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The Malaysian floriculture market is projected to register a CAGR of 4.6% during the forecast period (2022-2027).
COVID-19 affected the Malaysia floriculture market very badly. The lockdown imposed to control the transmission of the COVID-19 made people confined to their homes while many non-essential businesses shut shop, leaving thousands of growers helpless as their long preparation and planning to raise a variety of flowers came to naught. Tonnes of orchid, carnation, rose, aster, chrysanthemums, lily, and other flowers that were transported to wholesale markets lay dumped as there were no buyers. Thus, the global pandemic has had a negative impact on the Malaysian floriculture market.
Among the temperate flowers, the chrysanthemum segment of the market studied is observed to be the largest segment in 2021, with a consumption value of USD 30,978.8 thousand. Chrysanthemum has the potential for further expansion during the forecast period due to large acres of production, and the growers have a high SOP standard for their high-quality productions, as well as high demand for it worldwide. Growers in the country play an essential role in the distribution channel of flowers in both domestic and foreign markets.
Over the long term, the growing export demand is anticipated to drive the growth of the market studied. Japan, Thailand, Singapore, and Australia are the major countries importing cut flowers from Malaysia. China, India, the Netherlands, and Indonesia are the major countries exporting cut flowers to Malaysia. Japan, Thailand, Singapore, and Australia are the major countries importing cut flowers from Malaysia.
Scope of the Report
Floriculture is a type of horticulture practice, which focuses on the cultivation of flowering and ornamental plants for gardens, as well as for commercial use. The Malaysian floriculture market is segmented by flower type (orchids, rosa, chrysanthemum, carnation, aster, gerbera, lily, and other flowers). The report also includes production analysis (volume), consumption analysis (value and volume), import analysis (value and volume), and export analysis (value and volume). The report offers the market size and forecasts in terms of value in USD million and volume in metric ton for all the above segments.
Key Market Trends
Increasing Government Support is Aiding the Expansion of Cultivated Area
Over the years, Malaysia has become a home to a wide-ranging assortment of floriculture species that could generate a decent income for producers and traders and contribute to the national income. Therefore, in order to fuel the growth of the sector, the government in the country is offering various support programs. For instance, in the National Agro-food Policy (2011-2020), the government has listed floriculture as one of its high-value industries. Development of areas for the cultivation of temperate flowers in the highlands is expected to cover 120 hectares, including the Lojing Highlands, Kelantan, Kinta Highlands, Perak, Sabah, and Sarawak. Floriculture Nursery Commercial Zones are also likely to be developed in strategic areas in order to meet the demand for landscape plants under this plan. Furthermore, through this policy, the government increased the area under floriculture production to 3,500 hectares in 2020. For this purpose, the government is strengthening its support services through public-private partnerships and also by providing extension services for the development of a competitive floriculture industry.
In order to draw more attention toward new investments in the floriculture industry as well as to promote the export of floriculture products, the government also has drawn-out tax and financial incentives. The ‘Pioneer Status’ is one such incentive that is expected to permit the business five years of partial tax relief. Local companies engaged in exporting agricultural products, including floriculture, are qualified for enhanced export allowance rates of up to 30%, 50%, and 100%, depending on their export value. The increasing area under floriculture coupled with these support activities to bring in more investments into the sector are driving the floriculture market in Malaysia during the forecast period.
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Growing Export Potential for Floral Products
Malaysia is one of the major exporters of cut flowers worldwide. The export value of fresh-cut flowers reaches more than USD 100.0 million every year. However, the COVID-19 pandemic has led to a decrease in cut flowers exported from the country. Simple climate flowers, such as roses, carnations, and lilies, leaves cuttings, and decorative plants, are also exported by the country. Most floriculture products in Malaysia are produced to meet export market needs. The primary export market of floriculture was Japan, followed by Australia, Singapore, Thailand, China, and the United Arab Emirates in 2020, respectively. The widest variety of exported orchids comprises Dendrobium, Aranda, and Mokara. Singapore, Australia, Japan, and Saudi Arabia are the major export destinations for fresh orchids.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Flower Type
5.1.8 Other Flowers
6. REGIONAL ANALYSIS
6.1 Value Chain Analysis
6.2 Distribution Channel Analysis
6.3 PESTLE Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. AN ASSESSMENT OF COVID-19 IMPACT ON THE MARKET
Frequently Asked Questions
What is the study period of this market?
The Malaysia Floriculture Market market is studied from 2017 - 2027.
What is the growth rate of Malaysia Floriculture Market?
The Malaysia Floriculture Market is growing at a CAGR of 4.6% over the next 5 years.