R&D update: new report reveals Australian Nursery industry adds $2.49 billion to the economy

22 November 2023

The Australian nursery industry is set for substantial growth, with a forecasted 14.1% farmgate value increase between FY2022 and FY2030*.

The Economic Contributions Analysis Report (MT21010), which was part of the Hort Innovation Nursery Levy funded ‘Nursery Industry Statistics 2020/21- 2024/5 project’ (NY17008) and has been running since 2015, took a year to compile.

The report presents complex data in a user-friendly format that businesses can apply to their business planning. It sheds light on both the direct and indirect contributions of the nursery industry – particularly to Australia's economy.

The report reveals that the forecast growth will push the industry's value to $3.1 billion by 2030.

Led by Jan Paul van Moort, Executive Director of ACIL Allen, the report uses data from The Centre for International Economics (CIE) and research from Down to Earth Research.

Mr van Moort stresses the Australian nursery industry’s critical role in the nation's economy.

"It's not just important; it's vital. The nursery industry, which is the second largest in horticulture, generated a staggering $2.78 billion in 2022, dwarfing the next two industries – potatoes and almonds, at $766 million and $687 million, respectively,” said Mr van Moort. "In 2022, the report estimates the nursery industry directly and indirectly supported 12,506 full-time equivalent employees, comprising 15.5% of total horticultural employment in Australia," Mr. van Moort said.

By 2030, the Australian nursery industry is projected to sustain 12,987 full-time equivalent employees, including 9,981 in direct employment and 2,997 indirectly, accounting for 13.8% of horticultural sector employment in Australia.

The nursery industry also contributes to community wellbeing, sustainable development, environmental stewardship, health, urban regeneration and biodiversity conservation.

Mr van Moort emphasises the role of levy investments in technology, innovation, education and biosecurity in propelling the industry towards a more prosperous future, enhancing both the Australian economy and the wellbeing of communities and the environment.

“The nursery industry contributes significant value to the economy, playing a vital role in supporting the growth of the Australian horticulture industry,” said Mr van Moort.

For more information and access to the full report, please visit: https://www.greenlifeindustry.com.au/communications-centre/economic-contributions-analysis-report

*All figures mentioned in this article refer to the central case scenario from the Centre for International Economics (CIE) - Contribution of Australian Horticulture Industry, A General Equilibrium Analysis Full Report (2023).