Improved connectivity propels Kenya, Ethiopia’s share of global flower exports

In Summary

Two decades of expanded air connectivity lift Kenya’s flower exports  from USD 73.7 to USD 603.5 […]

Two decades of expanded air connectivity lift Kenya’s flower exports  from USD 73.7 to USD 603.5 million

A new entrant, Ethiopia now commands 5.5pc of the market  worth USD 204.3 million 

Kenya and Ethiopia have made quick inroads into the global flower trade over the past two decades, thanks to improved air connectivity and wider access to western markets. According to data derived from Global Trade Tracker by the International Air transport Association IATA, thanks to improved air logistics and market access deals, Kenya, Ecuador, and Ethiopia were able to significantly increase their share of the global trade in flowers transported by air, between 2003 and 2024.

The rise of the two eastern Africa nations also caused tectonic shifts that saw the elimination of the Netherlands from the table of flower exporters.

Colombia was the lead exporter of flowers in 2003 with a 50.2pc market share, followed by Ecuador at 16.2pc and the Netherlands at 8.9pc. By 2024 however, the Netherlands had fallen off the list of flower exporters as Ecuador and Kenya expanded their market shares, while Ethiopia also emerged as a new player. Colombia, meanwhile fell back to 42.3pc.

Over the same period, Kenya nearly doubled its share of flower exports from 8.6pc worth USD 73.7 million in 2003, to 16.1pc in 2024. At the same the dollar value of its exports surged nearly ten times to USD 603.5 million.

Ethiopia, which was non existent in 2003, had clawed 5.5 percent of the market worth $204.3 million for itself last year.

Meanwhile Ecuador expanded its share from 16.2pc to 26.1pc, equivalent to USD 138.3m and USD 976.6 million over the same period.

Globally, the value of flower exports increased four-fold from USD 852 million in 2003 to USD 3.7 billion in 2024.

IATA attributes the shifts to a combination of improved access to major markets for exporters through trade agreements, which reduced tariffs and other market barriers, for exports from developing countries and improved logistics and infrastructure for air cargo between source and export markets.

Kenya and Ethiopia have been a few of the more successful users of benefits offered under the US government’s African Growth and Opportunity Act (AGOA). Kenya also recently broke ranks with reluctant partners in the East African Community, to sign to the EU Economic Partnership Agreement.

“Improved refrigeration and logistics, ensured that flowers remained fresh and enabled seamless global distribution of large volumes on time,” IATA says in its analysis.

“Air transportation has greatly facilitated the trade in all kinds of perishable goods, including flowers. These evolutions have prompted new specializations in the function of emerging comparative advantages, leading to greater market concentration.”

In East Africa, the reference period saw aggressive investments in capacity by Ethiopian Airlines and Kenya Airways, resulting in rapid fleet growth of their respective flag carriers. Nairobi also invested in a huge cargo centre that improved capacity to handle perishables. Ethiopian operates a fleet of more than 20 cargo aircraft including B777s, 767s and B737 medium haul freighters. This is in addition to the belly-capacity offered across its fleet of more than 120 passenger aircraft.

Although its share of flower imports has shrank by 12.7pc the US remains the dominant importer of flowers, accounting for USD 2 billion or 53 percent of the trade in 2024.  The UK saw its share reduced to 5.5pc while Germany disappeared from the table of significant importers. In contrast, the Netherlands, a major distribution centre for re-exports saw its share of imports shoot from zero in 2003, to 31.2pc last year.

Colombia the lead exporter which controlled half the market in 2003, saw that fall to 42.3pc in 2024. The Netherlands displacement from the list of exporters is directly corelated with Ecuador, Kenya, and Ethiopia’s expanded share of the market.

 

 

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