The Singapore floriculture market was valued at USD 24,399.6 thousand in 2020 and is anticipated to reach USD 37,017 thousand in the year 2026 while registering a CAGR of 7.0% in the forecast period (2021-2026)
The pandemic has led to social and economic disruption for flower shop owners. Many businesses have to bear the brunt of declining sales due to lockdown and cancellations of events & weddings that had impacted on cash flow and had not to meet fixed overhead costs led down to the closure of business.
Rosa, Lily, peonies, Orchids, Frangipani, Jasmine, and Hibiscus are the top 7 flowers that are grown in Singapore. Where, Lily is used in traditional Asian medicine for the treatment of depression and certain types of toxicities and Orchid flowers, Singapore national flower is used for decorative purposes and creating flower arrangements or bouquets.
According to the ITC Trade Map, Singapore has imported USD 32,163 thousands of cut flowers in 2020. Malaysia, China, Netherlands and India are the major exporters of flowers to Singapore. High domestic demand and rising investments in projects and growing use of technology are the factors that are driving the growth of the market.
Key Market Trends
Rising economy in Singapore
The Singapore is a high-income economy with the per capita gross national economy of USD 59,590 in 2019. The country provides one of the world’s most business-friendly regulatory environment for local entrepreneurs and is ranked among the world’s most competitive economies. According to the IMF, the per capita GDP is projected to increase to USD 70,766 by 2025. The significant growth of the per capita income in the country is enhancing them to experience the based products like hotel staycations and dining in fancy restaurants during Valentine’s Day. Therefore, flowers remains as a most popular gift for the special days. For instance, a bouquet of red roses is always a popular choice as gifts on these days. As per the YouGov survey, 8 of the 10 people will give a valentine’s gift to their loved ones in Singapore.
Due to rise in the income, the customers are willing to spend more on the bouquets. On an average, they spend USD 100 on regular days and USD 150 on the special occasions such as Christmas, New years day and Valentine’s day. According to the Flora moments store, there is surge in the spending’s on bouquets and other floral arrangements by 102% on February 11 to 14 from 2016 to 2018. Thus, the aforementioned factors are likely to support the growth of the market during the forecast period in Singapore
Rosa is the largest and fastest growing segment
Fresh flowers play a unique role in the lives, both in celebration and in sorrow. Unlike other horticultural crops, demand for fresh flowers like rose is often related to fashion trends. It is considered as most idealist flower because of their fragrance, different shapes and colors. They also hold an emotional association with the people. Every variety of roses has special significant meaning and is used for special occasions. A properly maintained rose garden will produce blooms whole year round in Singapore. There are many types of roses available like wild roses, old garden roses and miniature roses in the country.
The demand for roses is high in first quarters in all the years because of Valentine’s day. For instance, the imports are very high in the first quarter when compared to other quarters in 2019 which was valued at USD 733 thousand. Kampong flowers, The Florte, Far East Flora, G.G Fresh Flower, Sing See Soon, Ji Mei Flower, Cold Storage are some of the rose floral retailers in Singapore. Hence, due to the demand for Valentine’s day in the country, the consumption of fresh roses is increasing coupled with the increased imports from Kenya, is driving the rosa market during the forecast period
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