1. Centre for the Promotion of Imports from developing countries
Market channels and
segments in European
market of cut flowers
and foliage
Arno van der Maden
June 2014

2. Contents
Market channels
• Key characteristics and dynamics
Segments
• Specialized
• Unspecialized
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3. Market channels
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4. Market channels
• The Netherlands is centre for flower trade
– 50% Netherlands – Dutch traders
– 16% Belgium – Dutch traders
• Direct trade is growing
– Demanding product requirements
– Payment risk
• Tow market segments
– Specialized:
› Flowers are dominant product
› E.g. florist, market/street stalls, garden centre, etc.
– Unspecialized:
› Flowers are secondary product
› E.g. supermarket retails, DIY stores and gas stations
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5. Market channels
• Focus is the key word
– Focus on specialized
– Focus on unspecialized
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6. Market channels - geographically
Market geographically divided
– North and Western Europe:
› Large and mature market
› Switzerland, Germany, the Netherlands, Belgium and France large
consumption per capita
› Growth is slow (economic crisis)
› Florist and supermarkets (both specialized and unspecialized),
difference between countries (e.g. UK)
› Bouquets and mono bunch
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7. Market channels - geographically
Market geographically divided
– Southern Europe:
› Consumption is decreasing
› Florist and supermarkets (both specialized and unspecialized)
– Eastern Europe:
› Consumption is increasing
› Florist and garden centers (specialized more dominant)
› Single flowers
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8. Market segments
Specialized
• Dutch flower auction dominant role
– Wide range
– One logistic center for Wholesale
• More diversified range than supermarkets:
– Specialty products
– High quality
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9. Market segments - specialized
• Southern and Eastern Europe florists are dominant (60-85%)
• In Southern and Eastern Europe flowers are sold as single stem
• Remote buying creates transparency
• Liquidity problems of florist (economic crisis)
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10. Centre for the Promotion of Imports from developing countries9 June 2014
Market segments - specialized

11. Market segments
Unspecialized
• Sales through supermarket retails, DIY stores and gas stations
– Not primary product
– Consumer buys flowers by impulse
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12. Market segments - unspecialized
• Highly concentrated market (few dominant players)
• Unspecialized market has shown growth (UK, NL, D, Scandinavia)
• Sale of flowers is small part of total sales
• Certification is important (sustainability , CSR)
• Wholesale traders and buyers make planning and (direct) agreements in
advance (volume, price, time of delivery, etc.)
• Large uniform volume and large part of imported flowers
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13. Centre for the Promotion of Imports from developing countries12 June 2014
Market segments - unspecialized