The State of Ukraine's Flower Business During Full-Scale War
Ukraine's floral industry has faced immense challenges and required significant adaptation from businesses of all sizes since the full-scale invasion began on February 24, 2022. The market has been hit by a sharp drop in demand, soaring energy costs, and severe logistical disruptions. While producers, importers, and small nurseries strive to adapt, they continue to confront serious difficulties. The flower trade, a non-essential luxury, has been particularly vulnerable to wartime economic pressures.
Askania-Flora, a company based in the village of Kvitneve near Brovary, controls just over 50% of Ukraine's rose market. At one point, the front line was a mere four kilometers from its production facilities, posing a direct threat to operations. Combat actions destroyed a 2.5-hectare greenhouse. As Valeriy Horban, a representative of Askania-Flora, explains:
'Like all Ukrainian entrepreneurs, we initially didn't understand what would happen next or what to do. Furthermore, flowers grow 24/7—they require constant care.' Valeriy Horban, Askania-Flora representative
Production costs for flowers have risen by approximately 50%, forcing the company to switch to LED lighting, install its own power generation, and equip cooling systems.
Importers have also suffered major losses. The company Ukraflora, for instance, incurred over one million euros in losses in February 2022 alone. Following the invasion, its team shrank to around ten people. Locally grown flowers now account for no more than 10% of the company's sales. Olena Storczhak of Ukraflora notes:
'This isn't food or medicine—not a first-necessity item. Therefore, the war has been a very serious trial for our market.' Olena Storczhak, Ukraflora
She added that it is currently 'very difficult to survive. Where there were no reserves or where property owners didn't reduce rent, many small businesses simply closed.'
The Green Paradise nursery, founded by Lyudmyla Zakhavaieva in Kharkiv, also faces profound challenges. She states: 'Surviving now is very difficult. I'm holding on only because I work alone. If I had employees, this business would simply be unprofitable.' Lyudmyla mentioned that 'people called, wrote via social networks. From everyone, you could hear: beauty saves the world. Flowers provide at least a small distraction from what is happening around us.'
Key Market Challenges and Recovery
The primary problems for all market participants remain:
- rising costs for energy, gas, and employee wages;
- logistical issues that complicate importers' activities;
- demands from foreign suppliers to repay debts;
- currency restrictions in Ukraine;
- the inability to transfer funds abroad;
- closed airspace;
- a driver shortage, as a significant portion have been mobilized.
Despite all hardships, the market is beginning to recover. 'In 2023, the market started to recover. And in 2024-2025, we have essentially returned to pre-war volumes, even despite the occupation of some territories and population evacuation,' notes Valeriy Horban. People are now buying more flowers spontaneously, as 'people want to feel a holiday every day.' However, he adds, 'if someone gets mobilized, our work chains start to break—it takes time to restore them.'
Thus, Ukraine's flower business continues to adapt to new conditions, facing serious challenges while simultaneously seeking paths to recovery and further development. Support from the state and local communities, which can significantly ease the recovery process for businesses in this sector, remains crucial. Social initiatives and new business strategies may become key success factors in the face of contemporary challenges.
As the flower industry grapples with the ongoing challenges of war, there are signs of resilience in other sectors of the Ukrainian economy. Recent surveys indicate a notable increase in business confidence, suggesting that despite the hardships, optimism for investment and exports is beginning to grow. This shift may provide a glimmer of hope for businesses like those in the floral sector as they navigate these turbulent times.