European demand for plants and plant materials is steadily growing, creating good opportunities for developing country (DC) exporters. fierce competition and margin pressure on the European market are further reasons for Europeans to look to DCs for solutions.
Increased demand for year-round availability of plants – especially (sub-) tropical plants and trees used as garden plants – is a major growth driver on the European plants market. Current trends in interior decoration are also boosting plant sales, as is a revived interest in flowering pot plants and decorative pots and ceramics. Consumer care for the environment and the popularity of gardening are also strong growth drivers in this sector.
Unrooted cuttingsAdded to the competition and margin pressure faced by European players, these developments are creating good opportunities for DC exporters. For one thing, many Europeans are seeking to partially outsource production processes to low-cost countries. Especially DC exporters specialised in rooted and unrooted cuttings are in vogue. The production of unrooted cuttings is the most interesting because of the low transport costs involved. Tissue cultivation is also increasingly being outsourced to low-income countries, offering chances to DC laboratories. A third opportunity area is the demand for high-quality plants with distinguishing characteristics, which has grown rapidly over the last couple of years. This trend enables DC exporters to differentiate themselves on the market. The most interesting EU markets are the Netherlands and Germany, because of their large share in plant imports from DCs. Other interesting export destinations are Denmark, Portugal, the Czech Republic, Ireland and Bulgaria. These countries are also showing high growth rates in plant imports.
BarriersThere are also barriers DC exporters must overcome to gain and a foothold in Europe. Shipping heavy pot plants, for instance, involves high transportation costs. Accessibility limitations due to bad roads, border controls, extreme weather, political instability and dependence on exports can also make it hard for DC exporters to access Europe. Another challenge is posed by the high-tech production methods applied by EU growers.
Increased demand for year-round availability of plants – especially (sub-) tropical plants and trees used as garden plants – is a major growth driver on the European plants market. Current trends in interior decoration are also boosting plant sales, as is a revived interest in flowering pot plants and decorative pots and ceramics. Consumer care for the environment and the popularity of gardening are also strong growth drivers in this sector.
Unrooted cuttingsAdded to the competition and margin pressure faced by European players, these developments are creating good opportunities for DC exporters. For one thing, many Europeans are seeking to partially outsource production processes to low-cost countries. Especially DC exporters specialised in rooted and unrooted cuttings are in vogue. The production of unrooted cuttings is the most interesting because of the low transport costs involved. Tissue cultivation is also increasingly being outsourced to low-income countries, offering chances to DC laboratories. A third opportunity area is the demand for high-quality plants with distinguishing characteristics, which has grown rapidly over the last couple of years. This trend enables DC exporters to differentiate themselves on the market. The most interesting EU markets are the Netherlands and Germany, because of their large share in plant imports from DCs. Other interesting export destinations are Denmark, Portugal, the Czech Republic, Ireland and Bulgaria. These countries are also showing high growth rates in plant imports.
BarriersThere are also barriers DC exporters must overcome to gain and a foothold in Europe. Shipping heavy pot plants, for instance, involves high transportation costs. Accessibility limitations due to bad roads, border controls, extreme weather, political instability and dependence on exports can also make it hard for DC exporters to access Europe. Another challenge is posed by the high-tech production methods applied by EU growers.
For more information download our market survey ‘The plants and young plant material market in the EU’ at www.cbi.eu/marketinfo.
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