Sogo Orchids, a Taiwan-based Phalaenopsis breeder and young plant producer, currently exports to growers in approximately 20 countries across North and South America, Europe, Asia, and Oceania. With an assortment of around 300 commercial varieties and over two decades of experience in the Phalaenopsis market, the company continues to monitor shifting trends, regional market behavior, and challenges faced by growers worldwide. So, what are the trends and challenges? David Chen, the company's Chief Business Officer explains.
Main markets: North America, Europe, and Australia, with China being upcoming
Before diving into the trends and challenges, first take a look at Sogo's main markets. Their primary markets are North America, Europe, and Australia. Chen explains, "Thanks to our adherence to the USDA Organic Program and the Australian Quarantine and Inspection Service, we can meet strict import requirements while also certifying others. This has positioned the company well in regions with demanding phytosanitary and sustainability standards."
However, they also observed a noteworthy increase in Phalaenopsis cultivation in China. "This growth is primarily driven by local government initiatives and a highly developed transport network," the CBO says. No major declines in production were reported in other regions, though increased production costs continue to present challenges globally.
Orchid market stabilizing post-COVID, but tariffs cause turbulence
According to Chen, demand for Phalaenopsis has remained relatively stable overall. "While the COVID-19 pandemic disrupted the global floriculture supply chain, we're now seeing a gradual recovery in some markets," the company states. However, recent developments—such as newly imposed U.S. tariffs across several sectors—have added complexity. "These tariffs are significantly impacting the global orchid supply chain, adding cost pressures and uncertainty."
Growers face mounting costs and environmental regulations
On the grower's side, he notices that energy and labor costs are rising steadily, and growers are under growing pressure to reduce their environmental impact. "There is increasing focus on reducing nitrogen emissions and lowering the carbon footprint. This often requires major investments in greenhouse upgrades." Furthermore, interest in chemical-free cultivation is gaining momentum. "We see a growing demand for organic growing methods, not only for consumer health reasons but also to comply with tightening environmental regulations."
Best-seller: Sogo Lotte
SOGO's assortment currently includes around 300 commercial Phalaenopsis varieties, reviewed annually to align with market needs. Among them, Sogo Lotte (F2510) stands out as a consistent bestseller. "It's a follow-up to Sogo Vivien (F858), a mini variety introduced in Europe 20 years ago. Lotte is valued for its vibrant color, larger blooms, and distinctive patterning."
Trends vary by region
And what about trends? They vary significantly by region, he says. "European markets prefer shorter stems and larger flowers, while in North America, there is strong demand for a wider range of colors and patterns. We're now seeing similar diversity in Asian markets as well."
Organic varieties on the horizon
Looking ahead, Sogo continues to focus on innovation through its breeding program. "Our ultimate goal is always to achieve the ideal bloom", he says. "Each year, we make progress in our test selections, and we are also actively working toward developing fully organic Phalaenopsis varieties. The aim is to help our customers grow healthier plants in line with shifting consumer expectations and sustainability goals."
For more information:
SOGO Orchids
linkedin.com/company/sogo-orchids/