The Effectiveness of Custom Christmas Ornaments: Statistics & Trends

The popularity of Christmas Ornaments in the U.S. (Consumer Trends)

Christmas ornaments are a beloved staple of holiday decorating across America. Read on to see compelling evidence of why corporate Christmas ornaments are among the best holiday giveaways for your company or organization! In fact, over three-quarters of Americans (77%) put up a Christmas tree and decorations each year.1 A 2021 survey by the American Christmas Tree Association similarly found that 75% of U.S. households (approximately 94 million homes) displayed a Christmas tree during the holidays, and, of course, those trees are typically decorated with ornaments.2 This widespread tradition means any custom ornament has the potential to find a place in many homes during the festive season.

Spending on holiday decorations has been significant and growing.

Americans collectively spent about $16.2 billion on holiday decorations in 2021, the highest in 15 years.3 That averages out to roughly $63 per person dedicated just to decorations (not including gifts) in a typical holiday budget.4 Recent breakdowns show the average American plans to spend around $60–$65 on Christmas décor each year, apart from gifts.5 Despite economic ups and downs, holiday decoration spending hit record levels in 2021 and has remained strong, indicating that consumers continue to invest in making their homes festive.6 Even amid pandemic pressures, surveys saw increased interest in decorating – for example, one study noted many people splurged on décor in 2020 to cheer up their homes, and although budgets tightened in 2021, the tradition of decorating stayed robust.7

Ornaments as a Top Holiday Decoration

When it comes to what Americans buy for decorating, ornaments rank at the very top. In a recent survey of heavy holiday decorators, 70% planned to purchase new ornaments, making them the most popular decoration item (ahead of lights at 56%, wreaths 51%, and even Christmas trees 41%).8 Simply put, most people who decorate for the holidays include ornaments in their décor. Ornaments are often seen as keepsakes – many families save and reuse them year after year, adding new ones to their collection annually. This longevity means a branded or custom ornament can serve as a repeated reminder of your organization each holiday season.

Other statistics highlight the resonance ornaments have with consumers: Home décor (including holiday ornaments) is among the favorite gift categories for 40.4% of consumers, according to a 2023 holiday gifting survey.9 This suggests that if you give someone a nicely made ornament, there's a good chance it will be well-received and cherished. Even pet owners get in on the action – over half (52%) of U.S. pet owners say they have holiday decorations for their pets, like a special stocking or ornament for Fido or Fluffy.10 All of this underlines that ornaments hold a special, sentimental place in holiday traditions.

From a supply perspective, the market for ornaments is huge. The U.S. imports billions of dollars in Christmas ornaments and decorations each year to meet consumer demand. For example, in 2023, the United States imported $2.82 billion worth of Christmas decorations from China, which accounted for 88% of all U.S. decoration imports.11 China has long been the dominant supplier of ornaments and holiday décor. This figure is consistent with previous years, e.g., about $2.9 billion in decoration imports in 2021, illustrating the enormous scale of the ornament and décor industry.12 If that number makes you shutter, consider buying Made in the USA Custom Christmas Ornaments! High import values reflect high consumer consumption: Americans buy a lot of ornaments and holiday décor, year in and year out.

U.S. Holiday Decoration Spending Habits (Last 5 Years)

Focusing on the past five years, research shows that U.S. consumer behavior around Christmas ornaments and decorations has remained enthusiastic, with some fluctuations due to economic conditions. During 2020–2021, many consumers actually increased their decorating to boost holiday morale at home.13 A Rocket Homes survey of 2,000 Americans found the median household spent about $75 on decorations in 2021, but that average was skewed by many spending much more.14 In fact, in 2021 only 3.8% of respondents spent over $500 on décor (down from 22% the year prior), while the majority (61% in 2021) kept décor spending under $100, perhaps a return to normal budget levels after a 2020 splurge.15 Nonetheless, younger adults and families with children consistently spend more on decorations: Millennials reported a median of $100 per year on holiday décor (compared to $50 for Baby Boomers), and households with kids spend about 70% more on decorations than those without kids (median $100 vs $59).16, 17 These demographics – younger consumers and families – may be especially receptive to fun, custom ornaments.

Looking at 2022–2024, industry surveys (e.g. by the National Retail Federation) show holiday spending rebounded strongly and continued to grow. NRF reported Americans planned to spend around $902 per person in 2024 on holiday items (gifts, food, décor, etc.), up from about $867 in 2021.18 Within those budgets, the allocation for non-gift items (which includes decorations) has held fairly steady – roughly $60–$70 per person is devoted to decorations each holiday season in recent years.19 Notably, about 42% of consumers in one 2024 survey said they planned to spend more than $150 just on Christmas decorations.20 This indicates a substantial segment of shoppers are avid decorators willing to invest in high-quality ornaments, lights, and other décor. For businesses considering custom ornaments, these trends signal a receptive audience and sustained demand.

Business and Organizational Use of Ornaments

Custom Christmas ornaments have proven to be effective not only for individual consumers but also as promotional and branding tools for businesses and organizations. Companies often purchase customized ornaments (with a logo, message, or unique design) to distribute as gifts to clients, employees, donors, or members. This practice taps into the emotional appeal of the holidays while also keeping the organization's name literally "hung on display" in recipients' homes.

Corporate gifting research underscores how popular the holiday season is for business gifts.

Industry analysts estimate the corporate gifting market was around $242 billion in 2021 and growing 8%+ annually.21 The holidays are the #1 or #2 most common occasion for corporate gift-giving: more than half of business gift-givers say that Christmas/holiday time is a prime opportunity to send gifts to clients or employees.22 For example, one study noted 60% of corporate gifts in 2021 (worth about $140 billion) were aimed at people outside the company (clients, partners, etc.), often distributed around the holidays.23 This shows that businesses clearly recognize the value of giving gifts like ornaments to build relationships.

Ornaments make excellent corporate gifts for a few reasons supported by the data:

• They are kept and reused – Ornaments are not a one-and-done item; recipients tend to save them and put them on the tree each year. (Promotional product studies show that useful or sentimental items have very high retention rates.) A branded ornament thus delivers repeated impressions of your logo or message annually, at a sentimental time.
• They have broad appeal – Home décor items, including ornaments, rank among favored gift categories for consumers.24 Unlike sizing-dependent gifts or niche items, almost anyone who celebrates the holidays can enjoy an ornament.
• They can be personalized – Personalization increases impact: 39% of consumers prefer personalized gifts, and over half "highly appreciate" a custom message included.25 An ornament customized with a person's name, a special date, or a unique design can feel more thoughtful than a generic gift card. This personal touch can strengthen the emotional connection to your brand.

Impact of Custom Ornaments and Holiday Gifts on Brand Loyalty

Perhaps the most compelling reason for businesses and nonprofits to use custom ornaments is the measurable boost in goodwill, loyalty, and brand visibility they provide. Multiple surveys in the past few years have demonstrated that holiday gifts to customers or employees yield positive returns for the givers. Here are some key findings from reputable organizations:

• Employees appreciate holiday gifts: According to a 2023 survey by the Promotional Products Association International (PPAI), 80% of U.S. employees consider a holiday present from their employer to be meaningful.26 This suggests that gifting custom ornaments (or other items) to your staff can significantly improve morale and make employees feel valued during the holidays. Happy employees often become brand ambassadors.
• Gifts influence customer perception: Most consumers (85%) said that the thoughtfulness of a holiday gift from a company influences their perception of that brand in a positive way.27 In the same survey, about 70.7% of consumers reported that receiving a gift with a high perceived value or unique touch increases their loyalty to that company.28 In other words, a well-designed, good-quality ornament can make your organization more memorable and likable.
• Holiday ornaments spur ongoing business and referrals: Roughly half of consumers (50%) say that when they get a thoughtful holiday gift from a company they do business with, they are more likely to continue doing business with that company – and even recommend the company to others.29 This finding from PPAI aligns with other research; for example, a business client survey found nearly 1 in 2 professionals were inspired to keep doing business with a vendor after receiving a holiday gift.30, 31 Such statistics demonstrate a clear ROI: custom ornaments given in goodwill can translate to repeat customers and new referrals.
• Gifts strengthen emotional bonds: A recent global survey by Sendoso (2024) found that 83% of people felt closer to the company that sent them a corporate gift during the past two years.32, 33 That "warm fuzzy feeling" of being appreciated can be especially strong around the holidays. By giving a keepsake ornament, your brand becomes part of the recipient's holiday tradition, which is a powerful association.
• Promotional items drive business engagement: More broadly, the promotional products industry reports that 85% of consumers who receive a promotional item eventually do business with the brand that gave it to them.34 Custom ornaments fall into this category of promotional products. They not only create goodwill but also serve as a physical reminder of your organization each year.

Recent Surveys and Statistics (2019–2024 Highlights)

To ensure we focus on the most current insights, here are a few additional recent stats (from the last 5 years) related to Christmas ornaments, holiday marketing, and consumer behavior in the U.S.:

• Rise of Online Ornament Shopping: The National Retail Federation noted that in 2024, 57% of holiday shoppers planned to purchase gifts and seasonal items online.35 This means consumers may be increasingly receptive to ordering custom ornaments via websites or e-commerce (for instance, as fundraisers or branded merchandise), and businesses can market ornaments online effectively.
• Peak Decoration Timing: According to a 2022 survey, 80% of Americans decorate for the holidays and they spend on average 4 hours doing so.36> The majority (56%) wait until after Thanksgiving to decorate, but about 1 in 5 (20%) start before Thanksgiving.37 For businesses, this implies that gifting ornaments in November (or early December) is ideal, as customers are decorating during that span and your ornament can be part of their décor immediately.
• Decorations Even During Downturns: Even when consumers tighten budgets, they tend to still prioritize at least some spending on holiday decorations. For instance, during high inflation in 2022–2023, surveys found many Americans cutting back on gifts or celebrations, but a solid 37% still planned to spend over $150 on décor (often viewing it as an investment in holiday joy at home).38 This resilience underscores that ornaments continue to hold value in consumers' eyes, which can make a gifted ornament feel like a welcome cost-saver to them (one less decoration they have to buy).
• Consumer Expectations vs. Reality: Interestingly, just 53.5% of employees in the PPAI survey expected to receive a company-branded holiday gift from their employer.39 Many companies opt for generic gift cards, etc., or some give nothing at all. This gap between expectation and reality is an opportunity – by giving a thoughtful custom ornament, a company can exceed expectations. The survey commentary noted that a memorable, physical gift (as opposed to a gift card) creates excitement and tends to be kept "for years to come," reinforcing loyalty.40

Conclusion: Turning Statistics into Strategy

The data from the past five to ten years makes a compelling case: custom Christmas ornaments can be highly effective for your business or organization. They tap into a cherished consumer tradition (with the vast majority of Americans enthusiastically decorating trees), and they serve as a tangible symbol of goodwill that recipients appreciate. Research in the U.S. shows that people keep and value ornaments, and when those ornaments come as gifts from companies, they can strengthen relationships in measurable ways – increasing brand loyalty, repeat business, and positive word-of-mouth.41, 42

Moreover, the investment is modest relative to the impact. With Americans spending around $63 of their own money on decorations on average, a beautiful custom ornament given for free is a welcome surprise for customers or employees.43 It's a marketing touchpoint that literally hangs in their living room for all to see. By leveraging these insights – the robust consumer demand for ornaments and the proven boost in sentiment and loyalty from gifting – businesses and organizations can confidently include custom Christmas ornaments in their holiday strategy, knowing there's solid evidence of their effectiveness in the U.S. market.

References:

1. "2024 Christmas Facts, Statistics, & Trends Unwrapped." Drive Research.
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