New Delhi, Oct. 07, 2024 (GLOBE NEWSWIRE) -- Vietnam floriculture market is projected to hit the market valuation of US$ 3,426.0 million by 2032 from US$ 1,711.0 million in 2023 at a CAGR of 8.47% during the forecast period 2024–2032.
The Vietnam floriculture market is poised for significant growth, driven by a combination of favorable climatic conditions, increasing domestic and international demand, and strategic governmental support. As of 2023, Vietnam's floriculture industry has expanded to cover over 10,000 hectares, producing a diverse array of flowers such as roses, lilies, and orchids. The market's export value has surpassed $400 million, with major markets including Japan, the United States, and the European Union importing Vietnamese flowers. In particular, Japan imported 11,000 tons of flowers, while the U.S. received 7,000 tons. The robust demand for high-quality, competitively priced Vietnamese flowers has solidified the country's position as a key player in the global floriculture market.
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Technological advancements have further enhanced Vietnam's floriculture prospects, with growers increasingly adopting innovative cultivation techniques to improve yield and quality. The rise of hydroponic systems and climate-controlled greenhouses has allowed for year-round cultivation, resulting in the production of over 60,000 stems per hectare annually. In addition, the implementation of integrated pest management strategies has reduced chemical inputs, improving the sustainability of flower production. More than 3,000 farms have adopted these advanced methods, contributing to an annual output of over 1.5 billion flower stems. The government's investment in agricultural research and development, amounting to $15 million in 2023, has also facilitated the introduction of new, high-demand flower varieties, further boosting the industry's growth.
Furthermore, the domestic floriculture market is flourishing, driven by increasing urbanization and rising consumer incomes. With over 500 floriculture businesses operating in major cities like Ho Chi Minh City and Hanoi, the industry has created employment for approximately 60,000 individuals. The popularity of flowers in Vietnamese cultural and social events has led to a thriving local market, with Hanoi alone accounting for the sale of 2 million flower bouquets annually. The rise of e-commerce platforms has also expanded market access, enabling consumers to purchase flowers online, which accounted for $50 million in sales in 2023. These trends suggest a promising future for Vietnam's floriculture market, marked by sustained growth and innovation.
Key Findings in Vietnam Floriculture Market
| Market Forecast (2032) | US$ 3,426.0 Million |
| CAGR | 8.47% |
| By Type | Cut Flowers (64.5%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Bulbous Plants Demand is Projected to Continue Growing at the Skyrocketing CAGR of 10.57%
The demand for bulbous plants in Vietnam floriculture market is projected to grow significantly, driven by several key factors that are reshaping the floriculture landscape. In 2023, the market for bulbous plants, which includes popular varieties such as tulips, lilies, and hyacinths, reached a value of approximately $450 million. This growth is fueled by the increasing popularity of these plants in urban landscaping and home gardening. With over 40% of Vietnam's population now residing in urban areas, there is a rising trend towards incorporating greenery into urban spaces, which has led to a surge in demand for bulbous plants known for their vibrant blooms and ease of cultivation.
The Vietnamese government has been actively promoting the cultivation of bulbous plants as part of its broader agricultural development strategy. In 2023, the government allocated $50 million towards research and development in floriculture market, focusing on improving the yield and quality of bulbous plants. This investment has resulted in the introduction of new, more resilient plant varieties that are better suited to Vietnam's diverse climatic conditions. Additionally, the establishment of specialized training programs for farmers has led to an increase in the number of skilled horticulturists, with over 10,000 individuals receiving certification in bulbous plant cultivation last year. These efforts have significantly boosted production, with Vietnam producing over 200 million bulbs annually.
Furthermore, the export potential of bulbous plants is a major driver of their growing demand. In 2023, Vietnam exported approximately 80 million bulbs to international markets, including Japan, South Korea, and the Netherlands. The global appreciation for Vietnamese bulbous plants is attributed to their high quality and competitive pricing. The country's strategic location and improved logistics infrastructure have facilitated efficient export processes, making it easier for Vietnamese growers to access international markets. As a result, bulbous plants have become a key component of Vietnam's floriculture exports, contributing significantly to the country's agricultural revenue. This upward trend is expected to continue as Vietnam strengthens its position as a leading supplier of bulbous plants in the global market.
Growing Trend of Imported Flower Varieties in Vietnam
In recent years, there has been a noticeable shift in consumer preferences in Vietnam floriculture market towards imported flower varieties, such as roses, carnations, and tulips. This trend is particularly evident during special events like weddings, corporate functions, and major holidays. Consumers often perceive imported flowers as having superior quality and a wider variety, which adds a touch of exclusivity and sophistication to their celebrations. This shift is part of a broader global trend where consumers seek unique and premium floral options to enhance the aesthetic appeal of their events.
The demand for imported flowers in Vietnam is supported by increased purchasing power and a growing middle class. In 2023, Vietnam's GDP growth was projected at 6.5%, with rising disposable incomes contributing to changing consumer behaviors and preferences. As a result, florists and retailers in the Vietnam floriculture market have increasingly stocked imported varieties to meet this demand, often sourcing them from major flower-exporting countries like the Netherlands, Ecuador, and Colombia. These countries are renowned for their high-quality floral production, which appeals to Vietnamese consumers seeking the best for their special occasions.
Economically, the trend towards imported flowers has led to a more dynamic floral market in Vietnam. The importation of flowers has become an integral part of the supply chain, providing opportunities for importers and retailers to cater to niche markets and upscale customers. In 2023, floral imports saw a notable increase, with the market value reaching new heights as consumers prioritized quality and uniqueness over cost. This shift not only reflects changing consumer tastes but also underscores the importance of global trade in meeting local demands. As Vietnam's economy continues to grow, the trend towards imported flowers is expected to persist, offering both challenges and opportunities for the domestic floriculture industry to innovate and compete on quality.
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Competition from Imports in Vietnam's Floriculture Market
Vietnam's floriculture market faces substantial competition from imported flowers, particularly from countries like the Netherlands and China. In 2022, Vietnam imported over US$ 35.5 million worth of cut flowers and related products, with China and the Netherlands being significant suppliers, contributing US$ 12.9 million and US$ 1.8 million, respectively. This influx challenges local producers who struggle to match the perceived quality and variety of these imports. Despite these challenges, Vietnam's domestic floriculture sector has shown resilience, with the gross output value nearly doubling from 2015 to 2021, achieving an average growth rate of 11.8% per year.
Amidst the competition, the growing demand for premium flowers and the expansion of the retail sector present opportunities for local businesses. This growth is driven by rising incomes and a burgeoning middle class, which increasingly favors high-quality and exotic plants for various occasions. The rise of e-commerce, facilitated by widespread smartphone use, has further boosted flower sales, with millennials being the primary buyers. The government's supportive policies, focusing on training, market development, and financial incentives, also bolster the sector's productivity and technology adoption.
The expansion of modern retail chains and e-commerce platforms in the floriculture market provides local businesses with new consumer outreach avenues. For instance, Dalat Hasfarm, a prominent domestic player, has expanded its retail network by opening premium fresh flower outlets in major cities like Ho Chi Minh City and Hanoi. Additionally, international trade agreements like the EVFTA (European Vietnam Free Trade Agreement) enhance Vietnam's export capabilities by waiving tariffs on fresh flower exports to lucrative markets. These developments suggest that while competition from imports remains a challenge, the increasing demand for premium flowers and retail expansion offer significant opportunities for local businesses to innovate and compete effectively.
Vietnam Floriculture Market Key Players
- Dalat Hasfarm
- Fresh Flower World Joint Stock Co.
- Dummen Orange Holding BV
- Syngenta Crop Protection AG
- Royal Base Corp
- Ota Floriculture Auction
- Other Prominent Players
Key Segmentation:
By Type
- Cut Flowers
- Carnation
- Rose
- Chrysanthemum
- Lily
- Orchid
- Other Type of Flowers
- Bulbous Plants
- Potted Flowers
- Others
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