Demand for Real Christmas Trees Continues to Grow
Demand for farm-grown Christmas trees continues to be strong, creating a market growers are starting to catch up with after a few years of tight supply, according to Nate Buning, VP of Agribusiness Lending for GreenStone Farm Credit Services in Cadillac, Michigan.
Consumer interest in real Christmas trees is expanding, especially with choose & cut operations offering a family experience that sometimes includes, music, hot chocolate and cider, animals, Santa, gift shops and more.
According to the National Christmas Tree Association’s (NCTA) 2023 season recap customer survey, choose & cut farms represented 25% of all trees purchased, followed by chain stores (21%), nurseries (16%), retail lots (15%), non-profits (13%), online (6%) and other (4%). Michigan also has the nation’s third-largest Christmas tree harvest each year, behind only North Carolina and Oregon. An estimated $40 million is brought in each year from Christmas tree sales. Wisconsin also sits in the top 5 Christmas tree producing states, bringing in an estimated $50 million.
For many people who celebrate Christmas, a genuine evergreen is a non-replaceable symbol of the season, encompassed in tradition, emotion and nostalgia. According to a 2024 survey done by the Real Christmas Tree Board, 83% of people polled said having a real tree enhanced their holiday.
“The Christmas tree industry and the agritourism industry are closely correlated,” Buning says. “They’re selling a tree, but also an experience and hopefully memories.”
The NCTA 2023 survey results project that 21.58 million real Christmas trees were purchased in 2023, with purchasers paying $75 for their trees.
“For a 6-foot Fraser fir, the price range is going to be comparable to last year – in that $70-$80 range,” Buning says. “We have to consider the economics this year, but there’s also an emotional factor around Christmas – the tradition – that ensures people will figure out a way to buy a real tree.”
The average real Christmas tree buyer in 2023 was 42 years old, lived in a household of more than 3 people, and owned a home, according to the NCTA survey.
Buning is confident growers have enough trees to meet demand with pricing being steady despite overall inflation. “Some of the inflationary factors of the past few years in the cost of production have settled down with fertilizer, fuel, and trucking costs. It should lead to decent margins for the tree industry, especially the wholesale industry this year.”
The industry is complicated with substantial investments at planting and care for around seven years before a tree becomes marketable. “Growers are doing calculations to meet current customer demand without sacrificing future growth, because as these trees get larger, they can sell for a higher margin,” Buning explains. “It’s a challenge in the tree industry and many decisions are made with the future in mind.”
Growers not only consider volume; they also closely follow customer preferences and values. “Frasier fir is now in highest demand,” Buning says. “Customers have moved from pine species to fir because they hold their needles better and they are just a better-quality tree than the typical Midwest pine tree species.”
The Environmental Consideration of a Real Christmas Tree
People are becoming more environmentally conscious, too, he points out. “People are coming back to real trees.”
According to the NCTA, the world could cut more than 30% of the carbon emissions needed to slow climate change with natural solutions like restoring our forests. By purchasing a real Christmas tree, customers are supporting local tree farmers and helping maintain healthy forests for generations to come.
For every tree purchased, farmers plant 1-3 seedlings in its place, according to NCTA, providing more vital benefits for people and nature like clean air and water, wildlife habitat and healthy soil.
In the U.S., around 10 million artificial trees are purchased each season. Nearly 90% of them are shipped across the world from China, according to NCTA, resulting in an increase of carbon emissions and resources. And because of the material they are made of, most artificial trees are not recyclable and end up in landfills.
Some people turned to real trees during the COVID supply chain disruptions, with artificial trees being unavailable. “It has helped reestablish some traditions and bring a new generation of customers wanting the real tree experience,” Buning adds.
Trees for Troops
Since 2005, both Michigan and Wisconsin Christmas tree growers have donated trees to the Trees for Troops, which provides free, farm-grown Christmas Trees to United States Armed Forces members in all branches of the military and their families, through donations, sponsorships, grants and the work of many volunteers.
To date, 277,001 free, farm-grown Christmas Trees have been provided to troops and military families in the United States and overseas. FedEx delivers these trees to more than 70 military bases in the U.S. and overseas.
Did You Know?
Brush up on your real Christmas tree knowledge with these facts from the USDA National Agricultural Statistics Service and National Christmas Tree Association (NCTA).
• There are approximately 25-30 million real Christmas trees sold in the U.S. every year.
• There are close to 350 million Real Christmas Trees currently growing on Christmas Tree farms in the U.S. alone, all planted by farmers.
• North American Real Christmas Trees are grown in all 50 states and Canada. Eighty percent (80%) of artificial trees worldwide are manufactured in China, according to the U.S. Commerce Department.
• Real Trees are a renewable, recyclable resource. Artificial trees contain non-biodegradable plastics and possible metal toxins such as lead.
• There are more than 4,000 local Christmas Tree recycling programs throughout the United States.
• For every Real Christmas Tree harvested, 1 to 3 seedlings are planted the following spring.
• There are about 350,000 acres in production for growing Christmas Trees in the U.S.; much of it preserving green space.
• There are close to 15,000 farms growing Christmas Trees in the U.S., and over 100,000 people are employed full or part-time in the industry.
• It can take as many as 15 years to grow a tree of typical height (6 – 7 feet) or as little as 4 years, but the average growing time is 7 years.
• The top Christmas Tree producing states are Oregon, North Carolina, Michigan, Pennsylvania, Wisconsin and Washington.
• The most common Christmas Tree species are balsam fir, Douglas-fir, Fraser fir, noble fir, Scotch pine, Virginia pine and white pine.
