• About Us
  • Get Insights to Your Inbox
Friday, May 9, 2025
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Search in posts
Search in Author
Search Events
Filter by Categories
Action Learning
Artificial Intelligence in Business
Book Club
Books
BU Today
Business Challenges
Business Education
Business Functions
Business Policy & Markets
Corporate Strategy
Digital Business
Digital Business Institute
Diversity, Equity & Inclusion
Entrepreneurship & Innovation
Events
Expert Take
Feature
Finance & Accounting
Future of Business Education
Future of Work
Global Media
Harvard Business Review
Health, Biopharma, & Health-Tech
Human Resources Policy Institute
Innovation
Insights Live
Institute for Sustainable Energy
Journals
Language of Business
Leadership & Management
Local Media
Marketing
Media Mention
Multimedia
National Media
Newsletter Spotlight
Op-Ed
Operations
Opinion
Our Insights
Partners in Business Ethics
Podcast
Publications
Research Institutes
Risk
ScienceDirect
Silicon Valley Bank
Sloan Management Review
Social Impact
Special Series
Susilo Institute for Ethics in the Global Economy
Technology
The Brink
Thinkers50@BUQuestrom: Passion & Purpose
Videos
Insights@Questrom
  • Our Insights
    • All
    • Business Challenges
    • Business Education
    • Business Functions
    Massachusetts Economy at Risk from Trump Administration Policies  

    Massachusetts Economy at Risk from Trump Administration Policies  

    Small businesses may take the brunt of tariffs, even when they’re based in the US 

    Retail’s latest tariff challenge? Setting prices. 

    Bureaucrats get a bad rap, but they deserve more credit − a sociologist of work explains why

    Bureaucrats get a bad rap, but they deserve more credit − a sociologist of work explains why

    Gordon Burtch Named Finalist for the 2025 Bradford-Osborne Research Award

    Gordon Burtch Named Finalist for the 2025 Bradford-Osborne Research Award

    Best Personal Loans for a 600 Credit Score

    Why have car insurance premiums been increasing over the past years? 

    Trump looking at cutting US drug prices to international levels, sources say 

    Trump looking at cutting US drug prices to international levels, sources say 

    Small businesses in the US may take the brunt of tariffs 

    Small businesses in the US may take the brunt of tariffs 

    Executive Insights: Ned Rimer, Faculty Director, Health Sector Management Program, Questrom School of Business, Boston University (video)

    Tariffs are expected to worsen the divide between Main Street and Wall Street 

  • Videos & Podcast
    • All
    • Podcast
    • Videos
    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Tariffs and Their Economic Impact

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Navigating Internet Privacy: Unpacking Cookies, Dark Patterns, and Future Data Protection Challenges (2)

    Beyond Prototypes: Rethinking Innovation in Complex Ecosystems with Prof. Douglas Hannah

    Beyond Prototypes: Rethinking Innovation in Complex Ecosystems with Prof. Douglas Hannah

    Is Business Broken? Season 2 out now! 

    Is Business Broken? Season 2 out now! 

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Redefining Retirement: Navigating Emotional and Social Transitions with Insightful Strategies

    Life After Cookies: Who Uses Google’s Privacy Sandbox? – Garrett Johnson

    Life After Cookies: Who Uses Google’s Privacy Sandbox? – Garrett Johnson

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Real Estate Ripples from a Landmark Settlement

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    The Hidden Wisdom of Cultural Pushback

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Fusion Strategy: Navigating the Industrial Evolution

  • Insights Events
    • Events
    • Insights Live
    • Questrom Institute Events
  • In the Media
    • All
    • BU Today
    • Global Media
    • Local Media
    • National Media
    • Op-Ed
    • The Brink
    Small businesses may take the brunt of tariffs, even when they’re based in the US 

    Retail’s latest tariff challenge? Setting prices. 

    Best Personal Loans for a 600 Credit Score

    Why have car insurance premiums been increasing over the past years? 

    Trump looking at cutting US drug prices to international levels, sources say 

    Trump looking at cutting US drug prices to international levels, sources say 

    Small businesses in the US may take the brunt of tariffs 

    Small businesses in the US may take the brunt of tariffs 

    Executive Insights: Ned Rimer, Faculty Director, Health Sector Management Program, Questrom School of Business, Boston University (video)

    Tariffs are expected to worsen the divide between Main Street and Wall Street 

    How AI Chat Search Could Disrupt Online Advertising

    Boeing aircraft, duty-free no more 

    How AI Chat Search Could Disrupt Online Advertising

    Compounding pharmacies must stop making versions of Ozempic and Wegovy as shortage ends 

    In a ‘work-from-anywhere’ world, where are people working?

    Rising drug prices are hammering patients, employers, and insurers. Is there any end in sight? 

    How Retailers Can Capitalize on the “Refund Effect”

    How to Monetize Volunteer-Driven Platforms 

  • Publications
    • All
    • Books
    • Harvard Business Review
    • Journals
    • Sloan Management Review
    How Retailers Can Capitalize on the “Refund Effect”

    How to Monetize Volunteer-Driven Platforms 

    How Retailers Can Capitalize on the “Refund Effect”

    Leading Global Teams Effectively 

    How Retailers Can Capitalize on the “Refund Effect”

    Research: When Prototypes Don’t Yield Useful Insights 

    Transforming Products into Platforms: Unearthing New Avenues for Business Innovation

    Transforming Products into Platforms: Unearthing New Avenues for Business Innovation

    How Retailers Can Capitalize on the “Refund Effect”

    We’re Still Lonely at Work

    How Retailers Can Capitalize on the “Refund Effect”

    17 Team-Building Activities for In-Person, Remote, and Hybrid Teams

    3 Ways to Support Employees with Bipolar Disorder

    3 Ways to Support Employees with Bipolar Disorder

    Will That Marketplace Succeed?

    Will That Marketplace Succeed?

    How Retailers Can Capitalize on the “Refund Effect”

    Research: Why Companies Should Disclose Their Lack of Progress on DEI 

  • Questrom Book Club
Insights@Questrom
  • Our Insights
    • All
    • Business Challenges
    • Business Education
    • Business Functions
    Massachusetts Economy at Risk from Trump Administration Policies  

    Massachusetts Economy at Risk from Trump Administration Policies  

    Small businesses may take the brunt of tariffs, even when they’re based in the US 

    Retail’s latest tariff challenge? Setting prices. 

    Bureaucrats get a bad rap, but they deserve more credit − a sociologist of work explains why

    Bureaucrats get a bad rap, but they deserve more credit − a sociologist of work explains why

    Gordon Burtch Named Finalist for the 2025 Bradford-Osborne Research Award

    Gordon Burtch Named Finalist for the 2025 Bradford-Osborne Research Award

    Best Personal Loans for a 600 Credit Score

    Why have car insurance premiums been increasing over the past years? 

    Trump looking at cutting US drug prices to international levels, sources say 

    Trump looking at cutting US drug prices to international levels, sources say 

    Small businesses in the US may take the brunt of tariffs 

    Small businesses in the US may take the brunt of tariffs 

    Executive Insights: Ned Rimer, Faculty Director, Health Sector Management Program, Questrom School of Business, Boston University (video)

    Tariffs are expected to worsen the divide between Main Street and Wall Street 

  • Videos & Podcast
    • All
    • Podcast
    • Videos
    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Tariffs and Their Economic Impact

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Navigating Internet Privacy: Unpacking Cookies, Dark Patterns, and Future Data Protection Challenges (2)

    Beyond Prototypes: Rethinking Innovation in Complex Ecosystems with Prof. Douglas Hannah

    Beyond Prototypes: Rethinking Innovation in Complex Ecosystems with Prof. Douglas Hannah

    Is Business Broken? Season 2 out now! 

    Is Business Broken? Season 2 out now! 

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Redefining Retirement: Navigating Emotional and Social Transitions with Insightful Strategies

    Life After Cookies: Who Uses Google’s Privacy Sandbox? – Garrett Johnson

    Life After Cookies: Who Uses Google’s Privacy Sandbox? – Garrett Johnson

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Real Estate Ripples from a Landmark Settlement

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    The Hidden Wisdom of Cultural Pushback

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Fusion Strategy: Navigating the Industrial Evolution

  • Insights Events
    • Events
    • Insights Live
    • Questrom Institute Events
  • In the Media
    • All
    • BU Today
    • Global Media
    • Local Media
    • National Media
    • Op-Ed
    • The Brink
    Small businesses may take the brunt of tariffs, even when they’re based in the US 

    Retail’s latest tariff challenge? Setting prices. 

    Best Personal Loans for a 600 Credit Score

    Why have car insurance premiums been increasing over the past years? 

    Trump looking at cutting US drug prices to international levels, sources say 

    Trump looking at cutting US drug prices to international levels, sources say 

    Small businesses in the US may take the brunt of tariffs 

    Small businesses in the US may take the brunt of tariffs 

    Executive Insights: Ned Rimer, Faculty Director, Health Sector Management Program, Questrom School of Business, Boston University (video)

    Tariffs are expected to worsen the divide between Main Street and Wall Street 

    How AI Chat Search Could Disrupt Online Advertising

    Boeing aircraft, duty-free no more 

    How AI Chat Search Could Disrupt Online Advertising

    Compounding pharmacies must stop making versions of Ozempic and Wegovy as shortage ends 

    In a ‘work-from-anywhere’ world, where are people working?

    Rising drug prices are hammering patients, employers, and insurers. Is there any end in sight? 

    How Retailers Can Capitalize on the “Refund Effect”

    How to Monetize Volunteer-Driven Platforms 

  • Publications
    • All
    • Books
    • Harvard Business Review
    • Journals
    • Sloan Management Review
    How Retailers Can Capitalize on the “Refund Effect”

    How to Monetize Volunteer-Driven Platforms 

    How Retailers Can Capitalize on the “Refund Effect”

    Leading Global Teams Effectively 

    How Retailers Can Capitalize on the “Refund Effect”

    Research: When Prototypes Don’t Yield Useful Insights 

    Transforming Products into Platforms: Unearthing New Avenues for Business Innovation

    Transforming Products into Platforms: Unearthing New Avenues for Business Innovation

    How Retailers Can Capitalize on the “Refund Effect”

    We’re Still Lonely at Work

    How Retailers Can Capitalize on the “Refund Effect”

    17 Team-Building Activities for In-Person, Remote, and Hybrid Teams

    3 Ways to Support Employees with Bipolar Disorder

    3 Ways to Support Employees with Bipolar Disorder

    Will That Marketplace Succeed?

    Will That Marketplace Succeed?

    How Retailers Can Capitalize on the “Refund Effect”

    Research: Why Companies Should Disclose Their Lack of Progress on DEI 

  • Questrom Book Club
Insights@Questrom
Home Our Insights Business Challenges

Yes, fireworks prices are skyrocketing, but there should be plenty of bottle rockets and sparklers for you and your family this Fourth of July

Jay ZagorskybyJay Zagorsky
June 23, 2022
in Business Challenges, Business Policy & Markets, Publications
17
0
Yes, fireworks prices are skyrocketing, but there should be plenty of bottle rockets and sparklers for you and your family this Fourth of July
Share on FacebookShare on TwitterShare on LinkedIn

If you’re looking forward to shooting off bottle rockets and Roman candles this Fourth of July, I’ve got good news and bad news.

The bad is that fireworks prices are soaring this year along with pretty much everything else. The good news, however, is that at least you don’t need to worry about a shortage – there should be plenty of rockets, fountains and sparklers to go around.

I’m an economist who has been following the fireworks industry for years. Despite soaring wholesale prices, I believe the latest data suggests you may be able to beat inflation and snag some fireworks deals – if you’re patient.

Fireworks imports at a record

Fireworks were first invented in China over 2,000 years ago. Today, that’s where most of the world’s fireworks still come from.

China has been responsible for 87% of the world’s fireworks exports since 2010. Much of these are low-priced mass market products, like firecrackers and Roman candles, the kind you’ll find at your local fireworks store.

In the U.S., regular people – as opposed to professional pyrotechnicians – typically light off the most fireworks around the Fourth of July, and so businesses import large amounts well in advance of the holiday to ensure a large supply.

The U.S. imported 185 million pounds of fireworks, mostly from China, in the first four months of 2022, the latest data available. That’s already 27% ahead of last year’s record pace. And this doesn’t even include figures for May and June, the two months that usually account for the biggest volumes in a typical year.

The figures include about 5.5 million pounds of fireworks for professional displays – which means that all but about 3% of these imports are intended for private consumer use. The 179 million pounds aimed at consumers already equates to over half a pound of fireworks for every man, woman and child living in the U.S – with more on the way. In all of 2021, the U.S. imported a record 1.25 pounds of fireworks per person.

More expensive fireworks for the expansive public displays cities typically put on come from countries like the Netherlands, Germany, Spain, Poland and the U.S.

American manufacturers, which produce an estimated 6.7 million pounds of fireworks a year, focus on designing the more sophisticated rockets for big public displays, and often help orchestrate them.

Consumer demand likely to fall

But there’s reason to believe consumer demand might actually be lower than usual this year.

In 2020, most public displays were canceled to avoid encouraging large crowds that might spread the coronavirus. As a result, Americans were lighting off a lot more fireworks in backyards and city streets than usual – often illegally.

Public displays began returning in 2021, and more are expected in 2022. That’s translating into a surge of professional fireworks imports, though they still remain well below pre-pandemic levels.

But the return of large displays will likely reduce demand from more casual users since it is hard to go to a professional show and light off lots of small fireworks at the same time. And severe drought in large swaths of the U.S. should further damp consumer demand as officials urge cities to restrict the use of fireworks to avoid sparking wildfires.

That means prices should … rise?

Basic economics tells us that when supply is high and demand is low, prices should go down. The data available suggests otherwise, thanks to the fastest pace of inflation in over 40 years.

Importers paid an average of US$1.30 per pound for fireworks in the first four months of the year, a 15% increase from 2021 – or close to double the overall rate of inflation.

Unfortunately, the consumer price index doesn’t have detailed data on the cost people are actually shelling out for retail fireworks. But there is data on the price producers are paying for explosives, propellants and blasting accessories, which include fireworks. The latest data, for May 2022, shows prices were up 11% from a year earlier.

And there’s reason to believe the amount retailers ultimately charge for fireworks will go up even more after factoring in the soaring cost of transporting goods, higher insurance premiums and rising labor costs.

Be patient and stay safe

It seems likely that retailers beleaguered by pandemic-related supply chain problems in everything from coins and toilet paper to baby formula and even Grape-Nuts cereal simply placed big fireworks orders as early as they could.

But I think it’s likely that this will lead to a glut in supply, and fireworks peddlers will be saddled with too many rockets for too little demand and may have to eventually lower the price to entice inflation-weary consumers.

So if you’re planning to shoot off fireworks as part of your Fourth of July celebrations, there’s probably no need to hoard them the way many people stocked up on toilet paper or baby formula. In fact, you might benefit from waiting and taking advantage of better deals closer to July 4.

One note of caution, though: Use common sense when lighting your rockets and candles, especially if children are around. Thousands of people in the U.S. are injured from fireworks every year, and some even die. Per-capita injuries spiked during the pandemic after decades of declines.

It’s also smart to pay attention to how fireworks affect nearby pets and take some precautions to protect them.

Whether you are lighting fireworks, watching them illuminate the night sky or just hiding from the noise, I wish all of you a happy Independence Day.The Conversation

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Tags: InflationJay Zagorsky
Jay Zagorsky

Jay Zagorsky

Jay Zagorsky is Clinical Associate Professor in Markets, Public Policy, & Law and is a cross-disciplinary researcher who has spent over two decades of researching a wide variety of personal wealth topics. He tries to explain why some people become rich, others are poor and some move between these two states. He is currently synthesizing this research into a book that presents the results of his academic research and other wealth researchers in an accessible format.

Related Insights

Push to roll back electric vehicle subsidies brings uncertainty for automakers 
Business Challenges

Lower gas, oil prices ‘a good news story for America’ amid inflation, tariff uncertainty 

April 10, 2025
Push to roll back electric vehicle subsidies brings uncertainty for automakers 
Business Functions

Powell sees greater risk to inflation, economic growth as a result of Trump’s tariffs 

April 4, 2025
America Has a School Attendance Crisis
Business Challenges

Potential American Recession Gets New Timeline From Analyst 

April 3, 2025
State Laws Banning Abortion Linked to Increases in Mental Health Issues
Business Policy & Markets

Brink Bites: Studying Cigarette Restrictions, the Life of a Famed Poet, and Shifting Attitudes Toward Capitalism 

March 4, 2025
America Has a School Attendance Crisis
Business Challenges

Trump Gets Economic Red Flag One Day Before Address to Congress

March 3, 2025
Target Stops Taking Checks; Business Expert Thinks Fighting Fraud is the Reason
Finance & Accounting

Worsening inflation expectations raise concerns for the Federal Reserve

March 3, 2025

Upcoming Events

No event found!

Get Our Insights Newsletter

Get Insights straight to your inbox by signing up now.

    Popular Insights

    • Massachusetts Economy at Risk from Trump Administration Policies  

      Massachusetts Economy at Risk from Trump Administration Policies  

      15 shares
      Share 6 Tweet 4
    • Ethical Implications of ChatGPT in the Educational Setting

      211 shares
      Share 84 Tweet 53
    • 2025 Digital Marketing Symposium: Sponsored by the Digital Business Institute

      8 shares
      Share 3 Tweet 2
    • Compounding pharmacies must stop making versions of Ozempic and Wegovy as shortage ends 

      8 shares
      Share 3 Tweet 2
    • 2025 Wadsworth Family Distinguished Lecture in Business Leadership & Technology Innovation – Peter Levine 

      8 shares
      Share 3 Tweet 2

    Boston University Questrom School of Business
    595 Commonwealth Avenue
    Boston, MA 02215

    Follow Us

    Newsletter

    © 2023 Trustees of Boston University

    • About Us
    • Digital Business Institute
    • Human Resource Policy Institute
    • Susilo Institute for Ethics in the Global Economy

    Welcome Back!

    Sign In with Linked In
    OR

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In

    Add New Playlist

    Generic selectors
    Exact matches only
    Search in title
    Search in content
    Post Type Selectors
    Search in posts
    Search in Author
    Search Events
    Filter by Categories
    Action Learning
    Artificial Intelligence in Business
    Book Club
    Books
    BU Today
    Business Challenges
    Business Education
    Business Functions
    Business Policy & Markets
    Corporate Strategy
    Digital Business
    Digital Business Institute
    Diversity, Equity & Inclusion
    Entrepreneurship & Innovation
    Events
    Expert Take
    Feature
    Finance & Accounting
    Future of Business Education
    Future of Work
    Global Media
    Harvard Business Review
    Health, Biopharma, & Health-Tech
    Human Resources Policy Institute
    Innovation
    Insights Live
    Institute for Sustainable Energy
    Journals
    Language of Business
    Leadership & Management
    Local Media
    Marketing
    Media Mention
    Multimedia
    National Media
    Newsletter Spotlight
    Op-Ed
    Operations
    Opinion
    Our Insights
    Partners in Business Ethics
    Podcast
    Publications
    Research Institutes
    Risk
    ScienceDirect
    Silicon Valley Bank
    Sloan Management Review
    Social Impact
    Special Series
    Susilo Institute for Ethics in the Global Economy
    Technology
    The Brink
    Thinkers50@BUQuestrom: Passion & Purpose
    Videos
    • Business Challenges
      • Business Policy & Markets
      • Digital Business
      • Diversity, Equity & Inclusion
      • Entrepreneurship & Innovation
      • Future of Work
      • Health, Biopharma, & Health-Tech
      • Risk
      • Social Impact
    • Business Functions
      • Corporate Strategy
      • Finance & Accounting
      • Innovation
      • Leadership & Management
      • Marketing
      • Operations
      • Technology
    • Publications
      • Journals
      • Harvard Business Review
      • Sloan Management Review
    • Insights Events
      • All Events
      • Insights Live
      • Questrom Institute Events
    • Videos & Podcast
      • Videos
      • Insights@Questrom Podcast
      • Podcast
    • Voices in the Media
    • Our Experts

    © 2023 Trustees of Boston University

    -
    00:00
    00:00

    Queue

    Update Required Flash plugin
    -
    00:00
    00:00