According to PEW Research, in 2016, Millennials or Generation Y (ages 18 – 34) represent 75.4 million people, surpassing Baby Boomers (ages 51- 69) at 74.9 million. Those of Generation X (ages 35—50) represent 66 million people.
The heavy Internet and social media usage of Gen X and Millennials, coupled with average household net worth above $500 K for affluent generations, shows that the floral industry needs to dramatically increase its Internet presence to capture the business of these generations.
However, affluent Baby Boomers (25% of the population) represent three—quarters of the net worth and the segment that most appreciates flowers.
At the same time, consumers in their golden years are also living on lower incomes, causing flowers to be considered a luxury, a desire which they satisfy by purchasing mass-market bouquets.
THE MOST CHALLENGING ASPECT OF THE FLORAL INDUSTRY IS ITS DEMOGRAPHICS.
- Millennials are the fastest growing population segment, surpassing Baby Boomers.
- Millennials are technologically savvy, and the fastest to adopt new trends.
- Millennials are already looking beyond social media “such as Facebook” to communicate and share.
Together with Generation X, these two segments represent 40% of the economically active population.
in this photo: Lisianthus
SOCIO-CULTURAL FACTORS CHANGES IN TRADITIONS, NATIONALISM, ACCESSIBILITY, AND NEW PURCHASING OPTIONS ARE SHIFTING THE SHARE OF
THE DISTRIBUTION CHANNELS
Key influencing factors CHANGES IN TRADITIONS:
- Funeral sales are falling due to the trend towards cremation, memorial services, and shorter events. Donations in lieu of flowers have also affected sales.
- In 2013, Amazon introduced its own floral collection. Although Amazon is known for its marketing and its promise of free delivery for Amazon Prime members, margins, as well as industry share, were expected to be impacted significantly. To date, this impact has yet to be seen.
- “Buy American” or “Buy Local” are trends that have been spurred by the recent presidential campaign.
- States with local production (California, Oregon, Washington) have a cultural inclination towards the “farm-to-table” concept, although the product may be more expensive.