High inflation and recession fears are not slowing America’s growing appetite for fireworks—with industry experts predicting a record year for sales.
Key Details
- Inflation increased fireworks prices by 25% from July 2020 to July 2022, NPR reports.
- The increase in prices has not been reflected in sales, with 385.8 million pounds being sold in 2020 and 416.3 million selling in 2021, up from 260.7 million in 2015.
- The American Pyrotechnics Association predicts $2.4 billion in sales for 2023, further predicting that sales could increase to $3.3 billion by 2028.
- Average American fireworks displays can cost an average of $2,000 to $20,000 per show, depending on the size of the show and how synchronized the fireworks are, with some larger shows costing more than $2,000 per minute, according to GoBankingRates.
- The largest annual fireworks display in America is hosted by Macy’s in New York City. It fires 48 tons of explosives from barges on the Hudson River, with the 2021 display costing $6 million.
- The largest majority of fireworks sales are in the South and Midwest, with most customers being between the ages of 18-to-24 years old, The Guardian reports.
Why It’s Important
The COVID-19 pandemic has created a new demand for fireworks displays and sales, exploding in volume demand and sales since 2020. With the pandemic limiting public events due to social distancing measures, fireworks became a popular way to find entertainment, particularly for Independence Day weekend celebrations.
The economy is currently experiencing new challenges, including high inflation, high-interest rates, high consumer prices, and a tightening job economy. However, with the Fed’s high-interest rates having their desired effect, many core metrics for celebrating this year are seeing a momentary rebound, which is good news for people celebrating the holiday.
The American Farm Bureau Federation reports that food prices for a party of ten have decreased by 3%, from $69.68 last year to $67.73 this year. AAA reports that 43.2 Americans—a 2.4% increase in travelers from last year—will pay less for gas, with the average price per gallon decreasing from $4.87 to $3.55 in the past 12 months.
This does not mean that there are no negative indicators. Some analysts are predicting lower holiday spending. A new report from WalletHub finds 62% of Americans plan to spend less money for this holiday weekend than last year. However, it seems many statistics are bucking trends at the moment. The American Pyrotechnics Association is optimistic that fireworks sales will increase despite higher price tags.
Notable Quote
“But the day is past. The second day of July 1776 will be the most memorable epocha in the history of America. I am apt to believe that it will be celebrated by succeeding generations as the great anniversary festival. It ought to be commemorated as the day of deliverance by solemn acts of devotion to God almighty. It ought to be solemnized with pomp and parade, with shews, games, sports, guns, bells, bonfires, and illuminations from one end of this continent to the other from this time forward forever more,” wrote founding father John Adams after the signing of the Declaration of Independence.