FLORICULTURE MARKET ANALYSIS

Floriculture is a branch of horticulture associated with the cultivation of flowering and ornamental plants to be utilized in various applications such as decoration and as raw material in personal care & cosmetics and pharmaceutical industry. In simple terms, floriculture can be defined as art and knowledge of growing flowers with perfection. Over 140 countries are involved in the field of commercial floriculture across the globe.

Global floriculture market was valued at US$ 54.2 Bn in 2022 in terms of revenue, exhibiting a CAGR of 7.66 % during the forecast period (2023 to 2030).

Drivers

• Rising Product Appeal Among Consumers

The floriculture market is primarily driven by a few key reasons, such as rising product appeal among consumers, successful marketing tactics in opportunities, and significant financial investments in product development. Industries are also attempting to supply the market with the appropriate number of products in order to meet the growing demand. One of the key factors driving the floriculture market high profits associated with growing ornamental plants. The increasing cultivation of flowers and plants for sale is the major factor driving the ornamental plant market. Due to the high-profit margins associated with the sale of ornamental plants and flowers for outdoor use. The annual average gross profits for coniferous outdoor ornamental plants were US$ 530 for pine, US$730 for cedar, and US$920 for blue spruce, according to several research studies conducted in Turkey's Konya province. These plants have globally gross profit margins of around 55%, 65%, and 72%, respectively. Other ornamental plants, such as chestnut, plum, and maple, had large gross margins as well, with 78%, 84 %, and 65%, respectively. Many players have been able to expand their offerings in this space as a result of the high margins. Furthermore, growers can harvest 4-5 tons of willow shoots per acre, earning US$56,000 per acre from basket weavers at US$7 per pound. Plants like lavender, woody ornamentals, bonsai plants, and bamboo have also proven to be very profitable for growers. Bamboo, which ranges from dwarf Sasa bamboo to giant timber bamboo, is one of the most widely used plants for landscaping and has proven to be very profitable. The average cost of a container of landscaping bamboo is around US$45

• Demand for Cold Chain Protocols is Rapidly Growing Among B2B Flower Buyers

The COVID-19 pandemic kept people to their homes and forced many non-essential companies to close, leaving thousands of tiny and marginal farmers stranded and planning to cultivate a variety of flowering plants came to waste. Shift to virtualized trade network also enables better logistics coordination and information availability in the floriculture supply chain, ensuring smooth, cost-effective, and faster deliveries of floriculture products. This is essential in the case of cut flowers, given their time of degradability. Additionally, demand for cold chain protocols is rapidly growing among B2B flower buyers as proper cold chain management has a positive effect on product quality. Thus, companies focus on the establishment of cold chain protocols, which is anticipated to be vital for long-term growth in the foreseeable future.

Figure 1. Global Floriculture Market Value Share (%), By Region, 2021

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Market Restraints

• Over-dependence on climatic conditions

 The industry of flowers and ornamental plants is highly reliant on weather conditions. Shorter, wetter days, as well as a lack of sunlight, can stymie the healthy growth of some ornamental plants. While the majority of plant varieties require a lot of sunlight to thrive, some can thrive even in the shade. To provide plants with the best growing conditions, many nurseries and growers must use artificial lighting and temperature controls. Furthermore, very cold temperatures and the accumulation of ice on the leaves of flowering plants can harm them. Moreover, leading flower-producing countries, such as Kenya, which accounts for roughly 40% of cut flower imports into the EU, are seeing the negative effects of global climate change. Over the last few years, the country has experienced below-average rainfall. Furthermore, the country's limited fresh water supply and drought-like conditions endanger flower production and, as a result, the industry's supply chain. Furthermore, flower pollination is being harmed by rising temperatures as a result of global warming. This floriculture market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2030

Market Trends

Floriculture is the cultivation of beautiful and blooming plants in the floriculture nursery for a variety of purposes, including as a raw resource in the cosmetic and pharmaceutical industries, as well as for personal use.

The global floriculture industry is now being driven by advancements in plant biotechnology, which include genome sequencing. Increased agricultural productivity and emergence of genetically modified flowering plants have come from the deployment of modern techniques.

Edible flowers such as citrus blossoms, hibiscus, lavender, roses, and nasturtium are gaining popularity among a select chunk of health conscious consumers. These flowers are rich in Vitamin C and antioxidants, which helps in reducing cholesterol levels, improve skin and hair health, and enhance heart functioning.

Growing acceptance of flowers as a healthy food ingredient creates new opportunities for producers in the advanced floriculture market to expand their businesses. Consumers demand sustainably produced flowers, attributable to increasing awareness regarding the environmental and social impact of the production and trade of floriculture products worldwide. Thus, all participants in the floriculture value chain aim to adopt sustainable agricultural practices such as integrating pest management and conservation agriculture to reduce the negative impact of their activities on the environment.

The increasing use of biotechnology in floriculture is another factor supporting the floriculture market growth in the forecast period.

Biotechnology is being used in floriculture to change the color of flowers from their natural colors. This may increase demand for flowers with unusual colors, such as blue roses. Biotechnology can also assist flowers in surviving in harsh climatic conditions, lowering risks for growers. Monsanto, for example, is developing anti-aging technology for flowers. This technology can help flowers last longer by preventing them from wilting. Flowers with a shorter life expectancy are shipped by air cargo freight from the country of origin to the customer in another country. For such reasons, the use of biotechnology to prevent flowers from wilting can reduce the dependence of exporters on air freight, which is expensive, and instead allow flowers to be transported using a cheaper mode of transport like seaways.

Figure 2. Global Floriculture Market value Share (%), By Application, 2021

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Recent Developments

• 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.

Competitive Section

Major players operating in the global floriculture market include The Kariki Group, Dummen Orange, Syngenta Flowers. Inc., Karuturi Global Limited, Oserian Development Company Limited, Selecta Klemm GmbH & Co. KG., Marginpar BV, Ruparelia Group, Multiflora Ltd., and Karen Roses.