Florists
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 11,400 florists in the US specialize in selling cut flowers, flower arrangements, and potted plants. Major product categories include cut flowers (arranged and unarranged), indoor potted plants (blooming and non-blooming), and artificial/silk flowers, plants, and trees. Companies may also sell gifts, glassware (vases), souvenirs and novelty items, outdoor nursery stock, and seasonal decorations.
Variable Supply Affects Margins
The supply of fresh flowers can vary, and affect margins and a company’s ability to fulfill orders.
Seasonality Requires Working Capital
Demand for florists’ products is highly seasonal, and peaks during certain holidays.
Industry size & Structure
The average florist operates out of a single location, employs fewer than 10 workers, and generates about $421,000 annually.
- The florist industry consists of about 11,400 companies that employ about 62,400 workers and generate $6 billion annually.
- The industry is highly fragmented; the top 50 firms account for less than 10% of industry sales.
- Most companies are small, independent operators. Some companies own multiple stores, but generally operate within a limited geographical market.
- Large floral networks, such as FTD, have national and international operations.
Industry Forecast
Florists Industry Growth
Recent Developments
Nov 10, 2024 - Services Sector Expansion
- Economic activity in the services sector expanded for the fourth consecutive month in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September. Of the 14 of the 18 services industries reporting growth in October, Retail Trade reported the fastest growth during the period. Sales for miscellaneous store retailers, including florists, rose 1% in June 2024 compared to a year ago and were 5.3% lower than the previous month, according to the US Census Bureau. Sales grew month over month for the first five months of the year. The results follow a 2.6% rise in personal consumption expenditures in June year over year and a 0.2% increase from the previous month, according to the Bureau of Economic Analysis. Employment fell while labor costs increased in July 2024 compared to the previous year, according to the Bureau of Labor Statistics (BLS).
- The US florists industry is projected to grow at a CAGR of 2.1% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. The report noted that consumer confidence is expected to improve in the forecast period, which bodes well for the retail and wholesale industries. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest levels, and elevated price levels. On a positive note, inflation is subsiding, which supports a moderate increase of real disposable income by about 1.9% in 2024 and 2.4% in 2025. Retailers have seen internet sales increasingly grow in share since the pandemic, growing from 12.8% of total sales in February 2020 to 17.9% in April 2024.
- The global flower delivery service market is expected to grow from $6.8 billion in 2023 to $12.7 billion by 2033 at a compound annual growth rate (CAGR) of 6.3% during the forecast window, according to the latest forecast by Spherical Insights. The simplicity and adaptability of online purchasing and delivery options have resulted in significant growth in flower delivery services in recent years. The forecast mentioned research from DoorDash showing people prefer to order flowers online, in part due to customers’ comfort with online ordering. Customers ordering online can view a wide selection of floral arrangements with flexible options for specific events or preferences. The rose segment accounts for the largest revenue share of the flower delivery service during the forecast period. The corporate segment holds the highest market share for the global flower delivery service market based on occasion as demand grows for reliable, impressive flower arrangements for business events and office spaces. The bouquet segment is expected to grow at the highest CAGR during the projected period due to its ability to be customized to fit any occasion. According to the report, North America is expected to have the largest share of the market during the forecast period, with the Asia Pacific region expected to grow at the fastest pace.
- A recent federal ruling banning noncompete clauses may change how florists approach the hiring process and the buying and selling of existing businesses, according to an article in the Society of American Florists (SAF). Previously, florists could use noncompete clauses to prevent employees from working simultaneously at a competitor’s shop, starting up a new shop in the same market, or soliciting wedding and event business in competition with their employer. With the noncompete ban, florists may be cautious about hiring new employees who may be looking to start up as competitors. According to Brian Kusuda, chair of the SAF’s Retailers Council, “Many florists like us spend a lot of time and money training new employees, trying to help them understand our industry and what we do as a company to be successful. With these new rulings, the investment of time and money to train up new team members would come with much greater risk.” The ban could also increase the risks involved with buying and selling existing businesses if the sales agreement does not include a noncompete clause. The ban may cause problems with buyers concerned about a seller’s intentions since the seller could use the sale’s proceeds to open a new shop nearby. The rule goes into effect in September 2024. According to the article, the US Chamber of Commerce has filed a lawsuit over the rule, saying the ban would hurt both employers and employees.
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