GITNUX REPORT 2024

2020 Sees Surge in Firearms Sales, Driving Industrys Economic Impact

2020 saw record-breaking firearm sales in the US, with over 39.7 million background checks conducted.

Author: Jannik Lindner

First published: 7/17/2024

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In 2020, the FBI conducted over 39.7 million firearm background checks

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The number of background checks in 2020 was a 40% increase from 2019

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March 2020 saw the highest number of background checks in a single month, with over 3.7 million

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The average time to complete a firearm background check is 2 minutes

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About 1% of firearm background checks result in a denial

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First-time gun buyers accounted for 40% of all firearm purchases in 2020

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Women accounted for 40% of first-time gun buyers in 2020

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In 2020, 8.4 million Americans became first-time gun owners

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The average age of first-time gun buyers in 2020 was 40 years old

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40% of gun owners say self-protection is the main reason they own a firearm

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Hunting is the second most common reason for gun ownership, cited by 36% of owners

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22% of gun owners say they purchased a firearm within the last year

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The average gun owner in the US spends $250 annually on firearms and accessories

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30% of gun owners say they have taken a gun safety course

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Concealed carry permits have increased by 190% since 2007

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44% of gun owners say they carry a gun outside their home at least sometimes

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The US firearms industry had an economic impact of $70.52 billion in 2021

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The firearms industry employed over 375,819 people in 2021

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The firearms industry paid over $6.98 billion in taxes in 2021

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The firearms industry has grown by 232% since 2008

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The global firearms market is expected to reach $9.33 billion by 2025

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The firearms industry supports over 169,000 supplier jobs

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The average annual wage in the firearms industry is $56,400

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The firearms industry has created over 342,330 jobs since 2008

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The US exports approximately $1.1 billion worth of firearms annually

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The US imports about $2.7 billion worth of firearms annually

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The global ammunition market is expected to reach $28.37 billion by 2028

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The US accounts for about 40% of the global civilian firearms market

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The firearms industry in the US has a total economic impact of $63.5 billion

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The firearms industry has seen a 171% increase in job creation since 2008

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The firearms industry pays an 11% excise tax on all firearms and ammunition sold

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The excise tax on firearms and ammunition generated $624.8 million in 2020

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The firearms industry spends over $1 billion annually on research and development

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The US firearms market is expected to grow at a CAGR of 6.1% from 2021 to 2028

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Smith & Wesson's firearm sales increased by 100% in 2020

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Sturm, Ruger & Co. reported a 39% increase in firearm sales in 2020

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The average profit margin for firearm manufacturers is around 10.5%

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32% of American adults say they personally own a firearm

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44% of American adults say they live in a household with a gun

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66% of gun owners own more than one firearm

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There are approximately 393 million civilian-owned firearms in the US

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The US accounts for about 46% of the global civilian firearm stock

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The average gun owner in the US owns 5 firearms

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Texas has the highest number of registered firearms in the US, with over 725,000

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Wyoming has the highest rate of gun ownership, with 66.2% of adults owning firearms

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63% of gun owners say they keep a loaded gun easily accessible at home

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The average price of a handgun in the US is around $500

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The average price of a rifle in the US ranges from $700 to $1,000

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The average markup on firearms in retail stores is around 18%

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Handgun sales accounted for approximately 59% of all firearm sales in 2020

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Long gun sales made up about 29% of firearm sales in 2020

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Other firearms, including receivers and frames, accounted for 12% of sales in 2020

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The AR-15 style rifle is the most popular firearm in the US, with over 20 million in circulation

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The Glock 19 is the best-selling handgun in the US

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The number of federal firearms licenses (FFLs) in the US was 130,591 in 2020

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The average annual revenue of a gun store in the US is $1.4 million

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The profit margin for gun stores in the US averages around 9.1%

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The number of women-owned gun stores has increased by 300% since 2012

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Online firearm and ammunition sales increased by 65% in 2020

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Online sales account for approximately 12% of all firearm purchases

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Gun shows account for about 4% of firearm sales in the US

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Private party transfers make up approximately 22% of firearm acquisitions

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In 2021, there were approximately 18.9 million firearms sold in the US

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Ammunition sales increased by 139% in the first half of 2020

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Summary

  • In 2020, the FBI conducted over 39.7 million firearm background checks
  • The number of background checks in 2020 was a 40% increase from 2019
  • March 2020 saw the highest number of background checks in a single month, with over 3.7 million
  • In 2021, there were approximately 18.9 million firearms sold in the US
  • The US firearms industry had an economic impact of $70.52 billion in 2021
  • The firearms industry employed over 375,819 people in 2021
  • Handgun sales accounted for approximately 59% of all firearm sales in 2020
  • Long gun sales made up about 29% of firearm sales in 2020
  • Other firearms, including receivers and frames, accounted for 12% of sales in 2020
  • The average price of a handgun in the US is around $500
  • The average price of a rifle in the US ranges from $700 to $1,000
  • 32% of American adults say they personally own a firearm
  • 44% of American adults say they live in a household with a gun
  • 66% of gun owners own more than one firearm
  • Smith & Wesson's firearm sales increased by 100% in 2020

Locked and Loaded: A Look into the Explosive Growth of Firearms Sales in the US. In a year where uncertainty seemed to boom, so did firearm background checks – with over 39.7 million conducted by the FBI in 2020, marking a staggering 40% increase from the previous year. Thats a whole lot of trigger-happy Americans out there! But wait, theres more: with approximately 18.9 million firearms sold in 2021, the US firearms industry is not only shooting straight to the bank with an economic impact of $70.52 billion but also arming nearly 19 million patriots. It seems Lady Liberty isnt the only one brandishing some serious firepower these days.

Background Checks

  • In 2020, the FBI conducted over 39.7 million firearm background checks
  • The number of background checks in 2020 was a 40% increase from 2019
  • March 2020 saw the highest number of background checks in a single month, with over 3.7 million
  • The average time to complete a firearm background check is 2 minutes
  • About 1% of firearm background checks result in a denial

Interpretation

It appears that in 2020, Americans were not only stocking up on toilet paper and hand sanitizer, but also on firearms. The surge in background checks suggests that more people were exercising their Second Amendment rights or perhaps just preparing for a future that seemed increasingly uncertain. With an average background check taking only 2 minutes, one can't help but wonder if some individuals were faster at purchasing a gun than they are at making a cup of coffee. Nevertheless, the statistic that about 1% of these checks led to a denial reminds us that not everyone who wants a gun is entitled to one, for better or for worse.

Consumer Trends

  • First-time gun buyers accounted for 40% of all firearm purchases in 2020
  • Women accounted for 40% of first-time gun buyers in 2020
  • In 2020, 8.4 million Americans became first-time gun owners
  • The average age of first-time gun buyers in 2020 was 40 years old
  • 40% of gun owners say self-protection is the main reason they own a firearm
  • Hunting is the second most common reason for gun ownership, cited by 36% of owners
  • 22% of gun owners say they purchased a firearm within the last year
  • The average gun owner in the US spends $250 annually on firearms and accessories
  • 30% of gun owners say they have taken a gun safety course
  • Concealed carry permits have increased by 190% since 2007
  • 44% of gun owners say they carry a gun outside their home at least sometimes

Interpretation

In a world where statistics sometimes speak louder than words, the firearm sales data for 2020 paints a revealing picture of American gun ownership trends. With first-time gun buyers making up a significant portion at 40%, it seems that 2020 was indeed a year of new beginnings in more ways than one. Surprisingly, women accounted for an equal share of these neophyte firearms enthusiasts, challenging traditional stereotypes. The average age of these newfound gun owners at 40 years old hints at a diverse range of motivations behind their purchases, whether it be self-protection or the timeless pursuit of hunting. As concealed carry permits soar and gun safety education becomes a priority for only 30% of gun owners, it seems that while the love for firearms may be universal, responsible ownership is not always a bulletproof guarantee. The numbers may add up, but the deeper implications of this data remain open to interpretation.

Economic Impact

  • The US firearms industry had an economic impact of $70.52 billion in 2021
  • The firearms industry employed over 375,819 people in 2021
  • The firearms industry paid over $6.98 billion in taxes in 2021
  • The firearms industry has grown by 232% since 2008
  • The global firearms market is expected to reach $9.33 billion by 2025
  • The firearms industry supports over 169,000 supplier jobs
  • The average annual wage in the firearms industry is $56,400
  • The firearms industry has created over 342,330 jobs since 2008
  • The US exports approximately $1.1 billion worth of firearms annually
  • The US imports about $2.7 billion worth of firearms annually
  • The global ammunition market is expected to reach $28.37 billion by 2028
  • The US accounts for about 40% of the global civilian firearms market
  • The firearms industry in the US has a total economic impact of $63.5 billion
  • The firearms industry has seen a 171% increase in job creation since 2008
  • The firearms industry pays an 11% excise tax on all firearms and ammunition sold
  • The excise tax on firearms and ammunition generated $624.8 million in 2020
  • The firearms industry spends over $1 billion annually on research and development
  • The US firearms market is expected to grow at a CAGR of 6.1% from 2021 to 2028

Interpretation

In a world where bullets can be more lucrative than butter, the US firearms industry is not just shooting for the stars; it's hitting its economic mark with a bang. With an impact of $70.52 billion in 2021 and employing over 375,000 people, the industry is no small arms dealer. While the statistics may raise eyebrows as high as gun barrels, the cold, hard numbers speak volumes louder than any gunshot. Whether you're locked and loaded on the issue or firing blanks, one thing is clear: the firearms industry packs a powerful economic punch that is sure to hit the target market for years to come.

Manufacturer Performance

  • Smith & Wesson's firearm sales increased by 100% in 2020
  • Sturm, Ruger & Co. reported a 39% increase in firearm sales in 2020
  • The average profit margin for firearm manufacturers is around 10.5%

Interpretation

In a year where masks became a fashion statement and social distancing felt like a new dance move, the real champions were Smith & Wesson and Sturm, Ruger & Co., proving that guns sell faster than the latest iPhone. With profit margins as sharp as a well-oiled barrel, these firearms manufacturers have certainly found their target audience. In a time when uncertainty was the only constant, it seems Americans were seeking security in the form of firepower. As the adage goes, "When the going gets tough, the tough go shopping for guns."

Ownership

  • 32% of American adults say they personally own a firearm
  • 44% of American adults say they live in a household with a gun
  • 66% of gun owners own more than one firearm
  • There are approximately 393 million civilian-owned firearms in the US
  • The US accounts for about 46% of the global civilian firearm stock
  • The average gun owner in the US owns 5 firearms
  • Texas has the highest number of registered firearms in the US, with over 725,000
  • Wyoming has the highest rate of gun ownership, with 66.2% of adults owning firearms
  • 63% of gun owners say they keep a loaded gun easily accessible at home

Interpretation

With statistics showing that 32% of American adults personally own a firearm and 66% of gun owners have more than one weapon in their arsenal, it seems the American mantra of "go big or go home" extends to firearms. With approximately 393 million civilian-owned firearms in the US, it's no wonder the country accounts for nearly half of the global civilian firearm stock. From the lone cowboy in Texas with over 725,000 registered firearms to the rugged individualists in Wyoming, where 66.2% of adults own guns, it's clear that the Second Amendment is alive and well in the land of the free. And with 63% of gun owners admitting to keeping a loaded gun easily accessible at home, it's safe to say that Americans believe in being prepared for any eventuality – whether it's a zombie apocalypse or just a particularly aggressive squirrel in the backyard.

Pricing

  • The average price of a handgun in the US is around $500
  • The average price of a rifle in the US ranges from $700 to $1,000
  • The average markup on firearms in retail stores is around 18%

Interpretation

These statistics reveal that in the American market, it seems that when it comes to firearms, pistols are the thrifty option for those on a budget, while rifles are the Cadillac of weaponry. With a savvy average markup of 18% in retail stores, it appears that when Americans are exercising their Second Amendment rights, they are also flexing their financial muscles. So, whether you're a sharpshooter or a sniper, remember to lock and load -- both your weapons and your wallets.

Product Mix

  • Handgun sales accounted for approximately 59% of all firearm sales in 2020
  • Long gun sales made up about 29% of firearm sales in 2020
  • Other firearms, including receivers and frames, accounted for 12% of sales in 2020
  • The AR-15 style rifle is the most popular firearm in the US, with over 20 million in circulation
  • The Glock 19 is the best-selling handgun in the US

Interpretation

In a country where the right to bear arms is as ingrained as apple pie and baseball, the numbers paint a vivid portrait of American firearm preferences. Handguns remain the undisputed kings of the gun counter, with the versatile Glock 19 reigning supreme in popularity. Yet, long guns and other firearms still have a significant slice of the sales pie, showcasing the diverse tastes of gun enthusiasts. As the AR-15 continues its dominance in circulation, one thing is clear - when it comes to firearms, variety is indeed the spice of life.

Retail

  • The number of federal firearms licenses (FFLs) in the US was 130,591 in 2020
  • The average annual revenue of a gun store in the US is $1.4 million
  • The profit margin for gun stores in the US averages around 9.1%
  • The number of women-owned gun stores has increased by 300% since 2012

Interpretation

In a country where gun culture often sparks heated debates, the statistics paint a fascinating picture of the firearms industry in the US. With over 130,000 federal firearms licenses dotting the land, it's clear that the business of selling firearms is booming. The fact that the average gun store racks up a cool $1.4 million in revenue annually surely raises eyebrows and triggers some envy in other retail sectors. And let's not forget the savvy female entrepreneurs who are taking the bull by the horns - or rather, the gun by the barrel - as the number of women-owned gun stores skyrockets by a jaw-dropping 300%. It seems the gun industry is hitting its mark, both literally and figuratively, with profits averaging around 9.1%. Whether you view this as a cause for celebration or concern likely depends on which side of the barrel you stand.

Sales Channels

  • Online firearm and ammunition sales increased by 65% in 2020
  • Online sales account for approximately 12% of all firearm purchases
  • Gun shows account for about 4% of firearm sales in the US
  • Private party transfers make up approximately 22% of firearm acquisitions

Interpretation

In a world where you can order a latte and a lethal weapon with just a few clicks, the surge in online firearm sales by 65% in 2020 highlights a growing trend towards digital convenience in America's gun culture. With online transactions now constituting 12% of all firearm purchases, one can't help but wonder if shady back-alley deals have been replaced by shady online chats. Gun shows, the meccas of Second Amendment enthusiasts, might only account for 4% of sales, suggesting that while the thrill of the hunt remains alive and well, a significant portion of transactions are now happening in the pixelated shadows of the internet. And with private party transfers making up 22% of firearm acquisitions, it seems that "Buy one, get one free" has taken on a whole new meaning in the land of the free.

Sales Volume

  • In 2021, there were approximately 18.9 million firearms sold in the US
  • Ammunition sales increased by 139% in the first half of 2020

Interpretation

In a year dominated by chaos and uncertainty, Americans seemed to have found solace in two things: firearms and ammo. With nearly 19 million firearms flying off the shelves in 2021 and ammunition sales skyrocketing by a mind-boggling 139% in the first half of 2020, it's clear that we are living in a time where self-preservation and preparation have become the new currency. Whether this surge in armaments signifies a surge in paranoia or just a prudent approach to an unpredictable world, one thing is for sure—it looks like this year, the only thing that's missing from everyone's shopping list is a sense of calm.

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