A dark cloud hangs over the flower sector in Spain during All Saints Day, one of the most important days of the year. Inflation, drought and extreme heat are driving up costs for Spanish florists, which is also noticeable in the consumer’s wallet.
Besides Valentine’s Day and Mother’s Day, All Saints Day is one of the most important days for the flower industry in Spain. As every year, today, on November 1, the Spaniards celebrate Día de Todos los Santos (All Saints’ Day) and the graves of their loved ones are lavishly decorated with flowers.
Florists in Spain see profit margin shrinking
Yet this year there is much less to notice of this ‘exuberance’. Depending on the location in Spain, All Saints Day normally accounts for 20% to 30% of annual sales. Turnover is expected to be considerably lower in 2022 due to inflation and rising energy prices.
Due to the extreme drought and warm weather, the flower sector has had to rely more often on refrigeration this year to keep the flowers in good condition for transport. A florist from Toledo says that this year the costs are about 15% higher than in previous years.
The real pain of inflation lies with the florist and the customer
The florist sector in Madrid expects to achieve the pre-pandemic turnover figures again this year. However, this will not translate into the same profit as in 2019. Although costs have increased by 15% on average, florists cannot fully pass this on to the customer. This would make the flowers unaffordable.
As a result, many florists have chosen to make the price for flowers a few euros more expensive. It is often €3 or €4 for an average bunch. Somoe flower sellers also choose to adjust their profit margin downwards. The real pain therefore lies with the customer and the florist himself.
Spanish florists opt for local entrepreneurship
In some cases, flower shops also choose to buy flowers and plants from the nearby area, often from private growers, and offer them to the consumer. The quality of these is generally very good and the costs are lower, which means they can save a little more money.
However, these alternatives are insufficient to serve the entire market in Spain. The Spanish flower sector cannot avoid importing products from other countries. Spain mainly imports flowers from Colombia, Ecuador, Kenya and the Netherlands. Due to imports from other countries, the final price for the customer is a lot higher. The demand for chrysanthemums, carnations and roses is greatest in Spain. Gladiolus, lilies and anthuriums are also often combined with greenery in forests.
Spaniards are early this year
This year it is striking that many Spaniards already placed their order well before November 1 to visit the grave of their loved ones on November 1 with a beautiful forest. Due to the higher costs, less is imported, which in turn has an impact on the stock of florists.