First Research US Industry Profile

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SIC Codes: 5992
NAICS Codes: 4531
Last Quarterly Update: 7/22/2019
Companies in this industry sell cut flowers, floral arrangements, potted plants, and other gifts from physical retail establishments. No major companies dominate the industry. Floral order-taking services such as 1-800-FLOWERS.COM, FTD, and Teleflora (all in the US), Euroflorist (the Netherlands), and (Japan) provide orders to independent florists but are also competitors.
Global trade volume of cut flowers is estimated at more than $100 billion per year. Major importers of cut flowers include the US, Germany, the Netherlands, the UK, France, Russia, and Japan. The Netherlands is also a leading cut flower exporter, along with Colombia, Kenya, Ecuador, and Ethiopia.
The US florists industry includes about 13,200 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $4.3 billion. The number of flower shops has declined by about 40% since 2005.
Competitive Landscape
Demand for flowers depends on discretionary consumer spending. The profitability of individual shops depends on effective marketing. Companies focus on a local or regional market and compete based on location, price, and customer service. The US industry is highly fragmented: the 50 largest companies account for less than 10% of revenue.
Florists compete with supermarkets and mass merchandisers. When selling to business customers, they may also compete with wholesalers and sellers of artificial flowers. In addition, online sales of cut flowers are increasing. A growing segment of online sales includes non-store, direct-to-consumer businesses that aim to disrupt the traditional grower-wholesaler-florist model. These new companies may use locally sourced flowers that reflect the current season; offer cut-to-order product; reduce waste by wrapping flowers in recycled or biodegradable material; and provide free delivery.
Products, Operations & Technology
Major products are cut flower arrangements (about 60% of US industry revenue), and loose cut flowers and potted plants (about 12% each). Stores may also ... plus:
Sales & Marketing
Finance & Regulation
Regional & International Issues
Human Resources
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Quarterly Industry Update
Industry Indicators
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Trends and Opportunities
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