- The cost of acquiring a Christmas tree increases, as manufacturers announce a price hike.
During the August lull, not many are contemplating Christmas, but Christmas tree manufacturers certainly are, and they're predicting substantial price hikes. As per a study conducted by marketing agency Kollaxo, specializing in the industry, all 19 major Christmas tree companies reported an increase in producer prices. These price jumps vary from 5 to 20%, depending on dimensions, types, and retailers. The consumer prices are anticipated to mirror these increases too.
Hefty Increases: Christmas Trees Set to Cost a Pretty Penny This Year
The producers attribute these price hikes to escalating wage, material, and shipping costs. Moreover, the favorable market circumstances offer a better bargain with less competition and a diminishing supply.
A decade ago, Christmas trees were so costly that numerous businesses grew and new entrants flooded the market. The result was an oversupply, and the subsequent decrease in costs was challenging for businesses to pass on. Poor economic conditions led to reduced or abandoned cultivation areas. As Kollaxo CEO Lars Langhans explains, "both a decrease in supply and a significant price increase were inevitable and will become apparent in 2024."
The reason for the anticipated substantial price hikes in Christmas tree prices this year is due to rising wages, material, and shipping costs for the manufacturers. This year, consumers should expect to pay a "pretty penny" for their Christmas trees, as the price increases are expected to mirror those experienced by producers.
