The firework industry has experienced continuous and substantial growth for more than the past twenty years. Around $407 million was brought in as revenue from consumer spending in the year 2000, which continually increased to a drastic $2.2 billion for the year 2023. The rapid growth in this industry raises the question: How does it compare to the broader US stock market?
The S&P 500 serves as a benchmark for evaluating the current condition of the US market. This stock index has seen continued growth over the last twenty years, increasing from estimates of 1436.51 points in 2000 to 4288.05 points in 2023, reported on July 1st of each respective year. As a broad measure of the market's performance, the S&P 500 reflects the health and trends of large-cap U.S. stocks, capturing a wide array of industries and sectors. This growth is indicative of overall economic expansion and investor confidence in the US market.
To better grasp the growth in fireworks spending relative to the overall US market, data analytics was used to index these values to the year 2000. While these two indicators reflect different sectors of economic activity, the significant rise in firework spending stands out when compared to the overall growth of the S&P 500, as illustrated in Figure 1 below.
Figure 1
The results showed that from 2000 to 2023, the S&P 500 grew nearly threefold, ending at approximately 2.99 times its original value. In contrast, consumer fireworks revenue increased over fivefold, peaking dramatically in 2020 at over 4.6 times the 2000 level, and continuing to rise slightly thereafter. This growth comparison highlights that the fireworks industry has outpaced the overall US stock market, demonstrating robust expansion and significant consumer demand.
Conclusion
The comparison between consumer fireworks spending and the S&P 500 is a testament to the impressive and sometimes unexpected areas of economic growth. While the stock market remains a key indicator of financial health, the fireworks industry's explosive expansion highlights the power of consumer spending in niche markets.
In a dynamic economy, staying competitive requires a strong focus on market research and data analytics. By understanding these diverse growth patterns, businesses can make more informed decisions and seize opportunities in both established and emerging sectors. At Matz Analytics, we are committed to providing the insights and data-driven strategies you need to thrive in an ever-changing market landscape.
Interested in market research with Matz Analytics? Click here. Sources:
WSJ Market, “S&P 500 Index, Advanced Charting” (https://www.wsj.com/market-data/quotes/index/SPX/advanced-chart)
American Pyrotechnics Association, “Fireworks Consumption Figures”(https://www.americanpyro.com/assets/docs/FactsandFigures/2024/Fireworks%20Revenue%20by%20Industry%20Segment%202000-23.pdf)
Comentários