United States Ammunition Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

United States Ammunition Market Growth

Ammunition encompasses materials like bullets, shells, and cartridges used in firearms and weaponry, crucial for both military and civilian applications. In the United States, the ammunition market offers several benefits: it bolsters national security by supplying essential resources to the military and law enforcement, ensuring readiness and operational effectiveness.

Economically, it creates jobs in manufacturing, distribution, and retail, while generating significant investment and tax revenue. The market also drives technological innovation, leading to the development of advanced, reliable ammunition that enhances safety and performance driving the United States ammunition market demand.

United States Ammunition Market Analysis

The United States ammunition market dynamics and trends are driven as it supports recreational activities such as hunting and shooting sports, and contributes to infrastructure growth, including manufacturing and research facilities, which spurs regional economic development and technological progress.

United States Ammunition Industry Outlook

The United States ammunition industry revenue has expanded significantly over the past decade and a half, with a total economic impact that soared from USD 19.1 billion in 2008 to USD 90.05 billion in 2023, representing a 371% increase, according to data released by the National Shooting Sports Foundation (NSSF) on April 9, 2024. This exponential growth highlights the industry's significant contribution, particularly in the manufacturing and retail sectors where ammunition plays a critical role.

Employment within the industry has also seen a robust uptrend, with the number of full-time equivalent jobs rising from approximately 166,000 in 2008 to over 384,437 in 2023, reflecting a 131% increase. This surge in employment is indicative of the industry’s expanding operations, which are necessary to meet the growing domestic demand for ammunition across various segments, including recreational shooting, hunting, and defence. The employment growth has not only provided jobs but has also resulted in substantial economic benefits for local communities, with average wages in the industry rising to USD 67,500, up from USD 65,000 the previous year.

The industry’s fiscal contributions are equally noteworthy. In 2023, the firearm and ammunition sector paid over USD 10.90 billion in business taxes, including property, income, and sales-based levies. This substantial tax contribution highlights the sector's role as a significant revenue generator for federal, state, and local governments. An extra USD 944 million in federal excise taxes was allocated for wildlife conservation initiatives through the Pittman-Robertson Act.

The broader financial contributions from the industry have also experienced impressive growth. Since 2008, federal business tax payments from the firearm and ammunition sector have increased by 353%, while Pittman-Robertson excise tax contributions have grown by 168%. Additionally, state business taxes have surged by 215%, reflecting the expanding United States ammunition industry revenue as, these fiscal metrics determine the industry's vital role in bolstering public finances and supporting essential government functions, including conservation and wildlife management programs.

Further, with a defence force of approximately 1.3 million active-duty personnel, the United States maintains one of the largest militaries in the world. The scale of this force requires ongoing investments in various defence-related categories, including ammunition production and stockpiling. Between 2014 and 2022, the United States spent more on national defence than all 30 NATO members combined, emphasising the country’s strategic focus on military dominance. This prioritisation directly correlates with sustained demand for high-quality ammunition, ensuring that military forces are adequately equipped across various operational scenarios. 

The U.S. ammunition market benefits from cutting-edge technology and innovation in manufacturing processes, enhancing product performance and reliability.

• High demand from military, law enforcement, and civilian sectors ensures the growth of the United States ammunition industry. 
• Well-developed production and distribution networks support efficient supply chains and scalability.

Strict regulations and compliance requirements can increase operational costs and complicate market entry.

• Significant expenses related to materials and manufacturing processes can impact profitability.
• Fluctuations in demand due to political and economic factors can lead to instability.

Increased defence spending and government contracts offer growth potential and revenue opportunities in the United States ammunition market.

• Innovations in ammunition technology, such as smart and precision-guided munitions, can open new market segments.
• Expanding into international markets can drive growth and diversify revenue streams.

Recessions or budget cuts can reduce defence spending and consumer demand, affecting market stability.

• Changes in gun control laws and international relations may impact market dynamics and regulations.
• Risks associated with raw material shortages or production delays can affect availability and costs.

Key Players in the United States Ammunition Market and Their Key Initiatives

BAE Systems Plc

• Expanded its production capacity in the United States. 
• Collaborated with various U.S.-based defence firms and academic institutions.

Northrop Grumman Corp.

• Development and production of advanced precision-guided munitions (PGMs). 
• Invested in state-of-the-art manufacturing facilities and technologies to meet the growing demand of the United States ammunition market.

Rheinmetall AG

• Pursued strategic partnerships with U.S.-based defence contractors and government agencies. 
• Invested heavily in research and development to create ammunition solutions.

Sierra Bullets

• Invested in state-of-the-art ballistic testing and computer-aided design (CAD) technologies. 
• Strengthened its distribution network to capture the United States ammunition market opportunities.

United States Ammunition Industry Segmentation

“United States Ammunition Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Caliber

• Small Caliber
• Medium Caliber
• Large Caliber
• Rockets and Missiles
• Others

Market Breakup by Product Type

• Rimfire
• Centrefire

Market Breakup by Application

• Civil and Commercial
• Defence

Market Breakup by Region

• New England
• Mideast
• Great Lakes
• Plains
• Southeast
• Southwest
• Rocky Mountain
• Far West

United States Ammunition Market Share

Demand in the United States ammunition market is rising due to the benefits of various calibres. Small calibre ammunition, like .22 LR, offers light recoil, making it suitable for beginners and recoil-sensitive shooters. Its affordability and accuracy, along with low noise levels, make it popular for training, target shooting, and hunting.

Medium calibre ammunition, such as .30-06 Springfield and .308 Winchester, balances power and ease of handling, making it ideal for hunting and self-defence. Its improved accuracy and range enhance medium-range shooting, while widespread availability ensures a reliable stock, further fuelling United States ammunition market growth.

Leading Companies in the United States Ammunition Market

The company’s focus on cutting-edge technology solutions for both military and civilian use, covering areas such as aircraft, naval systems, and cybersecurity, thereby fostering innovation and strengthening national security.

• BAE Systems Plc 
• Northrop Grumman Corp. 
• Rheinmetall AG 
• Sierra Bullets 
• CBC Global Ammunition 
• Beretta Holding S.A. (RUAG Ammotec AG) 
• Nammo AS 
• SIG SAUER, Inc. 
• NOSLER Inc. 
• Saab AB