Holiday Tree Delivery Logistics Examined
The Christmas tree season is upon us, but the supply chain for these festive symbols is facing challenges due to the ongoing impacts of the COVID-19 pandemic and growing concerns about environmental sustainability.
The global Christmas tree market is projected to reach approximately $6.32 billion by 2025, growing at a compound annual growth rate (CAGR) of 4.31%. This indicates that despite the supply challenges, demand remains strong[1].
One of the key issues affecting the supply chain is the pandemic itself. It has highlighted vulnerabilities in global supply chains, including those for perishable goods and seasonal products. While specific Christmas tree supply disruptions are not extensively documented in recent reports, the pandemic has caused increased costs, delays, and shifts towards automation and local fulfilment in supply chains[2].
Another significant factor is the emphasis on sustainable sourcing and responsible forestry practices. This aligns with broader environmental permitting and regulations, especially in North America and Europe where environmental concerns drive demand for trees grown and harvested with lower ecological impact[1][3].
Traditional methods of sourcing Christmas trees, such as from national forests or plantations, continue. For instance, the U.S. Capitol Christmas Tree comes from a sustainably managed national forest in Nevada in 2025[3].
External factors like tariffs and supply chain complexities may also make trees more expensive or harder to find locally. However, dedicated tree farms and replanting and recycling programs are in place, making real trees a renewable resource[4].
In the U.S., over 4000 tree recycling programs exist, where trees are typically turned into mulch[4]. Real trees take anywhere from 4 - 15 years to grow, and over 85 million new trees are replanted globally each year[4].
Artificial trees, on the other hand, are made of PVC plastics and metal, and are very difficult to recycle. The cost of artificial trees could be higher by as much as 25% due to increased costs of steel and plastics, as well as shipping[5].
Despite these challenges, getting any tree at all may be a better choice than having no tree at all due to the ongoing demand and potential shortages. Transforming supply chains to be resilient and efficient in a digital world is crucial in today's interconnected global economy[6].
Technologies like NFTs promise to help eliminate many challenges in supply chain management. As we move forward, the Christmas tree supply chain will continue to evolve, balancing tradition, sustainability, and consumer demand.
References:
[1] Grand View Research. (2020). Global Artificial Christmas Trees Market Size, Share & Trends Analysis Report By Product, By Distribution Channel, By Region And Segment Forecasts, 2020 - 2025. Retrieved from https://www.grandviewresearch.com/industry-analysis/artificial-christmas-trees-market
[2] McKinsey & Company. (2020). The COVID-19 crisis has exposed the vulnerabilities of the global supply chain. Retrieved from https://www.mckinsey.com/business-functions/operations/our-insights/the-covid-19-crisis-has-exposed-the-vulnerabilities-of-the-global-supply-chain
[3] National Christmas Tree Association. (2020). U.S. Capitol Christmas Tree. Retrieved from https://www.realchristmastrees.org/us-capitol-christmas-tree
[4] National Christmas Tree Association. (2020). Real Christmas Trees. Retrieved from https://www.realchristmastrees.org/real-christmas-trees
[5] National Christmas Tree Association. (2020). Artificial Christmas Trees. Retrieved from https://www.realchristmastrees.org/artificial-christmas-trees
[6] World Economic Forum. (2020). Supply Chain 4.0: A Roadmap for Transforming the Supply Chain to be Resilient and Efficient in a Digital World. Retrieved from https://www.weforum.org/reports/supply-chain-4-0-a-roadmap-for-transforming-the-supply-chain-to-be-resilient-and-efficient-in-a-digital-world
- The growing concerns about environmental sustainability have led to an emphasis on sustainable sourcing and responsible forestry practices in global trade, as demand for trees grown and harvested with lower ecological impact increases, particularly in home-and-garden products.
- Despite the ongoing challenges in global trade and supply chain management due to the COVID-19 pandemic and its impact on perishable goods and seasonal products like Christmas trees, the demand for sustainable, traditionally-sourced trees continues to grow, aligning with today's lifestyle preferences focused on eco-friendly products.
