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Christmas Tree Sales Expected to Increase

As most Christmas Tree farms and retail lots prepare to open for the holiday season, growers and retailers are expecting an increase in the number of farm-grown Christmas trees purchased by U.S. consumers.

In a recent online poll conducted by Online CARAVAN® for the National Christmas Tree Association (NCTA), 25% of the adult respondents said they will purchase a Real Christmas Tree in 2007. Past polling data has shown that about 4% of households with a Real Christmas Tree purchase more than one. NCTA anticipates between 28 million and 30 million trees will be purchased this year in the U.S.

“We are encouraged by the fact that consumers continue to show a strong connection with the product we produce on our farms,” said Beth Walterscheidt, President of NCTA. “It continues the trend of families going back to a more traditional Christmas with a natural tree.”

Only eight percent (8%) of respondents plan to purchase a new artificial tree this holiday season, according to the poll. This would be flat with 2006 figures compiled from a different polling firm.

“Personally, I’m not surprised that fewer people are buying a new fake tree considering some of the health warnings about artificial trees we’ve seen recently with lead dust and PVC,” said Walterscheidt. “Families concerned about unsafe products in their home, especially those imported from countries with more lax environmental and health standards, are probably shying away from fake products when they can choose a natural product instead.”

The nation’s tree farmers earlier this year announced they were considering ways to fill potential higher demand for farm-raised Christmas trees should the current recall of hazardous Chinese products spill over to include the millions of factory-made Christmas trees imported from China.

“The U.S. imports more than 9 million plastic Christmas trees from China annually,” said Walterscheidt. “We don’t know that artificial trees will be recalled along with numerous other products found to be unsafe recently, but those of us growing natural Christmas Trees need to be prepared to provide fresh, farm-raised trees to families looking for a safe Christmas tree this holiday season.”

The poll also asked consumers about their overall “Christmas spirit” this year. The mean average rating score was 67.6 on a scale of 1 – 100 (100 being have as much Christmas spirit as possible). This score is 3.4 percentage points lower than a similar poll the same weekend in 2006. The natural Christmas Tree industry follows this indicator closely, because research has shown that “spirit” and mood are positively correlated with purchasing a farm-grown tree.

“We know that traditions and memories are drivers for our product,” said Walterscheidt. “People who are more into Christmas are more likely to use a Real Tree instead of a fake one.” This is especially true among young adults just starting their own households and families. Previously unrelated research for the trade group has shown that those aged 18-29 prefer a Real Christmas Tree over the fake kind by a wider margin than other age groups.

Another indicator that tree sales could be in for a boost is the expected drop in people traveling long distances due to higher gas prices and airfares. The online poll asked consumers if they planned to travel out of town, and 31% replied “yes.” This is a 6 percentage point decline in the number of people who planned to travel for the holidays in 2006. The association’s past polling data shows a strong correlation between staying home for the holidays and buying a Christmas Tree.

To learn more about the association and where to purchase a Real Christmas Tree, visit www.realchristmastrees.org.

The online poll – conducted November 15-16 – surveyed nationally representative sample of 1,074 adults aged 18 or over. - Source: National Christmas Tree Association

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