Houseplants and Cut Flowers - UK - December 2008

Table of Contents

• Issues in the MarketKey themes
• Definition
• Abbreviations
• Market in Brief
• Sales trends
• Market conditions
• Buyer profile
• Distribution
• The future of the market
• Internal Market Environment
• Key points
• Imports v home production
• Outdoor production in the UK
  • Figure 1: Outdoor production of plants and flowers in the UK, 2003-07
• Stagnation in outdoor production
• Glasshouse production in the UK
  • Figure 2: Glasshouse* production of pot plants in the UK, 2003-07
• UK pot plant production wilts
• Glasshouse production also in decline
• Total cut flower and houseplant imports
  • Figure 3: Total cut flower and houseplant imports, 2003-08
• Steady increase in imports
• Cut flowers
• Cut flower imports
  • Figure 4: Cut flower imports, 2003-08
• Dependence on cut flower imports
• Cut flower imports by country of origin
  • Figure 5: Cut flower imports, by major country of origin, 2003-08
• Kenya and Colombia raise their profile
• Cut flower imports by type
  • Figure 6: Cut flower imports, by type, 2005-08
• Roses rise to number one slot
• Foliage
• Foliage imports
  • Figure 7: Foliage imports, 2003-08
• Foliage finds favour
• Foliage imports by type
  • Figure 8: Foliage imports, by type, 2005-08
• Foliage trends change
• Houseplants
• Houseplant imports
  • Figure 9: Houseplant imports, 2003-08
• Steady growth in imported houseplants
• Houseplant imports by type
  • Figure 10: Houseplant imports, by type, 2005-08
• Boom in indoor bulb displays
• Other factors
• Climate change influences plant choice
• Fair trade begins to flourish
• Fair flowers fair plants
• Local sourcing preferred
• Carbon-neutral aims
• Flowers in the community
• ' Nurse-friendly' flowers
• Broader Market Environment
• Key points
• PDI and consumer expenditure
  • Figure 11: PDI and consumer expenditure, at current and constant 2003 prices, 2003-13
• PDI -- supporting growth
• Cheering up the housing market
• Population by age group
  • Figure 12: The female population, by age group, 2003-13
  • Figure 13: The male population, by age group, 2003-13
• An ageing population
• Younger generations influence purchasing habits
• Population by socio-economic group
  • Figure 14: UK population, by socio-economic group, 2003-13
• Importance of getting through to the C1s
• The future for the ABs
• Competitive Context
• Key points
• Lifestyle choices
• Retail sales of home and garden products
  • Figure 15: Retail sales of home and garden products, by value, 2003-07
• Waning enthusiasm for garden products
• No domestic help but more flowers
• Flowers for atmosphere
• Retail sales of gifting products
  • Figure 16: Retail sales of gifting products, by value, 2003-07
• Decision, decisions
• Boxed chocolates -- an occasional treat
• A present ' for me'
• Say it with flowers (not a DVD)
• Synergies for book and flower lovers
• Future outlook
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points
• Retail sales of cut flowers and houseplants
  • Figure 17: UK retail sales of cut flowers and houseplants, 2003-13
• Not a very rosy picture
• Retail sales by sector
  • Figure 18: UK retail sales and forecast of houseplants and cut flowers, by sector, at current and constant 2008 prices, 2003-13
• The future for flowers and plants
• Tough times ahead
• The future for flowers and plants
• Factors used in the forecast
• Segment Performance
• Key points
• Retail sales of cut flowers
  • Figure 19: UK retail sales of cut flowers, 2003-08
• Flower sales wither as economy falls
• Grocery multiples underpin sales
• Top ten flower varieties
  • Figure 20: Top ten cut flower varieties, by sales value in supermarkets, 2005 and 2007
• Roses reign
• Retail sales of houseplants
  • Figure 21: UK retail sales of houseplants, 2003-08
• Innovation encourages growth in houseplant sales
• Flowering bulbs shoot up
• Companies and Products
• Key points
• Flamingo Holdings
• Sunflora
• Winchester Growers
• World Flowers
• Intergreen
• Trade associations
• Channels to Market
• Key points
• Retail distribution of flowers
• Sales of cut flowers by retail outlet type
  • Figure 22: Value sales of cut flowers, by retail outlet type, 2005-08
• Grocery multiples drive the market
• Florists flounder
• Market stalls
• Garden centres
• Mail order/online
• Other channels
• Retail distribution of houseplants
• Sales of houseplants by retail outlet type
  • Figure 23: Value sales of houseplants, by retail outlet type, 2005-08
• Grocery multiples get innovative
• Garden centres missing out
• Dynamic DIY stores
• Florists failing with houseplants
• Garage forecourts, market stalls and greengrocers
• Mail order and internet
• Major retailer profiles
• John Lewis/Waitrose build trust
• Marks & Spencer -- the Best of British
• Morrisons moves upmarket
• Other
• Leading relay organisations
• Interflora
• Teleflorist
• Flowergram
• flowersdirect
• Brand Communication and Promotion
• Key points
• Advertising expenditure on cut flowers and houseplants
  • Figure 24: Main monitored media advertising expenditure on cut flowers and houseplants, 2004-07
• Rise in advertising on flowers and houseplants
• Grocery multiples -- mixed bunch
• Flower power
• The Consumer -- Who' s Buying and How Often?
• Key points
• Frequency of purchase of cut flowers
  • Figure 25: Frequency of purchase of fresh cut flowers, 2006 and 2008
• Buyers wilt under pressure
• Pensioners can' t afford flowers
• Fair trade for frequent purchasers
• Special men for special occasions
• Appendix -- Who' s Buying and How Often?
  • Figure 31: Frequency of purchase of fresh cut flowers, by demographic sub-group, September 2008