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U.S. floral gifting market estimated to generate $16 billion by 2023

Market research organization Arizton recently published a report on the floral gifting market in the United States, providing comprehensive industry analysis, trend forecasts, and competitive analysis. According to the report, the U.S. floral gifting market is estimated to generate revenues of approximately $16 billion by 2023, and it’s expanding during 2018-23 at a compound annual growth rate of around 6 percent.

The market study offers analysis on market size and forecast, market share, industry trends, growth drivers and vendor analysis. It also includes insights on segmentation by platform (in-store, online, mobile) and by occasion (personal gifting, wedding, self-giving, corporate and sympathy).

ARIZTON The in-store segment dominated more than half of the total market share in 2017, growing at a CARG of approximately five percent during the forecast period. The emergence of studio florists is propelling the growth of this segment in the United States and the trend towards full-service operations in supermarkets and grocery stores could revolutionize the market. Some chains are even contemplating growing flowers to increase operational efficiency and implement cost savings.

The personal gifting occasion occupied more than half of the market share in 2017, growing at a CARG of about seven percent during the forecast period. The trend of buying Mother’s Day flowers has seen an upward trajectory in the last decade among households with members ranging in age from 18-44. Baby boomers are the most lucrative when it comes to bouquets and they attach values such as “thoughtful” to it. Such sentiments about flower gifting are augmenting the growth of this segment in the United States.

The development of technology, innovation in the supply chain, and florist-led changes to stay relevant is boosting market growth. The top three drivers and trends are an increase in the multi-cultural audience, a rise in floral subscription services and a focus on sustainability.

Rapid globalization has resulted in cross-cultural celebrations and is boosting the demand in floral gifting. Key vendors in the market can improve their growth and profitability by knowing the nuances of various ethnic groups and the language of flowers that they follow, then specifically targeting the attached symbolism across a variety of occasions.

Floral subscription services are gaining traction in the gifting market. Leveraging social media to promote business and show product will help companies gain a large share of the market. Subscription services are fuss-free — they only require a few clicks of a button and a smartphone to decide on an arrangement and get it delivered. This service is also promoting the trend of self-gifting, along with the delivery of custom arrangements to homes or offices via monthly or weekly subscriptions.

The growing focus on sustainability in the floral industry encourages vendors to adopt environmentally friendly practices. From ethically sourced, organic flowers to delivery on a bike, players and farmers alike are striving to reduce ecological impacts along the entire supply chain. Environment-conscious consumers are requesting green attributes when they buy flowers, putting more pressure on companies to stock flowers that are a result of sustainable practices.

The leading vendors in the U.S. floral gifting market are FTD Companies, 1-800-Flowers.com, Teleflora, and From You Flowers.

For more information, visit www.arizton.com.