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 $4.8 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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  May 1, 2024 - Slower Growth Expected for Industry
                                  • The US florists industry is projected to grow at a CAGR of 1.8% 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 projected growth. Factors that continue to limit consumer spending are higher price levels and interest rates, though both are expected to improve in 2024. Post-pandemic, consumer spending has shown slower gains of 2.5% in 2022 and 2.2% in 2023, supported in part by savings amassed by households from federal pandemic relief programs. According to the forecast, "2024 may bring further deceleration, but improving consumer sentiment may support moderately strong gains in household spending, together with rising wage rates and lower inflation."
                                  • Hyper-locally sourced cut flowers, virtual gardens, and table-top topiaries are emerging design trends forecast at the 2024 Philadelphia Flower Show per Greenhouse Grower. Hyper-locally sourced flowers are trending for floral events as the industry looks to reduce the carbon footprint of mass-grown imported flowers. Virtual gardens incorporate mixed media, projection, and floral photography together with physical flowers to create a more immersive floral experience. Other floral trends include bold neon colors, color-blocking, and large-scale statement floral sculptures and arrangements.
                                  • The average cost of a wedding in the US increased by 3% to $30,119 in 2023 over 2022, with the flowers and decorations category showing growth, according to The Wedding Report. It is the third consecutive year of growth following a pandemic dip in 2020, when the average cost was $20,290. Most of 2023’s growth comes from higher costs in the wedding venue, beauty services, attire, and entertainment categories. The flowers and decorations category also grew, with average expenses higher in nearly all categories from 2022. Specifically, the costs rose for boutonnieres and corsages to $202 (5.4%), bouquets to $448 (4.7%), wedding venue table centerpieces to $409 (4.4%), and wedding venue flowers and arrangements to $649 (1.7%). The number of wedding guests also increased in 2023, with the average list reaching 134 in 2023 from 127 in 2022. The report was based on more than 30,000 data samples from people getting married.
                                  • More than 50% of florists reported that red roses were the top-selling flower on the Valentine’s Day holiday, followed by mixed flowers at 43.3%, according to a survey by US floral software company Floranext. Florists charged an average of $106 for a dozen long-stem red roses on Valentine’s Day. The survey also found that 50% of floral orders for florists were received through phone calls, while website orders accounted for 32% of orders. About 28% of Valentine’s Day orders came in January and 26% in early February. Florists used Facebook (59%), email marketing (50%), and Instagram (32). The survey included respondents from the US (79%), Canada (14%), and international (5%).
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