With Thanksgiving now behind us, many are heading to Christmas tree farms, local nurseries, or large retailers like Home Depot to choose their festive centerpiece. However, brace yourself for some surprising price tags this year. Experts are reporting that both real and artificial Christmas trees are more expensive than ever, and the rise can be partially attributed to millennials.
A recent analysis from USA Today reveals that the cost of real trees has increased by as much as $10 this year, while artificial trees have jumped by over $20. This season is anticipated to be the “most expensive on record” for Christmas trees, according to a data analyst at Square, a payment processing company based in San Francisco.
The Impact of Millennial Demand
One significant factor driving up the prices is the growing demand from millennials, who are increasingly buying trees as they settle down and start families. CNN highlights that this generation is purchasing more trees than before, both real and artificial. Environmentally conscious millennials often prefer artificial trees for their renewable nature, but there’s also a notable 10 percent increase in the sales of real trees over the past five years, with four million more sold in 2018 compared to the previous year.
Supply Shortages and Historical Context
The spike in real tree prices is largely due to a supply shortage, which stems from the fact that it takes up to ten years for Christmas trees to mature. “Some growers simply do not have enough trees available for sale this year,” stated a representative from the National Christmas Tree Association, which represents around 5,100 growers nationwide. States like Oregon and North Carolina, which supply a significant portion of the trees sold across the country, have been particularly affected.
The decline in available trees can also be traced back to the Great Recession of 2008. During that time, many growers cut back on planting due to decreased consumer spending, a decision that has led to today’s supply issues. “When the recession hit, growers either left the industry or couldn’t afford to plant new seeds, and now we are seeing the consequences,” explained Mark Thompson, co-owner of Thompson Christmas Trees in New Jersey.
Price Trends
According to the National Christmas Tree Association, the average price of a live tree has surged from $36.50 in 2008 to $78 in 2018. Between 2017 and 2019, the price climbed from $75 to $81. It’s worth noting that the availability of specific varieties, such as the Fraser fir—the most sought-after tree—has reached critical lows.
What to Expect This Season
While tree farms are optimistic that they will have enough stock for everyone, they advise customers to purchase their trees early. Additionally, as USA Today reports, prices for artificial trees are expected to rise next year due to new import tariffs set to take effect, so if you’re considering a fake tree like those trendy ombré options, it’s best to act quickly! For more ideas on celebrating the holidays with homemade recipes, check out our other post here.
In summary, the combination of increased millennial demand and dwindling supply due to previous economic downturns has contributed to the rising prices of Christmas trees.