the staff of the Ridgewood blog
Ridgewood NJ, it’s the most wonderful time of the year—but have you ever wondered who’s raking in the cash behind your holiday centerpiece? Whether you opt for a real tree or an artificial one, the Christmas tree business is big money. Let’s unwrap the facts.
The Rise of Artificial Trees
First, a quick (and somewhat sobering) history lesson. Artificial Christmas trees got their start in the 1930s, courtesy of the UK-based Addis Brush Company—yes, the same people who made toilet brushes. During an era when real trees were scarce, they marketed these plastic alternatives as a convenient solution.
Fast forward to today, 77% of Americans decorate their homes with artificial trees. While they’re a practical choice for many, let’s not forget they owe their origins to bathroom cleaning supplies.
The Real Christmas Tree Market
For those who prefer the authentic scent of pine, real Christmas trees remain a cherished tradition. Here’s the breakdown:
- 98% of real trees come from tree farms, with over 16,600 farms operating across the U.S. as of 2022.
- At any given time, these farms cultivate 350 million trees in various growth stages, harvesting around 25 million annually for sale.
- In 2022, the median price for a real Christmas tree was $80.
Are Tree Farmers Rolling in Cash?
Tree farms are lucrative, but not without challenges. While some farms let customers cut their own trees, two-thirds operate on a wholesale model, supplying independent lots, garden centers, and big-box retailers.
Here’s how the numbers stack up:
- A 6’-7’ tree wholesales for $35 (cut, baled, and loaded).
- After factoring in the 8-10 years it takes to grow a tree, profit margins average 25%-30%, or roughly $8-$10 per tree.
While the margins might seem slim, wholesale deals with major retailers like The Home Depot—who order upwards of 250,000 trees—can yield seven-figure profits for large farms.
The Real Winner: Big Retail
But the biggest profits? They go to Big Retail. Retailers mark up trees by 100% or more to cover freight, storage, labor, and other expenses. With millions of trees sold annually at a median price of $80, their cut of the holiday cheer is substantial.
How to Make Your Purchase Count
If you’re not keen on contributing to Big Retail’s markups, consider buying directly from local farms or small vendors. Not only will you support small businesses, but you’ll also take home a tree that’s fresher—and far from resembling a toilet brush.
We got a small tree this year, $50.
I buy xmas trees and grave blankets from a local garden nursery rather than the big box stores. I want to see the little guys stay in business.
I redistribute grave blankets from graves that can clearly afford to buy flowers for dead people to graves that don’t get so much appreciation. Reduce. Reuse. Recycle.
You may think you are going to Heaven, but you are actually going to Hell
Hell is empty and all the devils are here.
Local garden nurseries charge by much more for same size trees. Rohsler’s charges more than $120 for a 6-7′ tree while Whole Foods charged $70 for same or even bigger size. Sorry but during these times every $ counts. Rich people can afford it and I applaud their desire to help the small businesses. Unfortunately I can’t. And I buy a lot from Rohsler’s during the course of the year. They should provide discounts to their loyal customers outside of their peanuts reward with current membership.
You’re in the wrong zip to be penny pinching.