As the holiday season kicks off, many people are heading to Christmas tree farms, home improvement stores, or local nurseries to find that perfect tree. However, shoppers may be in for a surprise when they check the price tags. This year, both real and artificial Christmas trees are the most expensive they have ever been. Experts attribute this price hike to several factors, including a surge in purchases driven by millennials.
A recent report by USA Today reveals that the cost of real trees has increased by up to $10, while artificial trees are seeing a spike of over $20. A data analyst from Square, a payment processing firm based in San Francisco, noted that this season is projected to be the most costly in history for Christmas trees.
The Millennial Influence
One significant factor contributing to these rising prices is the growing number of millennials buying trees. As this generation settles down, starts families, and embraces holiday traditions, they are purchasing more trees than ever before. The environmentally-minded millennials often opt for artificial trees due to their renewable nature but are also buying real ones. In fact, sales of real trees have risen by 10% over the last five years, with an impressive four million more sold in 2018 compared to 2017.
Supply Shortages
The increase in prices for real trees can be linked to supply shortages, as growers struggle to keep up with the surging demand. Christmas trees typically take about ten years to mature, so a surge in demand means that growers are unable to provide enough trees right away. A spokesperson for the National Christmas Tree Association mentioned that many growers wish they had more trees available for sale this year. States like Oregon and North Carolina, which are major suppliers, have been particularly affected.
The supply issues can also be traced back to the Great Recession of 2008. During that time, many growers reduced their planting due to lower consumer spending. Gerrit Thompson, co-owner of Thompson Christmas Trees in Pennsylvania, explained that the repercussions of that decision are now being felt, as it takes years for new trees to grow.
Price Trends
In the past decade, the average price of a real Christmas tree has jumped from around $36.50 in 2008 to approximately $78 in 2018. Between 2017 and 2019, prices increased from $75 to $81. The shortage is particularly pronounced for the Fraser fir, the most popular type of Christmas tree.
Tree farms believe they will have enough trees for everyone this season but advise shoppers to make their purchases sooner rather than later. As for artificial trees, the forecast is even less optimistic; they are expected to become pricier next year due to new import tariffs set to take effect soon. So, if you’re considering a fake tree, it might be wise to buy one sooner rather than later.
Additional Resources
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Conclusion
In summary, Christmas trees are more costly than ever this year, with a significant contribution from millennial buyers. The combination of increased demand and supply shortages stemming from past economic downturns has led to this price surge.