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
Jan 10, 2025 - Wedding Businesses Face Lower Bookings, Guest Counts
- Businesses in the wedding industry are seeing lower bookings and significant budget and guest list cuts, according to a Q4 2024 “The State of the Wedding Market” survey from The Wedding Report. About 22% of businesses saw bookings drop by more than 25% in 2024, while nearly 30% saw bookings fall by a slight to moderate amount. On a brighter note, about 30% recorded slight to moderate increases in bookings. The survey also found that 35% of couples are trimming wedding guest lists by 10-25%, and 30% of businesses are seeing wedding budgets down by 10-25% as couples prioritize smaller, more intimate ceremonies. The wedding industry is facing challenges with finding and converting leads (48%), rising costs (17%), and couples delaying their wedding decisions (14%). Survey respondents included photographers, venues, planners, and florists.
- Florists will have to monitor minimum wage changes in 2025, as 21 states and 50 local jurisdictions increased their minimum wage levels, according to Chain Store Age. States with the highest minimum wage in the US are Washington ($16.66 per hour), California ($16.50), and New York ($16.50). Nearly 30 cities in California and seven towns in Washington will raise minimum wages in 2025, with Tukwila, Washington, offering the highest minimum hourly wage in the US at $21.10. According to the Economic Policy Institute, the minimum wage changes will affect more than $9 million workers and raise pay by a combined $5.7 billion. Unchanged since 2009, the federal minimum wage is $7.25 an hour, and some 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
- 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.
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