Tough buds: Continued pressure from supermarkets and e-tailers will cut into industry demand

Revenue for the Florists industry in Canada has wilted over the five years to 2018. Consumers are increasingly opting to purchase flowers from retailers that are not included in the Florists industry, such as e-commerce operators and supermarkets, due to their added convenience and lower prices. Furthermore, during the five-year period, there has been an influx of imported, low-cost flowers, particularly from Colombia, where import tariffs have been eliminated. While growth in per capita disposable income is anticipated to increase demand for luxury flower arrangements, continued pressure from supermarkets and e-tailers will continue to cut into industry demand...read more.

Industry Statistics & Market Size
Revenue
$634m
Annual Growth 13-18
-2.2%
Forecast Growth 18-23
Profit
Employment
5,782
Businesses
2,924
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Consumers are increasingly opting to purchase flowers from alternative retailers, which is hurting the industry
  • Heightened price-based competition has pressured industry profit margins
  • Florists will focus on innovative, price-premium arrangements to improve profit
  • Industry Report - Industry SWOT Analysis Chapter

    The Florists industry in Canada is currently in the declining life cycle stage. Florists' industry value added (IVA), a measure of an industry's contribution to the Canadian economy, is expected to fall at an annualized rate of 1.2% over the 10 years to 2023. Comparatively, Canada's GDP is forecast to rise at an annualized rate of 1.9% during the same period. Decreasing IVA relative to the economy as a whole is indicative of a declining industry. Other characteristics that establish this industry in the declining life cycle stage include stabilized products and markets, low technological change and a falling number of industry establishments...purchase to read more.

    Additional Insights for the Florists Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Florists Industry are

  • Effective quality control
  • Ability to control stock on hand
  • Ability to attract local support/patronage
  • IBISWorld analysts also discuss how external factors such as Demand from e-commerce and online auctions and Per capita disposable income in the Florists industry impact industry performance..

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    What's in this report

    What is the Florists Industry?

    This industry retails cut flowers, floral arrangements and potted plants. Industry operators purchase these goods from domestic and international flower farms and wholesalers and then sell them to the general public. This industry excludes e-commerce and mail-order florists.

    Industry Products
  • Arranged cut flowers
  • Unarranged cut flowers
  • Plants
  • Industry Activities
  • Retailing cut flowers
  • Retailing floral arrangements
  • Retailing potted plants
  • Retailing complementary gift items
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from e-commerce and online auctions
  • Per capita disposable income
  • Demand from trade show and event planning
  • Canadian-dollar effective exchange rate index

  • Current Performance
  • Competition in full bloom
  • Profit and pricing
  • Generation gap and local leverage
  • Chart: Revenue Growth

  • Industry Outlook
  • Continuous cuts
  • Shifting focus
  • Table: Florists Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Florists Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Trade Show & Event Planning in Canada
  • Hospitals in Canada
  • Funeral Homes in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Office Stationery Wholesaling in Canada
  • Plant & Flower Growing in Canada
  • Toy & Craft Supplies Wholesaling in Canada
  • Wine & Spirits Wholesaling in Canada

  • Products & Services
  • Arranged cut flowers
  • Plants
  • Unarranged cut flowers
  • Other
  • Chart: Florists Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest quintile
  • Fourth quintile
  • Second quintile
  • Third quintile
  • Lowest quintile
  • Chart: Major Market Segmentation for the Florists Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Florists

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Florists Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Florists Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Florists Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cash-And-Carry
  • A policy in which items are sold for cash but without delivery service.
  • Floral Wire Services
  • A company that takes floral orders from consumers, primarily via internet or phone, and uses local florists to fulfil those orders.
  • Floriculture
  • The cultivation and management of flowers and plants.
  • Global Trade Item Number (Gtin)
  • An identification system using bar code tracking.
  • Qr Code
  • Also known as a quick response code, QR codes are a matrix bar code that transmits information related to the item. It stores more information and transmits it more quickly than traditional bar codes.
  • Universal Product Code (Upc)
  • A barcode system widely used in North America for tracking manufactured products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Florists market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Florists:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Florists market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Florists, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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