Florists in Canada - Market Research Report (2014-2029)

Revenue for Canadian florists has grown alongside strong economic growth following the pandemic. Consumers are increasingly opting to purchase flowers from retailers that are not included in the industry, like e-commerce retailers and supermarkets which offer convenience and lower prices. Growth in per capita disposable income and consumer spending has fuelled a jump in revenue, as consumer willingness to spend on discretionary goods has increased. As a result, revenue is expected to grow at a CAGR of 5.0% to $1.5 billion through the end of 2023, including growth of 2.1% in 2023 alone when profit will account for 6.1% of revenue.As external markets siphon demand away, some florists have been forced to close shop. Supermarkets and e-commerce stores benefit from lower per-unit overhead costs, enabling them to offer flowers at a lower price. Consumers can purchase flowers along with their groceries or from their computer, providing convenience compared with traditional florist shops. While florists typically offer superior floral arrangements, younger consumers prefer to purchase flowers on the basis of price and convenience, rather than quality. The growing level of competition has been the primary driver behind falling profitability levels.Moving forward, revenue growth is expected to continue alongside growth in per capita disposable income and consumer confidence. Additionally, consumer spending is expected to climb, which should increase demand for nonessential products, including plants and flowers. While not relevant to this report, florists are also expected to benefit from increased demand from online retailers, which often use florists to fulfil orders. Industry profit is expected to grow, as growing levels of consumer spending will fuel demand for premium floral products, such as arranged cut flowers. Revenue is expected to grow at a CAGR of 2.3% to $1.7 billion through the end of 2028.