Floral Update: Reflecting on the Past Year

January 28, 2025

As we start the new year, it is good to reflect on the past year to identify the opportunities and challenges that led us to the new year to ensure we are ready to face what lies ahead. As always, IFPA is your partner in understanding global floral industry and consumer trends so you can address strategic issues and allocate resources effectively. We do this throughout the year by diving into specific topics during webinars, providing an expansive view of the industry at our annual floral conference and providing updates in our newsletter - just to name a few ways.

The floral industry is a vibrant global market, heavily dependent on fair market access. It is dominated by North America and Europe due to high consumer expenditures and well-established distribution networks. These global markets are well supported at IFPA by our incoming floral director as well as our Global Industry Relations Vice President, Jessica Keller.

Using the latest complete set of import/export numbers, we see in 2023, floral products worth over USD $25.7 billion were exported around the world. This was an 8% decline from the industry’s peak in 2021. This trade was essentially driven by the Netherlands with over USD$12 billion in exports in 2023. Colombia was the second largest contributor with its exports primarily to North America.

Global exports of cut flowers was valued at USD $10.5 billion in 2023. Eighty-seven percent of cut flowers were exported from Netherlands, Colombia, Ecuador, Kenya and Ethiopia.

Global exports of plants was valued at USD $11.5 billion in 2023.

In the United States, supermarket floral departments saw year-over-year dollar sales growth since 2021 due to price increases. Volume growth struggled in 2022 and 2023, but supermarkets are set to achieve both dollar and volume sales growth in 2024. Consumers drive the floral industry with their demand for flowers and plants for various occasions and home decor. Although, growing consumer interest in health and wellness presents opportunities for the floral industry to position flowers as part of self-care and mental health routines.

In 2024 consumers faced consecutive years of rising prices, spending 17% more in late 2024 compared to 2022. But, as inflationary pressures subside, there are even more opportunities for the floral industry. Global consumer spending is set to rise by nearly 6% in 2025, adding approximately $3.2 trillion in new spending. The average U.S. consumer is expected to add nearly $2,000 to their spending in 2025.

Yet, consumers will continue to be price sensitive in 2025 after seeking lower prices, reducing overall spending, switching products or brands, changing stores, and adjusting product sizes in 2024. Consumers sought discounts as the preferred saving strategy in 2024. In 2025, the floral industry must evaluate promotional strategies to avoid overpromoting and eroding growth potential.

Understanding the economy, consumer trends and behaviors, as well as industry trends help us navigate the challenges and opportunities in 2025. As such, we look forward to exploring the industry with you at our 2025 Annual Floral Conference in February.

Floral Update: Reflecting on the Past Year

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