The civilian weapons market in the United States is still in positive territory.
The increase in US civilian arms sales is slowing after a sharp rise during the presidential elections and COVID-19. However, sales are still increasing, and the major arms manufacturers Smith & Wesson Brands, Inc. (NASDAQ: SWBI) and Sturm, Ruger & Company, Inc. (NYSE: RGR) – positive reports are expected. In 2020, US arms sales grew in three digits; now, they have slowed to double digits.
Concerns about possible restrictions have diminished as US President Joe Biden has failed to gain overwhelming legislative support on the issue. Obviously, at the same time, increased demand for ammunition remains, which has become a driver for AMMO, Inc. (NASDAQ: POWW).
An additional factor company was the restriction on the supply of Russian cartridges to the American market, which account for almost a quarter of the US civilian ammunition market. Weapons are the longest-lasting commodity compared to most everyday household items. But sales continue to grow steadily, as first-time gun buyers are rising in the United States.
In addition, inexpensive samples have consistently high sales – up to $ 500. High consumer activity attracts foreign manufacturers to the US market. For example, at the beginning of 2021, the Czech company CZUB (CZ) bought out the old weapons brand Colt and intends to participate in government tenders for supplies for the army and police. CZ also wants to expand sales in the civilian market. The competitive landscape for Smith&Wesson Brands and Sturm, Ruger&Company.
However, there is still enough space on the market for all players.
