An Optimistic Outlook for Our Industry
Although our industry nearly collapsed the first few months of the 2020 pandemic outbreak, it quickly rebounded and changed the way U.S. consumers buy flowers, all for the better - eventually.
Every day demand is increasing
In the past, floral consumption has peaked during holidays and plummeted other times of the year, but U.S. consumers are changing their behavior, and buying more everyday flowers, similar to the way Europeans purchase flowers. You'll see more advertising geared toward everyday flower purchases and promotions aimed at promoting flowers as a "feel good" solution to our ever-changing world and the collective depression and anxiety the pandemic has created.
Higher pricing isn't deterring consumer demand
While demand for flowers has increased, so has the cost The pandemic drove all costs up - transportation, raw materials and labor. Production at farms was severely impacted by COVID. Transportation costs increased, as PPE and vaccine's bumped flights, and the cost of fuel rose. Packaging materials increased as raw materials were in short supply. Labor costs increased as wages rose, workers sheltered in place and businesses adapted with fewer sales and fewer employees. The good news is the higher cost of flowers has not deterred everyday consumer demand. The public wants and is willing to pay for flowers to make their homes and lives more enjoyable.
The event/wedding business is gradually returning
As parts of the country continue to open and the public gets vaccinated, the event business will return and is expected to be grow. Consumers are saving more than ever and will be spending on big weddings and parties once it is safe to do so. Pent up demand for social interactions and celebrations is expected to explode as social distancing rules are lifted.
Business as usual is anything but
The pandemic forced many businesses to think creatively and pivot in order to survive. Companies became more efficient, learning how to do more with less. There was a huge demand for home delivery products, as Americans adapted to being home-bound. Our industry adapted by offering more ways to deliver and drop off product, launching Zoom instructional videos, and creating more innovations in our industry. These trends are expected to grow.
As these changes continue, it is important for all of us in the industry to continue to promote these consumer trends.
Pandemic Quote From 2020:
“The current state of everyone staying home is clearly untenable —
for sanity, the economy and other reasons."
Dr. Jessie Tenenbaum