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A Dive Into the Christmas Decorations Market in the US
Published 11:03 am Monday, October 30, 2023
The festive season is upon us. As history tells us, Americans are willing to spend big on Christmas decorations, such as ornaments and outdoor nativity sets.
While some of these decorations can be pricey, there are still numerous cost-effective ways to create dazzling Christmas decorations.
For instance, you can shop early and enjoy discounts and deals such as the ongoing outdoor nativity sets offer. You can learn more about the full offer here.
Though, shopping early isn’t the only technique to ensure you spend less on holiday decorations.
Scroll down if you wish to learn about Christmas lights and decorations’ surprising market size, and how inflation has impacted festive decor prices.
You’ll also learn how much Americans spend, and how much they’re planning to spend this Christmas. On top of that, you’ll discover crucial tips to save money when shopping for holiday decorations.
The Market Size for Christmas Lights and Decorations
According to market data research, the size of the Christmas lights and decorations market is worth $7.80 billion as of 2023. Experts predict the market to hit $9.66 billion at a CAGR of 3.75% between 2023 and 2028.
Population growth, increasing urbanization, globalization and surging per capita income are some factors contributing to the expansion of the market.
The accessibility of Christmas ornament devices in local retail markets has added convenience to the average American shopper, boosting sales for business owners across the board.
On the other hand, the relation between social media platforms and e-commerce sites has further accelerated market growth. The average person browsing the internet is naturally influenced by the latest trends, pursuing further sales and driving up market demand.
Inflation: A Major Cause for Expensive Christmas Decorations
Inflation has affected every section of Americans’ day-to-day activities. The effects are visible in essential activities like buying groceries or paying mortgage bills. A study by NerdWallet shows that inflation will narrow the American Christmas budget. While 56% of Christmas shoppers wish to buy decorations this year, their budget won’t allow it. Things aren’t what they used to be.
Despite the inflation effect on Americans’ purchasing habits, spenders show no signs of changing said habits. Their intent to celebrate Christmas remains the same. This is quite interesting, considering 52% of Americans went into credit card debt when doing holiday shopping. Of the 52%, a third haven’t yet cleared their debt.
The NerdWallet survey also shows that approximately 222 million US citizens, which is 85% of the population, plan to buy gifts for their family and friends. Americans aim to spend an average of $831, or at least $184, on Christmas gifts this year.
How Much Do Americans Spend on Holiday Decorations?
As of 2021, US holiday shopping made $886.7 billion in sales. This is an increase from last year. The NRF claims that the average US citizen aimed to spend $826 in 2022 on Christmas decorations, gifts and food. Out of the $826, about $500 is spent on gifts for family members. The most popular gifts are toys, gift cards and clothes.
Surprisingly, most Americans are spending a lot on pet gifts. The average pet gets about $50 in presents. PR Newswire claims about 34% of Americans buy their dogs presents, while 22% buy gifts for their cats. Meanwhile, only 19% of US citizens buy a present for their in-laws.
More data shows that America spends more on Christmas compared to other countries. They put themselves in debt for Christmas more than any other nation.
A survey that asked Americans whether they got into debt to pay for Christmas decorations was conducted. Surprisingly, 22% of the respondents agreed or strongly agreed, compared to 17% of British and 10% of European citizens.
The Best Time to Buy Holiday Decorations
The demand for Christmas decorations is at its lowest once the season ends. Therefore, you can easily find significant sales on holiday decorations in January. Remember that every store’s holiday decoration selection is scarce during this time, so watch out for damaged items.
Alternatively, you can shop for Christmas decorations on Black Friday. Reputable retailers usually have significant sales on Christmas decorations during the weekend after the Thanksgiving holiday to start the Christmas season.
Set a budget and stick to your Christmas decoration list to track spending. To save more, use available store coupons and credit card rewards programs.
However, if you wish to wow your neighbors with your Christmas decorations, consider buying them at the climax of the holiday season. This is during November and December. The advantage is that you’ll find high-quality decor that isn’t picked over. Therefore, you can easily buy the premium quality being offered.
Another benefit of shopping during the peak of the holiday season is enjoying the trendiest and newest decorations. Therefore, you won’t have to worry about having outdated Christmas decor.
Most Americans love holiday shopping, even when they have a tight budget. Fortunately, you can get all the Christmas decorations you need without getting into debt, by employing just some of the tips mentioned previously.