Floriculture Market By Type (Bedding Plants, Potted Plants, Cut Flowers) By End Use (Conference and Activities, Gift, Personal Use) and Region - Global Forecast to 2026
28 February 2018
The global floriculture market was valued at US$ 67.3 billion in 2017 and is expected to register a CAGR of 5.0%. The report offers in-depth insights, revenue details, and other vital information regarding the global floriculture market and the various trends, drivers, restraints, opportunities, and threats in the target market till 2026. The report also offers insightful and detailed information regarding the various key players operating in the global floriculture market, and their financials, apart from strategies, acquisitions & mergers, and market footprint. The global floriculture market is segmented on the basis of type, end use, and region.
Floriculture is also known as flower farming, as it deals with cultivating of ornamental and flowering plants. Floriculture products are used as gifts in conference and activities, and also as personal use. Types of floriculture includes bedding plants, potted plants, and cut flowers.
Global Floriculture Market Dynamics:
Manufacturers in developing economies cultivates high quality flowers and exports them to the developed economies such as Europe, US, and Japan. Exports for floriculture products have increased significantly owing to favorable climactic conditions, rich biodiversity, low labor costs, favorable government support which is expected to drive the growth of the market over the forecast period. Manufacturers are producing new varieties of flower owing to the several benefits offered by new flower variety which includes high productivity, tolerant to fungal infection and to withstand the changing climatic conditions. Furthermore, the fragrant and long-lasting blooms have in turn fetched the customers to buy the new variety of flowers which in turn is expected to drive the floriculture market over the forecast period
However, floriculture products especially cut flowers are transported by air since flowers are highly perishable by nature, an appropriate temperature control measures are required during the transit. Floriculture products requires cold stores and pre-cooling facilities. In addition, high freight rates add up to the logistic cost of product thus hampering the growth of the market. Stringent regulations regarding import of floriculture products in some of the regions is other factor expected to hamper the growth of the market over the forecast period.
Business expansion through improving the product quality and collaborating with other industry is expected to create high potential revenue opportunities for existing as well as new entrants in the target market.
Market analysis by type:
On the basis of type segmentation, cut flowers segment is expected to contribute major revenue share and expected to maintain its dominance over the forecast period. Cut flowers segment witness a highest CAGR of over 5.0%, owing to the use of cut flowers in a fresh flower arrangement either in bunch or bouquet form and is widely used in formal events such as wedding and funerals, and gifted on various occasions such as birthday, valentine’s day, etc.
Market analysis by end use:
Among the end use segments, the gift segment is expected to dominate with nearly 50% of revenue share contribution in the global market, and is expected to continue its dominance over the forecast period owing to, cut flowers being used to gift on various occasions such as wedding, anniversary, birthday, festivals, funeral, etc. The conference and activities segment is projected to register highest CAGR among end use segments, owing to increasing adoption of flowers in corporate meetings, hotels, schools and colleges, etc.
Market analysis by region:
Among the regions, the market in Europe is estimated to account for major revenue share of over 30% in the global floriculture market in 2017, and is estimated to continue its dominance over the forecast period. North America market is estimated to account for second-largest revenue share in the global market in 2017.
The dominance of Europe market can be attributed to countries such as Netherlands being largest exporter of cut flowers in this region. According to European Commission, in 2017, Europe had 44% of world’s flowers and pot-plant production. Furthermore, Europe had highest densities of flower production per hectare.
In North America market, the market in the US accounted for highest revenue share for floriculture market in 2016, and is expected to continue its dominance over the forecast period. According to the USDA National Agricultural Statistics Service, in 2015, the whole sale value of floriculture crops increased by 4% as compared to previous year. The US, California, Michigan, Florida, North Carolina and Ohio are major producer of floral products. The number of producers in 2015 grew by 5% i.e. 5,913 when compared to 2014 which had 5,606 producers.
The market in Asia Pacific is estimate to account for over 20% share in terms of revenue in the global market. Increasing number of flower growers in the floricultural market and economic development in countries such as China and India is expected to drive the Asia Pacific floriculture market over the forecast period. In India, government had taken various initiatives for promoting floriculture exports from the country. For instance, government provides subsidy on airfreight for export of cut flowers and tissue-cultured plants. Furthermore, import duties on flower seeds, cut flowers has also been reduced. Government aims to improve production of off-season and quality flower, which in turn is expected to contribute to growth of the market in Asia Pacific. The market in Japan accounted for highest revenue share in the Asia Pacific Floriculture market in 2016, and is expected to maintain its dominance over the forecast period.
The market in Latin America is accounted for around 6% share in the global floriculture market in terms of revenue. The competitive prices, favorable climatic condition, low labor cost and high profitability from small surface area, and development of high quality floriculture products is expected to boost the Latin America floriculture market
The market in Middle East & Africa accounted for around 3% share in the global market in terms of revenue. This can be attributed to, Ethiopia being the second largest producer of flowers after Kenya, owing to the favourable climatic especially for roses, rich biodiversity. In addition, governments in this region offer attractive incentives for investors i.e. a five-year corporate tax exemption for inputs and import duties was discarded which in turn reduced the product cost. Hence, the favourable political scheme has created positive impact on the growth of Ethiopia floriculture market, thereby contributing to the growth of the global floriculture market.
Global floriculture market segmentation, by type:
- Bedding Plants
- Potted Plants
- Cut Flowers
Global floriculture market segmentation, by end use:
- Conference and Activities
- Personal Use
Global floriculture market segmentation, by region:
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- Dümmen Orange
- Karuturi Global Limited
- Carzan Flowers Kenya Ltd.
- Karen Roses
- Harvest Flowers Kenya
- Beekenkamp Group
- James Finlay Limited
- Selecta Klemm GmbH & Co. KG
- Washington Bulb Company, Inc.
- 1.0 Chapter 1
- 1.1 Preface
- 1.2 Assumptions
- 1.3 Abbreviations
- 2.1 Report Description
- 2.1.1 Market Definition and Scope
- 2.2 Executive Summary
- 2.2.1 Market Snapshot, By Type
- 2.2.2 Market Snapshot, By End Use
- 2.2.3 Market Snapshot, By Region
- 2.2.4 Opportunity Map Analysis
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