Dutch Flower Industry
Industry History
Even though tulips were not originally from Holland, they have nonetheless grown to be one of
the country's most famous exports and a significant part of its economy. Tulips were brought
from the Ottoman Empire to Holland in the 16th century (present-day Turkey). Soon after
Carolus Clusius published what is regarded as the first significant book about the flower in
Holland, tulips quickly rose to the top of the Dutch market. (Carlson, 2022)
The success of Carolus Clusius at Leiden eventually encouraged others to imitate his work. At
the time, tulip bulbs were worth ten times as much as the average worker made in a year, making
them more valuable than gold. Tulip breeding had become a very lucrative industry by the early
17th century, and the cost of Dutch bulbs had rapidly risen. However, the value of tulip bulbs
abruptly fell, causing an economic crisis known as Tulip Mania in 1636 that sent countless
investors, growers, and traders bankrupt. (Coggins, 2017)
Fortunately, the Dutch market made it through this turbulent time, and the tulip trade
eventually stabilized despite catastrophic financial losses that mostly remained unrepaired. Since
that time, the Dutch have persisted in cultivating stunning tulips, and many regions of the
country, such as de Duin - en Bollenstreek and Noordoosterpolder, partially depend their
economies on their floricultural talents. (Coggins, 2017)
In 1995, Dutch flower growers cultivated more than 8 billion flowers, and the combined sales
of cut flowers and potted plants at flower auctions totaled more than €5.4 billion (about $6.15
billion). (Calyx, 2019)
Present Overview
The majority of cut flower exports worldwide come from the Netherlands. Growers,
wholesalers, and retailers make up the three main segments of the Dutch flower market, a
vibrant, quickly expanding global industry. The major market for cut flowers in Europe is the
Dutch flower auction or Royal Flora Holland. Through this auction and the Dutch network of
flower sellers, flowers from all over the world find their consumers. It acts as a crucial trading
platform for businesspeople from underdeveloped nations. The Netherlands is the world's top
producer of cut flowers and a major supplier to underdeveloped nations. The Netherlands is not
only a global leader in cut flowers, but it is also a major trading hub, particularly in the Aalsmeer
region. (Netherlands Forticulture Market, n.d.)
77% of all flower bulbs, the majority of which are tulip bulbs, come from the Netherlands,
which maintains a 44% share of the global trade in floricultural products today. In 2015, cut
flowers and flower buds made up almost 50% of all trade in the Netherlands. Furthermore, the
Netherlands is the source of 65% of the 1,800 new plant types that enter the European market
each year. The Netherlands also trades seeds, despite being well-known for its bulbs. The Dutch
sold flower seeds worth $3.8 billion in 2014. (Carlson, 2022)
The Netherlands' floriculture market is anticipated to grow at a CAGR of 5.3%. (2022-2027).
The world's greatest flower auction, located outside of Amsterdam, has descended into chaos
because of the COVID-19 outbreak. As opposed to 762,513 thousand and 695,516 thousand for
the same period in 2019, the number of cut flowers sold at auction declined to 595,064 thousand
and 557,436 thousand in March and April of 2020, respectively. (Netherlands Forticulture
Market, n.d.)
Political and Economic Support
The Dutch Flower Industry’s expansion and growth are supported by robust government
institutions and mechanisms. The political and economic stability brings investors from all over
the world to invest in this lucrative industry and also creates opportunities for companies to
expand and grow internationally. This governmental strength and stability also improve
commercial links with other nations, enabling organizations to maintain relationships with
foreign clients and draw foreign investors to the nation.
The Dutch flower growers recently received a significant subsidy. Margrethe Vestager, executive
vice president of the European Commission, stated that the payment will aid Dutch growers of
flowers, and horticulture (600 million euros) during the coronavirus crisis. What is striking,
though, is that Pillar II will receive 325 million EUR less in both 2022 and 2023 because the
programme was established under the European Agricultural Fund for Rural Development. The
programme will compensate the floriculture and horticultural industries for up to 70% of the
revenue lost. This and various other subsidies and forms of government support strengthen the
industry’s competitiveness globally and allow them to remain at the forefront. (Olech, 2020)
Key Competitors
The Dutch Flower Industry faces stiff competition from two South American countries, Ecuador
and Colombia. The favourable temperature, rich volcanic soil, high elevation, and fresh spring
water of Ecuador are ideal for growing high-quality roses. Due to its geographic proximity to the
equator, the country naturally experiences the ideal levels of wind, rain, and sunlight needed for
rose cultivation. The inability of rose producers in the Netherlands to compete during the winter
months when roses are in great demand also permits the roses to enjoy optimal sunshine
throughout the year. They also have a considerable comparative advantage over Holland due to
their closeness to the US and access to cheap labour. (Rahman, 2014)
Carlson, T. (2022, June 13). A history of tulips in Holland and the Dutch trade. 1800Flowers
Petal Talk. https://www.1800flowers.com/blog/flower-facts/holland-tulips-history-dutch-trade/
Coggins, T. (2017, May 12). A brief history of Dutch tulips. Culture Trip.
https://theculturetrip.com/europe/the-netherlands/articles/a-brief-history-of-dutch-tulips/
Calyx, L. (2019, November 12). A short history of floral industry. Pollen Nation.
https://www.serenataflowers.com/pollennation/history-of-floral-industry/
Netherlands Floriculture Market | 2022 - 27 | Industry Share, Size, Growth - Mordor Intelligence.
(n.d). https://www.mordorintelligence.com/industry-reports/netherlands-floriculture-market
Olech, I. T. (2020, November 23). Flower Power - Commission (somehow) approves Dutch
pillage of Pillar 2: Agricultural and rural convention flower power - commission (somehow)
approves Dutch pillage of pillar 2. Agricultural and Rural Convention.
https://www.arc2020.eu/flower-power-commission-somehow-approves-dutch-pillage-of-pillar-2/
Rahman, A. (2014). Nevado Roses and the Ecuadorian rose industry. Journal of International
Business Education 9(1)
