Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Floriculture Market – Insights
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 is projected to record substantial growth over the forecast period, owing to growth of cosmetics & personal care industry coupled with increasing awareness regarding medicinal properties of flowers. Apart from being used for decoration and perfumery purposes, they are also used as a medicine due to various health benefits associated with them. For instance, chrysanthemum has properties that help in reducing blood pressure and cure dizziness and insomnia.
Other flowers such as pot marigold is used as a remedy for inflamed skin and prevents the spread of infection, whereas purple corn flower helps in stimulating the immune system, which improves the body’s resistance against viral and bacterial infection. Moreover, lavender’s aroma calms down the nervous system, reduces muscle tension, and works as an antiseptic.
Moreover, various fresh flower scents are considered as a remedy in case of insomnia, disturbed sleep patterns, and drowsiness. Therefore, these flowers and cut plants having medicinal properties are expected to boost growth of the global floriculture market during the forecast period.
Global Floriculture market is likely to have negative impact, owing to harmful effects of pesticide and insecticides used in the production of flowers on larger scale. Furthermore, maintaining the quality of cut flowers and plants is not possible for an extended period of time, as these cut plants/flowers do not stay fresh due to their limited lifespan. Moreover, waste generated from the degradation of these plants causes waste disposal problems. Therefore, difficulty in maintaining the freshness of flowers and water, and problems associated with waste disposal is expected to hamper growth of the market during the forecast period.
The global floriculture market was valued at US$ 43.23 Bn in 2018, and is expected to register a CAGR of 5.7%, in terms of revenue over the forecast period (2019-2027), to reach US$ 70.85 Bn by 2027.
Figure 1. Global Floriculture Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
Europe accounted for the largest revenue share of 40.3% in the global floriculture market in 2018, and is projected to continue its dominance during the forecast period. According to Eurostat, in 2015, the Netherlands had the highest land area, around 45.8 thousand hectares, covered with flowers, ornamental plants, and nursery plants, which further increased and reached 50.4 thousand hectares in 2016. This exhibits that demand for flowers and potted plants is expected to increase in Europe during the forecast period.
Moreover, North America floriculture market is expected to witness significant growth over the forecast period, owing to increasing demand for flowers in applications such as floral decoration at wedding and other events. For instance, according to data released by the U.S. Department of Agriculture (USDA), in December 2018, sales of floriculture item at all retail outlets was US$ 31.3 billion in 2015, whereas bedding plant production held the largest share accounting 44% in 2018 of the wholesale value of all the reported floriculture crop produced in the U.S.
Figure 2. Global Floriculture Market Share (%), By Application, 2018
Source: Coherent Market Insights, 2018-19
Based on application, global floriculture market is segregated into decoration and industrial applications, wherein decoration segment accounted for the largest revenue share and contributed 75.4% in 2018 in the global market. Fresh flower and plant decoration is often preferred over artificial flower decoration in weddings and other events/festivals such as thanksgiving, Diwali, and Christmas. Moreover, bulk purchase of fresh flowers and plants is offered with discounts and is therefore preferred over artificial flowers. This scenario is likely to contribute to growth of decoration segment in the near future as well.
Major players operating in the global floriculture market are 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.
- The companies operating in floriculture market are undertaking various strategic initiatives such as mergers & acquisitions and product developments in order to maintain their competitive position in the global market.
- For instance, in July 2018, Dummen Orange, involved in production and distribution of bedding plants, cut flowers, and perennials, acquired breeding line calla lily from Bloomz New Zealand Ltd. This will allow Dummen Orange to expand its product portfolio of cut flowers.
- Furthermore, in April 2018, Syngenta Flowers (engaged in production and distribution of seeds, cuttings, and young plants) acquired Verwer Dahlia BV’s dahlia assortment & breeding program. The dahlia assortment has over 140 registered varieties, which will help Syngenta Flowers to expand its dahlia portfolio.
- In January 2019, 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 2019, 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.