Global Floriculture Market Overview, 2024-29

Market Dynamic

Market Drivers • Consumer demand and preferences: Consumer demand for flowers and decorative plants is a key driver in the worldwide floriculture market. Flowers are commonly used for a variety of occasions and events, including weddings, birthdays, funerals, and holidays, as well as for house decor and gift-giving. Consumer preferences for specific flower varieties, colors, and arrangements affect purchasing decisions and fuel demand for a wide range of floral items. • Urbanization and lifestyle changes: Global urbanization trends and shifts in lifestyle preferences all help to drive the floriculture market forward. As urban populations rise and lifestyles become more hectic, there is a greater desire for green spaces, indoor plants, and flower arrangements to improve living conditions, promote well-being, and add aesthetic appeal to urban homes, offices, and public areas. Market Challenges • Water scarcity: Water scarcity is a major concern for the floriculture sector, particularly in arid or semi-arid countries. Flower farming takes a large amount of water for irrigation, and competition for water resources from other industries exacerbates the situation. Limited access to freshwater sources, along with inadequate irrigation techniques and obsolete infrastructure, impedes water availability and management, creating a barrier to sustainable production. • Logistical constraints: The global nature of the floriculture sector creates complicated logistical issues for fresh flower shipping, storage, and distribution. Long distances between production hubs and consumer markets, insufficient transportation infrastructure, and bureaucratic impediments can cause delays, spoilage, and increased prices across the supply chain, reducing farmers' profitability and customers' access to fresh, high-quality flowers. Market Trends • Rise in demand for sustainable and eco-friendly products: Consumers are increasingly conscious and demand responsibly sourced and environmentally friendly flower goods. Consumers are becoming more concerned about environmental sustainability, ethical sourcing, and social responsibility. As a result, there is a growing demand for flowers grown with organic agricultural methods, fair trade certification, and environmentally friendly packaging materials. Floriculture companies are responding to this trend by using more sustainable production methods, minimizing chemical inputs, and introducing environmentally friendly activities across the supply chain. • Expansion of online and Direct-to-Consumer sales channels: The digitalization of commerce has transformed the way flowers are purchased and sold, resulting in the rapid expansion of online and direct-to-consumer sales channels in the floriculture industry. E-commerce platforms, online florists, and subscription-based flower delivery services have grown in popularity, providing consumers with ease, variety, and flexibility when ordering flowers. This development has allowed floriculture enterprises to reach a larger audience, target specialized markets, and differentiate their services by providing personalized experiences and customization possibilities. Covid-19 Impacts The lockdowns, travel restrictions, and social distancing measures implemented to curb the spread of the virus hindered the transportation of flowers and ornamental plants, leading to delays in shipments and a decrease in the overall availability of floral products. This not only affected international trade but also impacted local markets as growers struggled to distribute their products efficiently. Furthermore, the closure of retail outlets, event cancellations, and a decline in consumer spending on non-essential items during the pandemic resulted in a sharp decrease in demand for flowers. With weddings postponed, social events canceled, and retail businesses shuttered, florists and growers experienced a sudden and substantial drop in sales. Many flower farms faced the challenge of disposing of excess inventory due to the perishable nature of their products, leading to financial losses for businesses across the industry. The pandemic also had profound implications for the labor-intensive nature of floriculture. Many flower farms rely on seasonal migrant labor for planting, harvesting, and processing flowers. However, travel restrictions and lockdowns disrupted the movement of labor, creating labor shortages and logistical challenges. Additionally, the need for social distancing measures within cultivation and processing facilities further slowed down production, affecting the overall efficiency of the industry. The pandemic has accelerated certain trends within the floriculture industry. The shift towards e-commerce and online retail, already underway before the pandemic, gained momentum as consumers sought alternative ways to purchase flowers amid lockdowns and social distancing measures. Online flower delivery services became increasingly popular, providing a lifeline for some businesses in the industry and fostering new opportunities for digital marketing and sales strategies.

Key Development

• In June 2023, Floranow, the online floral marketplace in the MENA region, announced its recent acquisition of Bloomax, the largest wholesale distributor of fresh-cut flowers in KSA. This strategic deal expands Floranow's operational footprint in KSA and establishes a direct presence in nine cities, serving over 1500 companies that actively purchase on the platform. These strategic moves have contributed to organic growth and a fully digitized revenue stream for the company. • In May 2023, Danziger introduced its innovative Garden to Vase concept, providing a wide selection of high-quality cut flowers suitable for home cultivation. The program offers a range of varieties, including Festival Pink Lady Gypsophila, Focal Scoop Dark Purple Scabiosa, Solar Glory Solidago, and Skyler Blue Veronica. Danziger's Garden to Vase initiative creates value throughout the supply chain, benefiting producers, retailers, and end users. • In January 2023, OptiBoost, a brand owned by Swedish food and plant tech company OptiCept Technologies, has established a partnership agreement with Dutch floral wholesale giant One Flora Group. This collaboration aims to enhance the vase life of cut flowers by testing the OptiBoost technology in Aalsmeer, the global flower trade hub. To facilitate this, OptiBoost opened a new testing facility adjacent to One Flora Group's Aalsmeer branch. • In November 2022, Marginpar BV completed the establishment of its new headquarters in the Netherlands and will relocate to 'Aalsmeer-Oost' by the end of 2022. This location will assist the company in developing a new product street in the area while utilizing Royal FloraHolland's logistical advantage. • In January 2020, Oserian, Kenya based producer of cut flowers, was awarded as top producer of cut flowers at International Grower of the Year Awards held in Germany. The event was organized by International Association of Horticulture Producers. • In May 2020, Selecta One, one of leading company in breeding, producing, and marketing of vegetatively propagated ornamental plants, acquired La Villetta s.r.l (Italy-based producer of carnation flowers). This acquisition will help Selecta One to expand its product portfolio in cut carnation category and also strengthen its market presence in the category.