Page 14 - LUA March-April 2025

Chart of the Week
SPECIAL REPORT 14 February 2025

Romance on the Rise?

Market share of air-transported flower trade, by importers and exporters, current USD
and % of total, 2003 and 2024

Source: IATA Sustainability and Economics, using data from Global Trade Tracker. NB: ROW = Rest of World

▪ Is the world getting more romantic? The value of the trade in flowers transported by air has risen in a rather
in airfreight logistics, utilising ten weekly With rising air cargo demand, Ethiopia’s entry into the flower trade
spectacular fashion from USD 852 million in 2003 to USD 3.7 billion in 2024 - a four-fold increase. As this
flights to transport flowers, vegetables, particularly for perishables like flowers and has been remarkable. While it had no
market has grown, there has been a noticeable shift and concentration among its participants.
fruits, coffee, tea, fish, and live tropical avocados, expanding airport infrastructure significant market presence in 2003, the
▪
fish. "During high-demand periods, such at JKIA is critical to maintaining Kenya’s country has capitalised on government-
Imports were dominated by the US, the UK, and Germany in 2003, with respective shares of total imports of
as Valentine’s Day, we add extra capacity position as a regional logistics hub. backed incentives and foreign investments
66.3%, 12.1%, and 4.4%. By 2024, the US imported 53.6% of the total, followed by the Netherlands at 31.2%,
to meet market and customers’ needs. For During a recent interaction, Bonface to build a thriving floriculture sector.
a main distribution center for flower re-exports, and the UK now far behind at 5.5%. Colombia was the lead
example, we have added seven extra 777F Muse, Cargo Commercial Officer at JKIA, Large-scale greenhouse developments and
exporter in 2003 with a 50.2% market share, followed by Ecuador at 16.2% and the Netherlands at 8.9%.
connections from the end of January to mentioned, "Kenya handles approximately enhanced air freight infrastructure have
Colombia has since pulled back to 42.3%. The Netherlands has been knocked off the list in favor of
early February to transport flowers for 400,000 tonnes of air cargo annually enabled Ethiopian growers to meet the
expanded market shares by Ecuador and Kenya, as well as by the newcomer Ethiopia.
Valentine’s Day," Zlatic highlights. across all airports, with cut flowers, rising demand for fresh flowers. With its
▪ Two key factors contributed to this shift. First, trade agreements reduced tariffs and barriers, increasing
fruits, vegetables, meat, and fish being the
strategic positioning and lower production
exports and opening markets for developing nations. Second, developments in air cargo, including
costs, Ethiopia is fast becoming a go-to
primary exports." He also highlighted that
improved refrigeration and logistics, ensured that flowers remained fresh and enabled seamless global
supplier for markets in Europe and beyond.
JKIA remains the main cargo hub in East,
distribution of large volumes on time. Air transportation has greatly facilitated the trade in all kinds of
Central, and West Africa, featuring five
THE FUTURE OF AFRICAN
dedicated cargo terminals with state-of-
perishable goods, including flowers. These evolutions have prompted new specializations in the function of
FLORICULTURE
the-art handling facilities.
emerging comparative advantages, leading to greater market concentration.
PJ Dave
Flower Group's As the global flower trade continues
▪ As these factors embody little to be considered swoon-worthy, we leave our readers to ponder which
temperature-
EMERGENCE OF
controlled
countries might have a comparative advantage in romance. to expand, Kenya and Ethiopia are
room. ETHIOPIAN FLOWERS well-positioned to further strengthen
IATA Sustainability & Economics
their roles as floral powerhouses.
Their success is a testament to the
economics@iata.org
Terms and Conditions for the use of this IATA Economics Report and its contents can be found here: potential of African agriculture in global

By using this IATA Economics Report and its contents in any manner, you agree that the IATA markets, driven by trade liberalisation,
Economics Report Terms and Conditions apply to you and agree to abide by them. If you do not accept technological advancements, and
these Terms and Conditions, do not use this report.
sustainable farming practices.
Photo: Rajarshi Chatterjee in global romance, one thing is certain:
www.iata.org/economics While the world ponders whether
this surge in flower trade signals a rise
Kenya and Ethiopia’s blooms are taking
centre stage, and their floral fortunes are
only set to grow.
12 LUA MARCH - APRIL 2025