Holiday Decor Spending & Market Analysis: Top 20% of Households
Research compiled March 6, 2026 for Suzanne Cameron
Executive Summary
High-income households (top 20% of earners) spend $384-$460 per year on holiday decorations—approximately 6-7x more than the average household ($64). This affluent segment increasingly drives market growth, with their share of total holiday spending projected to rise from 31.7% in 2024 to 38.5% in 2025.
While major retailers dominate distribution, there are significant gaps in their offerings around personalization, handmade aesthetics, and DIY-friendly products—gaps that affluent consumers are actively filling through custom projects and artisan purchases.
Average Spend: Top 20% of Households
Key Figures:
- $384-$460 per household annually on holiday decorations (top 20% earners)
- $64 average for typical American household
- $261 per person allocated for "festive extras" including decorations (2024)
- $1,479 projected spend on holiday gifts by households earning $100k+ (2025)
Trend: High-income households are "expanding budgets across all categories (gifts, food & decor, and experiences), essentially carrying overall holiday spending while other income groups pull back." This segment is expected to accelerate spending into 2025 across all holiday categories.
Top 5 Retailers Capturing This Spend
The holiday decoration market ($8.1 billion in 2024, projected $8.75 billion in 2025) is dominated by a mix of home improvement giants, mass merchandisers, and e-commerce platforms:
1. Home Depot
- Market presence: 29.4% of foot traffic to home improvement/furnishing chains nationwide (Q3 2024)
- Strengths: Outdoor displays, artificial trees, extensive lighting selection
- Target customer: Homeowners seeking large-scale, durable outdoor decorations
2. Lowe's
- Market presence: 20.7% of foot traffic to home improvement chains
- Strengths: Similar to Home Depot—outdoor, lighting, artificial trees
- Target customer: DIY-oriented homeowners, project-based shoppers
3. Target
- Market presence: Consistently identified as a top destination for holiday decor
- Strengths: Designer collaborations (Shea McGee, Joanna Gaines), chic affordable options, strong in-store experience
- Target customer: Design-conscious shoppers seeking trendy, affordable decor
4. Walmart
- Market presence: Omnichannel market leader, early holiday sales events
- Strengths: Competitive pricing, wide selection, convenience
- Target customer: Value-driven families, bulk purchasers
5. Amazon
- Market presence: Leading e-commerce platform for holiday decor
- Strengths: Vast selection, convenience, fast shipping
- Target customer: Online-first shoppers, comparison shoppers, last-minute buyers
Honorable Mentions: Pottery Barn, Anthropologie, Michaels, Wayfair, IKEA (specialty retailers with niche appeal)
Market Dynamics
- 67.3% of sales still occur offline—shoppers enjoy the in-person experience of selecting decorations
- E-commerce growing steadily, driven by convenience and wider selection
- North America holds the largest share of the global market ($8.1B in 2024)
Gaps in Retailer Offerings & DIY Trends
Despite the dominance of major retailers, affluent consumers are increasingly turning to DIY projects and artisan purchases to fill significant gaps in mass-market offerings. The overarching theme: "Crafted is better than consumed."
Key Gaps Identified:
1. Limited True Customization
What retailers offer: Basic personalization (names, dates, photos on ornaments)
What's missing: Deep customization of designs, colors, materials, and textures to align with specific aesthetic trends (e.g., "CastleCore," "Storybook Animals," specific velvet or linen ribbon types)
How consumers fill it: Etsy, artisan makers, custom DIY projects
2. Scarcity of Authentic "Handmade Look"
What retailers offer: Manufactured goods that aim for a "handmade look"
What's missing: True one-of-a-kind, artisan-crafted items with imperfections and character
How consumers fill it: Handmade ornaments, woolen Christmas trees, velvet-wire decorations, scented candles from small makers
3. Lack of DIY Kits Aligned with Trends
What retailers offer: Generic craft supplies, basic DIY kits
What's missing: Curated DIY kits for trending projects:
- Dried citrus garland kits
- Paper art decor kits (folding trees, paper chains)
- Customizable tree toppers
- Modular wreath systems
- Bow-making kits with luxury ribbons (velvet, satin, plaid)
How consumers fill it: Pinterest tutorials, YouTube DIY videos, purchasing raw materials separately
4. Sustainable & Repurposed Materials
What retailers offer: Some natural elements (pinecones, branches), generic "eco-friendly" claims
What's missing: Curated offerings of truly sustainable, reusable, or repurposed materials that support eco-conscious DIY projects
How consumers fill it: Thrift stores, nature walks (foraging), upcycling old decorations
5. Support for "Crafted is Better Than Consumed" Mentality
What retailers offer: Finished products for purchase
What's missing: Inspiration, workshops, community, and accessible materials tailored to trending DIY projects
How consumers fill it: Craft classes, online communities, maker spaces, specialty craft stores (Michaels, Joann)
6. "Storytelling Style" Integration
What retailers offer: Individual ornaments and decor items
What's missing: Products designed to help consumers integrate cherished heirlooms with new decor in a cohesive, narrative-driven way
How consumers fill it: Interior designers, family curation, vintage shopping
2024-2025 DIY Holiday Decor Trends
Affluent consumers are embracing these DIY trends to create personalized, meaningful spaces:
- Bows Everywhere: Velvet, satin, linen, and plaid ribbons on trees, garlands, wreaths, gifts
- Nostalgic Heirlooms: Vintage ornaments, mercury glass, handmade crafts with personal history
- Twists & Braids: Sculptural, handcrafted details (braided candles, woven frames)
- Deep, Rich Colors: Burgundy, cranberry, navy, forest green mixed with gold accents
- Natural Elements: Oversized pinecones, holly, antlers, driftwood, dried citrus garlands
- Paper Art Decor: Paper chain garlands, folding paper trees
- "A Tree in Every Room": Smaller personalized trees throughout the home
- Handmade Touches: Woolen trees, velvet-wire decorations, scented candles
- Personalization & Storytelling: Memory-filled spaces that reflect family history
Market Opportunities
The gap between what affluent consumers want and what major retailers offer presents significant opportunities:
- Curated DIY Kits: Pre-packaged kits for trending projects (bows, dried citrus, paper art)
- Luxury Craft Materials: High-end ribbons, sustainable materials, artisan supplies
- Personalization Services: In-store or online customization beyond basic monogramming
- Workshops & Classes: In-person or virtual DIY workshops at retail locations
- Subscription Boxes: Monthly craft kits with trending holiday DIY projects
- Artisan Marketplaces: Partnerships with makers (a la West Elm's Local initiative)
- "Storytelling Style" Consultations: Services to help integrate heirlooms with new decor
Conclusion
The top 20% of household earners represent a powerful and growing segment of the holiday decoration market, spending $384-$460 annually—far above the average. While Home Depot, Lowe's, Target, Walmart, and Amazon capture the bulk of this spending, there are clear gaps in their offerings around:
- Deep customization and personalization
- Authentic handmade aesthetics
- Trend-aligned DIY kits and materials
- Sustainable and storytelling-driven products
Affluent consumers are actively filling these gaps through DIY projects, artisan purchases on platforms like Etsy, and custom collaborations. The underlying shift: "Crafted is better than consumed." Retailers who can bridge this gap—by offering curated DIY kits, luxury craft materials, personalization services, and experiential workshops—will be well-positioned to capture even more of this high-value market segment.
Research compiled by Bubba Grand (BYB) — AI Agent on Solana
For: Suzanne Cameron
Date: March 6, 2026