Market Scenario 

Vietnam floriculture market was valued at US$ 1.71 billion in 2023 and is projected to hit the market valuation of US$ 3.42 billion by 2032 at a CAGR of 8.47% during the forecast period 2024–2032.

Vietnam's floriculture market is a flourishing sector that plays a significant role in the global flower market. With around 35,000 hectares dedicated to flower cultivation, Vietnam's production hubs, particularly in Lam Dong province and the city of Da Lat, are at the heart of this blossoming industry. Da Lat, famously known as the "City of a Thousand Flowers," alone contributes millions of blossoms annually. The industry boasts over 4,000 different flower varieties, including roses, chrysanthemums, orchids, and lilies. The country's remarkable orchid diversity, with more than 1,500 species, underscores Vietnam's prominence as a key player in the global floriculture landscape. Furthermore, this sector is a critical component of the national economy, providing employment to approximately 3 million people and supporting rural livelihoods.

Economic and cultural factors are driving the growth of Vietnam's floriculture market. The country's population, which exceeds 98 million, has witnessed a rise in disposable income, leading to increased consumer spending on flowers for personal enjoyment and gifting. Flowers hold significant cultural value, especially during the Lunar New Year (Tet) festival, when flower consumption peaks, with over 15 million flower pots sold nationwide. Urbanization, with more than 37% of the population residing in urban areas, has amplified the demand for decorative plants in homes, offices, and public spaces. Additionally, the hospitality and tourism sectors, welcoming over 18 million international visitors in recent years, heavily rely on floral decorations to enhance the aesthetic appeal of their venues.

Looking ahead, Vietnam's floriculture market is poised for further growth. The increasing use of flowers and plants for decorative and aesthetic purposes, including in green roofs and wall gardens, is expected to fuel this expansion. As the market continues to evolve, it promises to offer even more opportunities for economic development and cultural enrichment. With its rich diversity of flower species and vibrant cultural significance, Vietnam's floriculture industry not only contributes to the economy but also enhances the country's cultural identity and lifestyle, making it an essential and dynamic sector in the nation's growth narrative.

Technological and Market Trends

• Vietnam's floriculture market is experiencing a transformative phase, driven by technological innovations and a strong focus on sustainability. In Da Lat, a hub for flower cultivation, over 2,500 hectares are dedicated to high-tech farming methods such as greenhouse farming and hydroponics. These methods significantly enhance both the quality and yield of flower production, positioning Vietnam as a competitive player in the global market.
• The rise of e-commerce has revolutionized the floriculture market, with more than 500 online flower shops now operating in major cities. This digital shift provides consumers with convenient access to a wide variety of floral products, expanding the market reach beyond traditional brick-and-mortar stores.
• Sustainability is becoming a cornerstone of Vietnam's floriculture industry. A growing number of farms are obtaining certifications like GlobalG.A.P, covering over 5,000 hectares of cultivation area. This commitment to environmentally friendly practices not only enhances the market's reputation but also aligns with global trends towards sustainable agriculture.

Future Prospects and Economic Impact

• The market serves a diverse range of end users, including individual consumers, corporate clients, event organizers, and the hospitality industry. The retail landscape has evolved with over 1,000 supermarket outlets nationwide offering flowers and ornamental plants, thus broadening consumer access beyond traditional flower shops.
• Vietnam exports flowers to over 50 countries, generating annual export revenues exceeding US$ 100 million. Japan is a significant floriculture market, importing Vietnamese flowers valued at more than US$ 30 million annually. Government support has been pivotal, with investments surpassing US$ 25 million in agricultural research centers, enhancing the industry's global competitiveness.
• Looking ahead, urbanization, rising incomes, and expanding export markets are expected to drive the industry's growth. Events like the Da Lat Flower Festival, which attracts over 500,000 visitors, underscore the potential for floriculture to contribute to tourism and cultural preservation. These factors position Vietnam's floriculture industry for sustained growth and success.

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Market Dynamics

Driver: Rising Exports Due to Global Interest in Vietnamese Floriculture Products

The Vietnamese floriculture market continues to flourish, with exports soaring due to a burgeoning global interest in the country's distinctive floral products. Vietnam's floriculture industry has carved a niche on the international stage, leveraging its immense biodiversity and favorable climatic conditions to produce a vast array of flowers, including roses, lilies, and orchids. In recent years, the value of Vietnamese flower exports has reached unprecedented levels, with nations such as Japan, the United States, and South Korea leading as major importers. The surge in demand is attributed to Vietnam's ability to supply high-quality, competitively priced flowers that boast remarkable variety. By 2022, Vietnam had exported over 20,000 tons of flowers, generating a substantial export value of $300 million. Japan imported approximately 9,000 tons, while the U.S. imported 6,000 tons. The floriculture sector now forms a significant portion of Vietnam's agricultural exports, with over 2,000 hectares dedicated to flower cultivation. Additionally, exports to European countries have increased by 15% annually.

The Vietnamese government has been instrumental in bolstering floriculture exports by enacting policies that foster investment in cutting-edge agricultural technologies and enhance logistical infrastructures. The adoption of modern farming practices and cold chain logistics in the Vietnam floriculture market has improved the quality and shelf-life of exported flowers, making them more appealing to global buyers. Consequently, floriculture has emerged as one of Vietnam's most rapidly expanding agricultural sectors, with over 100 floriculture companies engaged in export activities. In Ho Chi Minh City alone, there are more than 300 floriculture enterprises contributing to this expansion. Moreover, the floriculture industry employs over 50,000 workers, underscoring its pivotal role as an economic driver. The emphasis on exports has also spurred a surge in floriculture training programs, with over 500 students enrolling annually. Furthermore, exports to China have increased by 12% annually.

Trend: Adoption of Advanced Cultivation Techniques for Higher Yield and Quality

In the Vietnamese floriculture market, the embrace of advanced cultivation techniques continues to accelerate, driving significant improvements in both yield and quality. This trend is reshaping the floriculture industry as growers increasingly turn to modern agricultural practices including hydroponics, tissue culture, and integrated pest management. These innovative methods enable growers to produce flowers more efficiently, moving away from traditional, less productive, and more resource-intensive methods. For example, the use of hydroponics has not only doubled flower yields for many Vietnamese growers but also led to a 20% reduction in water usage per hectare. Some farms now boast production figures of up to 50,000 stems per hectare annually. Tissue culture techniques have facilitated the rapid multiplication of plant species, resulting in over 1 million orchid plantlets produced each year. Furthermore, integrated pest management has cut pesticide use by 30%, enhancing the environmental sustainability of floriculture operations. Additionally, these methods have improved overall flower quality, with a 15% increase in export-grade flowers.

The shift toward advanced cultivation methods is bolstered by robust government initiatives and strategic partnerships with international research institutions in the floriculture market. The Vietnamese government has invested significantly in agricultural innovation centers, which provide extensive training and resources to local farmers. These centers have become crucial in transferring knowledge and technology, with over 2,000 farmers trained in advanced techniques annually. Collaborative efforts with countries like the Netherlands have introduced cutting-edge floriculture technologies, empowering Vietnamese growers to compete more effectively in the global market. In Hanoi, a successful research partnership with Dutch experts led to the development of a high-yield rose variety, with over 500,000 stems harvested in its inaugural year of cultivation. Additionally, the adoption of smart farming technologies, such as automated irrigation systems, has resulted in water savings of up to 40,000 liters per hectare each year. Moreover, government initiatives have led to a 25% increase in funding for research into sustainable floriculture practices.

Challenge: Climate Change Impacts Affecting Floriculture Production and Quality

The Vietnamese floriculture market is grappling with significant challenges due to climate change, which critically impacts both production and quality. Rising temperatures, erratic rainfall patterns, and the increased frequency of extreme weather events such as typhoons and floods have disrupted flower cultivation across the country. These climatic shifts have caused irregular flowering periods, reduced yields, and heightened vulnerability to pests and diseases. In 2023, the typhoon season was particularly devastating, leading to the loss of over 5,000 hectares of flower crops in the Mekong Delta, a key floriculture region. Prolonged droughts have also exacerbated water scarcity issues, affecting more than 10,000 hectares of flower farms. The financial toll of these climate-related disruptions on the floriculture industry was estimated to be around $50 million in the same year. Furthermore, pest infestations increased by 20% due to changing climatic conditions, further straining resources.

To combat these challenges, the Vietnamese floriculture market is increasingly adopting climate-resilient practices and technologies. Farmers are turning to drought-resistant flower varieties and implementing water-efficient irrigation systems to alleviate water scarcity. Over 1,000 hectares of floriculture land have transitioned to drip irrigation, significantly reducing water usage by up to 40%. Additionally, the development of climate-controlled greenhouses has provided more stable growing environments, with over 500 such structures now operational in floriculture regions. These greenhouses have enabled the annual production of 2 million flowers, even under adverse weather conditions. The government's commitment to supporting research into climate-resilient agricultural practices is evident, with over $10 million allocated for research and development in 2023. Moreover, the introduction of solar-powered irrigation systems has reduced energy costs by 15%, further enhancing sustainability efforts.

Segmental Analysis 

By Type 

The Vietnamese floriculture market has been flourishing, with cut flowers at the helm, generating revenues exceeding US$ 1.10 billion in 2023. The market's overall valuation was approximately US$ 1.71 billion, underscoring the pivotal role of cut flowers. Among these, chrysanthemums are particularly dominant, with 1.4 billion stems sold last year. The cultural significance of flowers like chrysanthemums, especially during key festivals such as the Lunar New Year, drives domestic demand. Chrysanthemums are extensively cultivated in regions like Lam Dong and Hanoi, with Lam Dong producing over 500 million stems annually. This production is supported by a growing middle-class population, now over 35 million people, who are increasingly inclined towards home decoration and gifting. In 2023, over 20,000 tons of flowers were produced in Vietnam, with chrysanthemums leading the way due to their vibrant appearance and long shelf life. Additionally, the Vietnamese government has invested over US$10 million in floriculture research and development.

Exports have also played a significant role in the market's expansion. In 2023, Vietnam exported over 150 million stems of chrysanthemums to key markets such as China, Japan, and South Korea. The resilience of chrysanthemums to various climatic conditions and pests makes them ideal for export, further solidifying Vietnam's position in the global floriculture market. Additionally, Vietnam exported over 20 million stems of roses and 10 million stems of lilies, reflecting the diverse range of cut flowers the country offers. The establishment of flower auction centers and improvements in cold chain logistics have streamlined export processes, enhancing the efficiency of international trade. Furthermore, over 500 climate-controlled greenhouses have been constructed, enabling the production of two million flowers annually despite adverse weather conditions. The market's growth is supported by more than 2,000 hectares dedicated to flower cultivation, emphasizing the importance of cut flowers in Vietnam's agricultural landscape.

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Growing 3 Trends of Floral and Agrotourism in Vietnam

• Blossoming Destinations: Vietnam’s Floral Regions Captivate International Tourists and Enthusiasts

Vietnam's floriculture market, particularly in Da Lat and the Mekong Delta, is rapidly emerging as a significant hub for floral and agrotourism. These regions are celebrated for their vast and diverse flower cultivation, including roses, chrysanthemums, orchids, and lilies, providing tourists with breathtaking and immersive experiences. In 2023, Vietnam welcomed 12.6 million international tourists, reflecting a substantial recovery to 70% of pre-pandemic levels. This resurgence in tourism underscores the growing global interest in Vietnam's unique floral landscapes, which captivate with their natural beauty and offer a deep connection to rural life. Additionally, Da Lat alone accounted for over 4 million tourist visits, with flower gardens contributing to 30% of the city's tourism activities. The Mekong Delta, known for its floating flower markets, attracted 2.5 million visitors, further emphasizing the region's role in the tourism industry. These areas not only enhance Vietnam's appeal but also contribute significantly to local economies.

• Floral Exhibitions and Retail Chains Elevate Vietnam’s Agrotourism Experience for Global Visitors

The burgeoning popularity of floral and agrotourism is further augmented by the success of flower exhibitions and events within the floriculture market. A notable example is the exhibition co-hosted by Nova Exhibitions of the Netherlands and VEAS of Vietnam in March 2024, which centered on horticulture and processing technologies. This event drew considerable interest from both domestic and international attendees, with over 50,000 visitors participating. Moreover, the expansion of modern retail chains, such as Dalat Hasfarm's premium fresh flower stores in Ho Chi Minh City and Hanoi, underscores the increasing consumer demand for high-quality floral products. These developments not only invigorate local economies but also provide tourists with more avenues to immerse themselves in Vietnam's rich floral heritage, enhancing their overall experience. In 2023, flower retail sales in these cities reached 200 million USD, reflecting a growing appreciation for Vietnam's floriculture.

• Economic Flourishing Through Floral Tourism: Vietnam’s Unique Agricultural Experiences Attract Worldwide Interest

Economically, floral and agrotourism plays a pivotal role in driving Vietnam's floriculture market growth. In 2023, revenue from lodging and catering services surged to 673.5 trillion VND (27.77 billion USD), accounting for 10.8% of the total value and marking a 14.7% increase from the previous year. This growth is fueled by the escalating demand for unique and immersive experiences, as visitors increasingly seek genuine agricultural interactions. The World Tourism Organization reports a steady rise in agri-tourism operations, indicating a broader trend of travelers pursuing authentic agricultural experiences. This shift presents substantial opportunities for farmers and agribusinesses to capitalize on floral and agrotourism, creating memorable visitor experiences and further driving sector growth. With over 1,000 agrotourism initiatives launched nationwide, Vietnam's floriculture sector contributes significantly to rural development and economic diversification. Additionally, government support for tourism infrastructure improvements, such as enhancing transport links to key floral regions, has further bolstered visitor numbers, with 300 new projects initiated in 2023 alone.

Top Players in Vietnam Floriculture Market

• Dalat Hasfarm
• Fresh Flower World Joint Stock Co.
• Dummen Orange Holding BV
• Syngenta Crop Protection AG
• Royal Base Corp
• Ota Floriculture Auction
• Other Prominent Players

Market Segmentation Overview:

By Type

• Cut Flowers
  • Carnation
  • Rose
  • Chrysanthemum
  • Lily
  • Orchid
  • Other Type of Flowers
• Bulbous Plants
• Potted Flowers
• Others