About 80 percent of American households will deck the halls this holiday season with new decorations, according to a new survey by Unity Marketing of holiday and seasonal decorators. Spending on new holiday decorations reached $15.8 billion in 2005, up 7.4 percent over $14.7 billion in 2004, and is likely to grow another 5-7 percent this year, according to the survey.
The Christmas holiday accounted for more than half of the total holiday decorations market in 2005, or $8.5 billion. In addition, Americans spent $2.4 billion on seasonal decorations last year, bringing the total market for holiday and seasonal decorations to $18.2 billion in 2005. Pam Danziger, president of Unity Marketing, said, “People today are expressing a growing desire to use holiday and seasonal decorations to create a mood that will enhance family celebrations. The passion for holiday and seasonal decorations goes along with the whole new do-it-yourself trend. People want to get off the day-to-day treadmill and enjoy simpler pleasures that tap their creative reserves. Expressing themselves through holiday decorating is one way people renew themselves.” .
Unity Marketing has identified three key trends related to holiday and seasonal decorating based upon a quarterly survey of 600 consumers who celebrate holidays and occasions with gifts and home decorations.
Holiday decoration spending continues to shift toward fourth quarter celebrations. While Christmas decorations make up the largest share of the decorations market, Halloween was the fastest growing holiday in 2005, reaching $2.7 billion in sales. In 2003, about 70 percent of the total holiday decorations market was generated for fourth quarter holidays — Halloween, Thanksgiving and Christmas. This increased to 75 percent of the total market in 2005.
Consumers are spending more on outdoor decorations. In 2005, the total market for outdoor holiday decorations grew nearly 15 percent over 2004 to reach $3.8 billion. This compares to 5.3 percent growth in spending on indoor decorations. The three biggest categories for outdoor decorating are flowers, plants and wreaths; outdoor lights and lighted sculptures; and flags, banners and signs, with all of these categories posting double-digit growth.
Outdoor balloons were the fastest growing category in 2005 and are expected to be for 2006. New balloon inflatable decorations are gaining traction in the market with sales expected to top $500 million in 2006, up from only $100 million in 2003. In third quarter 2006, some 20 percent of decorations-buying consumers purchased outdoor balloons, a significant increase over the 10 percent that made purchases in the category last year.
