U.S. Small Caliber Ammunition Market To Witness Massive Growth By 2030

U.S. Small Caliber Ammunition Market Summary

The U.S. small caliber ammunition market size was estimated at USD 4.05 billion in 2023 and is projected to expand at a compound annual growth rate (CAGR) of 2.3% from 2024 to 2030. Rising demand for small-caliber ammunition in the U.S. is largely driven by the growing need for personal safety, the increasing popularity of shooting sports, and active participation in hunting activities. These applications involve the use of ammunition in handguns, shotguns, and rifles. According to a report by Ammo.com, an e-commerce platform and wholesaler specializing in ammunition, in 2023, approximately 32% of the American population owned at least one firearm. Furthermore, firearm ownership witnessed a growth of 6.7% between 2017 and 2023, highlighting a steady increase in consumer adoption.

The expansion of the shooting sports sector has significantly contributed to market growth. A rise in organized shooting competitions, professional training programs, and recreational shooting has fueled the consumption of small-caliber ammunition. For instance, the National Shooting Sports Foundation (NSSF), representing the Firearm Industry Trade Association, conducted a survey in 2022 on sports shooting participation across the U.S. The findings indicated a 24.1% increase in adult involvement in shooting sports from 2009 to 2022. Handgun target shooting was the most preferred activity with 16.9% participation, followed by rifle target shooting at 15.6%, and outdoor range target shooting at 13.3%, underscoring the strong recreational interest in the use of firearms.

Key Market Trends & Insights

• Based on type, the centerfire ammunition segment accounted for the largest revenue share in 2023 and is anticipated to expand at the fastest CAGR from 2024 to 2030. Its dominance is attributed to its compatibility with a broad spectrum of firearms, including those employed by military, law enforcement, and private security agencies. Centerfire ammunition is valued for its reliability, reloadability, and performance across diverse operational settings, making it a preferred choice for both professional and civilian use.
• By caliber, the 5.56mm segment captured the largest revenue share of 77.8% in 2023 and is projected to register the fastest CAGR from 2024 to 2030. The 5.56mm caliber has become the standard ammunition for U.S. military forces and is widely adopted by defense organizations across NATO member countries. The round’s standardization as a NATO cartridge has reinforced its widespread usage. Offering an optimal balance between range, accuracy, and recoil, the 5.56mm cartridge is well-suited for scenarios ranging from close-quarters combat to medium-range engagements. Its adaptability has made it a trusted and widely utilized caliber among both defense personnel and civilian shooters.

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Market Size & Forecast

• 2023 Market Size: USD 4.05 billion
• 2030 Projected Market Size: USD 4.8 billion
• CAGR (2024 - 2030): 2.3%

Key Companies & Market Share Insights

Some of the key players in the market include Northrop Grumman., Visa Outdoor Operations LLC, Olin Corporation, Nammo AS, and FN HERSTAL.

• Northrop Grumman’s services span a broad spectrum of aerospace and defense technologies, ranging from engineering and testing to radar systems development and integration. The company’s offerings are designed to address the complex needs of its customers in the military, government, and commercial sectors
• FN Herstal is a company that specializes in designing, developing, manufacturing, and selling small-caliber firearms and associated ammunition. The company offers a unique range of innovative defense and security solutions centered on small arms and ammunition. These products are primarily intended for military, law enforcement, and special forces sales, subject to export licenses/permits

Key Players

• FN HERSTAL
• Hornady
• Nammo AS
• Northrop Grumman
• Olin Corp.
• Remington Ammunition
• Rosoboronexport
• Sierra Bullets
• Visa Outdoor Operations LLC
• Winchester Ammunition

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Conclusion

The U.S. small caliber ammunition market is expected to maintain stable growth over the coming years, supported by increasing civilian firearm ownership, rising interest in shooting sports, and steady demand from defense and security sectors. The dominance of the centerfire segment and the widespread adoption of the 5.56mm caliber highlight the importance of versatile, reliable ammunition across diverse applications. With personal safety concerns and recreational shooting driving consumer demand, alongside continued military reliance on standardized calibers, the market outlook remains positive. Ongoing product advancements, training participation, and regulatory support are expected to further strengthen industry growth through 2030.