Florist Industry, US Market Size
By the end of 2018, the total Florist Industry market size in the United States was $11 billion. The florist industry revenue from physical retail shops was predicted to be $6.9 billion, while the online florist industry revenue was projected to be valued at $4.1 billion during the same period.
To begin our research we searched industry reports, leading publications, media articles, and other consumer reports. A lot of in-depth information was behind a paywall from leading publications such as PR Newswire and Arizton. Our search was still successful and we were able to determine the Florist Industry Market Size in the United States by the end of 2018 and early 2019. However, this market report did not include revenue from the online florists' industry which was a part of the research criteria. According to the market research report from IBIS World, this industry consists of arranged cut flowers, unarranged cut flowers, potted plants, giftware, and others. This market report included all florists within the United States including wedding flower vendors and events vendors. The report only excluded online floral retailers due to the fact that they did not maintain a retail presence and they were able to bypass retailers with physical shops and buy flowers directly from the farms.
A deeper search into this market provided us with market information on the Online Florists Industry within this same period, that is, by the end of 2018. This market also comprised of all florists within all sectors including specific events flower suppliers, for example, wedding flower florists. However, these retailers operated online unlike their counterparts who had physical retail shops. By adding this segment of the industry to the physical retail shops' segment of the industry, we were able to determine the total market size for the Floral Industry in the United States in that time period.
Looking through industry publications such as Floral Daily, we were able to find insightful information into the Floral Industry market and through MarketResearch.com, we were able to determine some major players within this industry.
Americans are said to spend over $26 billion on floral products annually. The majority of spenders in this market are women at 79%, while men only contribute 21% to the total annual revenue. The florists market is highly fragmented and 50 of the biggest florist shops in the country only account for approximately 10% of the industry's total annual revenue.
There various providers of floral services in the country including independent florists, online florists, local florists, and mass merchandisers. Some of the most popular florists in the country are FTD, 1-800-Flowers.com, and Teleflora.
37% of flowers in the country are bought as gifts and during national holidays. The country's biggest flower suppliers are Ecuador and Colombia, and this accounts for approximately 75% of the flowers sold in the country. Locally grown flowers are often sourced from California.
FLORIST INDUSTRY MARKET SIZE FROM PHYSICAL RETAIL SHOPS
IBIS World has noted that over the five years leading to 2018, the florist industry has been on a slow decline. Despite economic growth in the country, this industry has been struggling largely due to stiff competition from online florist shops. This contributed to a 2.8% decline in industry revenue in 2018 alone recording an industry revenue of $6.9 billion by the end of the same year.
The industry revenue has cumulatively declined by -1.2% over the five years leading to 2018. The number of businesses in the industry has declined by -2.3%, while the number of employees in the industry has declined by -1.6%. The number of businesses now is 31, 875 and the industry employs 76,706 employees.
E-commerce sales from online florists have really inhibited the growth of this industry. This is largely due to the fact that they are gaining in popularity due to their convenience and their favorable pricing as compared to the traditional retail shops.
ONLINE FLORISTS MARKET SIZE
Unlike the traditional physical retail shops, online florists have seen a steady growth over the five years leading to 2018. This is due to the fact that more consumers prefer shopping online and therefore the market for online florists has grown. The industry is projected to witness a growth of 2.3% in the year 2018 and cumulatively over the five years from 2013, the industry is set to witness a growth of 10.4%. This will result in revenue of $4.1 billion by the end of 2018.
During the same period, the number of businesses has gone up by 6% adding up to 241 business. The number of employees within this industry has also gone up by 14.8% leading up to 3,502 employees. 1-800-Flowers.com Inc. and FTD Companies Inc. hold the biggest market shares within this industry.
The industry projects that there will be a lot of external competition within this market which will threaten the growth of the industry.
To obtain the total US Market Size of the florist industry, we added up the industry revenue by the end of 2018 from the physical retail florists to the industry revenue from online florists within the same time period.
- Physical Retail Florists' Industry Revenue — $6.9 billion.
- Online Florists' Industry Revenue — $4.1 billion.
= $11 billion.
The florist industry, in general, is subject to the economic situation within the country. When disposable income increases so does consumer spending. When consumer spending is high, it results in an increase in sales and a growth in demand. This is due to the fact that flowers and plants are usually purchased as complimentary items to gifts.