Europe is traditionally the largest producer of floricultural products in the world with an estimated production value of over 12 billion euro in 2006. The Netherlands, Italy, Germany, Spain, United Kingdom and France are the main centres of production. More recently, a significant growth in production area was observed in Poland also. The Dutch auctions remain the world's largest trading system for flowers and plants. Looking at the intra-European trade, Belgium and Denmark are also major exporting countries. The consumption of floricultural products increased strongly within Europe during the last years. Especially, Eastern Europe has a big potential as a new market. In these countries, the demand for ornamentals will increase due to the rise of income and the level of prosperity. In spite of the positive developments in consumption and production, increasing energy costs, growing environmental concern and globalisation of production, trade and markets will form the major challenges European floricultural industry has to deal with in the near future.