RE: What and how these flowers/decorations are made?

I agree with Penny Sue that the flowers in the picture are real blossoms, but they can be made from gum paste or wafer paper (as June stated). There are dozens of YouTube tutorials showing how gum paste and/or wafer paper roses are made.

Rice paper may be purchased at international or Asian markets, sold as Spring Roll Wrappers. To make the sails, dip a spring roll wrapper in water for a few seconds, until it just starts to soften. Quickly transfer it to a dry surface, covered with wax or parchment paper, and mold it into the desired shape. Allow it to dry completely, preferably overnight. You can color it by adding gel or liquid color to the water in which it is dipped and by dry brushing petal dust once it has dried.

Sugar Sugar by SSmiley