Malaysia Floriculture Market Analysis - Size and Forecast 2024-2028

Malaysia Floriculture Market Size and Trends

The Malaysia floriculture market size is forecast to increase by USD 233.7 million at a CAGR of 3.3% between 2023 and 2028.  The market is experiencing significant growth due to the increasing demand for decorative and aesthetic uses of flowers and plants. Biotechnology is playing a crucial role in enhancing production efficiency and sustainability in this industry. However, the market faces challenges such as the over-reliance on climatic conditions and rising production and transportation costs. To address these challenges, there is a growing trend towards eco-friendly practices and the use of technology in floriculture. Personalization and customization are also becoming key drivers, with direct-to-consumer sales models gaining popularity. The hospitality industry, including luxury hotels and spas, is a significant consumer of flowers and plants, with the chestnut and plum varieties being popular choices.  Popular bedding plants include chestnut, plum, maple, and willow shoots, which are widely used for their color and hardiness. Sustainability and eco-friendly practices are essential considerations for businesses in this sector to remain competitive and meet evolving consumer preferences.

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The market encompasses the cultivation of various types of plants, including flowers, leaves, and ornamental foliage, for both decorative and commercial purposes. This industry plays a vital role in providing aesthetic delight and contributing to various sectors such as hospitality, events, and personal use. Floral crops, including cut flowers and ornamental plants, are a significant part of the market. These crops are grown in greenhouses to ensure optimal growing conditions and year-round availability. Cut flowers, such as roses, carnations, and lilies, are popular for their beauty and symbolism. Potted plants, like ferns, succulents, and palms, are preferred for their ability to add greenery and texture to indoor spaces. Bedding plants, another essential segment of the market, are grown for landscaping and gardening purposes. These plants include annuals, perennials, and shrubs. Ornamental foliage, which includes lavender, woody ornamentals, and basket weavers, is another crucial segment of the market. Ornamental foliage is used for decorative purposes and adds texture and visual interest to indoor and outdoor spaces. The market is witnessing several trends, including personalization and customization.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Type
  • Chrysanthemum
  • Rose
  • Carnation
  • Others
• Channel
  • Domestic
  • Exports
• Geography
  • Malaysia

By Type Insights

The chrysanthemum segment is estimated to witness significant growth during the forecast period. Floriculture, specifically the cultivation of chrysanthemums, holds significant importance in Malaysia due to its cultural significance and decorative uses. These sub-tropical plants, locally known as 'Kek Hwa,' are widely grown in East Asian countries including Malaysia.

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The chrysanthemum segment was the largest segment and was valued at USD 531.30 million in 2018. Chrysanthemums are valued for their auspicious symbolism and are commonly used for decorative arrangements during special occasions such as marriages and local festivals. Their ease of cultivation and long-lasting fragrance further contribute to their popularity. Moreover, the global market is witnessing advancements in temperature controls and plant biotechnology, enabling the cultivation of a diverse range of flowers beyond their native regions. Hence, such factors are fuelling the growth of this segment during the forecast period.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Malaysia Floriculture Market Driver

Use of flowers and plants for decorative/aesthetic purposes is notably driving the market growth. Ornamental plants, specifically flowers and leaves, hold great significance in various cultural and decorative contexts, particularly during special occasions such as weddings, funerals, anniversaries, and birthdays. In the case of weddings, flowers often make up a substantial portion of the overall budget, and their use is deeply rooted in cultural traditions.

As a result, the demand for these floral crops remains high in the Malaysian market. The horticulture industry, encompassing both floriculture and horticulture, plays a crucial role in providing an aesthetic delight for various decorative purposes. This commercial exchange involves the cultivation of a wide range of floral crops, including cut flowers and potted plants, as well as bedding plants.  Thus, such factors are driving the growth of the market during the forecast period.

Malaysia Floriculture Market Trends

Increasing use of biotechnology in floriculture is the key trend in the market. In the realm of floriculture, technological advancements, particularly biotechnology, are revolutionizing the industry. By manipulating the genetic makeup of flowers, growers can produce uniquely colored blooms, such as blue roses, which can increase market demand.

Biotechnology also aids in cultivating flowers that can thrive in harsh environmental conditions, thereby mitigating risks for growers. For instance, Monsanto is pioneering anti-aging technology for flowers, which can prevent wilting and extend their lifespan, thereby reducing the reliance on costly air freight for transportation. Instead, flowers can be transported via more cost-effective methods like seaways. Thus, such trends will shape the growth of the market during the forecast period.

Malaysia Floriculture Market Challenge

Over-dependence on climatic conditions is the major challenge that affects the growth of the market. The ornamental foliage market encompasses the production and distribution of various types of ornamental plants, including those with attractive leaves, grown in both greenhouses and open fields. Climate plays a significant role in the growth of these plants, with certain varieties requiring ample sunlight and favorable temperatures. However, adverse weather conditions, such as shorter and wetter days, can hinder their development.

To mitigate these challenges, nurseries and growers employ greenhouse automation techniques, including artificial lighting and temperature control systems, to create optimal growing conditions. Genetically engineered flowers have also emerged as a solution to climate-related issues, offering resistance to extreme temperatures and improved growth rates. Hence, the above factors will impede the growth of the market during the forecast period.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Dummen Orange: The company offers floriculture products such as limonium, carnation, and anthurium.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Floristika.com.my Sdn Bhd
• I-Tech Farming Solution (M) Sdn Bhd
• Paling Horticulture Sdn Bhd
• Splendid Floriculture Sdn Bhd
• Syngenta Crop Protection AG
• Waltex Biotec Sdn. Bhd.
• Weeds and More Pte Ltd.
• Yayasan Sabah Group

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

The market encompasses the cultivation and commercial exchange of various types of plants, including flowers, leaves, and ornamental foliage. This industry provides aesthetic delight and serves as a significant source of decoration for various occasions and events. Floral crops, such as cut flowers, potted plants, bedding plants, and ornamental foliage, are grown in greenhouses and open fields using advanced techniques like greenhouse automation and genetically engineered flowers. Consumers seek personalized and customized offerings, driving the growth of direct-to-consumer sales models and e-commerce platforms. Floral products are used extensively in various industries, including hotels, spas, and for personal use. Climate change and environmental factors pose challenges to the industry, leading to increased focus on sustainability and eco-friendly practices. Production and transportation costs are crucial factors in the market, with logistics coordination, information availability, and cold chain protocols playing significant roles. Weather conditions, pest management, and conservation agriculture are essential aspects of sustainable agricultural practices. Technological advancements, such as plant biotechnology, genome sequencing, and agricultural productivity, are transforming the industry. Edible flowers, such as citrus blossoms, hibiscus, roses, nasturtium, and others, offer health benefits, including vitamin C, antioxidants, and potential heart health and wellness advantages. Consumers' increasing health consciousness and demand for anti-aging technology and wilting prevention further fuel the market's growth. Air cargo freight is a critical component of the supply chain, ensuring timely delivery of fresh floral products.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across Malaysia
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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