Liuyang, China, in the heart of the Hunan province, is known as the fireworks capital of the world because it is the single largest producer of fireworks sold worldwide. China fireworks are used for weddings, birthdays, and 4th of July celebrations in more than 100 countries. If you look at a box of firecrackers, there is a good chance they were manufactured here.
The appearance of COVID-19 devastated the global economy, including the sale of fireworks. A few European countries banned the sale of fireworks for various reasons, and they sit unused in warehouses. Even in countries without a ban, sales have been lagging. Many importers have reduced the size of their orders because they are not expecting the same volume as before.
China Fireworks in the U.S.
The exception in all of this is the sales of China fireworks in the United States. The largest number of orders came in July 2020, and importers were sold out in a short amount of time. The projection for this year is looking good as well. Exporters of Liuyang fireworks supplying orders to the U.S. say their orders have more than doubled, and they’re looking forward to another year of record sales.
Although cases of COVID-19 are still happening around the world, the spread has been well-contained in China. It’s good and services are capable of being shipped all over the world, although no goods are being exported to China, resulting in many foreign terminals piling up with material containers that cannot be shipped back to China.
They say it is because they have very few staff and have limited hours of operation, resulting in a slow down of maritime import processes. Many foreign ports have been blocked altogether, which results in fewer shipping routes, less space, and higher freight costs.
The good news is that the demand for fireworks in the U.S. market has increased, and many importers have already started to place orders for Independence Day 2022, a time of celebration in the United States. People in the U.S. may not realize that what they are buying at roadside stands in the months of May- July are not American fireworks, but fireworks exported from China. The Chinese invented fireworks, and have been making them for more than a thousand years.
There were a few companies operating in the Mid-west like American Fireworks, but China still supplies about 94% of the fireworks sold in the U.S. There is simply not enough manpower to make the volume of fireworks sold worldwide equal those made in China, specifically in Liuyang.
China Fireworks are Hand-Made
The price of fireworks is one thing that has never gone down, even in times of global economic distress. That is because China fireworks are mostly hand-made in factories. The Chinese government is very strict in the supervision of fireworks production because fireworks are dangerous goods and must be handled correctly. Factories are required to shut down from July to September becaus they are the hottest months, which can be dangerous for firework production. Since the production period is shortened, it often leads to a shortage of fireworks available.
To compensate for this shortage, and ensure that they have enough fireworks to fill orders for the year, many U.S. importers have started to plan their orders early for the upcoming season. In the past, an order only took 3 months to be delivered. With the shipping times being reduced, an order may take 6 to 10 months to be delivered, and so the order delivery time has been extended with many importers ordering 10-12 months in advance to ensure a good supply.
The sale of China fireworks in the U.S. market is thriving. Importers are ordering early to get their containers in time for the high season.