Current State of the Flower Industry Two Years into the Pandemic

Two years have passed since the first Covid-19 case was reported in January 2020. The pandemic affected lives and livelihoods across countries and industries. Lockdown and social distancing norms hit hard into the event space. People canceled celebrations, and a negative consumer sentiment wilted the flower industry considerably. From Dutch auction halls to Kenyan rose fields and Australian florists, every single flower was affected by the pandemic.

When the Sales Took a Nosedive

Once lockdown came, weddings were canceled, restaurants closed, offices emptied, and the demand for cut flowers evaporated. The retail flower sector in the country was also constrained by trading restrictions, logistical delays, and a lower supply of internationally sourced flowers. It affected the availability of industry products and presented challenging conditions for the sector.

Fresh flowers are a constant presence in our lives, both in celebration and sorrow. Apart from birthdays, anniversaries, weddings, funerals, and other events that need flowers, Australia also has peak demand months. The demand for flowers soars in February for Valentine's Day, May for Mother's day, and December for Christmas.

In the first few weeks of the pandemic, the sales of flowers plummeted sharply. The very survival of businesses became a big concern since the health and safety of family, friends, and employees were also at stake. These early days of the pandemic are believed to have crippled the flower industry, the ripple effect of which continued till recently.

The Global Flower Market Wilted and Faced Losses

According to business analysts, the financial impact on the floriculture industry globally was at least US$1.5 billion. Pandemic restrictions affected trade and caused leading export countries like Kenya to lose millions of dollars. The Netherlands had estimated damage amounting to US$660 million to US$825 million in the cut flower business.

In addition, thousands of workers in the industry lost their jobs as pandemic restrictions dipped sales, and growers incurred huge losses. Even as trade resumed and flights took to air again, the air freight increased, preventing growers from shipping flowers overseas to wholesalers.

An Overview of Australia's Flower Industry

The flower industry operators purchase from growers and sell directly to consumers. These can be as fresh cut flowers, floral arrangements, plants, and other merchandise, along with delivery and installation of display foliage. The market currently stands at AUS$ 829 million, and the industry employs approximately 5,900 people.

Australia imports flowers internationally to the tune of AUS$75 million from Kenya, Ecuador, Colombia, Vietnam, Malaysia, and China. Notably, Australia is also a key flower exporter to the Asia-Pacific region, especially roses that can be grown year-round in the country, given the climate.

The closure of big-ticket events and celebrations reduced the demand for flowers, which caused revenues to spiral down considerably in 2020. Growers struggled due to closed borders, and many went out of production. Many florists also had to downsize their teams with weddings and events canceled.

However, the projected growth rate is CAGR of 4.1% during the 2021-2026 period. This is mainly because the Australian flower industry has gained much from quashed flower imports.

The Silver Lining

The pandemic affected the whole flower market in the country, but it also uniquely aided the industry in some ways. Major international players were struggling to sell and dispatch their flowers overseas. As the movement of passenger jets carrying floral produce stopped, the demand and supply routed towards Australia's local growers. This has significantly expanded the native flower industry, mainly located along the northern coast.

Amidst these uncertain times, more and more Australians chose to send flowers to their loved ones. With most friends and family restricted within their respective houses, flowers became the bearer of good wishes. This surge in online orders resulted in business confidence with revenue opportunities.

Australian Florists are Witnessing a Surge in Income

The demand for flowers in the aftermath of the pandemic has been unprecedented. Local flower growers are seeing rising demand and planting more to meet this surge. Australian customers, on the other hand, are loving the idea of receiving a local product. They are enthusiastic about supporting local growers who were overshadowed by cheap imports from overseas in the previous years.

Most florists admit that they sell out all their stock by the end of the day. They even have to refuse orders at times. In 2021, local rose farmers erased the bad phase of 2020 by clocking 30-40% higher sales during Valentine's Day.

It is a twist of fate that COVID was responsible for bringing back local flowers to the Australian market. Florists should educate consumers about what they are buying, where it is coming from, and who is growing it. This should go a long way in supporting Australia's florists and flower growers.

Make a Career Out of Flowers — The Time is Now!

If flowers have been your passion and you would like to be a part of the Australian flower industry, this is the right time to go about it. You can start your journey in the floral industry with a Certificate 3 Floristry from a reputed training institute such as the Pearsons School of Floristry. Immerse yourself in creating stories with flowers equipped with practical and technical know-how. The fields can be as varied as gifting, retail, weddings, and other special events.

As a qualified florist who has learned contemporary and classical designs, a bright and exciting future awaits you in the florist industry. The certificate program builds your design skills and relevant techniques in the professional care of flowers. The course takes a florist studio approach that trains you to interpret a client's vision in flowers. Let your creativity bloom through flowers by joining the course.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes