NAICS 111422 Quarterly Industry Report
Floriculture Production
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 111422Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry profile for NAICS 111422 provides business owners, buyers, and valuation professionals with sector-specific benchmarks and market context for floriculture production operations. Additional data is drawn from Bureau of Labor Statistics[5].. Content is compiled from USDA NASS[3] floriculture census data, USDA ERS[4] horticultural market research, and SBA[6] regulatory filings to support informed valuation and transaction analysis.
Industry Definition & Overview
Floriculture Production (NAICS 111422) encompasses establishments primarily engaged in growing and producing floriculture products including cut flowers, cut cultivated greens, potted flowering and foliage plants, bedding and garden plants, and flower seeds under cover and in open fields [1]. The U.S. floriculture sector represents a roughly $7.3 billion total addressable market with a compound annual growth rate of about 3.2 percent, driven by consumer demand for indoor plants, seasonal garden plantings, and event-related floral arrangements [2]. California and Florida account for the largest share of domestic production value, with additional production clusters in the Pacific Northwest, Great Lakes, and Mid-Atlantic regions[3].
Floriculture operations range from small specialty flower farms selling through farmers markets and wedding florists to large greenhouse complexes producing millions of potted plants and bedding flats for mass-market retail distribution. The industry is characterized by high capital intensity due to greenhouse infrastructure, heating and cooling systems, and irrigation and fertigation equipment. Operating costs are dominated by energy (heating is the largest single expense for northern growers), labor for planting, maintenance, and packaging, and plant material costs for seed, cuttings, and plugs. Competition from imported cut flowers, particularly roses and carnations from Colombia and Ecuador, has reshaped the domestic production landscape. Per USDA ERS[4] horticultural trade data, imported cut flowers now account for the majority of U.S. cut flower consumption, pushing domestic growers toward differentiation through specialty varieties, locally grown marketing, and potted plant production where import competition is less intense.
What's Included in This Industry
- Cut flower farming (roses, lilies, chrysanthemums)
- Potted flowering plant production
- Foliage plant growing operations
- Bedding and garden plant production
- Cut cultivated greens and filler plants
- Flower seed production and propagation
- Perennial and annual ornamental plant growing
- Tropical and specialty houseplant production
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Crop Production | 111 |
| Industry Group | Greenhouse, Nursery, and Floriculture Production | 1114 |
| NAICS Industry | Nursery and Floriculture Production | 11142 |
| National Industry | Floriculture Production | 111422 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 111421 | Nursery and Tree Production | Nursery and tree production establishments that share greenhouse infrastructure, growing techniques, and wholesale distribution networks with floriculture operations |
| 111419 | Other Food Crops Grown Under Cover | Other food crops grown under cover that use comparable greenhouse structures, climate control systems, and protected-culture production methods |
| 111998 | All Other Miscellaneous Crop Farming | All other miscellaneous crop farming operations that may include minor floriculture production as part of diversified specialty farming enterprises |
| 115112 | Soil Preparation, Planting, and Cultivating | Soil preparation services providing greenhouse bed construction and growing media preparation for commercial floriculture production facilities |
| 115116 | Farm Management Services | Farm management services providing operational consulting and production planning for commercial greenhouse and floriculture enterprises |
| 424930 | Flower, Nursery Stock, and Florists' Supplies Merchant Wholesalers | Flower, nursery stock, and florists' supplies merchant wholesalers representing the primary wholesale distribution channel for floriculture products |
SBA Lending Summary
32
Total SBA Loans
$7.0M
Total Loan Volume
$220K
Average Loan Size
10 yrs
Average Loan Term
10.59%
Average Interest Rate
64
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[6] classifies Floriculture Production under NAICS 111422 with an annual receipts size standard of $3.75 million [3]. Operations at or below this revenue threshold qualify as small businesses for federal procurement preferences, SBA-backed loan programs, and agricultural support initiatives. The floriculture sector includes both small specialty growers and large greenhouse complexes, with many operations falling near or below this threshold. Eligible businesses can access SBA 7(a) loans[7] for working capital, equipment, and acquisition financing, while 504 loans[8] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Community First CU | 16 | $5.4M | $340K |
| 2 | CenTrust Bank, A Division of SmartBiz Bank National Associat | 8 | $1.2M | $150K |
| 3 | Readycap Lending, LLC | 8 | $400K | $50K |
Frequently Asked Questions
Common questions about this industry.
What products are classified under NAICS 111422?
NAICS 111422 covers establishments growing floriculture products including cut flowers (roses, lilies, chrysanthemums, tulips), potted flowering plants, foliage plants, bedding and garden plants, cut cultivated greens, and flower seeds [1]. Production occurs both under cover (greenhouses, shade houses) and in open fields. The U.S. Census Bureau[9] distinguishes floriculture from nursery production (111421), which focuses on landscaping stock rather than decorative and floral products.
What is the SBA size standard for floriculture businesses?
The SBA sets the small business size standard for NAICS 111422 at $3.75 million in average annual receipts [3]. Operations meeting this threshold can access federal small business contracting set-asides, SBA-guaranteed lending programs, and disaster assistance. Per SBA regulations[10], receipts are calculated as a multi-year average.
How large is the U.S. floriculture industry?
The U.S. floriculture production sector has a total addressable market of roughly $7.3 billion with a compound annual growth rate of about 3.2 percent [2]. Per USDA NASS[3] floriculture survey data, California leads domestic production by value, followed by Florida, with additional production clusters across the Pacific Northwest, Great Lakes, and Mid-Atlantic states.
How has import competition affected domestic flower growers?
Imported cut flowers, primarily from Colombia and Ecuador, now account for the majority of U.S. cut flower consumption. Lower labor costs, favorable growing climates, and trade agreements have enabled South American growers to capture market share, particularly in commodity roses and carnations. Per the USDA Foreign Agricultural Service[11], cut flower imports have grown steadily over the past three decades. Domestic growers have responded by shifting toward specialty varieties, locally grown positioning, potted plant production, and direct farm-to-consumer sales channels where import competition is less intense.
What are the key valuation factors for floriculture operations?
Floriculture business valuation depends on greenhouse square footage and condition, heating and climate control system efficiency, growing system automation level, customer mix and contract stability, brand recognition and retail relationships, geographic proximity to major consumption markets, and workforce availability. Operations with modern automated greenhouses and diversified product lines across cut flowers, potted plants, and bedding plants typically command higher multiples than single-product growers.
What are the largest operating costs for flower growers?
Energy is typically the single largest operating expense for greenhouse floriculture operations, particularly for heating during winter months in northern climates. Labor costs for planting, crop maintenance, harvesting, and packaging represent the second major expense category. Additional costs include plant materials (seed, cuttings, plugs), growing media and fertilizers, pest and disease management, packaging, and transportation. Per USDA NASS[3] production cost surveys, energy and labor together commonly account for 50 to 65 percent of total operating expenses.
What consumer trends are driving floriculture demand?
The indoor houseplant trend has driven strong growth in potted foliage and tropical plant sales, particularly among younger consumers who view indoor plants as home decor and wellness products. Seasonal bedding plant sales remain strong, supported by consumer gardening interest that accelerated during the pandemic period and has sustained elevated levels. The locally grown flower movement, farm-to-vase wedding floral design, and subscription flower delivery services have created premium market segments for domestic specialty cut flower growers.
How seasonal is the floriculture business?
Floriculture sales follow pronounced seasonal patterns, with peak demand concentrated around major floral holidays including Valentine's Day, Mother's Day, Easter, and Christmas, along with spring bedding plant season from March through June. Per USDA NASS[3] market data, Mother's Day and Valentine's Day alone account for a disproportionate share of annual cut flower sales. Wedding season from May through October drives additional demand for specialty cut flowers and decorative arrangements. Managing production cycles to align flowering and maturity with these demand peaks is a core operational challenge.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [3]Pacific Northwest, Great Lakes, and Mid-Atlantic regions nass.usda.gov
- [4]USDA ERS ers.usda.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA sba.gov
- [7]SBA 7(a) loans sba.gov
- [8]504 loans sba.gov
- [9]U.S. Census Bureau census.gov
- [10]SBA regulations sba.gov
- [11]USDA Foreign Agricultural Service fas.usda.gov
Disclaimer
This publication has been prepared by Fair Market Value (“Fair Market Value”) for informational purposes only. It is provided on an “as-is” and “as available” basis. Fair Market Value makes no representations or warranties, express or implied, regarding the merchantability, fitness for a particular purpose, completeness, or accuracy of the data or information contained herein. This publication is not intended to be, and should not be construed as, professional financial, legal, tax, or investment advice. Users should consult with qualified professionals before making any financial or business decisions based on the information presented.
To the extent permitted by law, Fair Market Value disclaims all liability for loss or damage, direct and indirect, suffered or incurred by any person resulting from the use of, or reliance upon, the data in this publication.
Copyright © 2026 Fair Market Value. All rights reserved. All data, information, articles, graphs, and content contained in this publication are copyrighted works and Fair Market Value hereby reserves all rights. No part of this publication may be copied, reproduced, republished, uploaded to a third party, or distributed without the prior written permission of Fair Market Value.