April marks the start of the season for our industry. Late frosts are rare, and the first cold-resistant plants can be planted, says Nadja Haese, Team Leader of Support, Process & Sustainability for Plants at toom. Those wanting to be safe from cold snaps that could harm freshly planted greens often wait until May or even June to plant geraniums, summer heather, or pansies. According to the Agricultural Market Information Society (AMI), these three plants have long been the most popular bedding and balcony plants in Germany. In spring, says Nadja Haese, garden and balcony owners are initially most drawn to primroses and bulb plants. "These are our top sellers at the start of the season," she emphasizes.
The flower and ornamental plant industry hopes that the trend will improve in 2025 after a difficult year in 2024. According to AMI figures, the total market last year grew by just one percent to €8.8 billion. A growth driven purely by price increases, according to the industry association. Sales volumes declined year-on-year in nearly all market segments. AMI gave good marks only for the months of March through April. For the rest of the year, the market operated at an unusually low level for the ornamental plant sector.
This development can't be explained by erratic weather alone. More significantly, providers of flowers and ornamental plants are feeling the effects of increased consumer caution. Concerned about the general economy and their personal finances, many customers are holding back—even when it comes to buying flowers and plants. "This is a new experience for our industry. In the past, we could often decouple ourselves from the overall economy. People didn't let bad news stop them from bringing freshness and color into their homes with flowers," says Mirko Sauerbach, Senior Buyer for Fresh Cut Flowers at the REWE Group.
The sale of bouquets at REWE and PENNY follows a different calendar than the gardening season. "Our five key events for cut flowers are Valentine's Day, International Women's Day, Easter, Mother's Day, and Advent," says Sauerbach. Tulips are the best-selling spring flowers and are available in stores starting from the second calendar week. Over the whole year, roses are number one. Ironically, tulips have faced a big issue this spring. Due to last year's erratic weather, significantly fewer bulbs were planted and harvested than usual. "We haven't seen such unfavorable conditions in decades," says the REWE buyer. The shortage of bulbs is driving up prices—but customers are price-sensitive and are buying flowers less frequently.
In contrast, the drop in spending on garden plants is not as pronounced. According to AMI, in 2024, nearly half of the industry's revenue came from bedding and balcony plants, shrubs, perennials, herbs, and flower bulbs. Just over €4.2 billion represented a little more than one percent growth from the previous year. "Those who love plants and flowers but don't have a garden often try to make the most of small spaces, such as balconies," says Nadja Haese. In her experience, plant buyers increasingly value more than just a visually appealing garden. They also want to do something good for nature, such as creating environments that support bees and butterflies. Sustainability is becoming more and more important in plant purchases. "We're seeing more questions about peat-reduced products. And we have a lot to offer in that area," says the toom expert.
A large portion of the products sold in toom, REWE, and PENNY markets comes from the Netherlands—the world's most important trading hub for cut flowers. Potted plants, on the other hand, mostly come from domestic production or are sourced from Italy, Spain, or Denmark. "And our roses mostly come from Africa," adds Sauerbach.
The significance of the flowers and ornamental plants category has grown significantly in the REWE Group's assortment in recent years. "We're increasingly thinking about new presentation styles in our stores, investing in vases and furniture, and upgrading our selections," emphasizes Sauerbach. In the past, it was difficult to sell bouquets for more than €15 in supermarkets. "Now, customers realize that the quality in supermarkets is not inferior to that in traditional flower shops." The AMI's 2024 annual report offers another reason why supermarkets are becoming increasingly important for the green industry: A shortage of skilled workers has shifted more sales and volume from specialized retailers to the grocery retail sector.
Source: REWE Group