As per a research report published by IMARC Group, Floriculture - the ancient farming technique, has blossomed into a major agri-business in over 140 countries, with a projected value of $5.9 billion by 2030 and a staggering CAGR of 7.4% (2021-2030).
The industry encompasses an array of products, from delicate cut flowers to robust potted plants, all the way to the extraction of precious essential oils. But the true impact of this industry lies in the incredible opportunities it presents for Indian farmers, providing a cascade of income and employment prospects.
With the Indian floriculture market expected to soar to INR 47,200 crore by 2022, the future's looking brighter than ever for this blooming business.
Top Floriculture Players In India
Ferns and Petals is a prominent player in the floriculture industry. Established in 1994 and based in New Delhi, it is one of the largest flower retailers in India, with a net worth of USD 67.2 million. With over 320 stores across major cities and towns in the country, it has expanded to become the largest florist chain in India. The company has also received a significant investment of INR 200 crore in 2022, demonstrating the interest of investors in the growing floriculture market in India.
According to the industry reports, other leading players in the floriculture space include The Kariki Group, Dummen Orange, Syngenta Flowers. Inc., Karuturi Global Limited, Oserian Development Company Limited, Selecta Klemm GmbH & Co. KG, Marginpar BV, Ruparelia Group, Multiflora Ltd., Karen Roses and so on!
The flourishing floriculture market in India has also attracted startups looking to innovate and bring new ideas to the industry.
One such startup is Rose Bazaar, based in Bengaluru, which is disrupting the market with its subscription-based model. Offering various monthly subscription plans priced between Rs 600 and Rs 1,000, the startup has gained a strong customer base. In addition to the startup's website, the products are also sold through popular platforms like Dunzo and Swiggy, making it easier for customers to access their services. In 2020, the startup raised a funding amount of $120,000 as part of the Techstars accelerator program, allowing them to expand their operations. With a monthly delivery volume of 15,000, Rose Bazaar is well-positioned to be a major player in the growing floriculture industry in India.
Trends In Floriculture Industry
IMARC Group's analysis shows that the top 5 floriculture companies in India are actively shifting towards virtualized trade networks. They aim to offer better logistics coordination and improve the availability of information in the floriculture supply chain. This shift enables all the participants in the supply chain to access real-time information, which facilitates smoother, faster, and more cost-effective deliveries of perishable and degradable floriculture products like fresh and cut flowers.
The major players operating in the floriculture market are expected to benefit from significant improvements in cold chain management facilities. These improvements are anticipated to positively impact the product quality and shelf life, resulting in higher profits. The Government of India (GoI) is playing an active role in promoting export-oriented businesses by providing income-tax holidays to new floriculture entrepreneurs throughout the country. Additionally, the Agricultural and Processed Food Products Export Development Authority (APEDA) is offering subsidiary policies to encourage the adoption and improvement of cold storage facilities, refrigerated vans, pre-cooling units, and greenhouses, further fueling market growth.
What Are The Business Opportunities In Floriculture Industry?
With both traditional and modern flowers having a high demand in the hospitality and wedding industry, the entrepreneurship wave has initiated, and many floriculture-based startups are also booming.
In 2020-21, India exported 15,695 MT of floriculture products worth $77.84 million, with the top export destinations being the USA, Netherlands, UAE, UK, Germany, Japan, and Canada. However, lack of information regarding new varieties and new cultivation techniques is the reason why farmers practicing garden farming are unaware of the generative results of floriculture.
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What Is Driving The Growth Of Floriculture In India?
The recent popularity and acceptance of an environment-friendly lifestyle has expanded the scope of the floriculture industry, with many farmers and garden enthusiasts from all over the globe starting to grow and market flowers with much interest and passion.
The industry has the potential to provide 5 times more return than traditional crops, and the consumption of flowers is expected to increase further as trends of urbanization and the influence of western culture are expected to increase in the coming years.
India, with its abundant varieties of flora and fauna, has several states such as Tamil Nadu, Andhra Pradesh, Madhya Pradesh, Karnataka, and West Bengal that are the largest producers of flowers in the country and are developing more gardens and indigenous varieties to excel in the industry.
What Are The Challenges in the Floriculture Industry?
Although India’s floriculture sector has an abundant and varied production base and has huge potential, multiple factors including environment, infrastructure, and marketing are some constraints behind the decline in the export of floriculture products. At least $1.2 billion worth of floriculture products are being imported by India every year from different countries. The industry is facing challenges mostly related to the availability of basic inputs including quality seeds and planting materials, efficient irrigation systems, and skilled manpower.
Initiatives to Boost the Floriculture Industry
To deal with these mainstream obstacles, the Government of India has initiated the CSIR Floriculture Mission. It has been implemented in 21 states and union territories wherein available knowledgebase in CSIR Institutes will be utilized and leveraged to help Indian farmers and industry re-position themselves to meet the import requirements.
CSIR has been developing new floral varieties and several value addition technologies. Through the Floriculture Mission of CSIR, agro-technologies, new varieties, and value addition technologies available with the CSIR institutions, efforts are being made to take these to farmers and entrepreneurs, and help them in multiplying their income. Also, 100% FDI under the automatic route is allowed in the floriculture sector, making the investment process much easier for foreign investors and Indian companies.
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Floriculture: A Reliable Investment Option
The floriculture industry in India has been growing at an exceptional rate and is expected to continue to do so in the future, establishing new records in the sector. With India's rising economic power and the increasing demand for flowers, the industry presents numerous investment opportunities for investors from all over the world.
The potential for profit in the industry is vast, and new policies and initiatives implemented by the government have paved the way for the development of export-oriented production of flowers. The future prospects of the floriculture industry in India are promising, making it a lucrative investment destination for potential investors.