The prices for Christmas trees are expected to rise again this year. Producers are announcing significant increases due to increased production costs.
When you find the first Christmas sweets in the supermarket in September, you almost reflexively ask yourself whether the sales season starts earlier every year. Even if chocolate Santas and dominoes are not yet on the shelves, the first pre-Christmas price shock is already happening at the end of August.
Christmas tree producers are already announcing significant price increases for Nordmann firs and the like. This is the result of a survey by the marketing agency Kollaxo, which questioned 19 leading Christmas tree companies. According to the survey, all respondents reported “rising producer prices”.
Depending on size, grade and retailer, the increase is expected to be between five and 20 percent. And prices will not only rise for producers, but will also be passed on to consumers. Tree growers justify the price increases with significantly increased wage, material and transport costs. On the other hand, the market environment this year allows them to do better business because there is less competition and supply is shrinking.
A decade ago, trees were so expensive that companies expanded rapidly and new ones entered the market. Over the years, this led to a surplus of supply. Rising costs could be passed on less and less, and the economic situation of many companies deteriorated, so the areas they cultivated were reduced or abandoned altogether. “A decline in supply and a significant increase in prices were therefore inevitable and will come into effect in 2024,” explains Kollaxo Managing Director Lars Langhans.
