Food lies at the heart of Christmas celebrations around the globe. Whether it’s tamales steaming in Mexican kitchens, turkey roasting in American ovens, or spiced mulled wine warming hands in Germany, the holiday season sparks a global surge in demand for traditional foods. This demand doesn’t just shape family traditions—it drives agriculture, small businesses, and supply chains worldwide. Let’s explore how festive feasts influence the economies of countries like the UK, Mexico, Germany, and more.

1. The United Kingdom: Turkeys and the Supply Chain

In the UK, the traditional Christmas centrepiece is the humble turkey, a staple popularised by Charles Dickens’s A Christmas Carol where Scrooge famously sends a boy to buy “the prize turkey.”¹ Today, turkey consumption skyrockets by 400% during the holiday season, with millions of households featuring it in their festive feasts.² This annual demand surge creates a ripple effect throughout the food industry, influencing prices and availability. 

Christmas food pricing is a balancing act between seasonal demand and retailer strategy. As the holidays approach, prices for staples such as turkey, ham, mince pies, and winter vegetables often rise due to supply chain pressures and increased consumer demand. However, supermarkets frequently position turkeys as “loss leaders,” selling them at heavily discounted prices—or even below cost—to attract shoppers.³ This strategy, while shielding consumers from steeper price hikes, intensifies competition among retailers and adds complexity to pricing dynamics.

On average, UK households spend £825⁴ at Christmas, though only 12% of this goes to food. Recent challenges, including Brexit-related staffing shortages and rising production costs,⁵ have further strained turkey supplies, increasing prices and making affordable birds harder to find. For example, Brexit has significantly increased staffing costs in the poultry industry,⁶ leading to reduced turkey breeding and higher retail prices. Beyond turkeys, holiday demand has driven notable price hikes, such as mince pies costing an additional £2 last year and winter vegetable prices increasing by a staggering 27%.⁷

These pressures raise questions about whether traditional Christmas dinners will remain the go-to option for British households this year. As retailers and consumers navigate these challenges, the economic dynamics of festive food provide a fascinating lens through which to view broader market forces at play during the holiday season.

2. Mexico: The Tamale Economy 

In Mexico, tamales are a quintessential Christmas dish, made with corn masa and stuffed with meats, cheeses, or sweet fillings. The prominence of tamales during Christmas also ties to their symbolic nature in Mexican culture. Corn, a sacred crop to Mesoamerican⁸ civilisations, represents sustenance and abundance. Preparing tamales for holidays reflects gratitude and is a way to mark special occasions with a food deeply tied to ancestral traditions.⁹

Typically Mexican families spend slightly more than in the UK with an average of $1055 being spent around the holiday season, with 16% ($167) going on food.4 During the holiday season, tamale sales experienced a significant surge, with some vendors reporting up to a 60-80% increase compared to other times of the year.¹⁰ This spike drives higher demand for key ingredients like masa and corn husks, often leading to temporary price increases. For instance, masa prices may rise by 10-15% during the peak tamale-making period as families stock up for traditional "tamaladas" (tamale-making gatherings). However, production faces notable challenges. Suppliers often struggle with logistical issues, such as shortages of high-quality corn husks and the increased cost of corn due to supply chain constraints or weather-related agricultural disruptions.¹¹ Additionally, small-scale tamale producers frequently face labour shortages, as the preparation process is labour-intensive and time-sensitive.

These challenges highlight the delicate balance between preserving a cherished tradition and navigating economic pressures during the festive season. Tamales have also crossed borders, becoming a holiday staple in U.S. regions¹² with large Mexican communities, further extending their economic reach.

3. Germany: Christmas Feasts and Markets 

Germany is well known for its authentic Christmas markets (Weihnachstsmärkte) that date back to the late Middle Ages. These festive markets are typically held outdoors in town squares and offer a charming atmosphere filled with lights, decorations, and the aroma of seasonal foods. Visitors can also enjoy live music, entertainment, and sometimes even ice skating or carousel rides. These markets draw millions of tourists each year (Cologne attracting 4 million ¹³ and Frankfurt drawing in 3 million¹⁴ ) providing a magical experience and making it a significant economic driver, generating millions in revenue annually. These markets attract tourists, boosting local economies by increasing demand for accommodations, food, and retail goods. They create seasonal jobs, benefiting vendors, entertainers, and local businesses.

The main culinary contributions to the Christmas table include roast goose, stollen, and mulled wine, each with its own economic story. Roasted Goose Tradition: Goose farms experience a seasonal boom, particularly in regions like Lower Saxony. Local farms supply domestic markets, while exports of 18,200 tons of goose meat being imported from neighbouring European countries¹⁵ further boost the industry. However, in the last few years rising energy, food costs and bird flu have had a huge impact on festive enjoyment. For example, In the Munich Hofbräukeller, a portion of goose with red cabbage and dumplings currently costs €26.50 ¹⁶ however, in 2021 it was still €18.90, an increase of over 40%.

Stollen, a festive German fruitcake, originated in Dresden and dates back to the 14th century. Originally a simple bread made during Advent, it evolved into a richer, sweeter cake filled with dried fruits, nuts, and marzipan, dusted with powdered sugar. The most famous variety is the Dresdner Christstollen, protected by a geographical indication (GI), ensuring authenticity. Historically, ingredients like butter and sugar were restricted during Advent fasting periods, but the "Butter Letter" from Pope Innocent VIII in 1490 allowed their use, giving rise to the modern version of the cake.¹⁷

Glühwein, a traditional German mulled wine, has origins tied to medieval spiced wine recipes. It became popular during the cold winter months, especially at Christmas markets, as a way to warm up while enjoying festive celebrations. The economics of Glühwein are driven by its popularity at German Christmas markets, where it serves as a major revenue generator for vendors. Typically priced at €3-€5 per cup, it has high profit margins due to its simple ingredients (wine, spices, and sugar) and bulk preparation. Its demand supports local wine producers and spice suppliers, boosting related industries. Seasonal increases in wine prices are often observed due to the high demand for Glühwein production. P.S. Fun fact 50 million liters are drunk per year in Germany alone.¹⁸

4. The Philippines: A Sweet and Savory 

Christmas In the Philippines, the holiday season is the longest in the world, starting as early as September. Food is central to this extended celebration, with dishes like lechón(roast pig) and desserts such as bibingka (rice cakes) taking centre stage. People in the Philippines spend on average $614 per household during the festive season with a whopping 60% going towards food, one of the highest percentages of spending on food worldwide.⁴

Lechon is always a centrepiece of Noche Buena, the traditional Christmas Eve feast. The preparation and purchase of lechon created a significant economic impact,¹⁹ particularly for small-scale pig farmers, lechoneros (specialised roasters) and vendors. This also drives secondary industries, such as charcoal production and catering services.  In 2024, the market price of a lechon ranges from ‘PHP 120 to PHP 150 per kilogram.²⁰’With an average pig being 25-kilogram, it would cost locals between PHP 3,000 to PHP 3,750  and then with the added costs of transport, fuel, labour, and feed etc the cost of one pig can add up to PHP 13,900, roughly $240 which is incredibly high considering the minimum wage is PHP 7,161 ($128) per month.

The economics of traditional Filipino Christmas desserts like bibingka (rice cake) revolve around the use of locally sourced ingredients such as rice, coconut, and banana leaves. These key ingredients support rural economies by providing steady demand for small-scale farmers and producers during the holiday season. The primary ingredient is rice which boosts the livelihood of farmers in regions where rice cultivation is prevalent. Increased demand during Christmas generates higher sales for local rice millers and distributors; however, this demand also leads to an increase in cost for consumers and a lack of supply if demand isn't kept up. Coconut milk and grated coconut are essential components of bibingka, supporting coconut farmers and processors. The Philippines, being a top global coconut producer, sees a localized economic boost from the seasonal surge in consumption.

The production of bibingka and lechon preserves traditional farming and culinary methods. They are often sold by street vendors or small bakeries, creating additional seasonal income for micro-businesses. The popularity of these delicacies at community events and Christmas gatherings enhances local economic activity. Overall, the production and consumption of these delicacies during Christmas celebrates Filipino culture and contributes to sustaining rural economies and traditional industries.

5. Global Food Traditions and Trade 

Christmas feasts reflect local cultures and use local ingredients; however, it is not uncommon for them to incorporate global ingredients to highlight the global interconnectedness of holiday traditions. Germany is the leading mulled wine producer, but the spices used - cinnamon, cloves and nutmeg are imported from countries such as India and Indonesia. It started with the rise of trade during the Roman Empire when these ingredients flooded Europe and improved food and drink.²¹

Pineapples, bananas, oranges, passionfruit, and other tropical fruits are imported from Latin America and Africa to provide for the rise in demand across European countries during the holidays. They are key ingredients to some of the most popular European Christmas dishes including English Christmas Pudding that requires candied pineapple and sultanas, Italian Panettone that includes candied orange and lemon peel, German Stollen that also includes candied orange and lemon peel and French Buche de Noel where some variations include passionfruit or mango for filling and decoration.²²

Countries like Norway and Japan experience an increase in seafood demand, as countries like Italy, Portugal, and Australia consume prawns, salmon,²³cod, and shellfish around this time of year, driving fish industries and export markets.

6. Sustainability Challenges 

The intense demand for traditional holiday foods can strain resources and raise sustainability concerns. Large-scale production of turkeys, geese and other forms can have significant environmental footprints, prompting calls for more sustainable farming practices such as plant-based alternatives or supporting local and ethical producers. Holiday feasts also often result in increased food waste. Often people have leftovers for the next few days but a more sustainable, but often forgotten option for huge amounts of leftovers is to keep them for months, rather than days, in the freezer.  Wastage has led governments and organisations to promote awareness campaigns and encourage mindful consumption. For example, in the UK Love Food Hate Waste encourages meal planning and proper storage to minimise waste, and Australia's Fight Food Waste Cooperative promotes awareness of over-purchasing during festive seasons.

Conclusion 

From turkey farms in the UK to tamale vendors in Mexico and stollen bakers in Germany, the holiday season is a boon for global food industries. These festive traditions not only bring people together but also stimulate economies, support local producers, and drive international trade. However, balancing this seasonal abundance with sustainable practices will be key to ensuring that the economic benefits of holiday feasts endure for generations to come.

 

 

Works Cited

1. Hendry, Caroline. “Why do we eat turkey at Christmas? The long-standing tradition explained.” SquareMeal, 24 September 2024, https://www.squaremeal.co.uk/christmas-parties/christmas-party-ideas/why-do-we-eat-turkey-at-christmas_10022. Accessed 26 November 2024.
2. Javed, Saman. “Sales of frozen Christmas turkeys quadruple amid fears of shortages.” The Independent, 2021, https://www.independent.co.uk/life-style/food-and-drink/christmas-turkey-sales-increase-shortages-b1931783.html.
3. Degraba, Patrick. “The loss leader is a turkey: Targeted discounts from multi-product competitors.” Research Gate, 2006, https://www.researchgate.net/publication/4956074_The_loss_leader_is_a_turkey_Targeted_discounts_from_multi-product_competitors.
4. Zepz. “Cost of Christmas around the world in 2023.” World Remit, 2023, https://www.worldremit.com/en/cost-of-christmas.
5. Horn, Tom. “This is why your Christmas turkey costs more this year.” Big Issue, 17 November 2024, https://www.bigissue.com/life/food/christmas-turkey-cost-price/. Accessed 26 November 2024.
6. Wood, Zoe. “Not enough turkeys for Christmas due to Brexit, poultry producers warn.” The Guardian, 2021, https://www.theguardian.com/environment/2021/aug/19/chicken-producers-brexit-staff-supply-shortages-uk-immigration-jobs-eu.
7. Calcea, Nicu, et al. “How much will your Christmas dinner cost this year?” BBC, 2023, https://www.bbc.com/news/business-67716356.
8. Kotula. “La Tamaleada! A Christmas Tradition from Central America.” Clark Kotula, 2018, https://www.clarkkotula.com/blog/2019/12/17/tamaleada-a-mesoamerican-christmas-tradition.
9. Mack, Lauren. “Christmas Tamales Tradition Explained.” Gold Belly, 2024, https://blog.goldbelly.com/christmas-tamales/.
10. Meza, Flower. “Tamale sales increase by 60 to 80% for “Candlemas Day.”” El Dictamen, 2024, https://www.eldictamen.mx/venta-tamales-incrementa-un-60-dia-candelaria/.
11. Garcia, Jocelyn. “Mexico’s corn imports surge amid production challenges.” Fast Markets, 2024, https://www.fastmarkets.com/insights/mexicos-corn-imports-surge-amid-production-challenges/.
12. Mason, Dave. “Tamales play big role in winter holidays in California.” Yahoo, 2024, https://www.yahoo.com/lifestyle/tamales-play-big-role-winter-155854241.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAANQj-zus2Gw3_Yz54WaFhybGzH7CSYtC9pxVrIucUjqZ_XokyjC149xIoyhpk9GKwWmf3-ckY3zRewI4-WDj7mFMlIUPfylbXWI.
13. Logan, Olivia. “12 best Christmas markets in Germany.” I am Expat, 2024, https://www.iamexpat.de/lifestyle/lifestyle-news/best-christmas-markets-germany.
14. Pettit, Sophie. “The best Christmas markets in Germany in 2024.” Expatica for Internationals, 2024, https://www.expatica.com/de/lifestyle/holidays/christmas-markets-in-germany-105201/.
15. Burkart, Jürgen. “The perfect Christmas goose with Convotherm.” Welbilt, 2023, https://www.welbiltde.com/newsroom/kulinarische-trends/2022-12/Christmas-recipe?lang=en-us#:~:text=But%20this%20year%2C%20rising%20energy,recently%20become%20significantly%20more%20expensive.
16. Menu. “Unsere Spezialitäten - auch zum Mitnehmen.” Hofbräukeller, https://www.hofbraeukeller.de/speisekarte. Accessed 28 November 2024.
17. “Dresdner Christstollen / Dresdner Stollen / Dresdner Weihnachtsstollen PGI.” European Commission, 2024, https://agriculture.ec.europa.eu/farming/geographical-indications-and-quality-schemes/geographical-indications-food-and-drink/dresdner-christsollen-pgi_en.
18. Martin, Katrin. “7 facts about mulled wine and a recipe.” Hanglage: Das Weinregal, 2020, https://hanglage.com/en/blogs/news/7-fakten-uber-gluhwein-und-ein-gluhweinrezept.
19. Zaldarriaga, Joe. “Christmas and consumer spending.” Phillipine News Agency, 2023, https://www.pna.gov.ph/opinion/pieces/799-christmas-and-consumer-spending.
20. Buenaflor, Chad. “The Economics of Lechon: How Much Does It Cost to Produce?” Teryos Lechon, 2024, https://teryoslechon.com/2024/06/29/the-economics-of-lechon-how-much-does-it-cost-to-produce/.
21. Berry, Camille. “The History of Mulled Wine.” thebacklabel, https://www.thebacklabel.com/the-history-of-mulled-wine/. Accessed 11 December 2024.
22. “Christmas Stollen: The German Sweet Bread for Christ.” Yummy Bazaar, https://yummybazaar.com/blogs/blog/what-is-german-christmas-stollen-bread.
23. Holmyard, Nicki. “Europe celebrates Christmas with smoked salmon, luxury seafood.” Seafood Source, 2014, https://www.seafoodsource.com/features/europe-celebrates-christmas-with-smoked-salmon-luxury-seafood.

Additional Sources

24. “What do Europeans Eat for Christmas? 27 EU Countries 27 Desserts.” Yummy Bazaar, 2022, https://yummybazaar.com/blogs/blog/christmas-treats-across-european-union.
25. B, Anuradha. “Corn Masa Flour Market Analysis, Opportunities & Trends 2032.” Growth Market Reports, 2024, https://growthmarketreports.com/report/corn-masa-flour-market.
26. Infographics: ‘Cost of Christmas around the World in 2023’ World Remit, 2023, https://www.worldremit.com/en/cost-of-christmas