Posted On: 2021-12-17
Commercial application acquired the largest market revenue share among all the applications in the overall UAE cut flower market – 6Wresearch
UAE cut flower market saw a sharp decline in 2020 on account of lockdowns and restrictions imposed in the country to curtail spread of COVID-19 which resulted in supply chain disruptions and halted exhibitions and corporate events. However, the decline in market is expected to be temporary and the market is anticipated to return to a healthy growth rate on account of upliftment of lockdowns restrictions and resumption of business activities such as the upcoming mega event Dubai Expo 2020 which is expected to run from October 2021 to March 2022 and is expected to attract 25 million visitors. The UAE cut flower market is expected to grow at a decent growth rate in the coming years owing to government initiatives such as establishing Dubai Flower Center as a special economic zone wherein government provide special tax concessions and customs duty benefits to the investors to facilitate floriculture industry. Further, increasing adoption of advance technologies such as hydroponics and greenhouses to reduce country’s reliance on imports, which would also have a positive impact on the UAE cut flower market in the near future.
According to 6Wresearch, UAE Cut Flower Market size is projected to grow at a CAGR of 13.3% during 2021-2027. UAE cut flower market is expected to grow at a healthy rate owing to the annual events hosted by UAE such as Arab Health, Gulfood, Dubai Design Week and many more that attracts millions of people from around the world. Moreover, government initiatives such as Dubai tourism Strategy 2020 and UAE Strategy for Domestic Tourism would augment the hospitality and tourism sector in the years to come. Since flowers are extensively used for decoration of lobbies, reception and also as a center piece for conference rooms and restaurants, hence growing hospitality sector and number of events in the country would drive market for cut flowers in years to come.
According to Anmol Dhanju, Research Analyst, 6Wresearch, “By application, commercial application contributed majority of the revenues in the recent past. In 2018, a $163 million fund was launched by the Department of Culture and Tourism to enhance Abu Dhabi’s portfolio of leisure and business events. This mega fund was a part of Ghadan 21 programme to accelerate Abu Dhabi’s economy. Furthermore, government launched Dubai Tourism Strategy in 2020 which aims to attract 23 to 25 million visitors by 2025 which would augment hospitality industry in the country hence driving the demand for cut flowers in the years to come.
According to Dhaval Chaurasia, Research Associate, 6Wresearch, “In the recent past, Dubai contributed a major chunk of revenues in UAE cut flower market and the similar trend is expected to continue in the coming years owing to growing number of business and leisure events in the emirate. Apart from the mega event Dubai Expo 2020, Dubai has several other events in the pipeline such as Dubai Summer Surprise, Dubai Fitness Challenge, Dubai Design week, Dubai International Film Festival and many others. These events are expected to attract several tourists from all round the world which would contributes towards the growth of hospitality sector and since cut flowers are used in hospitality industry, growth in this industry would drive growth of cut flower market in the years to come. Furthermore, Abu Dhabi launched a $8.2 billion investment plant to boost creative and cultural industries. Development of cultural institutions would propel hospitality industry by attracting large crowds which would in turn create a demand for cut flower in near future.
Some of the major companies in Pakistan video conferencing market include Black Tulip Flower LLC, Al Lokrit International LLC, Alissar Flowers International FZCO and Flowers AE LLC.
“UAE cut flower market (2021-2027)” report provides an in-depth analysis with 28 figures and 6 tables, covered in 92 pages. The report estimates and forecast the overall UAE cut flower market by flower types, by application, sales channels and by emirates. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.