Florists NAICS 459310

Dec 28, 2025 - Slower Growth Forecast

• The US florists industry is projected to grow at a CAGR of 2.41% between 2025 and 2029, according to an updated 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 projects sluggish but positive economic growth in the coming years. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest levels, and elevated price levels. Real disposable income is being limited by a slow rise of employment and higher consumption prices, with a projected increase of real disposable income of 1.8% in 2025 and 1.6% in 2026. The report noted that some shifts in consumer behavior persisted in 2025, including increased online shopping.
• Consumer sentiment in December 2025 pointed to a cautious economic backdrop for the US florists industry. The University of Michigan Index rose 3.7% month over month to 52.9 but remained 30% below December 2024, and 63% of consumers still expect unemployment to increase. Inflation expectations eased to 4.2% for the next year and 3.2% long term, yet overall confidence stayed subdued. The Conference Board Consumer Confidence Index fell to 89.1, with current condition assessments weakening and expectations holding near recession linked levels. As households shift spending toward essential, lower cost categories, florists face softer demand for discretionary floral purchases, reduced spending on premium arrangements, and heightened price sensitivity. Essential occasions, such as sympathy, holidays, and basic gifting, are likely to remain steadier, while value focused designs and affordable options become increasingly important as consumers prioritize affordability.

• While six services industries reported contraction in October, 11 industries reported growth, including the Retail Trade industry, according to an ISM Services PMI Report. Other industries reporting growth during the period were Accommodation & Food Services; Wholesale Trade; Real Estate, Rental & Leasing; Health Care & Social Assistance; Utilities; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Information; Professional, Scientific & Technical Services; and Educational Services. Industries reporting contraction during the period include Arts, Entertainment, and Recreation; Management of Companies & Support Services; Other Industries; Finance & Insurance; Public Administration; and Construction. Overall economic activity in the services sector returned to expansion in October, registering 52.4%.
• According to a report in Florists’ Review, findings from the 2024 Floriculture Sustainability Survey conducted by North Carolina State University revealed strong interest in sustainability across all floral industry sectors. Funded by the American Floral Endowment’s Sustainabloom program, the survey gathered input from over 100 floraculture businesses. Retail florists and wholesalers plan to implement certain sustainability practices in the future, such as packaging reduction (33%), water conservation (23%), and electric vehicles (23%), noting top barriers to implementation include cost and lack of education. Common current sustainability practices include the use of LEDs, recycling containers, and the use of recycled materials. Per the survey, 90% of florists offer deliveries, with the range of deliveries from 6 to 100 miles. A recent Floral Marketing Fund study reported that nearly 60% of consumers are more likely to buy from environmentally friendly floral providers.