Shopping for a Christmas tree? Count on spending $8 to $10 more than last year for a compact Fraser fir from the Carolinas or a gleaming “Made in China” plastic pine, even as inflation slows a bit this season.
Rising labor costs have jacked up retail prices for real and artificial trees by as much as 10% since last year, according to the American Christmas Tree Association. And the retail trade group’s executive director, Jami Warner, says some live trees could fetch close to $200 this year.
“We’re seeing prices slightly higher because of inflation, but it’s not keeping people away from buying a tree,” Ms. Warner told The Washington Times. “Even though it’s really tough out there at the fuel pump and grocery store, Christmas and Christmas trees just make people happier.”
The association estimates that the average price for live and artificial trees will range between $80 and $100 this year, depending on their size and location.
According to Ms. Warner, prices have risen more quickly over the past three years than before pandemic lockdowns choked off supply chains. But her group found in a recent survey that 94% of consumers still plan to display a tree this winter, despite 78% expressing worries about inflation.
Of the 94 million U.S. households that display a tree, the association estimates that about 8 in 10 will favor artificial ones this year.
According to the National Christmas Tree Association, a trade group of live tree growers, Americans bought 22.3 million farm-cut trees last year at a median price of $80. The most popular farm-grown trees were firs of any species, between seven and eight feet tall.
Jill Sidebottom, the group’s seasonal spokesperson, said most growers expect wholesale prices to stay the same or “go up a little bit” this year.
“Most growers are still feeling increased costs and it changes a lot,” Ms. Sidebottom told The Times. “Last year, it was fertilizer, fuel and labor costs. This year, labor costs are still high.”
Hugh Rodell, owner of North Star Christmas Trees in Beltsville, Maryland, said prices have risen between 3% and 5% for the several thousand real trees on his lot, compared to an average increase of 8% last year. Before the pandemic, he said prices changed less, increasing between zero and 1.5% most years.
On average, North Star’s trees will cost $5 to $10 more this year, with most of the increases hitting premium Fraser firs from North Carolinas rather than budget trees.
“Prices tend to go up and stay up, so it’s never going to be the same as three years ago,” Mr. Rodell said. “We’re just not getting these massive inflationary jumps anymore.”
While truck rentals and gasoline prices cost about the same as last year, Mr. Rodell said labor costs for his seasonal workers have risen between 3% and 5% to $14 to $15 an hour this year. Hourly wages have risen fastest for skilled positions like drivers, he noted.
“Like most things, you either pass along the costs or go out of business,” he added. “We plan to sell the same number of trees as last year, and we were sold out last year.”
Industry insiders say there has been a decline in the number of real trees for the past seven years because growers planted fewer trees after the recession of 2008. It takes five to 15 years to grow a tree to sell commercially, according to the National Christmas Tree Association.
• Sean Salai can be reached at ssalai@washingtontimes.com.
Please read our comment policy before commenting.