Cracking Christmas: How Nutcrackers Became a Beloved Holiday Tradition

On the end table next to my dad’s “spot” on the couch sat a heavy wooden bowl with a faux bark exterior, filled to overflowing with mixed nuts in the shell. In the center of the bowl was a shiny wooden island with a metal pliers-style nutcracker and several metal nut-meat picks. It was a strictly utilitarian set-up—no soldiers or kings, no red coats or painted smiles. Ours were made for cracking walnuts, not keeping watch over Christmas.

My dad loved nuts so much that the bowl stuck around long after the holidays, his personal, year-round snack station. But while our nutcrackers were purely practical, in another corner of the world, they were something else entirely. Long before they became whimsical decorations, they were serious business, sturdy, functional tools carved by hand from wood or forged from metal.

In Germany’s Erzgebirge (Ore Mountains), those practical devices began to change in the late 17th and early 18th centuries. The region’s miners, facing long winters and economic hardship, turned to woodcarving as a way to supplement their income. They began making toys, figures, and eventually the first decorative nutcrackers, small wooden sentinels with grinning faces and levered jaws.

Folklore held that the early nutcrackers’ fierce expressions warded off evil spirits, protecting hearth and home. Over time, these carvings evolved into kings, soldiers, and other authority figures. It was a little bit of satire, a little bit of superstition, and a whole lot of folk art.

By the 19th century, the craft had blossomed into a true cottage industry in the mountain villages around Seiffen. Each family workshop developed its own style, passing patterns and techniques down through generations. Among them were names that still resonate with collectors today: Christian Ulbricht, Kunstgewerbe-Werkstätten Olbernhau (KWO), and, of course, Steinbach.

The Steinbach family began producing nutcrackers in the 1800s, but family history can be traced back to the 13th century. Originally, they were from Austria, where they were traders, businessmen, and judges. Erwin von Steinbach, one of their lineal ancestors, took part in building the “Strassburger Münster.” Creativity ran in the family. Their prominence soared in the 20th century with the launch of a limited-edition nutcracker series depicting everything from Mozart to the Wizard of Oz. Each figure was painstakingly hand-turned, carved, and painted, and no two were exactly alike. Today, they continue to produce highly collectible pieces.

The Ulbricht family’s legacy in woodcraft stretches back to the 17th century in Germany’s Erzgebirge, or Ore Mountains, where miners turned to carving when the local mines ran dry. Otto Ulbricht founded the Holzkunst Christian Ulbricht Company in 1928, carrying on that centuries-old tradition with an unmatched attention to detail. His hand-carved nutcrackers quickly became popular for their expressive faces and exceptional quality, prompting the opening of a larger workshop in Seiffen in 1934. Today, the Ulbricht name remains synonymous with authentic German craftsmanship.

Founded in 1949 in Olbernhau, Germany, KWO (Kunstgewerbe-Werkstätten Olbernhau) quickly became one of the most respected workshops in the Erzgebirge region. The artisans at KWO carried forward traditional carving methods while adding their own touch of humor and charm, creating nutcrackers and smoking men (Räuchermännchen) with lively expressions and intricate costumes. Their “Big Band” series, depicting musicians and carolers, remains a collector’s favorite. Over seven decades later, KWO continues to craft each figure by hand.

Established in 1958 in Seiffen, in the heart of the Erzgebirge, Seiffener Volkskunst eG operated for decades behind the Iron Curtain, where artisans preserved regional carving traditions despite state control. Each nutcracker was—and still is—crafted from native woods using time-honored methods that can involve more than 150 individual steps. Today, the cooperative thrives as one of the Erzgebirge’s most respected workshops, producing collectible nutcrackers that honor regional heritage while appealing to a global audience.

The postwar division of Germany after World War II brought new challenges to the Erzgebirge. Cut off from Western markets, artisans in the East faced economic restrictions that limited materials and export opportunities—some, like the Ulbricht family, relocated operations to West Germany to maintain their independence. Yet, even behind the Iron Curtain, carvers quietly kept traditions alive, working by hand and passing down their craft. Only after the fall of the Berlin Wall and reunification in 1990 did workshops regain artistic freedom, reconnect with global collectors, and usher in a renaissance of German woodcraft.

After World War II, nutcrackers carved in the German Erzgebirge began making their way into homes around the globe. American soldiers stationed in Europe brought them home as souvenirs, introducing the tradition to a new audience. By the 1950s, nutcrackers had become fixtures of holiday decor in the United States, thanks in part to the growing popularity of The Nutcracker ballet.

These whimsical figures, once local folk art, became symbols of holiday cheer. U.S. importers couldn’t keep up with demand, and German artisans responded with fresh designs that reflected both old-world craftsmanship and mid-century modern sensibilities. The nutcracker’s grin became as much a part of Christmas as tinsel and twinkling lights.

Modern makers have embraced the tradition with new twists. Companies like Kurt Adler introduced themed nutcrackers that celebrate everything from sports teams to pop culture. Disney has gotten in on the act, turning many of their characters into festive figures that blend German craftsmanship with American whimsy. Still, the heart of nutcracker artistry remains in the Erzgebirge, where family-run workshops continue to carve by hand.

For collectors, these original German nutcrackers represent the pinnacle of craftsmanship. Older Steinbachs, especially from the “Legends” or “Christmas Series,” are highly sought after. The key, experts say, is to look for the details: quality wood, hand-painted eyes, and a maker’s mark, proof that the nutcracker in your hands came from a real workshop, not a factory mold.

Nutcrackers continue to capture imaginations around the world. A modern revival in collecting began in the 1990s, after German reunification opened export markets and renewed interest in handmade Erzgebirge crafts. Collectors who grew up seeing nutcrackers on their grandparents’ mantels rediscovered them as heirlooms of holiday nostalgia.

Contemporary makers have built on that legacy, adding creative twists to show that there’s a nutcracker for nearly every passion. German artisans like Steinbach, Christian Ulbricht, and KWO still carve by hand, while companies like Kurt Adler and Hollywood Nutcrackers have expanded the craft’s reach, introducing millions of new collectors to the tradition. Social media has fueled the fascination. Ranging from Pinterest decor boards to collector communities online, nutcrackers are once again holiday stars.

Values depend on age, maker, and condition, with hand-carved German examples commanding the highest prices. Steinbach nutcrackers from limited series like the “Legends” or “Christmas” collections are especially prized, often selling for several hundred dollars.

But collecting nutcrackers isn’t just about value. Many collectors display them year-round, while others hunt for that one missing figure to complete a beloved series. Vintage examples made between the 1950s and 1980s are particularly desirable, striking a balance between traditional craftsmanship and accessible pricing.

Whether carved in a small Seiffen workshop or crafted for the American market, nutcrackers add a bit of nostalgic joy to the season.

If my dad were here today, I’d hide his practical setup and give him something with a little more flair, like the Kurt Adler Dodgers nutcracker I saw online. My daddy was a HUGE Dodgers fan—it’s the perfect mix of whimsy, nostalgia, and family tradition, precisely what the holidays are all about. holidays are all about.

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