The global sales of stem wrap are estimated to be worth USD 190.4 million in 2024 and are anticipated to reach a value of USD 313.1 million by 2034. Sales are projected to rise at a CAGR of 5.1% over the forecast period between 2024 and 2034. The revenue generated by Stem Wrap in 2023 was USD 181.2 million. The industry is anticipated to exhibit a Y-o-Y growth of 4.8% in 2024.
The stem wraps made of plastic material to reach a market valuation of USD 118.2 million in 2024 and are predicted to reach USD 180.1 million by the end of 2034. The transparency property offered by the plastic material allows the stems to be visible making it suitable for retail industry where transparency is important for making decisions to preserve them.
Global Stem Wrap Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 181.2 million |
| Estimated Size, 2024 | USD 190.4 million |
| Projected Size, 2034 | USD 313.1 million |
| Value-based CAGR (2024 to 2034) | 5.1% |
Florist end-uses are projected to offer an incremental opportunity worth USD 79.9 million and are expected to gain an incremental expansion of 1.7x times the total market value. These florist industries require wraps for both the functional and aesthetic purpose as a part of presentation thus driving demand for stem wraps.
Direct sales distribution channels are projected to grow at a CAGR of 4.7% during the forecasted period and are predicted to reach USD 133.7 million by 2024. This method of distribution channel benefits manufacturers with instant feedbacks that helps with the improvements and innovation in products.
South Asia & Pacific’s stem wrap market is predicted to gain approx. 1/3rd of the total market share in 2024 and is expected to grow at a CAGR of 6.2% during the assessment period. The expansion of floriculture in the top countries such as the Australia and New Zealand contributing to regions growth.
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The below table presents the expected CAGR for the global stem wrap market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 5.0%, followed by a slightly higher growth rate of 5.3% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 5.0% (2023 to 2033) |
| H2 | 5.3% (2023 to 2033) |
| H1 | 4.9% (2024 to 2034) |
| H2 | 5.4% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 4.9% in the first half and increase to 5.4% in the second half. In the first half (H1) the market witnessed a decrease of 10 BPS while in the second half (H2), the market witnessed an increase of 10 BPS.
Growth in the Floral Industry to Drive the Stem Wraps Market
The floral industry is growing due to the increase in the various events such as weddings, valentines’ day, mother’s day, corporate events and others globally. These events are the key factors where flowers play a crucial role with decorative purpose and thus improves overall aesthetical appeal for consumers is driving the demand for various cut flowers.
In the emerging regions floriculture is developing on a large scale which is contributing to their economies with the cultivation and distribution activities. The trend of rising events with consumers preferring natural and fresh flowers compared to artificial decoratives requires proper packaging solutions including the stem wraps particularly for the cut flowers to maintain their structural integrity is expected to drive the market for stem wraps.
Increase in the Consumer Focus Towards Aesthetics to Drive the Market
There are many new developments taking place in terms of the aesthetic appeal that is required during various events as consumers are continuously evolving their demands for unique and creative designs. Florist and horticulture are playing a crucial role with continuous emphasis on the aesthetics of designs using flowers fulfilling the needs in retail environment and also in custom arrangements.
This customization offered by florist led to a competitive environment among them to offer high-quality creative design presentations driving the demand for flower based designs. Stem wraps which can fulfill this demand are also available in various colors, textures, and designs that allows florists to create tailored and premium appearances particularly for bouquets. This may increase the demand for stem wraps making it an integral part of floral packaging solutions.
Seasonality of Floral Purchases to Pose Challenges for the Market
The floral industry is many times termed as the seasonal business based on the purchase pattern of flowers among consumers. The demand for flowers is on the peak during the weddings, and the various days that are celebrated such as the mother’s day, valentine’s day. This seasonality in purchase of flowers may pose various challenges for the market and the manufacturers.
Many manufacturers may find it difficult to consistently maintain their inventory and production counts throughout the year. Thus during the peak-off period the demand will be low for flowers which may result in reduced business for manufacturers and suppliers. This unpredictability may limit the investments into business and thus can limit the expansion plans.
Principal Consultant
The global stem wrap industry recorded a CAGR of 4.5% during the historical period between 2019 and 2023. The growth of the stem wrap industry was positive as it reached a value of USD 181.2 million in 2023 from USD 148.5 million in 2019.
Stem wraps are the materials that falls under the protective packaging which is particularly used for the safety and to support healthy growth the plants in horticulture and agriculture. These stem wraps help young plants growth by offering protection against moisture loss, pests and diseases. Stem wraps are made of various materials such as paper, plastics, and natural fibers based on their functionality, benefits and specific needs required as per the plants growth.
These stem wraps are being widely used by the farmers and horticulturists knowing the facts and importance for protecting the young plants. The stem wraps are also being used as decorative and aesthetical for the cut flowers gaining a niche in the DIY and the other florist markets. This decorative purpose created a customized segment attracting consumers who seek innovation and eco-friendly solutions for their personal garden needs.
The growing regulations in the European and the North American regions limiting the use of certain plastics amid the rise in plastic pollution driving innovation in bio-based plastic materials. This push towards sustainability is driving demand for the sustainable stem wraps. Further, increasing consumer preference for their personal gardening and e-commerce platforms boosting the sales of flowers and thus is expected to fuel the stem wraps market.
Tier 1 company leaders are characterized by high production capacity and a wide product portfolio. These market leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within Tier 1 include Amcor plc, Koen Pack B.V., Chrysal International B.V.
Tier 2 companies are characterized by a strong presence overseas and strong market knowledge. These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in Tier 2 include Oasis Floral Products NA, Puli Paper Mfg. Co., Ltd., GBS Adbesive Tape.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the industry analysis of the stem wrap market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Europe, and others, is provided. The United States is anticipated to remain at the forefront in North America, with a CAGR of 3.8% through 2034. In East Asia, China is projected to witness a CAGR of 6.2% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 3.8% |
| Germany | 2.2% |
| China | 5.2% |
| UK | 2.6% |
| Spain | 3.4% |
| India | 5.9% |
| Canada | 2.8% |
The wedding industry of the Las Vegas city is worth USD 2 billion according to the data published by the National Public Radio (NPR). Las Vegas also known as the wedding capital of the world hosts around thousands of wedding each year with growing craze for destination weddings in the youth.
This rise in the destination weddings in Las Vegas coupled with consumer’s preference for specific and customized flower arrangements driving the demand for various cut flowers used for presenting bouquets and background designs.
This growth in the demand for flowers required for customized designs necessitates reliable and secure packaging including stem wraps. Florists depends on the stem wraps for its abilities for offering excellent moisture retention properties which keeps the plants fresh and for a longer duration. This rise in the weddings of youth who prefers natural and floral designs is expected to drive the stem wrap market.
India is one of the prominent country in production of flowers with around 297 thousand hectares of overall land into cultivation in the fiscal year 2023 to 2024. The country is expected to produces around 2,284 thousand tonnes of loose flowers and approx. 947 thousand tonnes of cut flowers in the same fiscal year presented in the data by the Agricultural and Processed Food Products Export Development Authority (APEDA).
The country is experiencing rise in demand for the flowers domestically as well as internationally. This rise in demand for flowers requires protective packaging for transportation of these flower safely ensuring their freshness and quality is preserved.
Stem wraps acts as a protective packaging ensuring safety of flowers from physical damages, and temperature changes during long shipments. As the floriculture industry in India continues to grow the market for stem wraps is expected to rise in the regions where cultivation is high.
The section contains information about the leading segments in the industry. Direct Sales distribution channel segment is estimated to grow at a CAGR of 4.7% throughout 2024 to 2034. Additionally, South Asia & Pacific market for stem wraps is projected to expand at 6.2% during the assessment period.
| Material | Plastic |
|---|---|
| Value Share (2034) | 63.1% |
The stem wraps made of plastic materials is projected to offer an incremental opportunity of USD 66.8 million and is expected to grow at a CAGR of 4.3% during the assessment period.
The stem wraps manufacturers prefer plastic as their choice as the plastic material offer durability, transparency, and excellent moisture retention and protects plants from physical damage.
Also, plastic materials are lightweight and the solutions build of this materials are easy to handle making it suitable for a wide variety of applications in horticulture, agriculture and for the florist’s markets. The continuous innovations in the bio-based plastics to meet sustainability to further drive the demand for the market and the products including stem wraps.
| End Use Industry | Florist |
|---|---|
| Value Share (2034) | 54.9% |
Florist end-use industry to reach a market valuation of USD 102.8 million in 2024 and is predicted to gain an incremental expansion of 1.7x times the total market value.
The florists majorly rely on the moisture retentive properties of the stem wraps particularly for the cut flowers to maintain the structural functionality and freshness of the flowers during the transportations. Further, they also prefer paper wraps for better printability. This shift towards eco-friendly materials driving the innovation in floral packaging thus boosting the expansion of the biodegradable stem wraps.
Key players operating in the stem wrap market are investing in the development of new custom products and are also entering into partnerships. Key stem wrap providers have also been acquiring smaller players to grow their presence to further penetrate the stem wrap market across multiple regions.
In terms of material, the industry is divided into paper, plastic, and others (natural fibers).
In terms of distribution channel, the industry is segregated into direct sales and online sales.
The industry is classified by end use industry as horticulture, agriculture, DIY, and florist.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and the Middle East & Africa have been covered in the report.
The global stem wrap industry is projected to witness a CAGR of 5.1% between 2024 and 2034.
The global stem wrap industry stood at USD 181.2 million in 2023.
The global stem wrap industry is anticipated to reach USD 313.1 million by 2034 end.
South Asia & Pacific is set to record the highest CAGR of 6.2% in the assessment period.
The key players operating in the global stem wrap industry include Amcor plc, Koen Pack B.V., and Chrysal International B.V.
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