For those of you who have never heard of Glühwein (literally, "glowing wine"), it is more or less a warm, spiced wine that is traditionally consumed during the winter, especially around Christmas. It is very popular, and you can find it everywhere you turn. For children or adults who don't like alcohol, there is an alcohol-free version called Kinderpunsch (childs' punch). It, too, is served warm and can be compared to a spicy cider. I have tried both, and I have to admit that I didn't care for either...but maybe it's an acquired taste.
Some of the items that I liked the most at the Christmas markets were these adorable little "smoking houses"...miniature German-style houses with chimneys, where actual smoke comes out if you place incense inside. They are so cute, and I really wanted to buy one, but unfortunately they were a bit out of my price range (i.e., under 10 euro).
There are also a lot of woodwork decorations. These seem to be quite popular here as well, as I have noticed that quite a few people place wooden arches that hold candles in their windowsills, which look really pretty at night.
Christmas lights aren't as such a huge phenomenon in Germany as they are in the US. It's just an American thing. Perhaps an explanation of this (beyond the difference in cultures) is the higher cost of electricity. Most people either can't afford it, don't believe in wasting so much energy for something like that, or just think it's stupid and unnecessary. However, thanks to the Americanization that's been taking place over the last few decades in Germany there has been a rise in the number of homes with Christmas lights (more on Americanization later).
Something cool about buying warm drinks at Christmas markets is that they serve it to you in actual ceramic mugs. Here's how it's different than anything in the US: There is a "Pfand" system, which gives you two options...either you may take the mug home with you as a souvenir, or return it to the stand and receive half of the cost of the drink back. I don't think it is unique to Christmas markets though, as I have seen this before at outdoor beer gardens (like at the Ritterfest I went to with Julia in Bavaria last summer).
