The Gunpowder Shortage of 2024 - An Update

By now, you’ve no doubt heard of the letter sent out by Vista Outdoor VP of Sales, Sporting Products Brett Nelson back in December regarding ammunition price increases. Refer to our previous Gunpowder Shortage post for more details. It can be found here.

In it, he addressed the gunpowder shortage and stated that ammunition prices from Vista would rise on January 1, 2024.

“Due to world events our suppliers have notified us of unprecedented demand for and an anticipated global shortage of gunpowder, and thus has increased our prices substantially”, said Brett Nelson in the letter sent to customers.

As a result, the letter stated the following price increases that began January 1, 2024:

Shotshell: 1-7%

Rifle: 1-7%

Handgun: 1-5%

22LR/Shorts: 1-5%

WMR/HMR: 1-7%

Primers: 5%

Alliant Powder: 10% (Limited availability)

There are several things to consider regarding these price increases. Generally, in the industry, price increases can be an annual occurrence for both firearms and all attendant accessories. Ammunition is treated more as a commodity and can fluctuate based on market conditions, supply chain issues, and raw material availability.

We’ve certainly seen “price and availability” swings before. Most recently during both the pandemic as well as an unprecedented increase in first-time gun owners, and actual inflation.

However, be aware that the gunpowder shortage is real – as we’re hearing directly from our ammunition suppliers.

Meeting with a CEO of a major ammunition supplier this week, we were told that powder deliveries are running behind schedule for them – a reality. One would initially think that late deliveries would be just that – a little behind. However, it’s a flow of materials that is critical to the operation of a large factory. This CEO advised us that a one to two week delay in powder delivery could impact them far beyond just that one to two weeks. It affects scheduling and manpower and could indeed lead them to having to shut down for an unknown period.

World events obviously play a hand as well. The Russia/Ukraine war, the Israel/Hamas ground war, rampant global inflation, and yes – sharply increased demand – all contribute to this shortage.

While there are dozens and dozens of ammunition manufacturers and brands, there are very few suppliers of the raw materials necessary for manufacturing ammunition. Powder, of course, is needed by everyone and this bottleneck can cause dramatic swings in both pricing and availability.

From what we’re hearing directly from manufacturers, the powder shortage is real, delivery schedules are indeed currently unstable, and the long-term outlook is near impossible to forecast.

To speak for the Gallery of Guns team, when we can, we are stocking up. Right now, we just are not comfortable waiting until a season is in effect, or a demand rises, to stock up. We are more driven in this current state to “take it when we can get it”.

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