The US floral gifting market is expected to grow at a CAGR of 7.58% during 2022 to 2028
MARKET TRENDS & OPPORTUNITIES
HIGH DEMAND FOR PERSONALIZATION
• The demand for personalization has been a growing trend in the floral gifting market in the US. Consumers seek unique and personalized arrangements for their loved ones instead of standard bouquets. This trend has led to the growth of florists who offer customizable and unique arrangements.
• One of the main reasons for this trend is the desire for a more meaningful and thoughtful gift. Consumers want to show that they have put thought and effort into their gift-giving, and a personalized floral arrangement can convey this message. In addition, social media has made sharing and showcasing personalized arrangements easier for consumers, thus driving the trend even further.
BETTER LOGISTICS AND DELIVERY
• The floral gifting market heavily relies on logistics and delivery services to ensure that the flowers reach customers fresh and timely. In recent years, the availability of better logistics and delivery services has become an enabler for the growth of the floral gifting market in the US.
• One of the main factors driving the growth of logistics and delivery services is the increasing use of technology. Companies can use GPS-tracking systems and other advanced technologies to optimize their delivery routes and ensure timely deliveries. This has helped reduce delivery times and ensure that the flowers arrive fresh and in good condition at the customer’s doorstep.
COMPETITION FROM NON-FLORAL GIFT ITEMS
• The US floral gifting market faces competition from various other gift items, including chocolates, perfumes, jewelry, and more. These non-floral gift items have gained popularity over time, making it challenging for the floral gifting market to maintain its growth rate.
• One of the main reasons for the competition from non-floral gifts is the changing consumer preferences and lifestyles. Consumers seek unique and innovative gifting options, which are not necessarily limited to flowers. In addition, non-floral gifts offer a longer shelf-life and can be used for a longer period, making them a more practical choice for many consumers.
• Moreover, non-floral gifts often come with additional features, such as personalization and customization, which is also a growing trend among consumers. Many companies that offer non-floral gifts have recognized this trend and are providing personalized products that can be tailored to specific consumer needs.
The US floral gifting market can be segmented based on the occasion for which flowers are gifted. These occasions include Valentine’s Day, Mother’s Day, Christmas, birthdays, anniversaries, and other special events. The demand for floral gifting is the highest during Valentine’s Day and Mother’s Day, which are considered peak seasons for the floral industry. However, the market for floral gifting during Christmas, birthdays, weddings, and other special events is also significant. The growth of the US floral gifting market can be attributed to the increasing trend of personalization, which has led to the development of unique floral arrangements for specific occasions. In addition, the rise of e-commerce and the availability of online delivery options have made it easier for consumers to purchase and send flowers, contributing to the market’s growth. Overall, the segmentation based on occasion reflects the diversity of the floral gifting market in the US, which is expected to continue to grow in the future.
Segmentation by Occasion
• Personal & Self-Gifting
The US floral gifting market can also be segmented based on the platform used for purchasing. In-store sales, mobile sales, and online sales are the major platforms. The increasing penetration of the internet and smartphones has led to a surge in online sales. Online flower delivery platforms such as 1-800 Flowers, FTD, and Teleflora have become popular choices for customers. The convenience of ordering online, the availability of a wide variety of floral arrangements, and the ability to track deliveries have made online sales a preferred channel for many. In-store sales still account for a significant market share, particularly for last-minute purchases or for customers who prefer the touch-and-feel experience before making a purchase. Mobile sales are also rising as customers use their smartphones for on-the-go purchases. With the increasing popularity of online and mobile sales, traditional brick-and-mortar stores are adapting to new technologies to remain competitive. As the demand for convenience and ease of purchase continues to grow, the online and mobile segments are expected to drive the future growth of the US floral gifting market.
Segmentation by Platform
The US floral gifting market can be segmented based on product type, with the two main categories being bouquets/arrangements and loose stems. Bouquets and arrangements are preferred for occasions such as weddings, anniversaries, and Valentine’s Day, while loose stems are more commonly purchased for personal use or as a gift for a special occasion. Bouquets and arrangements are more expensive but offer a more elaborate and customized look. On the other hand, loose stems are often sold in bulk and can be more affordable for everyday purchases. The increasing demand for customization and personalization of floral gifts largely drives the market’s growth. Bouquets and arrangements offer a wide range of options for personalization, with customers being able to choose from various flowers, colors, and designs. Loose stems also allow customization, as customers can select their own combination of flowers and create their own arrangement.
Segmentation by Product
• Bouquets & Arrangements
The US floral gifting market can also be segmented based on purchase options, including one-time purchases and subscriptions. One-time purchases are the traditional way of buying flowers for special occasions, while subscription services offer recurring delivery of flowers at a set interval, such as weekly, bi-weekly, or monthly. Subscription-based models have gained popularity due to their convenience, cost-effectiveness, and flexibility, allowing customers to customize their deliveries and skip or pause them as needed. This segment is expected to grow significantly, driven by the rising demand for hassle-free and regular flower deliveries for personal and corporate purposes.
Segmentation by Purchase option
• One-time purchase
The US floral gifting market has grown in all regions in the U.S., but some areas are expected to witness greater growth than others. The West and Northeast U.S are anticipated to grow due to their large population and higher per capita income. The South and Midwest regions are also expected to show significant growth, but not as much as the West and Northeast. In addition, metropolitan areas have a scope for greater growth compared with rural areas due to the higher population density and more significant economic activity. However, with the rise of e-commerce and better logistics, even rural areas are starting to grow in the floral gifting market. The growth in the market can be attributed to the increasing demand for personalization, the availability of better logistics and delivery, and other factors.
The US floral gifting market is highly competitive, with numerous players vying for a market share. The market is expected to grow in the future, driven by factors such as better logistics and delivery, increased demand for personalization, and the popularity of major holidays such as Valentine’s Day. However, the market faces challenges such as competition from non-floral gift items and the need to keep up with changing consumer preferences. To stay competitive, companies in the market must focus on developing innovative products, improving their logistics and delivery systems, and investing in marketing and advertising campaigns to reach their target audience. Companies that can differentiate themselves effectively and offer unique products and services will likely see the greatest success in this competitive market.
Key Company Profiles
• From You Flowers
Other Prominent Vendors
• 5th Ave Floral
• Avas Flowers
• Benchmark Bouquets
• Blooms Today
• Farmgirl Flowers
• The Flower Shop
• The Bouqs
• Urban Stems
• Gotham Florist
• H. Bloom
• Venus Et Fleur
• 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
• Winston Flowers
• FLOWERS OF THE FIELD
KEY QUESTIONS ANSWERED:
1. How big is the US floral gifting market?
2. What is the growth rate of the US floral gifting market?
3. What are the latest trends in the US floral gifting industry?
4. Who are the key players in the US floral gifting market?