The Rising Cost Of Christmas Trees: What Shoppers Need To Know

The cost of your Christmas tree is about to hurt your wallet this year, a new release from the American Christmas Tree Association suggests. The average price of a Christmas tree surged 10 percent from last year. Shoppers can expect to spend between $80 and $100 for their holiday centerpiece this year. This increase is concerning, especially as many families are preparing for the festive season.

Even those opting for artificial Christmas trees will feel the pinch, with prices estimated between $85 and $1,000. The exact cost varies based on factors like the producer, retailer, size, and shape of the tree. The American Christmas Tree Association reports that 78 percent of consumers are worried about inflation this year. However, this concern hasn’t stopped Americans from celebrating the holiday; 94 percent of those surveyed still intend to get at least one Christmas tree for their homes, with 77 percent planning to display an artificial tree.

The reason behind these price hikes is primarily due to rising costs for Christmas tree suppliers. Nearly all growers surveyed by the Real Christmas Tree Board indicated their input costs have increased compared to last year. "We always recommend that consumers shop early to get ahead of the holiday rush and find the décor, type, and style of Christmas tree that best fits their needs," said Jami Warner, ACTA Executive Director. This year, many consumers—particularly those concerned about inflation—are purchasing their decorations well before the usual shopping months of November and December.

Heavy Holiday Spending Ahead

The rising prices of Christmas trees come as Americans brace for a financial hit this holiday season. In a survey conducted by the Bank of Montreal, 74 percent of Americans reported that inflation will force them to buy fewer holiday gifts this year. Almost two in five said they would opt for less expensive gifts, and 26 percent indicated they would reduce their holiday gift lists.

Moreover, more than half of those surveyed (55 percent) plan to incur debt to manage their holiday shopping expenses. “Americans get swept away by the festive spirit, the twinkling lights, and the promise of joyous celebrations, yet they often fail to exercise restraint and resist the temptation to overspend,” noted Kim Scouller, a certified financial educator and author of How Money Works for Women.

This tendency to overspend can have lasting consequences on personal finances, and shoppers should approach December with caution. “Many people fall into the trap of buying expensive gifts or hosting elaborate gatherings, only to find themselves buried under a mountain of debt come January,” Scouller warns. The interest on unpaid credit card statements can accumulate significantly, leading to financial stress that overshadows holiday joy.

Scouller encourages consumers to set realistic expectations for themselves and others regarding holiday spending—this might mean scaling back on lavish gifts and extravagant meals. “I genuinely hope people know better by now, but sadly, I suspect it will be much of the same,” she added. Until consumers truly grasp how money works, they may continue to overextend themselves financially.

As the holiday season approaches, it's crucial to be mindful of spending habits. By approaching the festive season with a plan and a budget, families can enjoy the holidays without the burden of excessive debt.