It’s almost the fourth of July – a day of parades, barbecues and, of course, fireworks. While parades and barbecues are still extremely popular, shockingly, fireworks are less popular this 12 months.
Fireworks imports peaked in 2022 and amounted to almost USD 600 million, according to the US International Trade Commission. But today, just two years later, I estimate that fireworks imports in 2024 will only be around $350 million. What happened to one of Americans’ favorite Fourth of July activities?
I imagine the reply lies within the Covid-19 pandemic, which has transformed the economy as billions of people all over the world are stuck at home. E-commerce has boomedsimilar as alcohol sales, indoor exercise equipment AND cleansing products. However, after this boom got here a failure for a lot of productsas people returned to pre-pandemic shopping habits.
This seems to be what happened with fireworks.
Explosive pyrotechnic business
I’m AND business school professor who has been following the fireworks industry for years. In the US, fireworks are a multi-billion dollar industry. They are fired mainly around Independence Day and New Year’s Eve. To cater for these two holidays, US corporations import large quantities of fireworks well prematurely of these dates to ensure sufficient supply.
There were fireworks invented in China over 2,000 years agoand to today most of the world’s fireworks are produced there. Since 2010, China has exported almost 90% of the world’s fireworks, UN data shows. Most of them are low-cost products intended for the mass market. More expensive fireworks are exported from countries resembling the Netherlands, Germany, Spain, Poland and the USA
While Americans launch thousands and thousands of kilos of pyrotechnics annually, Only a small number of skilled fireworks are produced hereBecause so few fireworks are produced within the United States, it is simple to calculate what number of explosives are detonated per person annually based on import and population data.
In 2010, about two-thirds of a pound of fireworks were set off per person. In 2019, the 12 months before the pandemic, that number was three-quarters of a pound per person.
During the Covid-19 pandemic, when people were stuck of their homes and social distancing was common, the number of fireworks increased dramatically. This is sensible: lighting pyrotechnics is an out of doors activity, which is clearly stated within the product instructions individuals who set fire to them should stand away from others. In 2021 and 2022, fireworks consumption nearly doubled, to 1.35 kilos per American.
While 2024 is not over yet, most of what will probably be blown up on the Fourth of July has already been imported. Extrapolating from the amounts imported thus far, it looks like fireworks consumption in 2024 will return to 2010 levels, or about two-thirds of a pound per person.
Why this big drop?
I imagine there are three reasons for the massive decline. First, as already mentioned, there was a spike in Covid-19 cases as bored people stuck at home searched for something exciting to do outdoors.
Second, many individuals have set off fireworks throughout the pandemic as public displays have been canceled. Number of fireworks displaysthat are only shot by professionals, have fallen dramatically. Today, all public screenings are back, which limits demand from more casual consumers. Why worry about igniting dangerous explosives when an expert can handle it?
The final reason is that, like many other things, fireworks are dearer lately. Inflation within the US has recently increased, as prices of every kind of goods and services increase. Fireworks are not any different.
In 2021, the typical import price for fireworks was $1.13 per pound, data from the US International Trade Commission show. This low price was not inexpensive for the standard buyer – that is the wholesale price paid for a complete container with a tractor trailer just behind the ship.
In the primary 4 months of 2024, the wholesale price increased to $1.61 per pound. This 42% price increase is greater than double that general increase within the US inflation rate.
To add rising labor costs at fireworks stands and these three explanations explain why fireworks use has declined because the height of the pandemic.
Paul J. Richards/AFP/Getty Images
Fireworks are a key part of the Fourth of July celebration and are sometimes a spectacular spectacle. However, if you happen to do shoot at them, use common sense, especially if there are kids nearby. Each 12 months, hundreds of people within the USA are injured and a small number die from fireworks. So beware.
And whether you light fireworks, watch them, or simply hiding from the noiseI wish everyone a joyful Independence Day.
