Floral consumption in China will reach $22bn

In recent years, the consumption of flowers has become a fashionable lifestyle among Chinese young people. The output of China’s flower industry has been growing by 20% every year. According to a research done by ChinaIRN.com, by the end of 2020, the consumption of flowers in China will reach 146.5 billion RMB ($22 billion).

As an emerging industry in China, the flower industry is growing at a staggering rate and numerous business opportunities are also presenting themselves.

While flowers have long since become a part of western people’s daily life, most Chinese people still think that flowers are for special occasions. Individual consumption of flowers usually peaks around holidays, but lately more people start to order flowers on ordinary days. The most obvious reason is that middle class, from which the customers for flowers mainly come, is rising in China. It is estimated that there are about 109 million Chinese people that have reached the standard of middle class.

Aside from that, the Chinese central government has placed a ban on extravagance inside the Party. Without this generous buyer, cultivation bases and flower shops have to adjust their prize ranges and product catalogs in order to meet the needs of ordinary residents. Therefore, daily family consumption of flowers will become the next trend.

Online shopping is now sweeping across China. It is estimated that Chinese people are spending 672 billion dollars on online shopping annually, making up 16% of their total expenses. It is believed that by the end of 2018, every 1 out of 5 RMB a Chinese spend, will go into the pockets of online retailers. Seeing this excellent opportunity, many insiders spring into actions and online flower retailers are emerging across China, such as Flower Plus, Floral Fantasy, The Beast, etc. One leading example is Amorflora. Established in 2008, it has attained 2 million loyal customers and this July it finally became the first listed flower online retailing company in China.

In order to achieve poverty alleviation and environmental protection at the same time, the Chinese government proposes a new concept called “Beautiful Countrysides”. It is said that during the 13th five-year plan, 6,000 beautiful villages will be built and an annual financial subsidy of 1.5 million RMB will be given to every village for 2 years. Therefore, a lot of local governments are embarking on floral tourism. Enlightened by this trend, many cities are also trying to boost their tourism with flowers. For example, Guangzhou is about to build 30 tourist attractions for flower admiration, in an attempt to live up to its reputation of Flower City. And it had been decided that by the end of 2020, over 30 characteristic towns featured with flowers will be constructed in Guangzhou.

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Photo credit: hk01.com

08/15/2016 - FloraCulture International

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