Market Challenges And Opportunities

Drivers

Rising Product Appeal Among Consumers

The floriculture market is primarily driven by a few key reasons, such as rising product appeal among consumers, successful marketing tactics in opportunities, and significant financial investments in product development. Industries are also attempting to supply the market with the appropriate number of products in order to meet the growing demand. One of the key factors driving the floriculture market high profits associated with growing ornamental plants. The increasing cultivation of flowers and plants for sale is the major factor driving the ornamental plant market. Due to the high-profit margins associated with the sale of ornamental plants and flowers for outdoor use. The annual average gross profits for coniferous outdoor ornamental plants were US$ 530 for pine, US$730 for cedar, and US$920 for blue spruce, according to several research studies conducted in Turkey's Konya province. These plants have globally gross profit margins of around 55%, 65%, and 72%, respectively. Other ornamental plants, such as chestnut, plum, and maple, had large gross margins as well, with 78%, 84 %, and 65%, respectively. Many players have been able to expand their offerings in this space as a result of the high margins. Furthermore, growers can harvest 4-5 tons of willow shoots per acre, earning US$56,000 per acre from basket weavers at US$7 per pound. Plants like lavender, woody ornamentals, bonsai plants, and bamboo have also proven to be very profitable for growers. Bamboo, which ranges from dwarf Sasa bamboo to giant timber bamboo, is one of the most widely used plants for landscaping and has proven to be very profitable. The average cost of a container of landscaping bamboo is around US$45

Demand for Cold Chain Protocols is Rapidly Growing Among B2B Flower Buyers

The COVID-19 pandemic kept people to their homes and forced many non-essential companies to close, leaving thousands of tiny and marginal farmers stranded and planning to cultivate a variety of flowering plants came to waste. Shift to virtualized trade network also enables better logistics coordination and information availability in the floriculture supply chain, ensuring smooth, cost-effective, and faster deliveries of floriculture products. This is essential in the case of cut flowers, given their time of degradability. Additionally, demand for cold chain protocols is rapidly growing among B2B flower buyers as proper cold chain management has a positive effect on product quality. Thus, companies focus on the establishment of cold chain protocols, which is anticipated to be vital for long-term growth in the foreseeable future.

Market Restraints

Over-dependence on climatic conditions

The industry of flowers and ornamental plants is highly reliant on weather conditions. Shorter, wetter days, as well as a lack of sunlight, can stymie the healthy growth of some ornamental plants. While the majority of plant varieties require a lot of sunlight to thrive, some can thrive even in the shade. To provide plants with the best growing conditions, many nurseries and growers must use artificial lighting and temperature controls. Furthermore, very cold temperatures and the accumulation of ice on the leaves of flowering plants can harm them. Moreover, leading flower-producing countries, such as Kenya, which accounts for roughly 40% of cut flower imports into the EU, are seeing the negative effects of global climate change. Over the last few years, the country has experienced below-average rainfall. Furthermore, the country's limited fresh water supply and drought-like conditions endanger flower production and, as a result, the industry's supply chain. Furthermore, flower pollination is being harmed by rising temperatures as a result of global warming. This floriculture market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2030