Flowers (market of Russia and the world)

Global Flower Market

2023: Top 10 flower export countries named

The Netherlands, Colombia and Ecuador became the world leaders in flower exports in 2023. This was reported to RIA Novosti in March 2024 according to the OOH Comtrade platform.

The total cost of world supplies of the three leading countries amounted to $6.6 billion. The Netherlands became the leader in sales, selling 552 thousand tons of flowers for $4.6 billion. The second country in sales was Colombia, exporting 143 thousand tons of products worth $1.1 billion, and the third - Ecuador, which sold 181 thousand tons of flowers worth $987 million.

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In addition, the top five flower exporters included Kenya (64 thousand tons worth $387 million) and - Nigeria (97 thousand tons of flowers worth $157 million). The top ten also includes (Italy $126 million), (China $110 million), (Canada $109 million), ($76 Malaysia million) and ($61 REPUBLIC OF SOUTH AFRICA million).

Nigeria is planning the largest increase in supplies - the volume of flower exports from this country has quadrupled. At the same time, the largest decline in exports occurred in Colombia - compared to last year, flower exports fell by 49%.

At the same time, Russia exported flowers worth $40 thousand dollars, 86% of supplies fell on Armenia.^[1]

2019

According to 2019 data, global production of flowers and ornamental plants is increasing: various analysts predict further steady market growth by 3-6% per year until 2024.

The main driver of growth, as in many other areas, is growing consumption in Asian countries. Thus, China over the past five years has increased imports of flowers by about 30% (data from Global Trade Atlas).

The total volume of the world market is estimated at $40-45 billion, and three companies are leading in it:

1. Ball Horticultural (USA);

2. Syngenta Flowers (central office in Switzerland);

3. Dummen Orange (Holland).

They all have international flower plantation networks.

The Netherlands is the main supplier of flowers in Europe by a wide margin from everyone else. Flowers from third countries are also brought here for resale: being the largest exporter of flowers in the world, the Netherlands is also the second largest importer after Germany. In 2018, the volume of imports of flowers and ornamental plants to Holland amounted to €2 billion, of which more than half were imports from Africa and Latin America.

Russian Flower Market

2023

Sales of flowers in Russia for the year increased by 15% and reached ₽349 billion

The volume of flower sales in Russia reached ₽349 billion in 2023, an increase of 15% compared to 2022. This is stated in a joint study of the Flowwow marketplace and the marketing company Daily Dozen, excerpts from which were published in December 2024. In quantitative terms, the market volume in 2023 reached 1.9 billion units.

According to Vedomosti, in 2024, sales are expected to grow further to ₽402 billion, which is 13% more than in 2023. The number of flowers sold can reach 2.02 billion pieces.

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Freepik

Flowwow Operations Director Vera Modenova notes that the share of Russian products on flower shelves has grown from 16% in 2021 to 19% in 2024. Ilya Bereznyuk, Managing Partner of Agro & Food Communications, emphasizes the growth of domestic production from 380 million units in 2022 to almost 500 million in 2023.

According to a representative of the Ministry of Agriculture, over the past five years, flower production in Russia has grown 1.5 times. In 2022, a record number of 397.9 million units were grown, which is 17% higher than in 2021.

Executive Director of the National Association of Flower Growers Victoria Krylova points to a stable growth in demand for domestic products. Russian manufacturers have almost completely switched to domestic fertilizers, equipment for greenhouse complexes and planting material.

Flower production in Russia is concentrated mainly in the Central and Volga Federal Districts, which account for 75% of the gross collection. The largest production facilities are located in Moscow, Kaluga, Belgorod regions, Mordovia and Udmurtia.

Despite the growth of domestic production, about 80% of the Russian flower market is imported. The main suppliers are the Netherlands (42%), Ecuador (38%) and Kenya (7.5%). Imported flowers from unfriendly countries are subject to a duty of up to 20% of the customs value.^[2]

Growth in flower imports by 6.4% to 1.58 billion units

In 2023, about 1.58 billion cut flowers were imported to Russia. This is 6.4% more compared to 2022, when the figure was 1.49 billion units. Market trends are addressed in the BusinesStat survey published in early October 2024.

The study takes into account not only cut flowers and buds as such, but also bouquets, wreaths, flower baskets and similar items such as boutonnieres. Cut branches of trees, shrubs or shrubs with flowers or buds (for example, magnolia and some varieties of roses) are considered as cut flowers or buds of the corresponding commodity position.

In 2019, according to estimates, 1.74 billion cut flowers were imported into the Russian Federation. In 2020, a 5.1% drop was recorded - to 1.65 billion units, which is associated with a decrease in demand amid the COVID-19 pandemic. In 2021, there was an increase of 1.8% with a final value of 1.68 billion units. And in 2022, the volume of imports decreased by 11.5%. Due to the deteriorating geopolitical situation, difficulties arose with the import of flower products into Russia. This led to a sharp rise in prices and a shortage of foreign colors. As a result, buyers began to pay attention to domestic flower products. The complication of trade between the countries also hit the species diversity of the flower market.

In general, from 2019 to 2023, imports of cut flowers in the Russian Federation decreased by 9%. At the same time, the share of imports in the total supply decreased from 86% to 78%. At the same time, from 2020, domestic enterprises for the production of flower products can take advantage of state financial support measures. The government is interested in increasing the competitiveness of such goods and increasing their share in the domestic market.^[3]

Collection of fresh cut flowers for the year exceeded 400 million pieces

According to analysts, Rosselkhozbank the gross volume of collection of fresh cut flowers by agricultural organizations in 2023 exceeded 400 million pieces, while the volume of collection of fresh flowers in 2022 amounted to 366 million. TAdviser I got acquainted with such statistics in early September 2024.

The leading position in the production of flowers is occupied by the Krasnodar Territory, which accounts for more than 20% of all volumes, including products grown in personal subsidiary farms (private household plots). The development of flower business in the region is mainly due to small businesses, which allows you to provide flowers both to the domestic market and other regions of the country. Tulips, roses and chrysanthemums predominate in the structure of production of private household goods.

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Freepik

Moscow and Kaluga regions also occupy key positions in the flower market, each region provides 14% of the total production. They are followed by the Republic of Mordovia (12%), Udmurtia (8%), Leningrad Region (9%), Belgorod and Kaliningrad Regions (4% each). These regions actively develop both large flower farms and small farms, which allows you to meet the domestic demand for flower products.

The main share of flower sales in Russia falls on large cities. In Moscow and the Moscow region, 35% of all flower products are sold, in St. Petersburg and the Leningrad region - 15%. These regions remain the largest consumers of flower products, thanks to high purchasing power and a wide range of outlets - from small flower shops to luxury flower boutiques.

"Floriculture in Russia is actively developing at the expense of small and medium-sized businesses, although dependence on imported planting material remains," said Natalya Khudyakova, Managing Director of the Center for Macroeconomic and Regional Analysis and Forecasting of Rosselkhozbank. She also noted that by 2030, domestic flower growers will be able to close up to 50% of demand in the flower market, which will be possible due to an increase in production volumes by 1.5 times.^[4]

January-February import decline by 9%

The volume of fresh flowers imported into the Russian Federation in January - February 2023 decreased by 9.4%. - up to 14.5 thousand tons. The main suppliers of flowers to Russia are the Netherlands (6 thousand tons), Ecuador (5.5 thousand tons) and Kenya (1.2 thousand tons), the FCS of Russia reported.

2022: Growth in the collection of cut flowers in Russia by 18% to 400 million units

In 2022, in the Russian Federation, the gross collection of fresh cut flowers increased by 18% to about 400 million units. Relative to the indicators of 2021 in 340 million units.

Positive growth dynamics of domestic production will continue - the indicator may grow to 500 million units by the end of 2023, and the share of Russian producers in the domestic market may grow to 25%.

2021

Increase in the share of Russian flowers to 18.6%

The main volume of the Russian market for cut flowers over the past 5 years was formed due to imported products, the share of which was about 80%. In 2021, the contribution of Russian producers of freshly cut flowers increased to a record 18.6%.

Flower imports to Russia rose 12.7% to 1.68 billion units

In 2021, 1.68 billion cut flowers were imported into Russia, which is 12.7% more than the volume of iport in 2017 (1.49 billion units). This is evidenced by data released by BusinesStat analysts at the end of July 2022.

According to the study, the largest suppliers of flowers to the Russian market in 2021 among the countries were:

• Ecuador - 31.7% of imports (533.4 million units);
• Netherlands - 29% (487.4 million);
• Kenya - 11.9% (198.8 million);
• Colombia - 9.3% (154.3 million).

Import of flowers in the Russian Federation rose by 12.7%

If roses from Latin America and partially Africa dominate among imported roses and carnations, then among other colors the primacy of Dutch products is undeniable. Holland is not just the largest producer of all cut flowers in the world and the transshipment point of "flower flows," but also the largest international distributor, with which manufacturers from all over the world are bound by multi-year contracts. So, for example, almost all large manufacturers from Ecuador and Colombia have contracts with Amsterdam for several years in advance, so it is quite difficult to order from them directly a good quality product in a large volume, analysts say.

An analytical report published in July 2022 also said that Russia is a major importer of cut flowers, so the sanctions restrictions are a rather significant blow to the domestic market. Traditionally, a bouquet of flowers is a universal gift for Russians, so it is not easy to abandon it, even despite rising prices in the face of both a shortage of flowers themselves and an unstable economic situation and currency fluctuations.

European suppliers and manufacturers are in no hurry to break contracts with domestic buyers. However, the effectiveness of cooperation is significantly influenced by problems with payments due to sanctions.^[5]

2020

The flower market of Russia grew by 12%

In 2020, the gross collection of fresh cut flowers in agricultural organizations of the Russian Federation amounted to 270.78 million units, an increase of 12% compared to 2019 and more than three times compared to 2015. This is evidenced by the data of Interagro analysts.

According to the study, the main producers of fresh cut flowers are concentrated in the Volga Federal District (leading entities: Republic of Mordovia, Udmurt Republic, Penza Region) with a volume of 94.04 million units (34.7% of the total gross collection of fresh flowers in the Russian Federation), the Central Federal District (leading entities: Moscow, Kaluga and Belgorod regions) - 87.2 million units (32%) and the North-Western Federal District (leading entities: Leningrad and Kaliningrad regions) - 47.97 million units (17.7%).

By the end of 2020, there were more than 80 greenhouse enterprises in Russia that grow flowers in closed ground. The largest of them are New Holland in the Leningrad Region (production of more than 35 million cut flowers), TK South Rus in the Krasnodar Territory (production of about 35 million cut flowers), Izovol Agro in the Belgorod Region and World of Flowers in the Republic of Mordovia, 17 million pieces each, TK-Podosinki in the Moscow Region - 16 million pieces

In addition to the growth of domestic production, the retail price of cut flowers is also growing. In April 2020, the price amounted to 122.69 rubles/pc, which is 14% higher than the price for the same period last year and 34% higher than in 2015. The average import price of 1 piece of cut flower was 18.5 rubles. in 2020, the Russian Federation exports only 1 million pieces of cut flowers, which is an insignificant indicator, the study says.^[6]

Reducing imports by 14% in money

The volume of flower imports in 2020 compared to 2019 decreased in monetary terms by 14%, in kind - by 8%. As a result, the ratio of Russian and imported flowers on the market has changed: in 2019, the share of Russian flowers was 14%, and in 2020 - already 18%. The decline in imports was mainly due to the COVID-19 pandemic: greenhouse complexes in Kenya and Ecuador were closed, as well as importers faced transport problems, such as restrictions on air travel.

2018: Market Size 1.6 Billion Units

The Russian market is dependent on imports - the share of domestic producers, for example, in the cut flower market is no more than 15% (the total market volume in 2018 is estimated at 1.6 billion units per year).

However, this situation is not much knocked out against the background of other European countries: even in the French market, despite more favorable climatic conditions, the share of imported flowers is about 80%.

Great Britain imports annually flowers and ornamental plants by about €1 billion, which is twice as much as it imports. Russia

In 2015, Russia tightened the rules for the import of flowers from the Netherlands, which, coupled with the fall in the national currency, significantly affected the volume of imports: compared with the pre-crisis 2013, it fell by more than one and a half times (although in 2017 and 2018 there was an increase).

Its structure has also changed. The share of the Netherlands decreased from 38.9% in 2014 to 11.6% in 2018, and the share of Belarus increased from 0.4 to 13.1%.

It turns out that the Russian market was seriously shrinking under the influence of external factors, but is beginning to recover. The only question is whether he will do this due to the growth of imports or his own production.

Flowers delivery to the house in the USSR

Notes