Flower Diplomacy: Sanctions, Logistics, and New Markets

Abstract

The production of cut flowers is a global business, with major production centres in North America, South America, Central America, East Africa, Europe, the Middle East, Asia, Australia, and New Zealand. The cut flower market is an example of an industry shaped by globalisation. The world’s leading producer is the Netherlands, which cultivates 49% of all cut flowers on the market. Other significant players, steadily increasing their market share, include Colombia (15%), Ecuador (9%), and Kenya (8%). As globalisation has transformed the world economy, flower production has become an international multi-billion-dollar industry. The cut flower market was valued at USD 30 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of over 5.9% from 2024 to 2032, driven by consumer demand for fresh and diverse floral options, coupled with evolving preferences and trends in floral arrangements and design. By examining the key trends in the global and Russian markets, it can be concluded that high transportation costs and stringent regulatory requirements pose challenges to market growth, while simultaneously stimulating innovation in the cut flower production sector.