The Cut Flowers Market is estimated to be valued at USD 36.4 billion in 2022. It is projected to reach USD 45.5 billion by 2027, recording a CAGR of 4.6% during the forecast period. Cut flowers are plant parts that include the blooms or “inflorescences” and some attached plant materials but not the roots or soil. Fresh-cut flowers are highly perishable because they only sustain a limited number of life-sustaining processes by sucking water up through their stems. These flowers are used for decorative purposes such as vase arrangements and bouquets at formal events; designs for weddings and funerals; gifts for Mother’s Day, Valentine’s Day, illnesses, and holidays such as Christmas and Easter; corsages and boutonnieres; and informal displays to beautify homes and public places.
Asia Pacific is to grow by 5.5% CAGR during the forecast period
The Asia Pacific region is the most densely populated in the world. Asia is noted for several cut flowers, tropical and seasonal. Several cultures in Asia regard flowers as an important part of their heritage. They are an essential part of celebrations, mourning as well as decoration. The floriculture industry in Asia is thriving because of the increased importance of flowers for weddings, offerings in religious places, as well as home and commercial decorations. The cut flowers industry has developed in Asia because of low-cost flower demand in European countries. Roses are the most popular cut flowers in Europe. Imports of fresh-cut roses from third-world countries into the European Union (EU) increased from USD 623.23 million to USD 761 million between 2011 and 2015. The Netherlands, Germany, and the UK are the top importers in the EU, accounting for over 70% of all cut rose imports.
Asia has enormous potential in the global floriculture business that has yet to be exploited globally. The region is mostly concerned with serving the domestic market. This can be ascribed to the region’s rapidly expanding economy, huge population density, and consumer perception. Cut flowers, cut foliage, and potted plants dominate the Asian home flower industry. Flowers have been an important aspect of Asian culture for thousands of years, and they are an important part of spiritual and cultural traditions.
Europe dominated the cut flowers market; it is projected to grow at a CAGR of 4.1% during the forecast period
According to the Centre for the Promotion of Imports from developing countries, annually, the European Union is believed to consume over 50% of the world’s flowers and includes many countries with a high per capita consumption of cut flowers. Although some of the larger EU markets like Germany, France, and the Netherlands show signs of saturation, overall EU consumer sales of cut flowers are still increasing incessantly. Germany is the biggest consumer of flowers, followed by the UK, France, and Italy. The most important cut flower sold in Europe is Rosa, followed by other flowers like Dendranthema (Chrysanthemum), Dianthus (Carnation), Tulipa, Lilium, and Gerbera. Growers and traders exporting cut flowers and foliage to the EU send their merchandise either to a wholesaler or to an auction. In this respect, Dutch auctions play a pivotal role in the trade of flowers destined for domestic and European markets. Products handled by agents and import wholesalers are sold directly to a wholesale buyer or submitted for auction. Export wholesalers re-export the products to other EU member countries, where flowers and foliage find their way to wholesalers and retailers.
Due to the conflict in Ukraine, which has resulted in double-digit inflation as well as crippling energy costs and rations across Europe, flower producers are switching crops, reducing production, or closing down, raising concerns about the availability of crops grown there using heat and lights in the future. Flower farms, particularly in the Netherlands — the largest producer of cut flowers in the world with USD 4.01 billion in exports in 2020, according to the Observatory of Economic Complexity — have been especially hard hit by the energy crisis. The Association of Colombian Flower Exporters, in 2022, estimates there will be a 25 to 40% reduction in production.
The key players in this market include Soex Flora (India) and Florance Flora (India). Other players with large activity in this region are Flamingo (UK), Esmeralda Farms (US), and Danziger Group (Israel).