According to a report by Research and Markets, the global market’s value will surpass $50.1 billion by the end of this decade, up from $33.3 billion in 2022. The global cut flower market is on an upward trajectory, projected to grow at a compound annual growth rate (CAGR) of 5.3% from 2022 to 2030.
Growth Trends by Flower Segment
Among various segments, roses are expected to lead with a 5.9% CAGR, reaching $15.8 billion by 2030. The chrysanthemum and gerbera segments are also set to experience a solid growth rate of 5.3% CAGR over the same period.
Rising Demand in Key Regions
The report highlights a notable rise in demand for cut flowers across Europe and North America, the leading markets for floral products. This growth is driven by high consumer expenditure on flowers and well-established distribution networks. Emerging markets, particularly in the Asia Pacific region including South Korea, India, China, and Japan are also becoming significant players. This shift is attributed to rapid urbanization, increasing disposable incomes, and a growing interest in floral decorations for social and cultural events.
Market Expansion Factors
According to the report, several factors are contributing to the market’s expansion:
- Event-Driven Demand: Increased use of fresh flower arrangements for weddings, festivals, parties, and corporate functions.
- Preference for Unique Varieties: A rising demand for exotic and distinctive flower types.
- Advancements in Cultivation and Distribution: Innovations in flower cultivation, such as greenhouse farming and hydroponics, along with improved transportation logistics.
Regional Insights
- Europe: Dominates the market with a substantial share, bolstered by established flower companies and a strong tradition of flower gifting. Seasonal events like Easter, Christmas, Valentine’s Day, and Mother’s Day further stimulate demand with flower spending at 26% in U.S. flower shops as per the data from the Society of American Florists.
- North America: Expected to grow the fastest, driven by the wedding and event industries, where flowers play a crucial role in decorations. In the U.S., for example, the average cost of wedding flowers was $2,800 in 2023, this is according to Knot’s internal data.
Distribution Channels
The market is categorized by distribution channels including supermarkets, specialty stores, and online retail. The online segment is anticipated to grow at the highest CAGR, driven by e-commerce trends. Online platforms offer a broader selection of flowers, detailed product descriptions, and customization options, enhancing the consumer experience.
E-Commerce Drives Equals Rapid Growth
The online retail segment is rapidly growing in the cut flower market, despite currently holding less than 10% of the market share in many European countries. This shift emphasizes the need for consistent product quality, efficient supply chains, and standardized information exchange.
Online sales provide insights into consumer preferences and enhance the shopping experience with detailed product descriptions and customer reviews. Retailers are also utilizing social media for targeted marketing. Technological advancements in flower cultivation and logistics are supporting this trend, making it easier for customers to explore and purchase cut flowers online from home.
Health Benefits of Flowers
Research from Harvard Medical School indicates that having flowers in the home can help alleviate anxiety and depression. Cut flowers offer a number of well-being benefits, including mood enhancement and stress reduction.
In conclusion, the cut flower market is up anticipating a robust growth, driven by increasing consumer demand, technological advancements, and expanding online retail. Despite challenges like seasonality and environmental concerns, the industry’s outlook remains positive with ample opportunities for innovation and market expansion.