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Flower growing costs may rise in Europe due to US tax increases

Industry News By Lily Anderson 0 views
Recently, according to German AMI data, last year Germany's flowers and ornamental plants grew by 1% yuan compared with the same period the previous year. It is not hard to see that the growth was relatively slow, and at the same time sales in its sub-sectors all declined year on year. In fact, the slow growth in flower sales is somewhat related to the overall economic environment.
Recently, according to German AMI data, last year Germany's flowers and ornamental plants grew by 1% yuan compared with the same period the previous year. It is not hard to see that the growth was relatively slow, and at the same time sales in its sub-sectors all declined year on year.

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In fact, the slow growth in flower sales is somewhat related to the overall economic environment. Inflation, customer uncertainty, and, after the pandemic, a stronger willingness among consumers to save money were also key problems facing the entire flower and green plant industry last year.
In addition, last year there was a lot of extreme weather and global climate change, and these factors also affected the sales performance of the flower market. Relevant data shows that last year the retail sales of Germany's cut flower market were about 3.1 billion euros, with per capita spending of about 37 euros, lower than the consumption level in 2023.
Although demand is declining, competition in the current flower and green plant market is still very fierce. Some large multinational flower companies, as well as emerging online flower sellers, are offering convenient online purchasing and fast delivery services, and the rise of this segment has also brought certain pressure on the traditional flower market.
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Furthermore, the US tax increase may affect Europe's greenhouse industry and raise the maintenance cost of flowers. On February 10, the new US President Trump announced that starting from March 12, a 25% tariff would be imposed on all steel and aluminum entering the United States. This also means that the cost of growing flowers will increase, because steel and aluminum are important materials for greenhouses.
Regarding the US tax increase, some industry insiders pointed out that the current risks in the greenhouse industry will translate into prices. Greenhouse businesses will either bear the risks themselves or pass them on to greenhouse investors. Perhaps, against the backdrop of fierce competition in the flower market, companies need to think carefully about how to purchase raw materials, so as to bring new business opportunities to flower sales.


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