—The Evolution

From Tulip Mania in the Netherlands to a Post-pandemic Surge in Demand, How the Floral Business Has Wilted and Flourished

Welcome to CB's weekly newsletter, The Evolution. Each Tuesday, we're charting the ups and downs of a trending product, buzzy industry, innovative service or revolutionary idea. From our seemingly sudden obsession with drones to the origins of the at-home workout craze, The Evolution examines the zeitgeist by looking at where we've been and where we are going. This week, we're detailing the history of the floral industry.

Between birthday celebrations, Valentine’s Day, Mother’s Day (a.k.a. the Super Bowl for florists) or more sombre events such as funerals and breakups, there's no shortage of occasions that call for a bouquet. So, it’s no wonder blooms are a booming business: Spherical Insights & Consulting valued the global cut-flowers market at US$35.6 billion in 2022, expecting it to reach US$53.9 billion by 2032. In Canada alone, about $158 million worth of cut flowers were sold in 2021, up from around $137 million in 2020. Here, how the perennial floral industry has grown over the decades.

↑ High: 1600s 
Greenhouses kick off floral exports in the Netherlands

There was a period when prices for exotic tulip bulbs, which made their way from Turkey to the rest of Europe in the late 1500s, soared high enough to become their own speculative asset class, akin to Bitcoin or a prized Hermès bag today. By the 1600s, tulips—fragile species that required careful cultivation—were regarded as a prized luxury item by wealthy merchants. The flowers were a cornerstone of Dutch paintings and culture, contributing to an uptick in demand. Their sale was facilitated on the Amsterdam Stock Exchange, with people purchasing their bulbs on credit. (Those tulips would have sold for over $87,000 in our current economy.) Flower auctions coincided with the development of greenhouses—which allowed outdoor plants to be produced out of season—and kickstarted the Netherlands' floral trade biz, which now accounts for around 81 per cent of the world’s tulip imports. 

↑ High: 1870s 
Cut flowers biz takes shape in the U.S. 

Theodosia Shepherd, nicknamed the “The Flower Wizard of California,” was reportedly the first woman in the U.S. to hybridize flowers, giving rise to a seed and bulb business that she grew out of her garden in Ventura, Calif. Shepherd started her business by selling species of poppies and petunias to her neighbours and grew her business big enough to officially incorporate it as a company in 1902. Her work is seen as the foundation of California's seed and cut-flower industry. To this day, California produces around 80 per cent of the U.S.'s fresh flowers.

↑ High: 1960s 
Carnations originate in Colombia

Coffee and gold may come to mind when you think of Colombia, but the country is also known for its flower industry. Bright light, moderate and consistent temperatures and cheap production made Bogotá fertile ground for carnation production in the late 1960s. The city’s flower industry expanded to chrysanthemums and roses in the following years. Other countries in South America, such as Ecuador, followed Colombia’s lead; however, none have been quite as successful—even now. Accounting for around $58 million in value, the majority of Canada's cut flowers in 2021 were imported from Colombia. 

↓ Low: 1990s
Child labour used in floral production

A bulk of flowers that make it into Canadian homes are from Central and South America, but flower production in these countries can involve child labour, poor working conditions and low pay. Reports published between 1999 and 2000 by the U.S. Department of Labor and the International Labour Organization found floral industries in Colombia and Ecuador used child labour. As of 2021, the U.S. Department of Labor reported both countries had made significant progress in eradicating child labour but that the problem persists due to a lack of appropriate social programs and labour inspectors. 

↑ High: 1995
1-800-Flowers dominates the online floral biz

In 1976, 1-800-Flowers founder Jim McCann paid US$10,000 for the company's first flower shop in Manhattan, on First Avenue and East 62nd Street. His goal was to create a franchise model for flower shops: “I looked around and there was no McDonald’s of the flower business,” McCann recounted to Forbes in 2017. Customers would shop in person or place orders through the phone, hence 1-800-Flowers. Then at the height of the internet boom in 1995, the company launched its website, 1-800-Flowers.com, to facilitate orders, becoming one of the go-to online sources for florals. Today, the company controls over 26 per cent of the U.S. gourmet food and floral-gifts market and is credited with spurring online flower delivery. (These days, you can even order a fresh bouquet from DoorDash.)

↓ Low: 2020 
The pandemic slows flower shipments 

In the U.S., there were around 55,500 floral designers in 2018. Even before the pandemic-induced economic crisis, designers struggled to make ends meet and hit revenue targets due to discounted prices on flowers online and at grocery stores. Then came pandemic-related lockdowns, forcing couples to postpone weddings and florists to cancel orders. One retailer, U.S.-based Farmgirl Flowers, had to throw out around US$150,000 in flowers that were set to be shipped. Farms and wholesalers also struggled. It became a challenge to send flowers on cargo planes, as shipment delays due to Covid resulted in withered and wilted petals.

↑ High: 2022
Demand soars as restrictions and lockdowns lift 

As major celebrations, from weddings to graduations, resumed, demand for blooms and bouquets surged. While this was initially good news for florists and growers, the New York Times reported lingering supply chain issues, labour shortages and poor growing conditions in places like Ecuador resulting in a shortage of flowers typically reserved for large occasions. Aside from a shortage of the actual stems, there was also a shortage of supplies used to put arrangements together, like decorative ribbon and vases. Combined with soaring inflation—which hit a 39-year high last year in Canada—boutonnieres, bouquets and other floral arrangements became pricier. You could expect to pay $35 to $40 for the average bouquet in 2020 but now expect to fork over upwards of $50 for the same arrangement, Michelle Hodgson, owner of Vancouver-based Blossom and Vine Co, told CBC.

Is the future just as rosy for the floral industry? We asked two experts. 

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