Cut Flowers Market Size, Share, Analysis & Forecast | 2032

Report Description

Cut Flowers Market Outlook 2032

The global cut flowers market size was USD 38 Billion in 2023 and is projected to reach USD 58.2 Billion by 2032, expanding at a CAGR of 4.6 % during 2024–2032. The market growth is attributed to the increasing demand for floral products in various occasions and events globally.

Growing emphasis on sustainability and eco-friendly practices within the floral industry is augmenting the market. This trend has led to a rise in organic farming methods and certifications, with regulatory bodies such as the International Association of Horticultural Producers (AIPH) playing a pivotal role in promoting responsible practices and maintaining quality standards.

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Rising preference for floral arrangements in various events and celebrations, supported by advancements in transportation and logistics. Government regulations concerning import/export protocols, phytosanitary guidelines, and fair-trade regulations influence market dynamics, shaping competition and fostering opportunities for innovation among industry players.

Impact of Artificial Intelligence (AI) in Cut Flowers Market

Artificial Intelligence (AI) is revolutionizing the cut flowers industry by optimizing processes and enhancing efficiency. AI-powered algorithms analyze market trends, customer preferences, and inventory management, enabling growers and retailers to make data-driven decisions and streamline operations. Additionally, AI-driven automation in harvesting, sorting, and packaging processes improves quality control and reduces wastage, leading to higher productivity and cost savings across supply chain management. For instance,

• In December 2022, Floriday established the digital infrastructure for the floriculture sector facilitating trade and expanding consumer options for purchasing flowers and plants online.

Cut Flowers Market Dynamics

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Major Drivers

Increasing consumer preference for sustainable and eco-friendly products is driving demand for ethically sourced cut flowers, with market players expected to prioritize environmentally responsible practices.

Surging demand for unique and exotic flower varieties is spurring innovation and diversification among cut flower suppliers, with market players projected to introduce novel floral offerings to cater to evolving consumer choices and preferences. For instance,

• In 2022, Selecta One (Germany) forged a strategic partnership with Moraglia Breeding (Italy), leveraging logistical support and genetic improvements to develop new carnation varieties.

Existing Restraints

High transportation costs and logistical challenges are expected to impede the market for perishable cut flowers that require timely delivery to maintain freshness and quality.

Stringent regulations and compliance requirements related to phytosanitary standards and international trade protocols are estimated to impede market access and export opportunities for cut flower suppliers.

Emerging Opportunities

Increasing adoption of online platforms and e-commerce channels is creating new opportunities for cut flower suppliers, with digital sales expected to expand rapidly and reach a broader customer base globally. For instance,

• In February 2023, Floriday introduced 'trade settings,' enabling growers and buyers to configure their trading preferences conveniently. This initiative simplifies trading processes for both parties involved.

Rising demand for sustainable and organic cut flowers is driving innovation in farming practices and product offerings, presenting market players with opportunities to capitalize on the growing preference for environmentally friendly floral products.

Growing popularity of floral subscription services and personalized gifting options is anticipated to boost sales and revenue for cut flowers, as consumers seek convenient and unique ways to purchase and enjoy floral arrangements.

Scope of the Cut Flowers Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Regional Outlook

In terms of region, the global cut flowers market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific held a major market share in 2023, due to its significant production capacity, and favorable climatic conditions for growing a wide range of flower varieties. Additionally, the established distribution networks enable efficient supply chain management in the region.

The market in Europe is projected to grow at a significant pace during the forecast period, owing to increasing urbanization, rising disposable incomes, and growing demand for floral products among consumers. Additionally, investments in technological advancements, such as greenhouse farming and automated production processes, are expected to boost productivity and quality in the region, driving the market.

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Cut Flowers Market Segment Insights

Type of Flower Segment Analysis

Based on the type of flower, the cut flowers market is divided into roses, lilies, tulips, orchids, daisies, carnations, and others. The roses segment held a major share of the market in 2023 and is expected to expand at a significant growth rate in the coming years, owing to its timeless popularity and versatile use in various occasions such as weddings, anniversaries, and Valentine's Day. The demand for roses is driven by their wide range of colors and long vase life, making them a preferred choice among consumers.

Furthermore, the continuous innovations in breeding techniques resulted in new varieties with enhanced qualities such as longer stems, vibrant colors, and extended vase life continuing its popularity among consumers. Additionally, the rising trend of sustainable and eco-friendly floral products is driving the demand for organic and locally grown roses, providing opportunities for suppliers focusing on environmentally responsible practices.

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Product Type Segment Analysis

On the basis of product type, the global market is segregated into fresh cut flowers, dried cut flowers, and preserved cut flowers. The fresh cut flowers segment held the largest market share in 2023, attributed to their high demand in various occasions and events such as weddings, festivals, and celebrations. The freshness and vibrant appearance of fresh cut flowers make them a preferred choice among consumers, driving the segment.

The preserved cut flowers segment is anticipated to grow at a substantial CAGR during the projected period, due to increasing demand for long-lasting floral arrangements. Preserved cut flowers offer the advantage of extended shelf life without compromising their visual appeal, making them suitable for decorative purposes in homes, offices, and events. Furthermore, the growing trend of sustainable and eco-friendly products is driving the segment.

Quality Grade Segment Analysis

Based on quality grade, the cut flowers market is segmented into premium, standard, and economy. The premium segment led the market in terms of revenue in 2023, owing to its superior quality, longer vase life, and exquisite appearance. Consumers are willing to pay a premium price for high-quality flowers, especially for special occasions and events, driving the segment.

The standard segment is projected to register a robust growth rate during the assessment years, due to the increasing affordability and availability of standard-grade flowers. The standard segment is expected to gain traction among price-conscious buyers, as consumers seek value for money and options that fit in their budget. Additionally, advancements in breeding and cultivation techniques are improving the quality of standard-grade flowers, further fueling the segment.

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Application Segment Analysis

On the basis of application, the market is divided into personal use, events & celebrations, decorative & ornamental, and gifting. The events & celebrations segment generated a major revenue share of the market in 2023, attributed to the demand for cut flowers in weddings, parties, holidays, and other festive occasions. The segment benefits from the tradition of using flowers as decorative elements in celebrations, driving the segment.

The gifting segment is projected to register a robust growth rate during the assessment years, due to the increasing trend of gifting floral arrangements for various occasions such as birthdays, anniversaries, and special events. Cut Flowers are chosen as gifts for their beauty, symbolism, and emotional appeal, making them a popular choice among consumers looking for meaningful and personalized gifts. Additionally, the convenience of online gifting platforms and customizable options further propels the segment.

Distribution Channel Segment Analysis

Based on distribution channel, the cut flowers market is segmented into retail stores, online platforms, wholesale markets, and florists. The retail stores segment led the market in terms of revenue in 2023, owing to the widespread availability of these flowers in brick-and-mortar stores, convenience for immediate purchase, and personalized customer service. Consumers prefer purchasing flowers from retail stores for their freshness and variety, boosting the segment.

The online platforms segment is projected to register a robust growth rate during the assessment years, due to the increasing trend of online shopping and the convenience of ordering cut flowers from the comfort of home. Online platforms offer a wide range of floral options, customization features, and doorstep delivery services, attracting tech-savvy consumers and expanding the market reach for suppliers. Additionally, advancements in e-commerce technologies and secure payment methods enhance the online shopping experience, further propelling the segment. For instance,

• In February 2023, Selecta One collaborated with a technology company to develop an innovative online platform for florists, offering digital tools for order management and customer engagement.