U.S. Floral Gifting Market - Industry Outlook & Forecast 2023-2028

The US floral gifting market was valued at USD 12.25 billion in 2022 and is expected to reach USD 18.99 billion by 2028, growing at a CAGR of 7.58%. Florals have always played an important role in human history, and while their significance and customs may vary between places, they remain a universal symbol of human connection. The US is one of the world's largest cut flowers and foliage importers. According to data from the USDA, in 2020, the US imported approximately $1.6 billion worth of cut flowers. There is a consistent demand for flowers as a gifting option for various occasions, such as Valentine's Day, Mother's Day, and weddings. People in the US consider flowers a memorable gift, and around 85-90% of people in the US remember the last time they gave flowers to someone. The growing awareness of environmental issues leads to increased demand for sustainably sourced and eco-friendly flowers and floral products. Advancements in technology are allowing vendors to offer more personalized and customized floral arrangements and improve supply chain management and delivery logistics.

MARKET TRENDS & OPPORTUNITIES

HIGH DEMAND FOR PERSONALIZATION

The demand for personalization has been a growing trend in the floral gifting market in the US. Consumers seek unique and personalized arrangements for their loved ones instead of standard bouquets. This trend has led to the growth of florists who offer customizable and unique arrangements.

One of the main reasons for this trend is the desire for a more meaningful and thoughtful gift. Consumers want to show that they have put thought and effort into their gift-giving, and a personalized floral arrangement can convey this message. In addition, social media has made sharing and showcasing personalized arrangements easier for consumers, thus driving the trend even further.

Florists respond to this trend by offering various customizable options, including different flower varieties, colors, and arrangements. Some florists even offer personalized messages or monograms on their arrangements. This trend has also led to the rise of DIY floral workshops, where consumers can learn to create their own personalized arrangements.

BETTER LOGISTICS AND DELIVERY

The floral gifting market heavily relies on logistics and delivery services to ensure that the flowers reach customers fresh and timely. In recent years, the availability of better logistics and delivery services has become an enabler for the growth of the floral gifting market in the US.

One of the main factors driving the growth of logistics and delivery services is the increasing use of technology. Companies can use GPS-tracking systems and other advanced technologies to optimize their delivery routes and ensure timely deliveries. This has helped reduce delivery times and ensure the flowers arrive fresh and in good condition at the customer's doorstep.

Furthermore, logistics and delivery companies invest in better packaging and shipping materials to protect flowers during transit. This has helped reduce damage to flowers and ensure that they arrive in a pristine condition.

COMPETITION FROM NON-FLORAL GIFT ITEMS

The US floral gifting market faces competition from various other gift items, including chocolates, perfumes, jewelry, and more. These non-floral gift items have gained popularity over time, making it challenging for the floral gifting market to maintain its growth rate.

One of the main reasons for the competition from non-floral gifts is the changing consumer preferences and lifestyles. Consumers seek unique and innovative gifting options, which are not necessarily limited to flowers. In addition, non-floral gifts offer a longer shelf-life and can be used for a longer period, making them a more practical choice for many consumers.

Moreover, non-floral gifts often come with additional features, such as personalization and customization, which is also a growing trend among consumers. Many companies that offer non-floral gifts have recognized this trend and are providing personalized products that can be tailored to specific consumer needs.

To counter this challenge, floral gift companies have started providing more innovative and personalized floral arrangements. They also provide additional features, such as gift baskets, chocolates, and other complementary products, to enhance the value proposition for the consumers. Furthermore, many floral gift companies have started offering same-day delivery, making it easier for consumers to purchase and receive flowers promptly.

SEGMENTATION INSIGHTS

OCCASION

The US floral gifting market can be segmented based on the occasion for which flowers are gifted. These occasions include Valentine's Day, Mother's Day, Christmas, birthdays, anniversaries, and other special events. The demand for floral gifting is the highest during Valentine's Day and Mother's Day, which are considered peak seasons for the floral industry. However, the market for floral gifting during Christmas, birthdays, weddings, and other special events is also significant. The growth of the US floral gifting market can be attributed to the increasing trend of personalization, which has led to the development of unique floral arrangements for specific occasions. In addition, the rise of e-commerce and the availability of online delivery options have made it easier for consumers to purchase and send flowers, contributing to the market's growth. Overall, the segmentation based on occasion reflects the diversity of the floral gifting market in the US, which is expected to continue to grow in the future.

SALES PLATFORM

The US floral gifting market can also be segmented based on the platform used for purchasing. In-store sales, mobile sales, and online sales are the major platforms. The increasing penetration of the internet and smartphones has led to a surge in online sales. Online flower delivery platforms such as 1-800 Flowers, FTD, and Teleflora have become popular choices for customers. The convenience of ordering online, the availability of a wide variety of floral arrangements, and the ability to track deliveries have made online sales a preferred channel for many. In-store sales still account for a significant market share, particularly for last-minute purchases or for customers who prefer the touch-and-feel experience before making a purchase. Mobile sales are also rising as customers use their smartphones for on-the-go purchases. With the increasing popularity of online and mobile sales, traditional brick-and-mortar stores are adapting to new technologies to remain competitive. As the demand for convenience and ease of purchase continues to grow, the online and mobile segments are expected to drive the future growth of the US floral gifting market.

PRODUCT

The US floral gifting market can be segmented based on product type, with the two main categories being bouquets/arrangements and loose stems. Bouquets and arrangements are preferred for occasions such as weddings, anniversaries, and Valentine's Day, while loose stems are more commonly purchased for personal use or as a gift for a special occasion. Bouquets and arrangements are more expensive but offer a more elaborate and customized look. On the other hand, loose stems are often sold in bulk and can be more affordable for everyday purchases. The increasing demand for customization and personalization of floral gifts largely drives the market's growth. Bouquets and arrangements offer a wide range of options for personalization, with customers being able to choose from various flowers, colors, and designs. Loose stems also allow customization, as customers can select their own combination of flowers and create their own arrangement.

PURCHASE OPTIONS

The US floral gifting market can also be segmented based on purchase options, including one-time purchases and subscriptions. One-time purchases are the traditional way of buying flowers for special occasions, while subscription services offer recurring delivery of flowers at a set interval, such as weekly, bi-weekly, or monthly. Subscription-based models have gained popularity due to their convenience, cost-effectiveness, and flexibility, allowing customers to customize their deliveries and skip or pause them as needed. This segment is expected to grow significantly, driven by the rising demand for hassle-free and regular flower deliveries for personal and corporate purposes.

GEOGRAPHICAL ANALYSIS

The US floral gifting market has grown in all regions in the U.S., but some areas are expected to witness greater growth than others. The West and Northeast U.S. are anticipated to grow due to their large population and higher per capita income. The South and Midwest regions are also expected to grow significantly, but not as much as the West and Northeast. In addition, metropolitan areas have a scope for greater growth compared with rural areas due to the higher population density and more significant economic activity. However, with the rise of e-commerce and better logistics, even rural areas are starting to grow in the floral gifting market. The growth in the market can be attributed to the increasing demand for personalization, the availability of better logistics and delivery, and other factors.

VENDOR LANDSCAPE

The US floral gifting market is highly competitive, with numerous players vying for a market share. The market is expected to grow in the future, driven by factors such as better logistics and delivery, increased demand for personalization, and the popularity of major holidays such as Valentine's Day. However, the market faces challenges such as competition from non-floral gift items and the need to keep up with changing consumer preferences. To stay competitive, companies in the market must focus on developing innovative products, improving their logistics and delivery systems, and investing in marketing and advertising campaigns to reach their target audience. Companies that can differentiate themselves effectively and offer unique products and services will likely see the greatest success in this competitive market.