Market Overview

The flower and ornamental plants retailing market is expected to attain 973.8 billion yen in 2023 (100.1% of the preceding year). Although people’s flow is recovering in line with the reclassification of COVID-19 to Class-5 infection disease and the demand is recovering for flowers and ornamental plants used at events and commercial facilities, the market as a whole is yet to return to the pre-pandemic level.

Because of the uncertainty of the global situation, as well as the depreciation of the yen and soaring costs in production and distribution, the price of flowers is skyrocketing, and supply conditions are deteriorating. For these reasons, flower retailers have decided to revise their retail prices.

Despite the efforts by flower shops to differentiate themselves from supermarkets, home centers, and other mass merchandisers by quality and design of plant arrangements, consumers are increasingly shifting to supermarkets and home centers, where they can purchase fresh products at cheaper price.

Noteworthy Topics

2024 Problem in Logistics

Logistics is a critical social infrastructure that enables people's daily lives and commercial activity. However, the lack of truck drivers in Japan is worsening. Lifestyle changes brought on by the COVID-19 crisis, as well as an increase in redelivery rates for residential deliveries due to the rapid spread of internet shopping, have exacerbated the situation.

Furthermore, 'attentive' services that cater to shippers' needs result in increased small-lot frequency, inefficient loading, and longer freight wait times. As these conditions grew engrained in the industry, excessive driving hours became an industrywide problem.

While initiatives have been taken by logistics companies to improve productivity and ensure sustainability, the "Act on the Establishment of Relevant Laws to Promote Workplace Reform (Workplace Reform Related Law)" was enacted in 2018, capping truck drivers’ annual overtime to 960 hours per from April 1, 2024.

As the act limits work hours of truck drivers, it may lead to a significant weakening of the domestic road transportation, stagnating distribution. This is called the "2024 problem of logistics” and a concern is growing.

Meanwhile, the flower and ornamental plants industry is working to improve loading efficiency by standardizing transportation packaging, such as the size of distribution containers, and developing distribution centers equipped with refrigeration facilities. In addition, the industry is considering combining of transportation means such as ferries and trucks.

Future Outlook

One of the most significant difficulties flower and ornamental plant businesses are facing is the creation of demand for cut flowers. Considering that the demand tends to be higher for products with distinctive features, seed and seedling manufacturers are focused on the research and development of products such as “flowers that come in special colors and/or shapes”, “flowers that are pollen-free”, “flowers that normally bloom in other season”, “flowers that are disease resistant," and "mass-yielding flowers".

A new demand observed, especially among younger consumers, is the demand for fresh flowers that are artificially dyed in colors different from their original color. While dying of plants was not taken favorably in the past, improvements in dyeing technology that allow colors to look natural, which harmonizes with the look of natural fresh flowers, seems to have propelled the demand. The demand is also growing in the last couple of years for flowers for “oshikatsu”*, where consumers choose flowers in colors that match with their favorite characters.

To generate demand for flowers, cross-industry measures are important, including development of products that translates consumer needs, cooperation of producers, fostering of production bearers, and co-branding with distributors and retailers. In terms of sales channel, new services that enable consumers to purchase flowers on a day-to-day basis handily are increasing presence in addition to the conventional flower shops and supermarkets, such as flower subscription service that home deliver flowers to consumers weekly or biweekly, and online shops.


(*Translator’s note: “Oshikatsu” is the act of enthusiastic supporting of someone, such as a popular idol and an anime character, that one feels particular devotion to.)

Research Outline