The ongoing trade war between the United States and China has diminished the vibrancy of many disparate industries, but thus far the cooking knife market appears ready and willing to keep charging ahead at full speed. There are many reasons to believe that the cooking knife industry will keep flourishing across the globe for years to come, especially since recent estimates note that year-over-year growth won’t be abating anytime soon.
Here’s why the cooking knife market will keep flourishing, and what few things may cause it to stumble.
Yes, the trade war is hurting the market
There’s no denying that the trade war between the United States and China is hurting the cooking knife market. Last year, we saw a round of tariffs that negatively impacted by cooking knife industry by driving down consumer demand thanks to the higher prices that were a result of the tariffs. The tariffs in question started at a mere 10 percent, but by the start of 2019 had soared upwards to 25 percent. Relatively little political progress has been made since then, too, so we can’t expect this ongoing market conflict to end anytime soon.
That doesn’t spell out permanent doom for the cooking knife market across the globe, however. As a matter of fact, consumer demand for new knives is actually still quite robust, even after we factor in the diminishing effects of the president’s tariff regime. The market is expected to keep expanding until at least 2024, and some forecasters expect it to grow from its current $1450 million in 2019 to a whopping $1960 million in 2024. This is because rising global incomes are leading more and more consumers around the world to buy cleavers, paring knives, and regular chef’s knives like never before.
Given that knives can be soundly manufactured out of a wide variety of materials, the ongoing trade war also hasn’t been too terrible for the industry. This is because manufacturers are capable of quickly finding new suppliers or sources of materials when their existing business models become threatened by the immense tariffs being traded back and forth across the Pacific. The unique resiliency of the knife market is thus not to be ignored by those who keep preaching that the trade war will spell out permanent losses for all industries. That being said, and end to the conflict would obviously put additional wind into the sails of knife companies all around the globe.
What’s driving growth?
Now that Damascus steel knives and other popular kitchen implements are remaining popular despite the ongoing trade war, many analysts and investor are beginning to look anew at what’s driving the industry’s growth. For the most part, reality television seems to be doing much of the heavy lifting; popular entertainment shows like Hell’s Kitchen, Chopped, or Iron Chef offer ideal advertising opportunities for knife companies; even if their products aren’t specifically showcased, more consumers are growing aware of the importance of having a good knife and replacing your older, duller knives as time goes on.
As long as these entertainment shows keep educating consumers about the importance of a good knife, we can expect the cooking knife market to keep flourishing despite broader market turbulence.