Christmas trees prices up 10% from last year, with inflation, drought, Canada wildfires factors

Americans have added Christmas trees to their list of holiday items that cost significantly more than they did in past years.

The average price of a Christmas tree has increased 10%, compared to last year, with the average price in the $80-to-$100 range, according to the American Christmas Tree Association.

Holiday shoppers considering an artificial tree as an alternative will likely find little, if any, relief. They range in price from $85 to $1,000, depending on the size and shape, Newsweek magazine reports. 

Two of the explanations for the increases in so-called "live tree" prices are inflation and a tree shortage, which is being attributed to drought conditions earlier this year and this summer's Canada wildfires. 

The American Christmas Tree Association conducted a survey earlier this year that found 78% of Christmas tree consumers expressed concern about inflation. Still, 94% of those surveyed said they still plan on putting up at least one tree in their household. 

“We are encouraged to see that consumer demand for all types of Christmas trees remains high in 2023,” said association  Executive Director Jami Warner. “Artificial, live, small, tall, flocked, you name it – there’s no such thing as a bad Christmas tree, and there is no better way to bring cheer to the Christmas season than by celebrating with a Christmas tree.”

Other contributing factors to the higher cost of trees this year include labor and transportation costs and well as the prices of supplies needed to grow the trees, such as fertilizer, according to Forbes.

Christmas presents have also increased in price this year. 

The 40th annual “Christmas Price Index,” which measures gift prices and was released by PNC Bank, is up 2.7% this year, but it's unclear whether the increase is compared to 2022.

A survey published earlier this month by Monmouth University showed that Americans making less than $50,000 a year are making some major cutbacks when it comes to gift shopping. 

The survey showed that 55% of those responding to the poll are making cuts in holiday shopping, which is up from 46% in 2022 and 40% in 2021. 

“The rate of inflation may be slowing but the damage has been done after a long stretch of rising prices,” Patrick Murray, director of the polling institute said.