Florist Industry Market Sizes

Part
01
of four
Part
01

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.

METHODOLOGY

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.

INDUSTRY ANALYSIS

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.

TOTAL

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.

The total Industry Revenue by the end of 2018 is, therefore: $6.9 billion + $4.1 billion
= $11 billion.

CONCLUSION

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.


















Part
02
of four
Part
02

Florist Industry, West Coast

We estimated the size of the florist industry in the West Coast to be $1,298 million.

FINDINGS

In order to fulfill this request, we searched government databases like the US Census and USDA; research reports, and industry portals like the Society of American Florists, American Institute if Floral Designers, and Wholesale Florist & Florist Supplier Association. However, we did not find the required information in any of these sources. Given this limitation, we triangulated an estimate using the data points we gathered from the US Census.
According to the World Atlas, the West Coast comprises Washington, Oregon, and California.
  • Annual payroll of florist establishments in the US: $1,124,785,000
  • Annual payroll of florist establishments in the Washington: $17,854,000
  • Annual payroll of florist establishments in the Oregon: $11,112,000
  • Annual payroll of florist establishments in the California: $103,716,000
Therefore, the annual payroll of florist establishments in the West Coast = Annual payroll of florist establishments in the California + Annual payroll of florist establishments in the Oregon + Annual payroll of florist establishments in the Washington = $103,716,000 + $11,112,000 + $17,854,000 = $132,682,000
The proportion of US-florist-establishment payroll that can be attributed to the West Coast is 11.80% ($132,682,000/$1,124,785,000).
As established in a previous report, the market size of the US florist industry is $11 billion. Assuming that the West Coast’s share in the US florist market will be in the same proportion as its payroll, the market size of West Coast’s florist industry is $1,298,000,000 (11.8%*$11B). The second assumption that was made in this triangulation is that the proportion of the online and offline sale of flowers will be the same across all the states in the US.
The annual payroll is a reflection of the employee count and the cost of living. We have chosen to use the annual payroll data as it is a better indicator of market share in comparison to the number of establishments or the number of employees (both of which are also provided by the US Census).

ADDITIONAL INFORMATION

  • The number of florist establishments in the US is 13,188.
  • The number of florist establishments in Washington is 222.
  • The number of florist establishments in Oregon is 162.
  • The number of florist establishments in California is 1,175.
  • The total number of florist establishments in the West Coast is 1,559 (222+162+1,175).



Part
03
of four
Part
03

Florist Industry, Utah

We estimated the size of Utah’s florist industry to be $49.36 million.

FINDINGS

In order to fulfill this request, we began by searching government databases like the US Census and USDA. The US Census provides information on the number of florist establishments, but does not provide information specific to the market size of the florist industry. Next, we searched for research reports; however, we did not find any reports specific to Utah. The reports we found were for the US as a whole. Following this, we searched industry portals like the Society of American Florists, American Institute if Floral Designers, and Wholesale Florist & Florist Supplier Association. No information relevant to our research was found on these websites. The Society of American Florists estimates the US floral industry to be worth $35.2 billion. Other than decoration, flowers also find used in aroma applications, medicines, and the production of honey. As our research is limited to florists, we did not find this information useful. Given the above limitations, we triangulated an estimate for the Utah’s florist industry market size.
The following are the market size estimates for the florist market in the US:
  • Ibis: $7 billion
  • Dun & Bradstreet: $4.3 billion
  • Artizon: The US florist market is expected to grow at a CAGR of 6% to $16 billion by 2023. This translates to a current market size of $12.67 billion (calculated using Omni CAGR calculator assuming a 4-year period).
Among the above estimates, we have chosen the Ibis estimate for further calculations as it is the median estimate and is also close to the mean of the three estimates ((7B+4.3B+12.67B)/3=7.99B).
Other data points:
  • The total number of florist establishments in the US: 13,188
  • The total number of florist establishments in the Utah: 91
  • The total number of employees working for florist establishments in the US: 59,614
  • The total number of employees working for florist establishments in the Utah: 511
  • Annual payroll of florist establishments in the US: $1,124,785,000
  • Annual payroll of florist establishments in Utah: $7,931,000
Therefore, the proportion of US-florist-establishment payroll that can be attributed to Utah: 0.7051% ($7,931,000/$1,124,785,000).
Assuming that Utah’s share in the US florist market will be in the same proportion as its payroll, the market size of Utah’s florist industry is $49,357,000 (0.7051%*$7B). The annual payroll is a reflection of the employee count and the cost of living; it is therefore a better indicator of market share as compared to number of establishments—establishments could vary in size and therefore sales volume-- or the number of employees.

Part
04
of four
Part
04

Florist Industry, Salt Lake City

As per calculations, the market size for the florist industry in Salt Lake City is $6,965,708. Below are our research strategy and findings.

RESEARCH STRATEGY

To find the market size of the florist industry in Salt Lake City, we began our search by going through various credible websites like IBIS World, Valuation Resources, and Data USA. Unfortunately, we could not find pre-compiled data on florist industry market size in Salt Lake City, however, we could find the market size of the florist industry (excluding online flower shops) in the entire United States for this year, 2019. We could also find the market size for online flower shops for the year 2018 and its percentage annual growth. To triangulate the data, we looked for the total US population and Salt Lake City population on US Census Bureau website to help us calculate the market size for the florist industry in Salt Lake City.

CALCULATIONS AND ASSUMPTIONS

  • As per US Census Bureau, in 2019, the total United States population is 328,668,732, while the total Salt Lake City population is 200,544.

Therefore, to find the market size for the online flower shops in 2019, we calculated as follows:
=$(10.4/100 x 4,000,000,000) = $416,000,000
=(4,000,000,000 + 416,000,000)
=$4,461,000,000

The total market size for florist industry in United States for year 2019 is calculated as follows:
=(total florist market (excluding online flower shops),2019) + (the market size of online flower shops, 2019)
=$(7,000,000,000 + 4,461,000,00)
=$11,416,000,000

Therefore, to find the market size for the florist industry in Salt City Lake, we calculated as follows:
= (the total market size for the florist industry in US / the total population of the US, 2019) = (X / the total population of the Salt Lake City, 2019), where X is the market size for the florist industry in Salt Lake City.
= (11,416,000,000/328,668,732) = (X/200,544)
=X=$6,965,708 (the market size for the florist industry in Salt Lake City)

NOTE: We assume that the average person in Salt Lake City would spend as much as the average person in the US.


Sources
Sources

From Part 01
Quotes
  • "Did you know that we spend more than $26 billion annually on floral products?"
  • "Women, by far, is still the main buyer of flowers (79% vs. 21% of men). "
  • "Thirty-seven percent of the flowers bought are used as gifts, mostly during Christmas, Hanukkah, Mother’s Day, and Valentine’s Day."
Quotes
  • "Over the past five years, the Florists in the US industry has declined by -1.2% to reach revenue of $7bn in 2019."
  • " In the same timeframe, the number of businesses has declined by -2.3% and the number of employees has declined by -1.6%."
  • "Online floral retailers, such as ProFlowers, are excluded from the Florists industry because they do not maintain a retail presence"
  • "While economic growth has slowed the industry's decline, fierce levels of external competition have offset gains in consumer spending and disposable income; as a result, in 2018, IBISWorld estimates that industry revenue will decline 2.8% to $6.9 billion."
Quotes
  • "With demand strengthening, industry revenue is expected to increase an annualized 10.4% to $4.1 billion over the five years to 2018."
  • ""
From Part 02
Quotes
  • "The Pacific Coast or West Coast of the United States consists of the states along the North Pacific Ocean. These are Washington, Oregon, and California."
From Part 03
Quotes
  • "The US florists industry includes about 13,400 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $4.3 billion."
Quotes
  • "The US flower and ornamental plant market was valued at wholesale by USDA at USD $4370 million in 2015, showing a 4% increase with respect to the previous year."
Quotes
  • "The Society of American Florists is the national trade association representing the entire floral industry in the U.S., a $35.2 billion retail component of the U.S. economy."
Quotes
  • "The US floral gifting market is projected to reach revenues of approximately $16 billion by 2023, growing at a CAGR of around 6% during 2017-2023."