Factors Affecting U.S. Consumer Expenditures of Fresh Flowers and Potted Plants

Abstract

<jats:p>The floral industry has experienced declining sales in the past few decades, causing many to speculate as to the underlying causes. To identify consumers’ spending patterns for fresh flowers and potted plants, we extracted and analyzed quarterly expenditure interview data from the Consumer Expenditure Survey, 1996 to 2013. Our analysis revealed consumption trends over time by age group, and compared the differences in expenditure patterns across states. Additionally, we employed the Heckman two-step model to estimate how flower consumption is affected by sociodemographic characteristics, geographic factors, housing status, and seasonal factors. The estimation results show that the source of declining demand can be attributed to the decrease in both number of flower purchasers and expenditure among purchasers. Many factors including age, marital status, gender, education, income, number of earners in household, population size of the residing city, house type, and number of rooms in the house affect the demand for fresh flowers and potted plants. Given that floral expenditure has been decreasing among consumers under 40 years of age for the past two decades, innovative marketing strategies to target this age cohort are essential for the floral industry’s success in the future.</jats:p>

Implementation of Sustainable Practices to Ornamental Plant Cultivation Worldwide: A Critical Review

“…The South-North America channel operates via production in South America and import to North America. Although the USA is the third production country in the world, in the past 20 years, cut flower production declined and imports increased [5]. For example, the number of year-round cut flower producers was reduced by 21% from 2013 to 2014 [5].…”

“…Although the USA is the third production country in the world, in the past 20 years, cut flower production declined and imports increased [5]. For example, the number of year-round cut flower producers was reduced by 21% from 2013 to 2014 [5]. However, specialty cut flower production in the USA and Canada increased due to a significant increase in consumer demand [6].…”

Opinions of Landscape Roses Available for Purchase and Preferences for the Future Market

“…Millennials, those born between the 1981 and 1991 and reaching young adulthood at the beginning of the 21st century (Merriam-Webster Inc., 2018), may prefer a different type of plant compared with a more mature gardener. Recent research has shown differences in floral expenditures in consumers younger than 40 years old and a need to determine their needs and effective marketing strategies (Zhao et al, 2016). Past research found differences in consumers of different ages in their garden purchase satisfaction and levels of purchase regret and encouraged differing marketing tactics based on age (Behe and Dennis, 2009).…”

Determinants of Food Expenditure Patterns: Evidence from U.S. Consumers in the Context of the COVID-19 Price Shocks

“…Identical to Byrne et al [27], except the price variable, who examined the expenditure patterns of U.S. households for FAFH from 1982 to 1989. Zhao et al [28] retained the same variables to evaluate the U.S. consumer expenditure patterns for fresh flowers. Recently, Cheng et al [29] included the four types of variables to estimate demand for nuts in the U.S. Dettmann and Dimitri [30] had only focused on the socio-demographic characteristics to examine the expenditure patterns of U.S. consumers of organic vegetables.…”