install the turf grown.

Industry Products

Green couch, Blue couch, Buffalo, Kikuyu ,Zoysia

Industry Activities

Turf planting, Turf growing, Turf harvesting

Jim Vaughan, CEO Turf Queensland