Global Christmas Lights and Decoration Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report - By Type (Artificial Christmas Trees, Christmas Lightings, Christmas Decorations, Glass Ornaments, Cotton Batting), Application (Residential and Commercial), Distribution Channel (Supermarkets, Hypermarkets, Departmental Stores, Convenience Stores and Online) and Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) – Industry Analysis from 2024 to 2029

Updated On: January, 2024
ID: 13914
Pages: 175

Global Christmas Lights and Decoration Market Size (2024 to 2029)

The global Christmas lights and decorations market size is expected to be worth USD 8.09 Billion in 2024 and grow USD 9.73 Billion by 2029, growing at a CAGR of 3.75% from 2024 to 2029.

Christmas lighting, also known as festive lighting, is utilized to decorate houses during the Christmas season, encompassing Advent and Christmastide. The customary holiday colors are evergreen (pine) green, snow-white, and crimson hearts. Decorative items such as Christmas ornaments, baubles, globes, "Christmas bulbs," or "Christmas bubbles" are commonly used to embellish Christmas trees. Gold and silver, in addition to various steel colors, are frequently incorporated. Traditional ornaments such as bells, reindeer, candles, candy canes, garlands, stockings, wreaths, snow globes, and angels are also popular. Snow sheets are specifically designed to replicate snow and create a snowy effect beneath a tree or village.

Global Christmas Lights and Decoration Market Drivers:

The rapid urbanization, population growth, rising per capita income and globalization are primarily driving the growth of the Christmas lights and decoration market. The availability of Christmas ornament gadgets in local retail shops contributes to the convenience of consumers and boosts sales. The collaborations between social media and e-commerce platforms further accelerate the growth of the global market. As people browsing social media platforms are influenced by the latest trends and end up purchasing these products from online retailers, the demand for these products is growing. The low cost of raw materials and labor enables large-scale production and export of these products, which is another notable factor promoting the global market. Furthermore, the technical barriers to manufacturing Christmas lights and decorations are not significant, which further contributes to the market's growth during the forecast period.

The growing emphasis of manufacturers of Christmas lights and decorations is on prioritizing technological advancements, introducing innovative trends, and implementing improvements to enhance product quality and reduce costs. These combined efforts are generating profitable opportunities for the manufacturers of these products. Furthermore, intense competition drives marketers to strategize and differentiate their products, fostering market growth continually.

Global Christmas Lights and Decoration Market Restraints:

The celebration of Christmas has evolved into a public festival that is no longer solely associated with religion. However, this shift can act as a constraint on the growth of the Christmas lights and decorations market. In Asia, which serves as a major production hub, the manufacturing of lighting and decorations has been hindered, with retail stores experiencing closures. Consequently, families have reduced their spending on Christmas, leading to a decreased demand for new decorative items and a reliance on existing ones. Furthermore, the seasonality of the festival poses a challenge to market growth. As Christmas is celebrated only once a year, the demand for Christmas decorations peaks during that time, limiting market growth throughout the rest of the year. The presence of low-quality products with low prices that do not last long is another key factor hindering global market growth.

Impact of COVID-19 on Christmas lights and decoration market:

The COVID-19 pandemic has adversely affected the Christmas lights and decoration market. A lockdown was imposed in almost all the countries and business activities have stopped during the COVID-19 pandemic as a result. Soon after the arrival of the COVID-19 pandemic, some countries gave exemptions to businesses to open and operate and in such situations, the sellers of Christmas lights and decoration products had to reduce the prices of lights and decoration items to attract customers and increase sales. On the other side, the products of Christmas lights and decoration products have seen demand coming from online platforms during the COVID-19 pandemic. People were ordering decorating ornaments and lights online. Due to the lockdown, it was difficult for the distributors to distribute the order. However, to conclude, the lockdown measures have decreased the demand for the Christmas lights and decoration market and created a downfall in the inventory and marketplace revenue.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

Segments Covered

By Type, Application, Distribution Channel and Region

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, Asia Pacific, Latin America, Middle East and Africa

 

This research report on the global Christmas lights and decoration market has been segmented and sub-segmented based on type, application, distribution channel and region.

Global Christmas Lights and Decoration Market - By Type:

  • Artificial Christmas Trees
  • Christmas Lightings
  • Christmas Decorations
  • Glass Ornaments
  • Cotton Batting

Based on type, the artificial Christmas tree segment dominated the market in 2022 and is expected to grow at a CAGR of 7.44% during the forecast period. Factors such as growth in demand for pre-lit and pre-decorated artificial trees, rising popularity in regions with limited natural tree availability and increasing traction for eco-friendly materials in artificial trees are primarily driving the growth of the segment in the worldwide market.

The Christmas lighting segment accounted for a substantial share of the worldwide market in 2022 and is predicted to grow at a promising CAGR during the forecast period owing to the advent of LED technology, increased outdoor lighting trends and surge in demand for smart and programmatic Christmas lights.

The Christmas decorations segment is another lucrative segment and is predicted to hold a considerable share of the worldwide market during the forecast period.

Global Christmas Lights and Decoration Market - By Application:

  • Residential 
  • Commercial

The residential segment is expected to dominate the market during the forecast period owing to the extensive application of Christmas lights and Christmas decorations in every home. Furthermore, in this season, company holidays and other government holidays are declared, so its commercial affects decoration more than the residential application.

Global Christmas Lights and Decoration Market - By Distribution Channel:

  • Supermarkets 
  • Hypermarkets
  • Departmental stores
  • Convenience stores
  • Online

The specialty stores segment is anticipated to hold the largest share of the global Christmas Lights and Christmas Decorations market based on the distribution channel during the forecast period. This is attributed to the wide range of varieties available in specialty stores compared to other channels. Customers who are enthusiastic about decorating for Christmas find it more convenient to explore and purchase products from these specialized stores. However, the online segment is expected to experience substantial growth due to the impact of the COVID-19 pandemic on retail and offline channels. The shift towards online shopping has accelerated, as more customers prefer the convenience and safety of purchasing Christmas lights and decorations online.

Global Christmas Lights and Decoration Market - By Region:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle east and Africa

North America dominated the Christmas lights and decorations market worldwide accounting for around 35% of the global market in 2022. As the country emerged from the economic difficulties of the Great Depression and the war era, Americans began to spend more money, fostering a new culture of consumerism. This newfound consumerism opened various niche markets for Christmas lights and decorations. Over time, the nature of these displays evolved as the tradition spread beyond its origins in New York City, adapting to the unique landscapes of different communities. Today, it is estimated that over 150 million light units are sold in America annually, with more than 80 million households adorned with holiday lights. Factors such as high consumer spending during the holiday season, growing popularity of outdoor lighting displays and rapid adoption of smart lighting throughout the North American region are majorly driving the growth of the North American market.

Europe is projected to account for the second-largest share of the worldwide market during the forecast period. The spread of rich cultural traditions across the European region is primarily driving the growth of the European market. The rise in sales of collectible and antique Christmas ornaments in Europe is further fuelling the growth rate of the European market. Germany and the UK are predicted to hold the major share of the European market during the forecast period.

The Asia-Pacific regional market is anticipated to witness a promising CAGR during the forecast period. The growing disposable income, rising adoption of Western holiday traditions, increasing urbanization and expanding middle-class population are contributing to the growth of the APAC Christmas lights and decoration market. China and India are major participants in the APAC market.

KEY MARKET PLAYERS:

Companies playing a key role in the global Christmas lights and decoration market include SmartRay Inc., Cooper Decorations Co. Inc., Balsam Hill, Tree Classics, Barcana, Roman, Kingtree, Crystal Valley, Bulbman, Festive Productions Ltd, Crystal Valley Decorating Inc., Hilltop, BLACHERE ILLUMINATION and Focus Technology Co. Ltd.

RECENT HAPPENINGS IN THE MARKET:

  • Lidl, a German retailer, launched a range of affordable Christmas lights in November 2022. These lights are advertised to have operating costs of less than 30p for the entire month of December or less than 1p per day.

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Frequently Asked Questions

What is the expected CAGR for the Christmas lights and decoration market?

Expected CAGR for the Christmas lights and decoration market is 3.75%.

Who are the key market players in Christmas lights and decorations?

SmartRay Inc, Cooper Decorations Co. Inc., Balsam Hill, Tree Classics, Barcana, etc

Which region dominates the Christmas lights and decoration market?

North American region dominates the Christmas lights and decoration market

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