Withering heights: Florists will struggle to find a niche market amid fierce external competition

Over the five years to 2018, the Florists industry has started to wither. Discounted prices for comparable goods online and in supermarkets have led consumers to buy fewer flowers from industry operators. Heightened competition from these retailers is anticipated to reduce industry revenue during the five-year period. While economic growth has slowed the industry's decline, fierce levels of external competition have offset gains in consumer spending and disposable income. The Online Flower Shops industry (IBISWorld report OD5069) has continued to gain popularity due to its favorable pricing and convenience. These e-tailers enable consumers to purchase florist products online and are not included in this industry because they do not maintain a retail presence...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Demand for flowers will pick up, but other competitors will inhibit revenue growth
  • The industry has increasingly adopted automation protocols
  • Arranged flowers are expected to grow as a percentage of revenue
  • Industry Report - Industry Analysis Chapter

    Operators in the Florists industry retail cut flowers, floral arrangements, potted plants and other related merchandise. Supermarkets and e-commerce websites, which are not included in this industry, have eroded sales and placed increasing price pressures on florists over the five years to 2018. Several operators have been forced to exit the industry, while layoffs have grown increasingly prominent amid increasing competition. Although flower purchases are considered discretionary and are, therefore, positively affected by growth in the economy, increases in consumer spending and disposable income have been offset by the mounting external competition. These factors have led industry revenue to slowly contract over the five years to 2018, declining at an annualized rate of 1.1% to $6.8 bi...purchase to read more.

    Additional Insights for the Florists Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Florists Industry are

  • Effective quality control
  • Ability to control stock on hand
  • Ability to attract local support/patronage
  • IBISWorld analysts also discuss how external factors such as Consumer spending and commerce sales in the Florists industry impact industry performance..

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    What's in this report

    What is the Florists Industry?

    This industry retails cut flowers, floral arrangements and potted plants. Industry operators purchase these goods from domestic and international flower farms and wholesalers and sell them to the general public. This industry excludes operators that primarily function as electronic shopping websites and mail-order companies.

    Industry Products
  • Arranged cut flowers
  • Unarranged cut flowers
  • Potted plants
  • Giftware and other
  • Industry Activities
  • Retailing cut flowers
  • Retailing floral arrangements
  • Retailing potted plants
  • Retailing complimentary gift items
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • commerce sales
  • Demand from funeral homes
  • Demand from wedding services

  • Current Performance
  • Blossoming competition
  • Technology and efficiency
  • Pricing and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • The strain of competition
  • Shifting demographics and evolving technology
  • Table: Florists Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Florists Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Hospitals
  • Funeral Homes
  • Wedding Services
  • Consumers

  • Key Selling Industries
  • Confectionery Wholesaling
  • Flower & Nursery Stock Wholesaling
  • Greeting Cards & Other Publishing
  • Plant & Flower Growing

  • Products & Services
  • Arranged cut flowers
  • Giftware and other
  • Potted plants
  • Unarranged cut flowers
  • Chart: Florists Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 40 to 54
  • Consumers aged 55 to 64
  • Consumers aged over 65
  • Consumers aged 30 to 39
  • Consumers under 30
  • Chart: Major Market Segmentation for the Florists Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Florists

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Florists Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Florists Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Florists Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • E-Commerce sales (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • A policy in which items are sold for cash but without delivery service.
  • Floral Wire Services
  • A company that takes floral orders from consumers, primarily via internet or phone, and uses local florists to fulfill those orders.
  • Floriculture
  • The cultivation and management of flowers and plants.
  • Global Trade Item Number (Gtin)
  • An identification system using bar code tracking.
  • Qr Code
  • Also known as a quick response code, QR codes are a matrix bar code that transmits information related to the item. It stores more information and transmits it more quickly than traditional bar codes.
  • Universal Product Code (Upc)
  • A barcode system widely used in North America for tracking manufactured products.
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    This report on Florists:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Florists market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Florists, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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