European consumption of houseplants and flowers is growing
Regarding European consumption, 2014 was a good year with growth of around 4%. Although the growth was not as strong in 2015, the trend clearly continued. Strong growth was seen especially in the Netherlands and the UK.
Rising and falling
The UK is the leader with 20% improvement compared to 2014. This growth must be seen in perspective as the English pound strengthened in value against the euro (appreciation). The pound's value increased 8% in 2015, leading to a directly proportional increase in consumption. The relatively expensive pound made importing from Europe cheaper. The other 12% can be ascribed to the increased export. Analysis has shown that for every pence (one-hundredth of a pound) increase of the pound, exports rise by roughly 1.6%. Other countries doing well include the Netherlands, Portugal, Poland and Turkey.
Among those with falling figures, the €328 million decrease in Germany is striking; it's a drop of 4.6% compared with the previous year. Possible causes include a shift in sales channels from the florist to the cheaper discounters and a different consumer spending pattern. Russia was also weathering storms with a drop of 11%. The major reason for the Russian decline is the lower value (depreciation) of the ruble. Other countries showing negative growth are Italy, France and Belgium.
What is the consumer doing?
The 'share of wallet' - the proportion of the disposable income that the consumer spends on houseplants and flowers - rose again in 2015 for the core countries of the Netherlands and the UK. This rise is an indication that consumers are becoming more willing to buy. Germany, however, has been showing a consistently negative trend even though the disposable income there has risen. The long-term trend for France is remaining relatively constant.
Source: Royal FloraHolland
