San Jose, California – The global cut flowers market is extremely dynamic. Flower varieties, production centers, cultivation methods, marketing, and supply techniques, are all undergoing continuous changes. The market players are challenged to adapt to these changes. Cut flower exporters from developing nations are gaining market share at the expense of existing players from developed nations. Leading flower growers are trying to regain lost market share by increasing the production and quality of the flowers, and through innovation and diversification.
The global economic crisis took its toll on the cut flowers market as sales of fresh cut flowers withered, owing to the frugal spending patterns, and currency fluctuations. Rising costs and stagnant prices reduced grower margins, obliging growers to shift focus towards cost leadership through producing bulk products, scaling up, and specializing in products targeting particular market segments. Though the recession had affected the sales and trading of fresh cut flowers, it has not completely wilted the bloom in the market. Global cut flowers market witnessed a positive growth in 2010, after a decline in 2009, both in terms of acreage and value, with emphasis having shifted to developing regions exporting to the industrialized countries. Cut flower consumption is increasing, as it is related to human emotions. Wilting impact of economic recession, customer attitude, various reasons for buying flowers, and larger distribution channels play a vital role in increasing the demand for cut flowers throughout the world. Productivity, a vital aspect of cut flower industry, is still expanding as major players in the market continue to research and develop efficient production technologies.
Flowers, once considered to be mere decorative items, are now gaining recognition as special occasion items with rapid changes in customer attitudes. Higher levels of disposable incomes, and supermarkets and other retail stores featuring exclusive outlets for flowers primarily drove the change. Finally, online trading of fresh flowers has become immensely popular because of the convenience factor. Over the years, online purchase has gained in popularity mainly because of convenience and easy delivery service and this holds true especially for fresh cut flowers arrangements. Increasing consumer demand for high quality products is driving the need to export only premium quality flowers.
To read the rest of the story, please go to: Global Industry Analysts, Inc.