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Cut Flowers Market Current Trends and Future Estimations to 2027

Cut Flowers Market Current Trends and Future Estimations to 2027

The Cut Flowers Market is estimated to be valued at USD 36.4 billion in 2022. It is projected to reach USD 45.5 billion by 2027, recording a CAGR of 4.6% during the forecast period. Cut flowers are plant parts that include the blooms or “inflorescences” and some attached plant materials but not the roots or soil. Fresh-cut flowers are highly perishable because they only sustain a limited number of life-sustaining processes by sucking water up through their stems. These flowers are used for decorative purposes such as vase arrangements and bouquets at formal events; designs for weddings and funerals; gifts for Mother’s Day, Valentine’s Day, illnesses, and holidays such as Christmas and Easter; corsages and boutonnieres; and informal displays to beautify homes and public places.

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Fresh or dried cut flowers can be grown in open fields or in protected environments such as high tunnels or environmentally controlled greenhouses. Non-flowering cut stems, such as seed heads, stalks, and woody cuts, can also be grown for decorative or floral purposes. The cut flowers market is constantly shifting due to shifting consumer preferences. To meet these demands, growers must be willing to adjust their production. Farmers’ markets and roadside stands are potential retail outlets. Fresh flowers are frequently purchased alongside fresh produce and other farm products by consumers. In these markets, value-added products such as bouquets and specialty or seasonal arrangements can be successful. A community supported agriculture (CSA) share may also include cut flowers. Supermarkets, garden centers, and craft stores are all wholesale options. Marketing hard-to-find, or novelty cut flowers to retail and wholesale florists is another option. Other marketing opportunities may be available through hotels, restaurants, caterers, and the internet. Growers are creating a variety of marketing channels for cut flowers.

Growing demand for floral decorations in weddings to drive market

Cut flowers have wide commercial applications. Flowers are utilized in various industrial applications, such as culinary flavors, food decorations, perfumes, pharmaceuticals, smells, and natural colorants. They also are an important part of the gifting industry. The flower gifting industry uses several traditional, tropical, and specialty cut flowers. On Asian occasions, there is a high demand for large-scale ornamental use of cut flowers. Commercial flower-cutting agriculture has been designated as an “export-oriented sector” by many governments. This is significantly more profitable than traditional crop cultivation. The net profit from flower cultivation can be 10 to 20 times that of typical other agricultural crops per unit of land.

Commercial cut flower application is becoming more popular due to large-scale celebrations of important occasions such as weddings and anniversaries, as well as people’s rising disposable wealth in industrialized nations. High demands are also driving exports from major flower-producing regions. More than 60% of all cut flowers sold in the UK today are imported, with the majority coming from the Netherlands, Colombia, and Kenya. The vast majority is cultivated in massive commercial greenhouses beneath the glass, employing intensive agricultural techniques. Cut flowers are used commercially to make bouquets and floral baskets as corsages, flower arrangements, and for decoration. The demand for cut flowers is going to increase because of the growing demand for floral arrangements in all celebrations, along with eco-friendly gifting trends.

Strategic placement of floral arrangements of cut flowers in supermarket entrances to drive customer attention

Flowers are a highly profitable commodity. They may only account for 1% to 3% of total sales in supermarkets, but their profit margins can be as high as 47%, as per a report by an international manufacturer’s association. This is why they are a profitable commodity for supermarkets. In many places in the US, shops/supermarkets can import flowers for USD 7.50/bundle but sell them for USD 15. The reason is that most flowers are shipped from South America, where production costs are cheaper.

Dummen Orange (Netherlands) is one of the key players in the cut flowers markets because of its diverse product portfolio

Dummen Orange is an ornamental breeding floriculture company. It is a platform where all breeders are represented under one brand, and the company assists them with modern and traditional technologies to produce high-quality ornamental plants. Dummen Orange works on creating plant varieties that are commercially superior because of added characteristics, optimal growth conditions, and effective technological applications. The company specializes in breeding, producing, and marketing bedding plants, potted plants, cut flowers, and perennials. Dummen Orange has a strong global network and operates primarily in Europe, the Middle East, Africa, and Asia Pacific. Its R&D team innovates to cater to the growing cut flowers market by producing resilient, aesthetic, and disease-free cut flower varieties. It currently operates through six business segments: annuals, pot plants, perennials, cut flowers, tropical plants, and flower bulbs. Under its cut flowers range, the company currently sells Gerbera, Carnations, Chrysanthemum Roses, Limonium, and Mum Africa.

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Asia Pacific is to grow by 5.5% CAGR during the forecast period

The Asia Pacific region is the most densely populated in the world. Asia is noted for several cut flowers, tropical and seasonal. Several cultures in Asia regard flowers as an important part of their heritage. They are an essential part of celebrations, mourning as well as decoration. The floriculture industry in Asia is thriving because of the increased importance of flowers for weddings, offerings in religious places, as well as home and commercial decorations. The cut flowers industry has developed in Asia because of low-cost flower demand in European countries. Roses are the most popular cut flowers in Europe. Imports of fresh-cut roses from third-world countries into the European Union (EU) increased from USD 623.23 million to USD 761 million between 2011 and 2015. The Netherlands, Germany, and the UK are the top importers in the EU, accounting for over 70% of all cut rose imports.

Asia has enormous potential in the global floriculture business that has yet to be exploited globally. The region is mostly concerned with serving the domestic market. This can be ascribed to the region’s rapidly expanding economy, huge population density, and consumer perception. Cut flowers, cut foliage, and potted plants dominate the Asian home flower industry. Flowers have been an important aspect of Asian culture for thousands of years, and they are an important part of spiritual and cultural traditions

The key players in this market include Soex Flora (India) and Florance Flora (India). Other players with large activity in this region are Flamingo (UK), Esmeralda Farms (US), and Danziger Group (Israel).

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