Global trade in ornamental plants is characterised by stark contrasts between dynamic exporting regions and major import markets facing economic pressures. By 2026, the European ornamental plant industry will be operating in a paradoxical context: public demand for plants remains strong, but at the same time businesses must contend with rising energy and cultivation costs, labour shortages, regulation, climate change and rapidly changing customer expectations.

Production must therefore become more efficient, using fewer inputs; production processes are disrupted by economic constraints, and the cost-benefit balance is out of kilter. Regulations and environmental standards do not make matters any easier. In this period of economic tension, inflation and instability, investment is a challenge, and business transfers are not straightforward. The challenge for producers is to achieve an ecological transition with fewer resources.

Distribution faces the challenge of a maturing market. It must reignite the joy of shopping in a more cautious, selective and volatile market for garden plants, straddling traditional and digital retail. Physical retail outlets must become inspiring places, where advice and experience take centre stage. New services such as click & collect and an active social media presence with educational content are expected, alongside a demand for traceability and local production. The challenge for distributors is to sell less on a ‘transactional’ basis and more on the basis of ‘desire, advice and trust’.

The gardenening and landscaping industry is seeing increasing demand from both private individuals and public authorities. This demand is influenced by a desire for sustainable maintenance, water-saving gardens, the restoration of former polder areas, and urban greening suitable for climate adaptation. Recruiting sufficient staff is difficult, and profitability is constrained by rising costs and pressure on margins. The challenge for landscapers is to cope with changing ecological, economic and environmental requirements, despite the significant pressure on margins and staffing.

Priorities within the horticultural inudstry change over time. For example, during the Covid period the focus was on sales, whereas now the priority is on production to meet demand, whilst respecting environmental requirements: fewer plant protection products, less peat, less energy. This new priority can be achieved through investment, but this requires profit margins, and the current restrictions are putting significant pressure on operating results.

Fortunately, innovation remains active and professionals are demonstrating impressive adaptability. Ornamental plants have become an essential requirement, both for local authorities and private individuals.

Author: Brand Wagenaar