As the Fourth of July approaches, bringing parades, barbecues, and fireworks, a surprising trend is emerging: fireworks are seeing a decline in popularity. In 2022, the U.S. imported almost $600 million worth of fireworks, according to the U.S. International Trade Commission. However, projections suggest that by 2024, imports will fall to around $350 million. What has caused this shift in one of America’s quintessential holiday activities? The answer appears to lie with the COVID-19 pandemic, which had a significant impact on the economy as people stayed home globally.
During this period, e-commerce flourished, along with increased sales of alcohol, indoor exercise gear, and cleaning supplies. Nonetheless, this surge was temporary, and as habits returned to their pre-pandemic state, certain products, including fireworks, experienced a decline. I am a business school professor who has studied the fireworks industry extensively. In the U.S., fireworks constitute a multibillion-dollar business, primarily used during Independence Day and New Year’s Eve. To meet the demand for these holidays, American companies stock large quantities of fireworks well ahead of time. Fireworks, invented in China over 2,000 years ago, are predominantly still produced there. Data from the United Nations indicates that since 2010, China has supplied nearly 90% of the world’s fireworks, mainly low-cost items for the mass market. Higher-cost fireworks are exported from the Netherlands, Germany, Spain, Poland, and the U.S. While millions of pounds of fireworks are ignited annually in the U.S., only a small portion is produced domestically.
Using import data and population figures, we can determine the average fireworks consumption per person annually. In 2010, about two-thirds of a pound was used per person, which increased to three-quarters of a pound by 2019, the year prior to the pandemic. During the pandemic, when outdoor activities became preferable for social distancing, fireworks usage surged. In 2021 and 2022, usage almost doubled to 1.35 pounds per individual. Although 2024 is not over, most fireworks for the Fourth of July have been imported. Based on current imports, 2024 usage appears to be reverting to 2010 levels of about two-thirds of a pound per person. I suggest three primary reasons for this decline. Firstly, the pandemic prompted a surge as people sought outdoor excitement.
Secondly, many engaged in home fireworks displays due to canceled public events. With public displays returning, casual consumer demand decreased. Why handle fireworks personally when professionals offer displays? Lastly, like other products, fireworks have become more expensive due to rising inflation in the U.S., impacting various goods and services. In 2021, the U.S. International Trade Commission recorded average import prices at $1.13 per pound, a wholesale rate for large orders. By early 2024, the bulk price increased to $1.61 per pound—a 42% rise, more than double the average U.S. inflation rate.
Additionally, staffing costs at fireworks stands increased, further explaining the post-pandemic decline in usage. Fireworks are central to the Fourth of July and serve as dazzling displays. If you decide to enjoy them, prioritize safety, especially with children nearby. Annually, thousands in the U.S. suffer injuries, with some resulting in fatalities due to fireworks. Exercise caution.