Christmas Trees

Geographic reference: United States
Year: 2019
Market size: $4.8 billion

“The Christmas tree is a symbol of love, not money. There’s a kind of glory to them when they’re all lit up that exceeds anything all the money in the world could buy.”
— Andy Rooney, “Andy Rooney: 60 Years of Wisdom and Wit”

The Christmas tree tradition as we know it, with trees brought into the home and decorated, began in Germany in the 16th century. In the 1800s German immigrants brought this tradition to the United States, but the tradition was not accepted by most Americans at the time as they considered a Christmas tree a pagan symbol. Then in 1846, the Illustrated London News published a sketch of Queen Victoria, Prince Albert, and their children standing around a Christmas tree. Due to Queen Victoria’s popularity and a desire to emulate the royal family’s customs, the Christmas tree became a popular decoration among high-society families in America.

Starting in 1851 Christmas trees began to be sold commercially in the United States, procured at random from nearby forests. In 1883 Sears, Roebuck & Company began selling artificial Christmas trees. The popularity of real Christmas trees increased across the country in the 1890s, so much so that by the early 1900s the national supply dwindled due to overharvesting.

The first Christmas tree farm was started in 1901, located in New Jersey. In 2017, the last year for which data are available, there were a total of 15,008 Christmas tree farms in the United States, down from 17,367 in 2007. This downward trend started earlier than 2007, however. An oversupply of Christmas trees in the 1990s led to prices falling and very little if any profit for farmers. Some farms went out of business. Those farmers that stayed in business planted fewer trees. Prices remained low, then the Great Recession hit in 2007. Fewer farms and fewer trees planted then mean fewer trees available now, although enough to meet demand. As a result, prices increased sharply since the recession. On average, a real Christmas tree cost $76.87 in 2019, up from $36.50 in 2008.

Today’s market size shows the amount U.S. consumers spent on Christmas trees in 2019. That year, 77% of U.S. households, nearly 96 million, displayed at least one Christmas tree over the winter holidays, with 16% of households displaying more than one. An overwhelming majority of these trees, 81%, were artificial, with 19% being real. In 2019, 26.2 million real Christmas trees and 25 million artificial Christmas trees were sold. While the number of real trees sold has stayed steady between 25-33 million trees over the past 15 years, artificial tree sales have trended upward since 2010 when 8.2 million trees were sold. Most artificial trees are imported, with 92.8% made of plastic. In 2020,1 the United States imported $230.3 million worth of artificial Christmas trees, $223.1 million of which came from China. Imports from Cambodia ($4.01 million), Thailand ($1.03 million), Mexico ($1.0 million), and Hong Kong ($772,546) round out the top 5.

Real Christmas trees are grown in all 50 states, but almost 80% of Christmas trees come from 5 states: Oregon, North Carolina, Michigan, Pennsylvania, and Wisconsin.2 Most people who bought real trees bought them from choose and harvest farms, followed by chain stores and retail lots. Online sales accounted for 6% of real tree sales in 2019.

As people spend more time at home during the pandemic in 2020, many more are opting to bring a bit of Christmas cheer into their homes. Christmas tree growers associations across the country are reporting that retailers and growers are seeing large increases in sales from last year. Farmers in Michigan reported a 50% increase in sales as of the beginning of December 2020. 

In a TRUE Global Intelligence survey conducted in the summer of 2020, 61% of respondents said that the pandemic has increased their desire to spend money on experiences this year, with about three-quarters saying that they think of real Christmas trees as an experience. About a fifth of respondents who put up an artificial tree, or no tree at all, last year said they are more likely to put up a real tree this year. What about artificial trees? Retailers are reporting a sales boom in that market also. And, for those who are wary about coming into a store to pick out a tree, real or not, many retailers are offering curbside pickup of trees bought online.

1 As of October 2020.
2 Data are for 2017, the last year for which data are available. Source: “Table 35. Cultivated Christmas Trees: 2017 and 2012,” 2017 Census of Agriculture, USDA, National Agricultural Statistics Service, April 11, 2019 available online here.

Sources: Chelsea Wells-Barrett and Catherine Choi, “Americans Will Spend Almost $5.5 Billion on Christmas Trees in 2020,” Finder.com, December 1, 2020 available online here; “Table 35. Cultivated Christmas Trees: 2017 and 2012,” 2017 Census of Agriculture, USDA, National Agricultural Statistics Service, April 11, 2019 available online here; “Table 35. Cut Christmas Trees: 2012 and 2007,” 2012 Census of Agriculture, USDA, National Agricultural Statistics Service, May 2, 2014 available online here; Jake Sherlock, “The Real Story About the Supply and Price of Christmas Trees in 2019,” National Christmas Tree Association, April 6, 2020 available online here; “History of Christmas Trees,” History.com, 2009 available online here; “History of Christmas Trees,” National Christmas Tree Association, 2017 available online here; “2020 Christmas Tree Statistics, Facts and Trends” available online here; “Ninety-Six Million U.S. Households Celebrated the Christmas Holiday with a Christmas Tree in 2019,” The American Christmas Tree Association available online here; “Artificial Christmas Trees – Imports,” U.S. Import and Export Merchandise Trade Statistics, U.S. Census Bureau, Economic Indicators Division, USA Trade Online available online here; Zachary Crockett, “The Economics of Christmas Trees,” The Hustle, December 5, 2020 available online here; Christina Morales and Natasha Frost, “Christmas Tree Sales are Booming as Pandemic-Weary Americans Seek Solace,” The New York Times, December 6, 2020 available online here; “Real Christmas Trees Can Help End a Difficult Year With Good Memories,” It’s Christmas Keep It Real available online here; Nichole Lyn Pesce, “‘Great Recession’ a Decade Ago is One Reason Your Christmas Tree Will Cost More This Year,” MarketWatch, December 14, 2019 available online here.
Image source: MustangJoe, “christmas-tree-christmas-tree-1236617,” Pixabay, March 9, 2016 available online here.

Halloween

Happy Halloween
Geographic reference: United States
Year: 2020
Market size: $8.05 billion

Will you be celebrating Halloween this year? If so, you’ll be among the 58% of consumers in the United States who plan to do so in 2020, an estimated 148 million people. However, this is fewer than the 172 million who planned to celebrate the holiday in 2019.

Concerns about the coronavirus pandemic have people avoiding many activities associated with the holiday, activities in which social distancing may be difficult. Fewer people are planning to throw or attend a party, visit a haunted house, go trick-or-treating, or hand out candy. However, more people are planning to carve a pumpkin and decorate their homes. More people are also expected to dress up their pets, pumpkin being the most popular costume.

Today’s market size shows the total amount U.S. consumers are expected to spend on Halloween in 2020. This continues a downward trend from the record high of $9.1 billion in 2017. Consumers are expected to spend about the same amount as they did in 2012. What will they buy? They plan to spend the most on costumes and decorations ($2.6 billion each), followed by candy ($2.4 billion), and greeting cards ($0.4 billion). Spending on costumes and candy is expected to be lower this year than in 2019 while spending on decorations and greeting cards is expected to remain unchanged. While fewer people will be celebrating the holiday, those that will are expected to spend more on average than they did a year ago, $92.12 per shopper, up from $86.27 in 2019. The average shopper is expected to spend more on decorations, candy, and greeting cards.

In the past 5 years, social media has had an increasing influence over what people buy for Halloween. Pinterest, Facebook, YouTube, and Instagram have the most influence among social media platforms. Of these four, YouTube’s influence grew the most (+3%) from 2019 to 2020, followed by Facebook and Instagram (+2% each). Pinterest’s influence stayed the same. Still, a greater percentage of consumers rely on online searches (35%) and browsing in stores (23%) for Halloween shopping inspiration. In 2019, ideas from friends and family edged out Pinterest and Facebook for shopping inspiration; In 2020, they’re in a three-way tie.

Sources: “Halloween Data Center,” National Retail Federation available online here; “Consumers Anticipate New Ways to Celebrate Halloween, Despite COVID-19,” National Retail Federation Press Release, September 15, 2020 available online here; “Halloween Consumer Spending and Celebration Plans,” National Retail Federation Infogram available online here.
Original source: Surveys conducted by Prosper Insights & Analytics for the National Retail Federation.
Image source: Adapted from Alexas_Fotos, “halloween-ghosts-pumpkin-4588378,” Pixabay, October 30, 2019 available online here.

Poinsettias

poinsettias

‘Tis the season to see poinsettias in supermarkets, department stores, churches, and maybe even in your own home. This was not always the case in the United States. After finding this plant growing along the side of the road in Taxco, Mexico, Dr. Joel Poinsett, amateur botanist, physician and the first U.S. ambassador to Mexico, sent cuttings back to his home in South Carolina in 1828. While most botanists of the time considered it a weed, Dr. Poinsett continued to study and breed the plant in his greenhouse and share his plants with his horticulturist friends. In the United States, poinsettias are named in honor of him. Since the mid-1800s, the United States has observed December 12th, the anniversary of Dr. Poinsett’s death, as National Poinsettia Day.

In Mexico and Guatemala, this plant is known as Flor de la Nochebuena, or Flower of the Holy Night. The Holy Night being Christmas Eve. The colorful leaves of this plant are thought to resemble the Star of Bethlehem. Besides being used as decoration at Christmastime, poinsettias are used as decoration to celebrate the feast of Our Lady of Guadalupe in Mexico on December 12, a national holiday commemorating the belief that Jesus’ mother Mary, who is Mexico’s patron saint, appeared to a man in Mexico City on December 9 and 12 in 1531.

In temperate climates, the plants are perennial shrubs that can grow as high as 10-12 feet tall. In the early 1900s, Paul Ecke, Sr. developed the first poinsettia that could be grown indoors as a potted plant. He grew them in open fields along Sunset Boulevard and sold them at roadside stands in Hollywood. However, his son, Paul Ecke, Jr. is credited with being the father of the poinsettia industry. In 1965, under his supervision, hybridizers at Ecke Ranch in California created a plant whose blooms lasted more than a week and whose leaves stayed on the plant for more than a few days. He also developed a growing technique that caused the seedlings to branch, creating a fuller and more aesthetically pleasing plant. Paul Ecke, Jr. contributed to the current popularity of poinsettias by donating them to leading women’s magazines for their holiday layouts1 and to popular TV shows such as The Tonight Show, the Dinah Shore Show and the Bob Hope Christmas Specials in order to stimulate demand among consumers. By 1986, the poinsettia was the top-selling potted plant in the United States. When Ecke Ranch was sold to the Dutch company Agribio Group in 2012, it commanded more than 70% of the market in the United States and 50% of the worldwide market.

In terms of dollar value, Christmas/Hanukkah is the top floral buying holiday. Thirty percent of consumers purchase flowers or plants as gifts during this time of year. Of those, 53% purchase poinsettias. There are currently more than 100 varieties. The most popular color by far is red (74%), followed by white (8%), pink (6%) and mixed (3%).

Today’s market size shows the value of wholesale sales of potted poinsettias in 2015 and 2018 in the United States.2 In 2018, nearly 34.2 million potted poinsettias were sold at wholesale, up from 31.97 million in 2015. In the United States, 96% of poinsettias produced are sold at wholesale. In both 2015 and 2018, the top two states in terms of both dollar sales and units sold were California and North Carolina. In 2018, more than 7 million potted poinsettias were sold at wholesale in California valued at $29.4 million, up from nearly 5.8 million sold in 2015 with a value of $29.3 million. In North Carolina, 3.8 million potted poinsettias were sold at wholesale in 2018, down from 4.3 million in 2015. The value of the plants sold also dropped from $16.4 million in 2015 to $14.1 million in 2018. In 2015, Florida rounded out the top 3 with 3.1 million plants sold valued at $12.3 million. However, in 2018, New York was third in dollar sales ($12.4 million) and Michigan was third in units sold (nearly 2.8 million). In 2015, there were 578 producers; in 2018, 581.

1 Because magazines created their Christmas layouts in July and August, Ecke, Jr. needed to bloom plants out of season.
2 Businesses with $100,000 or more in sales.

Geographic reference: United States
Year: 2015 and 2018
Market size: $139.7 million and $148.8 million, respectively
Sources: Floriculture Crops 2018 Summary, United States Department of Agriculture, National Agricultural Statistical Service, May 2019 available online here; Dr. Leonard Perry, “Fun Facts About Poinsettias,” University of Vermont Extension, Department of Plant and Soil Science available online here; Susan La Fountaine, “Master Gardener: Here’s How Plants Became Part of the Christmas Story,” Fremont News Messenger, November 19, 2019 available online here; Erica D. Seltzer and MaryAnne Spinner, “Poinsettia Facts,” University of Illinois Extension available online here; “Christmas/Hanukkah Floral Statistics,” About Flowers, Society of American Florists, 2018 available online here; Elaine Woo, “Paul Ecke Jr., 76; Made Poinsettia U.S.’ Top-Selling Potted Plant,” Los Angeles Times, May 16, 2002 available online here; Matt Krantz, “Paul Ecke Sr.: ‘Poinsettia King’ Cultivated A Holiday Tradition,” Investor’s Business Daily, November 21, 2018 available online here; “Feast of Our Lady of Guadalupe in the United States,” timeanddate.com available online here.
Image source: Susanne Jutzeler, suju-foto, “poinsettia-adventsstern-4636921,” Pixabay, November 22, 2019 available online here.

Halloween

Happy Halloween

Will you be celebrating Halloween this year? If so, you’ll be among the sixty-eight percent of consumers in the United States who plan to do so in 2019, an estimated 172 million people.1 However, this is fewer than the 175 million who planned to celebrate the holiday in 2018.

By age group, 18-24-year-olds were the most likely to celebrate. Nearly 90% plan to celebrate Halloween in 2019, up from 84% ten years earlier. However, how they plan to celebrate differs from a decade ago. More plan to wear costumes and dress up their pets. More 18-24-year-olds also plan to pass out candy, carve a pumpkin and decorate. Fewer, though, plan to attend or throw a party, visit a haunted house, or take children trick-or-treating.

Today’s market size shows the total amount U.S. consumers are expected to spend on Halloween in 2019, an average of $86.27 per shopper. This continues a downward trend from the record high of $9.1 billion in 2017. However, it is still higher than the $8.4 billion consumers were planning to spend in 2016.

This year’s ongoing trade war with China is creating uncertainty among some consumers. Fourteen percent of those surveyed said that their concerns about the economy will affect their Halloween spending this year. For those who do plan to spend money, what will they buy? They plan to spend the most on costumes ($3.2 billion), followed by decorations ($2.7 billion) and candy ($2.6 billion). In the past 5 years, social media has had an increasing influence over what people buy for Halloween. Pinterest, Facebook, YouTube, and Instagram have the most influence among social media platforms; however, of these four, only Instagram’s influence grew from 2018 to 2019. Still, a greater percentage of consumers rely on online searches (35%), browsing in stores (28%) and ideas from friends and family (20%) for Halloween shopping inspiration.

1 Source: Survey by Prosper Insights & Analytics for the National Retail Federation.

Geographic reference: United States
Year: 2019
Market size: $8.8 billion
Sources: “Social Media Influencing Near-Record Halloween Spending,” National Retail Federation Press Release, Sepetember 25, 2019 available online here and Katie Jordan, “Halloween Shopping Trends: Then and Now,” National Retail Federation, October 2, 2019 available online here.
Image source: Alexas_Fotos, “halloween-cat-weird-surreal-3751095,” Pixabay, October 18, 2018 available online here.

Pumpkins

specialty pumpkinsPumpkins. The quintessential autumn vegetable. Carved into jack-o-lanterns for Halloween. Baked into pies for Thanksgiving and Christmas. Used as a flavoring in everything from coffee and creamers to ice cream, beer, and rum. In the 52 weeks ended August 25, 2018, pet parents spent more than $109 million for pumpkin-flavored dog food, a 124% jump from the previous 52-week period. For several years now pumpkin has been the most popular Halloween costume for pets.

Today’s market size shows the total production value of pumpkins in the United States in 2017. That year, growers harvested 69,340 acres, down from 71,400 acres in 2016, but well above the 45,900 acres a decade ago. The production value of pumpkins for the fresh market was $172.1 million in 2017, far above the $13.6 million for pumpkins harvested for processing. In acres harvested, the top 5 states were Illinois, Ohio, Indiana, California, and New York. Nearly 80% of Illinois’ pumpkin harvest is grown for processing.

In recent years the demand for specialty and heirloom pumpkin varieties has grown. Some popular varieties include Big Mac, Blue, Cotton Candy, Valenciano, Festival, Cinderella and Fairytale. The Cotton Candy and Valenciano varieties have a white hue. The Fairytale variety turns a shade of mahogany when mature. The Cinderella, so named because of its resemblance to Cinderella’s transformed coach, is a French heirloom variety that was cultivated by the Pilgrims.

Geographic reference: United States
Year: 2017
Market size: $185.8 million
Sources: “Quick Stats,” United States Department of Agriculture, National Agricultural Statistics Service available online here; Ana Serafin Smith, “Halloween Spending to Reach $9 Billion,” National Retail Federation Press Release, September 20, 2018 available online here; “Pumpkin Spice Sales Growth Makes a Hot Return in Late-August” available online here; “Pumpkins: Background & Statistics,” United States Department of Agriculture, Economic Research Service, September 13, 2018 available online here; “Historical Highlights and Related Releases,” National Retail Federation available online here; Tess Koman, “55 Fall-Flavored Things You Can Eat Right Now,” Delish, September 12, 2018 available online here; Lizzie Fuhr, “8 Funky Pumpkin Varieties for a Festive Fall,” PopSugar, October 5, 2012 available online here.
Image source: Renee_Olmsted_Photography, “pumpkins-halloween-stems-autumn-956428,” Pixabay, September 25, 2015 available online here.

Christmas Trees

O Christmas tree, O Christmas tree,
Your leaves are faithful ever!
Not only green when summer glows
But in the winter when it snows,

O Christmas tree, O Christmas tree,
Your faithful leaves will teach me
That hope and love and constancy
Give joy and peace eternally.

— Partial verses of one version of the song “O Christmas Tree” based on the German song “O Tannenbaum,” composed by Ernst Anschütz in 1824.

The Christmas tree tradition as we know it, with trees brought into the home and decorated, began in Germany in the 16th century. In the 1800s German immigrants brought this tradition to the United States, but the tradition was not accepted by most Americans at the time as they considered a Christmas tree a pagan symbol. Then in 1846, the Illustrated London News published a sketch of Queen Victoria, Prince Albert, and their children standing around a Christmas tree. Due to Queen Victoria’s popularity and a desire to emulate the royal family’s customs, the Christmas tree became a popular decoration among high-society families in America.

Starting in 1851 Christmas trees began to be sold commercially in the United States, procured at random from nearby forests. In 1883 Sears, Roebuck & Company began selling artificial Christmas trees. The popularity of real Christmas trees increased across the country in the 1890s, so much so that by the early 1900s the national supply dwindled due to overharvesting.

The first Christmas tree farm was started in 1901, located in New Jersey. In 2012, the last year for which data are available,1 there were a total of 15,494 Christmas tree farms in the United States, down from 17,367 in 2007.

In 2015, 25.9 million real Christmas trees and 12.5 million artificial Christmas trees were sold. Most people who bought real trees bought them from choose and harvest farms, followed by chain stores and nonprofit groups. On average, a real Christmas tree cost $50.82 in 2015, up from $36.50 in 2008. Today’s market sizes show the total amount people spent on Christmas trees in the United States in 2015.

1 2017 data is currently being compiled for the Census of Agriculture by the United States Department of Agriculture. The data will be published starting in February 2019.

Geographic reference: United States
Year: 2015
Market size: (Real trees) $1.32 billion
Market size: (Artificial trees) $854 million
Sources: “Consumer Survey Results,” National Christmas Tree Association, 2017 available online here; “Table 35. Cut Christmas Trees: 2012 and 2007,” 2012 Census of Agriculture, USDA, National Agricultural Statistics Service, May 2, 2014 available online here; “History of Christmas Trees,” History.com, 2009 available online here; “History of Christmas Trees,” National Christmas Tree Association, 2017 available online here; “O Christmas Tree Version 8,” The Hymns and Carols of Christmas available online here; “O Tannenbaum,” Wikipedia, September 25, 2017 available online here.
Audio source: Modified from Kevin MacLeod, “Oh, Christmas Tree Length: 3 minutes 58 seconds,” available online from Wikimedia Commons here. Originally available online here from http://www.incomptech.com/m/c/royal-free/holiday.html. License: CC-BY 2.0.

Haunted Houses

Pumpkins-2013-4

Halloween is no longer a one day affair and haunted houses aren’t just for kids anymore. Many haunted houses are Hollywood-style productions with animatronics, realistic special effects, and actors in professional makeup. Haunted houses of the past were often run by neighborhood organizations as a way to do a bit of fundraising. Today, many are straightforward profit making operations.

Some operators of haunted houses combine them with rock concerts, mud runs, and paintball battles. Others combine multiple sets with corn mazes and hayrides. The haunted house experience has become an evening’s entertainment for many. More than 31 million people are expected to visit haunted houses in 2013. Worldwide there are around 2,500 haunted house attractions, the vast majority in the United States.

Today’s market size is the estimated total sales generated by haunted houses in 2013 (dare we say, by the haunted house industry?). Now that is scary….

Happy Halloween

Geographic reference: World
Year: 2013
Market size: $300 million… still a fraction of the estimated $7 billion that will be spent on Halloween related items and activities in the United States this year!
Source: Martha C. White, “It’s Aliiiive! Haunted-House Industry Scares Up Big Money,” NBC News, October 6, 2013, available online here.
Original source: National Retail Federation
Posted on October 31, 2013

Christmas Decorations

Our last post looked at Christmas trees and it got us to thinking about all the decorations that go on those trees as well as on buildings, in buildings, and all over the place. Thus, today’s market size post is an estimate of the total spent on Christmas decorations in the United States last year. As the source explains, the 2011 figure was 8% above that spent the prior year.

Geographic reference: United States
Year: 2011
Market size: $6 billion
Source: Joe Mont, “$6 Billion for Christmas Lights?” MSN Money, December 12, 2011, available online here.
Original source: National Retail Federation and BIG Research.
Posted on December 19, 2012

Christmas Tree Farming

The sale of natural trees for use as Christmas trees has been on the decline in the United States for some time. Most likely, the decline in numbers of trees sold annually has more to do with the rise in the use of artificial trees than to an overall decline in households and establishments decorating trees for the season. In 2009, Christmas tree production in the United States was down 60% from its pace just seven years earlier, in 2002 (a U.S. Economic Census year) when 20.8 million trees were grown for sale.

Today’s market size is the number of Christmas trees grown for sale in the United States in 2009 and their approximate value that year.

Geographic reference: United States
Year: 2009
Market size: 12.9 million trees valued at $248.9 million.
Source: Dan Burden and J.S. Isaacs, “Christmas Tree Profile,” AgMRC, March 2012, available online here.
Original source: Agricultural Marketing Resource Center, Census of Horticultural Specialties, USDA and the National Christmas Tree Association.
Posted on December 17, 2012

Valentine’s Day as a Market

Based on a survey conducted for the National Retail Federation, spending on Valentine’s Day is expected to be up in 2011 after two down years in 2009 and 2010. For all those in the business of selling flowers, cards, chocolates, champagne, footie pajamas, and romantic dinners out, here’s hoping the forecast is correct!

Geographic reference: United States
Year: 2005 and 2011 forecast
Market size: $13.19 and $15.7 billion respectively.
Source: “Men to Pay High Price for Love on Valentine’s Day,” an NRF press release from January 31, 2006, available online here. The estimate for 2011 is from the same source, 2011 Valentine’s Day Consumer Intentions and Actions Survey, the press release for which is available here.
Original source: National Retail Federation and BIGresearch.

Christmas Trees

For our last market size posting before Christmas, later this week, we thought we’d present some figures on the industry involved in growing all those Christmas trees we decorate this time of year. The market sizes below are the number of trees harvested from Christmas tree farms in 2002 and 2007, a period over which we see a decline in numbers.
Tree Farm

Geographic reference: United States
Year: 2002 and 2007
Market size: 20.8 million and 17.4 million trees respectively
Source: “USDA Census of Agriculture,” update, National Christmas Tree Association, available here. The image of trees being loaded on a truck is from the Pure Michigan website, available here.
Original source: U.S. Department of Agriculture