Floral Gifting Market Will Grow with CAGR of 6.1% in Forecast Period of 2021-2027
Increasing adoption e-commerce platforms along with rising innovation in the supply chain are majorly driving the growth of the market.
The Global Floral Gifting Market was estimated at USD 50.10 billion in the year 2020 and is expected to reach USD 76.22 billion by 2027. The market is growing with a CAGR of 6.1%, in the forecast period (2017-2027).
The major factor attributing to the growth of floral gifting market is the increasing innovation in the supply chain, advancement in technology and changes led by florists to stay relevant in the competitive environment. The new entrants in the market are restructuring their business models which is resulting in the increasing trend of floral gifting across the globe. The adoption of new business ethics such as strong focus on waste, design, customer experience and sourcing are transforming the business models, thereby driving growth in the industry. Also, the evolvement of the online marketplace in the last few of years has set a motion refined, hassle-free delivery system. The increase in the penetration has reduced the supply chain by bringing all the players in contact with each other. It has also provided customers with an opportunity to make comparative decisions. Along with this, the increasing relevance of online floral gifting services mainly due to the availability of preview systems for top-selling flower arrangements with the help of 3D or virtual reality, convenient check-outs, gift cards, customized designs, subscriptions, mobile coupons etc. have helped the floral gifting market bloom further.
In addition to this, the emerging concept of producing flowers on demand has also contributed towards propelling the demand of floral gifting industry. Several supermarket chains have started their own operations for growing flowers to implement cost savings and improve operational efficiency. This distribution network is expected to reduce the challenges associated with availability, quality, ethics, and delivery time by pulling out the middlemen from the process. The prominent market players are accessing their flexibility and improving their resource network to avoid upcoming pitfalls. This is helping them in organizing back-up particularly during the holiday seasons to attract new consumers and gain a larger share in the market. Therefore, the shifting focus of key players on setting up dedicated supply chains is helping in direct-to-customer interaction and offering new opportunities in the floral gifting market.
Moreover, floral retailers are evolving and focusing in creating personalized experience to build customer loyalty. They are incorporating floral scents and textures to attract customer attention and improve their experience in the stores. The vendors such as FTD-certified shops and natural food stores are providing products that are sustainable and organic and have fair trade policies to attract eco-conscious customers. These strategies are expected to augment the growth of the floral gifting industry. Furthermore, the increasing demand for bouquets made from cut flowers and adoption of DIY concepts is catering new opportunities for leading vendors in the industry. All these aforementioned factors are immensely contributing towards driving the global floral gifting market.
Global Floral Gifting Market by Region Outlook (Revenue, USD Billion, 2017-2027)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Based on region, the North America held the largest share in the global floral gifting market. This growth is mainly attributed to the rise in the penetration of e-commerce platforms, combined with the increasing mobile applications for floral gifting. Several floral gifting vendors in the region are shifting their business model from traditional street-side stores to online platforms to target a larger consumer base. In addition, the growing importance of using vertical farming of flowers in confined spaces to improve profitability is also driving the industry demand in the region. Apart from this, key market players are also offering special bouquets for various occasions to attract which is thereby driving the market. For instance, Farmgirl Flowers, a California-based e-commerce flower delivery company, provides all-peony arrangements designed for special occasions. Therefore, the penetration of internet along with adoption of these strategies are immensely increasing the market growth in the region.
The Global Floral Gifting Industry Segmentation:
Global Floral Gifting Market Gift Type Outlook (Revenue, USD Billion, 2017-2027)
- Personal Gifting
- Corporate Gifting
Global Floral Gifting Market Occasion Outlook (Revenue, USD Billion, 2017-2027)
- Corporate events
- Funeral /Sympathy
Global Floral Gifting Market Product Type Outlook (Revenue, USD Billion, 2017-2027)
- Bouquets & Arrangements
- Flower Baskets
- Others (casket sprays, wreath, standing sprays flowers)
Global Floral Gifting Market Delivery Type Outlook (Revenue, USD Billion, 2017-2027)
- On Demand Delivery
- Scheduled Delivery
Global Floral Gifting Market Order Channel Outlook (Revenue, USD Billion, 2017-2027)
- Smartphone Apps
- Floral Wired Services
Global Floral Gifting Market Platform Outlook (Revenue, USD Billion, 2017-2027)
- Traditional in-store florists
- Local Stores
Global Floral Gifting Market Purchase Option Outlook (Revenue, USD Billion, 2017-2027)
- One-Time Purchase
- Based on end-use industry, the personal gifting is projected to be fastest-growing segment in the market during the forecast period.
- Based on occasion, wedding segment has dominated the market is expected to remain constant during the forecast period.
- Based on region, North America held the largest share in the global floral gifting market.
- Based on region, Asia-Pacific is projected attain the fastest growth in the market during the forecast period.
Company Profiles and Competitive Intelligence
The key players operating in the floral gifting market are:
- FTD Companies
- From You Flowers, LLC
- 5th Ave Floral Co.
- Avas Flowers
- Blooms Today
- Farmgirl Flowers
- Flora2000 Inc.
- KaBloom.com, Ltd.
- The Flower Shop
- THE BOUQS COMPANY
- Gotham Florist
- Venus Et Fleur
- In August 2020, 1-800-FLOWERS.COM, Inc.® announced the acquisition of PersonalizationMall.com®, a leading ecommerce provider of personalized products. This acquisition has helped the company in adding personalized products to the Company’s unique business platform which focuses on inspiring more human connection, celebration, and expression.
- In December 2020, Finlays Flowers, flower exporter and grower, announced that they have shut down two farms in Kenya. This impending closure was due to minimal returns and the significant challenges faced by the company in the international market.