Christmas Tree Business: How did the festive tradition begin, and where is it going?

Christmas trees have been a holiday tradition for centuries, with their bright lights and festive decorations bringing joy and cheer to homes worldwide. However, do you know the details about the business operating behind to provide you with decorating these trees at home?

pakt agency
pakt agency blog
4 min readDec 23, 2022

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The Christmas tree business has been around for a long time. Trees were sold on the streets or in markets as early as the 16th century. But today, it is coming to the point that it is not bringing as much joy to Mother Earth as it does to the families at home.

How it became a tradition

The Christmas tree tradition dates back to the ancient Egyptians, who decorated their homes with trees to worship the god Ra during the winter solstice. The ancient Romans marked the Winter Solstice with a feast called Saturnalia thrown in honour of Saturn, the god of agriculture, and decorated their homes and temples with evergreen boughs.

However, it was the Germans who, in the 16th century, started the tradition of decorating trees with candles and other ornaments as part of their Christmas celebrations. It is widely believed that Martin Luther, the 16th-century Protestant reformer, first added lighted candles to a tree and started the whole tradition.

In the 19th century, Christmas tree farms began to pop up in Europe, and the tradition spread to the United States with the influence of the German settlers in Pennsylvania. It is also believed that Queen Victoria’s German husband, Prince Albert, made the trend famous in the United States and the United Kingdom, as there is an engraving from 1848 featuring the royal family decorating a Christmas tree. Considering the family-oriented culture of the era, it was only a short time before Christmas trees became a vital component of a middle-class family’s holiday celebrations.

In the United States, the first Christmas tree market was established in New York City in 1851, and the tradition has continued to grow in popularity ever since. Today, Christmas tree farms can be found worldwide as a multi-billion-dollar business.

What does it symbolise?

But the Christmas tree is more than just a commodity — it’s a cultural symbol representing the holiday season and all it stands for. For many, the Christmas tree is a way to celebrate the birth of Jesus and the Christian faith traditions. For others, it’s a way to bring families together and create memories that will last a lifetime. In some cultures, it is also a way to celebrate the winter solstice and the sun’s return after the year’s longest night. For these cultures, the tree represents renewal, hope, and the promise of better things.

In addition to providing a wide selection of trees, Christmas tree businesses also offer a sense of community and connection to holiday traditions. Many families make it a habit to visit a Christmas tree farm or lot together to select their tree. For many, selecting the Christmas tree as a family becomes a ritual of these festive times and creates deeper bonding. Christmas tree businesses also often host events and activities, such as hot cocoa stands and holiday photo opportunities, adding to the festive atmosphere and bringing the wider community together.

Furthermore, Christmas tree businesses support local economies and communities. Many of these businesses are family-owned businesses, and the sale of Christmas trees helps to support these small businesses and their employees. Purchasing a Christmas tree from a local market helps to keep the local community and economy rather than buying a tree from a large chain store.

Business comes with challenges.

The Christmas tree business has its challenges. The demand for real trees has decreased in recent years due to the rise of artificial trees, which are cheaper and more convenient for some consumers as a sustainable option. Additionally, maintaining a tree farm can be expensive, with farmers facing challenges such as pests and harsh weather conditions.

However, real Christmas trees are way more sustainable than artificial ones, as artificial ones are mostly made of plastic and metal parts. Therefore, ironically, cutting down a real tree each year is much more sustainable. That’s because most Christmas tree farms are inherently sustainable, leaving certain sections open for harvesting yearly while keeping other areas closed to give younger trees a chance to grow.

But if people buy an artificial tree, primarily made from reusable or recyclable materials, and use it for many years and then find a circular way to dismantle and reuse it, it’s different.

Here is an excellent video by The Hustle explaining how the 2B$ Christmas tree industry works and why it is becoming a concern for the environment.

We, at pakt agency, wanted to celebrate the festive period by creating content about the changing nature of the Christmas spirit, both as a culture and as a business. We hope the Christmas tradition can become a more inclusive and sustainable tradition for everyone worldwide to celebrate and come together as a community. Happy holidays!

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pakt agency
pakt agency blog

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