Bah humbug! Christmas tree prices are up again in 2024, with the American Christmas Tree Association reporting that the average price has risen 10% over the last year. However, growers have reported steady demand since the pandemic, and supply is holding strong despite drought conditions and wildfires in recent months on the East Coast. That being said, location matters. Urban areas will see higher prices than rural regions.
The number of US Christmas tree farms fell sharply during the 2008 financial crisis and has continued to decline — so much so that 10% of the Christmas trees sold in the US come from Canada. Christmas trees take eight to 10 years to grow, making it difficult to start new farms and even harder to turn a profit. Inflation has raised the cost of fertilizer and fuel, and these costs are being passed on to consumers.
Meanwhile, prices for fake trees, which 78% of consumers polled said they intend to buy, are also up $5 on average this year. But fake trees have a far greater range of prices, with some costing as much as $1,000.
Environmental economics. Interestingly, the environmental calculus favors chopping down real trees over manufacturing plastic replicas. Researchers suggest that reusing an artificial tree three to five times can reduce carbon footprint, but each real tree purchase supports forest ecosystems and local farmers.