Logistics as competitive advantage for African flowers, perishables

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With increasing competition on the global stage, flowers, fruits, vegetables, and meat produced in Africa can have an advantage by strengthening its supply chain ecosystem.

The global demand for flowers and perishables is increasing. With its wealth of flowers, vegetables and fruits produced, Africa is well positioned to tap this demand. However, there are challenges, including increased competition, sustainability requirements, the need for traceability, changing consumer behavior, and the impact of e-commerce. Being conscious about sustainability, adopting new technologies, forming partnerships, exploring new markets, and diversifying product ranges can help. Logistics could thus become the differentiating factor for African perishables to be competitive in the global market.

Logistics companies can, therefore, play a crucial role in facilitating the export of these products to destination markets. In addition, many regions in Africa still lack efficient logistics infrastructure (roads, railways, airports, warehouses, etc.). Logistics companies can invest in the development of such infrastructures, as well as in traceability and tracking systems, to guarantee the quality and safety of perishable products throughout the supply chain. Such investments enable logistics companies to better meet international standards and improve the competitiveness of African products on the global market.

The global cut flower industry is estimated to be valued at $39 billion in 2024 and is expected to reach $63 billion by 2034 at a 4.9 percent CAGR, according to Future Market Insights. Meanwhile, Markets and Markets estimates the industry to reach $45 billion by 2027, recording a CAGR of 4.6 percent. The report by Future Market Insights points out that the market is influenced by the growing trend of adoption of cut flowers for weddings, special occasions, celebrations, mega cultural events, and greetings and welcomes.

“Growing demand for fresh flowers for various occasions and events is set to result in continuous expansion in the cut flower market. Expanding consumer preferences, increasing popularity of floral gifts, and rising disposable incomes are factors boosting the cut flower market,” it reads.

Read more at logupdateafrica.com

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