US Floral Gifting Market - Outlook and Forecast 2023-2028
- Market Report
- ID: GCN274UA
- Delivery Time: 1 Business Day
- Tag: Floral Gifting
Market Overview
The floral gifting market in the United States has experienced significant growth and is projected to continue expanding in the coming years. Valued at USD 12.25 billion in 2022, it is expected to reach USD 18.99 billion by 2028, growing at a compound annual growth rate (CAGR) of 7.58%.
Flowers have always held cultural and symbolic importance throughout history, with their meaning varying across different regions. However, they universally represent human connection. The US stands as one of the largest importers of cut flowers and foliage globally, having imported approximately $1.6 billion worth of cut flowers in 2020 based on data from the USDA. The demand for flowers as gifts remains consistent, especially during occasions like Valentine’s Day, Mother’s Day, and weddings. In fact, around 85-90% of people in the US remember the last time they gave flowers to someone, highlighting their enduring popularity as meaningful gifts. As environmental awareness grows, there is an increased demand for sustainably sourced and eco-friendly flowers and floral products.
Product Type | Market Report |
---|---|
No. of Pages | 282 |
Release Date | April 2023 |
Base Year | 2022 |
Forecast Period | 2023-2028 |
Market Size | USD 12.3 billion in 2021 |
Market Segments | Occasion, Platform, Product, Purchase Option |
Region | US |
No. of Companies Mentioned | 46 |
Technological advancements play a crucial role in the development of the floral gifting market. Vendors now have the capability to offer personalized and customized floral arrangements, along with improvements in supply chain management and delivery logistics. The demand for personalization has been a notable trend in the US floral gifting market. Consumers prefer unique and personalized arrangements rather than standard bouquets, driven by a desire for more thoughtful and meaningful gifts. Social media platforms further amplify this trend by allowing consumers to share and showcase their personalized floral arrangements, thereby increasing its popularity.
Florists have responded to this trend by offering various customizable options, such as different flower varieties, colors, and arrangements. Some even provide personalized messages or monograms on their arrangements. Additionally, the rise of do-it-yourself (DIY) floral workshops empowers consumers to create their own personalized arrangements.
Logistics and delivery services play a crucial role in ensuring the timely and fresh delivery of flowers to customers. Recent advancements in technology have greatly benefited this aspect of the floral gifting market. Companies can utilize GPS-tracking systems and other advanced technologies to optimize delivery routes, resulting in reduced delivery times and ensuring that flowers arrive in optimal condition at the customer’s doorstep. Furthermore, investments in high-quality packaging and shipping materials have minimized damage during transit, guaranteeing pristine flower conditions upon arrival.
Despite its growth, the floral gifting market faces competition from alternative gift items such as chocolates, perfumes, and jewelry. The popularity of these non-floral gifts poses a challenge for the floral gifting market to maintain its growth rate. Consumer preferences and lifestyles have evolved, with a demand for unique and innovative gift options extending beyond flowers. Non-floral gifts offer longer shelf-lives and greater practicality, leading many consumers to choose these alternatives. Additionally, non-floral gifts often provide personalization and customization features, which aligns with the growing trend among consumers. Recognizing this shift, companies offering non-floral gifts have tailored their products to meet specific consumer needs.
To overcome this challenge, floral gift companies have introduced more innovative and personalized floral arrangements. They also enhance their value proposition by providing additional features such as gift baskets, chocolates, and other complementary products. Moreover, many floral gift companies now offer same-day delivery services, providing convenience and promptness to consumers.
Market Segmentation
The market is segmented based on various factors, including occasion, platform, product, purchase option.
Segmentation by Occasion
Personal & Self-Gifting
Wedding
Corporate
Sympathy
Segmentation by Platform
In-store
Online
Mobile
Segmentation by Product
Bouquets & Arrangements
Stems
Segmentation by Purchase option
One-time purchase
Subscription
The US floral gifting market exhibits segmentation based on the occasion, platform, product type, purchase options, and regional factors. Occasions such as Valentine’s Day and Mother’s Day drive the demand for floral gifts, while other events like Christmas, birthdays, anniversaries, and special occasions also contribute significantly. This growth is fueled by the current trend of personalization, leading to unique floral arrangements designed specifically for each occasion. The market has also benefited from the rise of e-commerce, providing consumers with convenient online purchasing and delivery options.
Regarding platform segmentation, in-store sales, mobile sales, and online sales are prominent channels. Online sales have experienced substantial growth due to increased internet penetration and smartphone usage. Online flower delivery platforms have gained popularity for their convenience, extensive variety, and tracking capabilities. In-store sales maintain a significant market share, especially for spontaneous or tactile-oriented purchases. Mobile sales are also on the rise as customers opt for on-the-go transactions. Traditional brick-and-mortar stores are adapting to these changing consumer preferences by integrating new technologies to remain competitive. Consequently, the online and mobile segments are expected to drive future market growth.
Product type segmentation distinguishes between bouquets/arrangements and loose stems. Bouquets and arrangements are favored for weddings, anniversaries, and Valentine’s Day, while loose stems are commonly purchased for personal use or as a gift. Bouquets and arrangements offer a more elaborate and customizable aesthetic but come at a higher price point. Loose stems, available in bulk, offer affordability for everyday purchases. The increasing demand for customization and personalization drives market growth, with a plethora of options allowing customers to select various flowers, colors, and designs. Loose stems provide flexibility for customers to create their own arrangements.
Purchase options segmentation includes one-time purchases and subscriptions. One-time purchases are the traditional method for special occasions, whereas subscriptions offer recurring deliveries at set intervals. The popularity of subscription-based models stems from their convenience, cost-effectiveness, and flexibility, allowing customers to customize deliveries and adjust frequency as needed. This segment is forecasted to witness significant growth, driven by the demand for hassle-free, regular flower deliveries for personal and corporate purposes.
Regional factors also impact market growth, with the West and Northeast regions expected to exhibit greater expansion due to their large populations and higher per capita income. The South and Midwest regions are projected to grow significantly but not at the same rate as the West and Northeast. Metropolitan areas, characterized by higher population density and economic activity, present opportunities for substantial growth compared to rural areas. However, with the improvements in e-commerce and logistics, even rural areas are witnessing growth in the floral gifting market. Factors driving overall market growth include increasing demand for personalization, improved logistics and delivery, and other related aspects.
Competitive Landscape
The floral gifting market in the United States is characterized by intense competition, with numerous players striving to secure a portion of the market. Anticipated future growth of the market can be attributed to several factors, including enhanced logistics and delivery capabilities, a growing demand for personalized offerings, and the enduring popularity of major holidays like Valentine’s Day. Nonetheless, the market confronts challenges such as competition from non-floral gift alternatives and the necessity to adapt to evolving consumer preferences. In order to maintain a competitive edge, companies operating in this market must prioritize the development of innovative products, enhance their logistical operations and delivery systems, and make strategic investments in marketing and advertising campaigns to effectively reach their target audience. Those firms that can effectively differentiate themselves by offering distinctive products and services stand the best chance of achieving significant success within this fiercely competitive market.
Key companies profiled in this report include FTD, 1-800-Flowers, Teleflora, From You Flowers, 5th Ave Floral, Avas Flowers, Benchmark Bouquets, BloomNation, BloomsyBox, Blooms Today, Farmgirl Flowers, Floom, Flora2000, FloraQueen, Flowerbud, FlowerPetal, JustFlowers.com, KaBloom.com, The Flower Shop, The Bouqs, Urban Stems, Gotham Florist, H. Bloom, Venus Et Fleur, Florists.com, 1st in Flowers, Kremp Florist, Send Flowers, Global Rose, JUST FLOWERS DOT COM, Winston Flowers, Ode à la Rose, The Sill, Farm Fresh Flowers, ENJOY FLOWERS, Freytag’s Florist, McShan Florist, Phoenix Flower Shops, U.S. Retail Flowers, THE FLOWER SHOP ATLANTA, Phillip’s Flowers & Gifts, In Bloom Flowers, BOKAY, Flowers4Dreams, Winston Flowers, FLOWERS OF THE FIELD.
Key Questions Answered
How large is the floral gifting market in the United States?
The floral gifting market in the United States was valued at USD 12.25 billion in 2022 and is projected to reach USD 18.99 billion by 2028.
What is the growth rate of the floral gifting market in the United States?
The floral gifting market in the United States is expected to grow at a compound annual growth rate (CAGR) of 7.58% from 2022 to 2028.
What are the current trends in the floral gifting industry in the United States?
Some of the latest trends in the floral gifting industry in the United States include an increasing emphasis on locally sourced flowers, a growing demand for sustainability and eco-friendly practices, and a wider variety of bouquet elements being offered.
Who are the major players in the floral gifting market in the United States?
FTD, 1-800-Flowers, Teleflora, and From You Flowers are among the key players in the floral gifting market in the United States.
USD 4,200 Original price was: USD 4,200.USD 2,520Current price is: USD 2,520.