US Floral Gifting Market - Industry Outlook and Forecast 2018-2023
This market research report on US floral gifting market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by platform (in-store, online, and mobile) and by occasion (personal gifting, wedding, self-gifting, corporate, and sympathy).
US Floral Gifting Market - Overview
The development of technology, innovation in the supply chain, and florist-led changes to stay relevant is augmenting the growth of the US floral gifting market. The new entrants are readapting business models that is resulting in a multifarious landscape in the market. The emergence of new rules that is transforming the business model in the market includes razor-sharp focus on waste, sourcing, design, and customer experience. The focus on establishing dedicated supply chains that enables direct-to-customer interaction will create new opportunities for leading vendors in the US market. This new form of distribution network will reduce the perils associated with quality, availability, delivery time, and ethics by removing the middle-men in the process. The trend of on-demand floral production is augmenting the demand in the market. The concept of farm-to-table is gaining immense popularity and strategic supervision that will lead to optimized production system reducing wastage will revolutionize the market. The prominent players are scaling their flexibility thereby, avoiding any upcoming pitfalls and expanding their resource network and organizing back-up specifically during holiday seasons to attract new consumers and gain a larger share in the US floral gifting market.
The range of innovations in the delivery model by eliminating retail stores and leveraging digital platforms to attract more consumers, will positively impact their purchasing decisions and drive sales in the market. The demand for bouquets that are made of cut flowers and DIY concepts will create new opportunities for leading vendors in the US market. The US floral gifting market is projected to reach revenues of approximately $16 billion by 2023, growing at a CAGR of around 6% during 2017-2023.
US Floral Gifting Market - Dynamics
The intensifying movement towards local flowers is propelling the growth of the US floral gifting market. The growing need for sustainability and shorter lead times is supporting the movement of growing and distributing flowers and bouquets native from the US farms. The growing number of initiatives encouraging floral vendors and suppliers to commit to balance out the labor equation and support the local communities will transform the US market. The consumers are also willing to pay a premium price for the flowers that are locally sourced from farms from in and around the US market. For most consumers, local translates to flowers that are produced within a 100-mile radius from where they are purchasing them. 14 US states currently grow flowers domestically and such measures will attribute to the growth and development of the US floral gifting market.
US Floral Gifting Market - Segmentation
This market research report includes a detailed segmentation of the market by platform and by occasion.
US Floral Gifting Market – By Platform
Studio florists in the in-store segment to gain traction in the US floral gifting market during forecast period
The US floral gifting market by platform is segmented into in-store, online, and mobile. The in-store segment dominated more than half of the total market share in 2017, growing at a CARG of approximately 5% during the forecast period. The emergence of studio florists is propelling the growth of this segment in the US market. Studio florists have consultations by appointments or fill orders daily and are the major suppliers of event florists, catering to weddings, and corporate events in the US market. Some of the florists in the market are expanding their services by offering flower arrangement classes and on-site workshops appealing those that are interested in DIY concepts. Mass-market retailers and supermarkets are finding their way into the floral market and progressing steady. The trend towards full-service operations among chain, independent supermarkets, and grocery or service wholesalers will revolutionize the US market. Supermarket chains are re-evaluating the system and contemplating starting their own operations for growing flowers to increase operational efficiency and implement cost savings. Additionally, vendors such as natural food stores, mega-retailer Sam’s Club, FTD-certified shops are offering products that have fair trade policies, sustainable, and organic bouquets to appeal to eco-conscious customers. Such strategies will augment the development of the US floral gifting market.
US Floral Gifting Market – By Occasion
Holiday gifting phenomenon to drive personal gifting segment in the US floral gifting market during forecast period
The occasion segment in the US floral gifting market is classified into personal gifting, wedding, self-gifting, corporate, and sympathy. The personal gifting segment occupied more than half of the market share in 2017, growing at a CAGR of approximately 7% during the forecast period. In the recent times, the trend of buying flowers for Mother’s Day has only seen an upward trajectory in the last decade among households with members ranging from 18-44. Increasing accessibility of florists through mobile apps and m-stores is contributing to the revenues in this segment in the US market. The top vendors are also offering special bouquets for different occasions to attract larger consumers and a larger share in the US market. For instance, Farmgirl Flowers offer all-peony arrangements for specific occasions. Baby boomers are the most lucrative when it comes to bouquets as they attach the values such as “thoughtful” to it. Such sentiments attached to flower gifting is augmenting the growth of this segment in the US floral gifting market.
Key Vendor Analysis
The US floral gifting market is fragmented, and the top three players attribute to the majority of the market share. The leading companies are utilizing catalog, online, mass market retail, wholesale, floral and gift retail channels as distribution channels to reach maximum number of consumers in the US market. Floral mass marketers that cater to consumers take orders via websites, mobile, and phone and the development of digital technology is expected to revolution the business models in the US market. The market is also witnessing the operation of floral wire services that use proprietary network communication systems through which orders are taken and passed through to the members of the floral network. Such service networks will boost revenues in the US floral gifting market during the forecast period.
The major vendors in the market are:
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