Florists
Description
Companies in this industry sell cut flowers, floral arrangements, potted plants, and other gifts from physical retail establishments. No major companies dominate the industry. Floral order-taking services such as 1-800-FLOWERS.COM, FTD, and Teleflora (all in the US), Euroflorist (the Netherlands), and Tokyoflora.com (Japan) provide orders to independent florists but are also competitors.
The global cut flower market is forecast to reach about $50 billion by 2032, with a compound annual growth rate (CAGR) of over 5.9% between 2024 and 2032, according to Global Market Insights. Major importers of cut flowers in 2022 include Canada, Ecuador, and the European Union, according to the US Department of Agriculture (USDA).
The US florists industry includes around 13,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $5 billion.
COMPETITIVE LANDSCAPE
Demand for flowers depends on discretionary consumer spending. The profitability of individual shops depends on effective marketing. Companies focus on a local or regional market and compete based on location, price, and customer service. The US industry is highly fragmented: the 50 largest companies account for less than 10% of revenue.
Florists compete with supermarkets and mass merchandisers. When selling to business customers, they may also compete with wholesalers and sellers of artificial flowers. In addition, online sales of cut flowers are increasing. A growing segment of online sales includes non-store, direct-to-consumer businesses that aim to disrupt the traditional grower-wholesaler-florist model. These new companies may use locally sourced flowers that reflect the current season; offer cut-to-order product; reduce waste by wrapping flowers in recycled or biodegradable material; and provide free delivery.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are arranged cut flowers and unarranged cut flowers. Arranged cut flowers account for about 70% of industry revenue, followed by unarranged cut flowers for about 10%; home furnishings and accessories, blooming and nonblooming indoor potted plants each accounting for about 5% of industry revenue. Stores may also sell vases, artificial flowers, and other gift items. The top-selling flowers in the US are roses, lilies, and daisies. Global best sellers include sunflowers, wildflowers, and lilacs.
Florists buy product from wholesalers and importers, who in turn buy from growers. Imports account for nearly two-thirds of fresh flowers sold by dollar volume in the US. Wholesalers typically deliver cut flowers several times per week. Store operations consist of caring for flowers, putting together flower arrangements, taking orders, serving walk-in customers, and delivering arrangements to consumer and commercial customers.
On-time local deliveries are an important aspect of customer service, particularly around major holidays. Florists often use multiple delivery vans to meet customer commitments; delivery costs fluctuate with gas prices. Heavy delivery requirements during holiday periods can require florists to supplement company delivery with contract delivery services. Fuel prices can add extraordinary costs to delivery. Many florists state delivery fees separately and charge premiums for holidays and high fuel prices.
Because high foot-traffic is desirable, florists may lease space in malls or other prime retail locations. Companies may operate local stores and nonpermanent satellite operations on sidewalks, train stations, and other locations. The majority of companies operate a single store and even the largest companies operate fewer than 10 stores on average.
The global cut flower market is forecast to reach about $50 billion by 2032, with a compound annual growth rate (CAGR) of over 5.9% between 2024 and 2032, according to Global Market Insights. Major importers of cut flowers in 2022 include Canada, Ecuador, and the European Union, according to the US Department of Agriculture (USDA).
The US florists industry includes around 13,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $5 billion.
COMPETITIVE LANDSCAPE
Demand for flowers depends on discretionary consumer spending. The profitability of individual shops depends on effective marketing. Companies focus on a local or regional market and compete based on location, price, and customer service. The US industry is highly fragmented: the 50 largest companies account for less than 10% of revenue.
Florists compete with supermarkets and mass merchandisers. When selling to business customers, they may also compete with wholesalers and sellers of artificial flowers. In addition, online sales of cut flowers are increasing. A growing segment of online sales includes non-store, direct-to-consumer businesses that aim to disrupt the traditional grower-wholesaler-florist model. These new companies may use locally sourced flowers that reflect the current season; offer cut-to-order product; reduce waste by wrapping flowers in recycled or biodegradable material; and provide free delivery.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are arranged cut flowers and unarranged cut flowers. Arranged cut flowers account for about 70% of industry revenue, followed by unarranged cut flowers for about 10%; home furnishings and accessories, blooming and nonblooming indoor potted plants each accounting for about 5% of industry revenue. Stores may also sell vases, artificial flowers, and other gift items. The top-selling flowers in the US are roses, lilies, and daisies. Global best sellers include sunflowers, wildflowers, and lilacs.
Florists buy product from wholesalers and importers, who in turn buy from growers. Imports account for nearly two-thirds of fresh flowers sold by dollar volume in the US. Wholesalers typically deliver cut flowers several times per week. Store operations consist of caring for flowers, putting together flower arrangements, taking orders, serving walk-in customers, and delivering arrangements to consumer and commercial customers.
On-time local deliveries are an important aspect of customer service, particularly around major holidays. Florists often use multiple delivery vans to meet customer commitments; delivery costs fluctuate with gas prices. Heavy delivery requirements during holiday periods can require florists to supplement company delivery with contract delivery services. Fuel prices can add extraordinary costs to delivery. Many florists state delivery fees separately and charge premiums for holidays and high fuel prices.
Because high foot-traffic is desirable, florists may lease space in malls or other prime retail locations. Companies may operate local stores and nonpermanent satellite operations on sidewalks, train stations, and other locations. The majority of companies operate a single store and even the largest companies operate fewer than 10 stores on average.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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