Consumer Spending For Flowers And Floral Products Tops $6 billion In 2004

New York, NY - American households spent an estimated $6.1 billion on flowers and plants in 2004, an increase of 2.3% over 2003, according to Ipsos, a leading survey-based marketing research company.

That is the good news: the Ipsos/AFE Consumer Tracking Study (now in its twelfth year) also shows that the floriculture industry continues to have difficulty finding new customers, with fewer households buying floral products over a twelve-month period. Although the total number of households who purchased flowers and plants held steady during 2004-- reaching 63 million U.S. households--the industry did not keep pace with population growth, the Ipsos study showed.

"2004 was spotty for the floral industry," said Barrie Rappaport, a floriculture industry analyst with Ipsos in Chicago. "Consumer spending increased from 2003, but overall demand slipped. The industry has had difficulty retaining its customer base over the past few years, but may finally be starting to dig out, as the buyer count in 2004 held at the 2003 level. In particular, flower and plant customers purchased slightly less often than they did last year, perhaps a result of increased spending on a per-product basis, more than the rate of inflation (+4%)."

"The profits growers and retailers share are derived from what consumers spend for flowers and plants continue to be squeezed. It was this perceived lift in the average price paid by consumers for floral products among the existing customer base that was the sole source of the industry's dollar growth in 2004. Future growth depends on maintaining and maximizing purchasing among the existing core floral buyer group and, at the same time, developing appropriate strategies to attract the infrequent or non-floral buyer."

For more information about this study and related research, please visit: www.ipsos-insight.com/researchexpertise/floralendowment.aspx.

About The Study Now in its twelfth year, the Ipsos AFE/Consumer Tracking Study is an ongoing monitor of consumer purchase behavior as it relates to all floral products. Originally designed for the exclusive use of the American Floral Endowment, the study is now available to all interested subscribers who require consumer-centric data on the floral marketplace.

The Ipsos/AFE Consumer Tracking Study quantifies purchase frequency, loyalty, awareness, and channel importance so you (breeders, growers, importers, wholesalers, retailers, and trade associations) can optimize your marketing strategies, forecast consumer demand for your products and, ultimately, increase sales. Trade associations benefit by offering a valuable service to their membership.

Each month for 12 years, Ipsos has been collecting detailed information on the floral-purchasing behavior of consumers through a longitudinal and continuous consumer panel of 12,000 households that is representative of the U.S. census composition. Since 1992, panelists have been recording all flower and plant product purchases made by all household members during that month regardless of where the purchase was made, revealing the importance of all outlets in satisfying consumer demand for floriculture (e.g. florist shop, supermarket, garden center, Internet, wire services, mass merchandisers, warehouse club, etc.). The Ipsos/AFE Consumer Tracking Study is the leading source of information in its category.

For more information on this press release, please contact: Barrie Rappaport Chief Analyst Ipsos FlowerTrends 312.665.0541 [email protected]

Ipsos-Insight's Behavioral Tracking Division Ipsos-Insight's Behavioral Tracking Division is comprised of syndicated and proprietary tracking services that analyze longitudinal consumer purchase behavior, which provide the unique advantage of marrying consumers' behaviors and attitudes and monitoring how each change over time.

In addition to the Ipsos/AFE Consumer Tracking Study of floriculture products, other syndicated longitudinal tracking programs include Ipsos BookTrends, Ipsos PharmTrends, and Ipsos DietTrends. The Behavioral Tracking business also custom designs, operates, and analyzes proprietary tracking programs for clients who require special populations or analytic designs.

Ipsos-Insight Ipsos-Insight, the flagship marketing research division of Ipsos in the U.S., has industry specialists serving companies in the following industries: consumer products; technology and communications; health and pharmaceutical; financial services; cable, media and entertainment; agrifood; energy and utilities; and lottery and gaming.

Ipsos-Insight provides custom and tracking research services to domestic clients, as well as U.S.-based multinationals. It offers concept and product testing, package testing, attitude and usage studies, omnibuses, tracking systems, brand equity, price optimization and segmentation, marketing models, advanced analytics, and global research. Ipsos-Insight is an Ipsos company, a leading global survey-based market research group.

To learn more, please visit www.ipsos-insight.com.

Ipsos Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe.

Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2004, Ipsos generated global revenues of e 605.6 million ($752.8 million U.S.) .

Visit www.ipsos.com to learn more about Ipsos' offerings and capabilities.