Landscaping Profits Holding Steady Amid Strong Growth - But Is Your Share Growing?

The landscaping industry is in growth mode, expanding at an average annual rate of 6.5% from 2020-2025, according to NALP. Despite this, profit margins in the sector remain steady at about 7.9%, as reported by IBISWorld 2026. The market is booming, but is your slice of the pie actually getting larger - or just keeping pace?

Table of Contents

• Why Is the Landscaping Industry Growing So Quickly?
• Why Are Profit Margins Stuck Below 8%?
• How Are Customer Expectations Shifting?
• Why This Matters for Landscapers

Why Is the Landscaping Industry Growing So Quickly?

Between 2020 and 2025, the landscaping market has averaged 6.5% annual growth, driven by a combination of increased homeowner spending, low interest rates, and surging demand for home upgrades, according to NALP. The COVID-19 pandemic pushed more people to invest in their yards, patios, and outdoor spaces, a trend that has stuck even as life returns to normal. Commercial contracts have also rebounded with business reopenings and new construction.

Retail landscaping product sales are forecasted to reach $26.7 billion in 2028, rising 3.5% a year, according to The Freedonia Group. The upshot: there is real money moving around, and plenty of homeowners looking for help getting that dream yard or keeping up appearances.

Why Are Profit Margins Stuck Below 8%?

Even with strong demand, average profits aren't climbing. IBISWorld finds average margins at 7.9%, a number that hasn't moved much over the past several years. What's eating the gains? Labor continues to be the biggest expense, and many operators face a chronic worker shortage. Higher fuel and material costs squeeze margins further, often outpacing what owners can raise in prices before meeting resistance from customers.

Running more trucks doesn't mean more money in your pocket if overhead eats the profit. Many landscapers are finding old business models under pressure. Process tweaks like tighter routing, better scheduling, or new service bundles are now the difference between growing profitably and just staying busy. For landscapers who want a deeper dive on how technology is changing margin math, see this analysis of technology trends and profits.

How Are Customer Expectations Shifting?

Customers are putting more thought into who they hire. According to OPE+ 2021, 43% of landscaping customers research online, and 30% rely on word of mouth. They expect not only top-tier results but also clear communication, professional crews, and a modern booking experience. Sustainability - water-wise plants, native species, electric equipment - is creeping up buyer checklists.

Trust and proof matter more than a slick website. Recent data show that reviews are often the very first check a new customer performs before picking up the phone or filling out a web form. This is especially true for higher-value jobs or ongoing maintenance contracts. Good reviews aren't just for show: they are part of your sales infrastructure. For a closer look at how reviews drive conversion, see this review analysis.

Why This Matters for Landscapers

If you're booked solid and expenses keep creeping up, you are not alone. While the industry picture is rosy in terms of demand, only operators who actively manage costs and reputation will see that growth reflected in take-home pay. Steady margins mean you need to claim your share of new business by responding to shifting customer expectations, keeping a sharp eye on labor and input costs, and making sure every job strengthens your online reputation - not just your schedule.

In short: growth is real, but so is the scramble for the best part of it.

Growth is no guarantee of higher profits. Staying competitive means tracking your margins as closely as you track your job calendar. Delivering on customer expectations - from communication and professionalism to visible proof in your reviews - is what keeps your share of that expanding market.