Increased sourcing from low-cost countries along with online trade in logistics such as sea transportation and packaging will likely boost global floriculture trade over the coming years, according to a new report.

Food and Agribusiness Research and Advisory (FAR)’s Cindy van Rijswick, who authored the report said in order to grasp the trade opportunities, floriculture wholesale and trade companies should either excel in efficiency or be different from their competitors. “In the higher-end market, segment companies that have a deep understanding of markets or products, or a large extent of flexibility or innovativeness will be successful”.

In the lower-end market, suppliers to retail multiples, discounters, and Do-it-Yourself stores can only survive by use of outstanding logistics, constant quality and low costs, the report suggested.

“In the past, most of the market value was generated by offering the consumer a fairly good product for a reasonable price.

“Nowadays, either low price or luxury is where value is being generated, particularly in western Europe. Despite the anticipated growth, challenges remain. For instance, the wholesale and trade business is very vulnerable to shocks in exchange rates and energy costs because of the increasingly global-focused business environment,” said Cindy van Rijswick.

She also suggested there were still plenty of opportunities in western Europe as the downturn as improved availability, quality and marketing standards have allowed increase expansion opportunities in a market largely seen as predominantly mature.

Marketing channels, the report argues, include the use of generic retail multiples and specialised stores. In addition, online sales are expected to grow by double-digit numbers, at the cost of the traditional florists’ market share, and also creating additional demand from suppliers.

Growth in markets like Russia and Poland has been robust over the last decade. Although absolute flower and plant consumption there remains small, a high-earning consumer base and an expanding market will likely steer future growth.

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