3 years, 2 months ago

The COVID-19 pandemic has affected every aspect of our lives, from socializing to working and event planning. The past year and a half has been a rollercoaster for businesses across most sectors, including the floral industry. While 2020 saw a decline in floral sales, 2021 has been a hectic year for the floral industry, with skyrocketing demand that shows no signs of slowing down.

According to the Economic Outlook Survey conducted by the Society of American Florists (SAF), sales increased for 90% of participants in the first two quarters of 2021. Most respondents stated that their sales were up 11-30%, with 25% claiming that their sales were up over 30% from 2020.

Demand-Supply Imbalance

When the pandemic started last year, the global economy was affected, with lockdowns prompting florists and retailers to close their doors. Demand for flowers fell, and growers faced substantial losses. In fact, according to the EU Flower and Live Plants sector, the floral market in the EU faced a loss of €4.12 billion in March and April 2020 alone, and farmers worldwide had to either give away their stocks or simply let flowers die in the fields. Some even shut down their farms and sold them.

As a result, they didn’t expect the surge in demand in 2021 and simply didn’t prepare. They cut down on planting flowers and minimized costs, leading to the current flower shortage. Complicated logistics led to another spanner being thrown in the works. So much of the world’s supply comes from South American countries like Colombia and Ecuador, which had a devastating rainy season and subsequent crop damage. Since passenger flights were reduced, demand for cargo airlines increased. With high prices for air cargo and trucking companies struggling to find drivers because of the high demand, prices have soared.

Now, the world is slowly starting to open up again, with a high demand for weddings, funerals, the celebration of life events, and graduations. This kind of boom may be expected early in the year for Valentine’s Day and Mother’s Day, but it is very unexpected for summer. The high demand is further exacerbated by the flower shortage, leading to astronomical prices.

Changes in the Floral Industry

Even today, cargo and logistics companies aren’t working at the same level as they did before the pandemic. High demand and low production, coupled with expensive transportation and logistics, make this an increasingly tricky situation for suppliers and retailers worldwide. Weddings and other events have resumed, and the industry is having trouble meeting the demand it once did.

Are Affordable Flowers Still an Option?

With all of this in mind, suppliers and florists may be thinking about how they can find high-quality flowers at reasonable prices. The demand-supply imbalance has led to increased prices that florists and designers have to absorb to remain competitive. From this, it may seem like affordable wholesale flowers simply aren’t an option.

However, this isn’t wholly true. Suppliers like Fresh-o-Fair can provide you with wholesale flowers directly from growers, cutting out the middleman and reducing prices dramatically. We aren’t wholesalers but ensure that you receive high-quality flowers at wholesale prices. Our partnerships with growers mean that we’re reliable partners who can make sure that all your wholesale flower needs are met, even in times of high demand. Check out our catalogue here and contact us here for more information.