As of 2017, the cookware industry generally had a market share of $2.1 billion.
Assuming there is steady growth and no major marketing shaking event, the market is expected to appreciate and become as large as $4.6 billion by 2024. Rapid advancement and growth are also expected in this segment.
Man has evolved from the use of clay pots to steel, aluminum, and ceramics as kitchen utensils.
The need for this household equipment will continue to grow with the ever-increasing population. Its relevance will also remain as far as humans still need to eat.
In economics, goods like this are called, ‘Necessity Goods’. This necessity is why the government often ensures that there is a regulatory body that sees to the standardization of the quality and price of such products.
Life becomes more difficult for the common man when guiding policies are not in place to regulate such a market.
The recent trade war between two of the biggest nations (The USA and China) in the world is a clash of the titans, and its impact has been felt one way or another by the ordinary citizen.
How Trump Will Affect The Ceramic Cookware Industry? The continuous lingering of the trade war between the US and China will sooner or later affect the prices of these household goods at the retail level if not properly checked.
Currently, it seems the effect has not tickled down so much.
But, if the two parties do not come to a reasonable compromise, they will continue to heap serious tariffs on products coming from each other’s country which sooner or later will affect product retail prices.
Just like it is popularly said, everyone loses something during a trade war. Both the US and China-based industries have paid billions of dollars extra as tariff fees due to this ongoing trade war.
How Will Trump Trade War Affect The Ceramic Cookware Industry?
Trump is a president that has been shaking up a whole lot of things since he came into power.
One of his major talks during his campaign was tackling the ‘unfair trading practices’ going on between the USA and other countries.
Majorly, it seems he has more issues with China. Trump had accused China of intellectual theft and what he called “unfair trade practices”.
The trade war has been ongoing for close to 6 months. The USA has been trying to force China to make adjustments by placing some trade barriers and heaping tariffs on goods being imported from China.
This overtime has proven to be abortive with no end in sight. The action of the US only spurred China to retaliate by placing extra tariffs on goods entering China from the US.
Unfortunately, some of these products are agricultural produce. This problem means that profit is reduced on the farm produces that farmers have labored to cultivate.
This backlash is just one of the many effects of this ongoing trade war.
For the Ceramic Cookware industry, the long term effect will be major on the consumer if not properly tackled.
For very crucial household equipment such as the Ceramic cookware, regardless of the price, consumers need to purchase it.
For this reason, the government is supposed to raise policies that will regulate the price to make it affordable to any average citizen of the country.
However, with a trade war, the reverse case seems to be playing out. Industries, in the long run, will have to increase the price of the product if they want to stay profitable.
This rise will affect the retail price of the products.
As much as there are other alternatives – product variety and competition have a way of balancing the market and driving innovation.
Some of the world’s greatest innovations were as a result of fierce competition. As a result of the competition, the company had to bring something new to the market and also ensure efficiency.
What Is The Expected Outcome Of The US-China Trade War?
If Trump can successfully cause China to bend to some or all of their requests, it is going to be a great win for the country. Several US industries have their manufacturing arm in China.
You can’t blame these firms, labor is cheaper in China. This issue is similar to the issue of Mexicans working in America.
They work for ridiculous fees that a normal US citizen won’t be willing to work for. So the Mexican gets more jobs and the normal citizen that wants to get a fair wage is sidelined.
Getting a good deal out of this trade war is a good one for the American populace. The little hike in price or scarcity of some products in the market is the price needed to be paid for a better future.
Trump is a highly successful businessman, and you can say no American president understands the business world as he does. Shaking up things in the economic front can be expected.
But, while at it, a policy must be put in place such that the periodical placing of tariff on some of the goods being imported from China doesn’t result in an unbearable price hike at the retail level.
So far, the tariff hasn’t resulted in any unbearable hike in the price of products, but the industries involved are not having business as usual.
They are paying a whole lot more on tariff than they are used to. We can only ask that both countries come to a reasonable compromise soon.