High energy prices, inflation and uncertainties at national and global level posed major challenges for many German companies last year. Export-oriented industries were under pressure, purchasing power declined and consumer sentiment was subdued.
The number of insolvencies rose, and even long-established companies were forced to close due to cheaper competition from abroad and declining orders. All of this has also had consequences for horticulture, and many horticultural businesses have avoided making investments.

Hope for a slight economic recovery
The economic indicators for 2026 point to a slight increase in German economic output: After years of stagnation and recession, the German Economic Institute (IW) is forecasting a moderate recovery for 2026. According to this, real gross domestic product could be 0.9 per cent higher this year than in 2025. Experts also expect investment activity to recover slightly. However, the volatility of the global economy remains a major risk.

Fewer nurseries 
Good ideas are of little help if there are no successors to take over the business or if the pressure from rising energy costs becomes too great. Bureaucracy and a shortage of skilled workers are also causing problems for the industry.
The consequences are also evident in the tree nursery survey conducted every four years: The number of tree nurseries in Germany has declined, and the total area under cultivation is also decreasing.

In 2025, 1,368 tree nurseries cultivated approximately 15,350 hectares. That was 168 fewer tree nurseries than in 2021 – a decline of almost 11 per cent. The nursery area decreased by 1,810 hectares or 10.5 per cent. Compared to 2017, the number of nurseries fell by as much as 20.2 per cent or 346 businesses. The cultivated area decreased by 17.5 per cent or 3,260 hectares during the same period.

Many tree nurseries in the north
There are several important growing areas in Germany: north of Hamburg in Schleswig-Holstein, and in Ammerland in northern Lower Saxony. Most tree nurseries are in Lower Saxony, with 346 nurseries covering approximately 4,000 hectares. North Rhine-Westphalia, the most populous federal state, is home to 293 tree nurseries covering a total of 3,230 hectares, while Schleswig-Holstein had 200 nurseries covering 2,630 hectares at the time of the survey.
The ‘Future of Horticulture’ package of measures was included in the coalition agreement between the CDU, CSU and SPD for the 21st legislative period from March 2025 onwards, which can be seen as a positive sign.

Changes in cultivation areas
Cultivation areas have declined for almost all product groups. The market has become more difficult even for traditionally popular plants such as roses. In contrast, a positive development can be observed in the area of trees and shrubs for urban green spaces: The area used for growing trees for parks, avenues and streets has increased by 16 per cent since 2021 to 3,410 hectares. This means it is almost back to 2017 levels, when around 3,423 hectares were used for this plant group.

Climate change and the need for more drought-resistant trees is leading to changes in forest nurseries, to the detriment of conifers. In the area of forest plant cultivation, the proportion of deciduous trees has grown to over 57 per cent.

Many tree species are in short supply and some trees that were not due to come onto the market until next year are already being sold. As a result, prices are stable. Limited availability combined with continued high demand is likely to lead to prices rising over the course of the year.

Text and photos: Anke Bührmann