(Knife Market Estimated To Witness High Growth Owing To Rising Demand From Construction Industry)
The Knife Market is estimated to be valued at US$ 4 Billion in 2022 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 To 2032, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Knife refers to a portable tool with a cutting edge or blade fitted to a handle. They come in varieties of designs and sizes depending on their intended use like kitchen, industrial, hunting or combat knives. Knives serve crucial functions in various industries like construction, manufacturing, woodworks etc. owing to their versatility and precision. Their simplistic yet rugged design makes knives indispensable across both commercial and domestic settings.
Market key trends:
One of the major trends propelling the growth of the knife market is the rising demand from the construction industry. As construction activities continue to boom globally with infrastructure projects and real estate development, there is increasing requirement for various types of knives including box cutters, utility knives, craft knives, carpet knives etc. for functions like opening packages, cutting wires, tiles, insulations and other construction materials. Moreover, growth in DIY culture has also augmented the demand for knives from individual consumers for small repair works at homes. This has supplemented the consumption of knives across both professional and retail channels.
Porter's Analysis:
Threat of new entrants: Low Capital requirement but established brands have significant brand loyalty from customers.
Bargaining power of buyers: Moderate, as buyers have a variety of brands to choose from at different price points.
Bargaining power of suppliers: Low, as raw materials such as steel are commodity and suppliers do not have pricing power over brand owners.
Threat of new substitutes: Low, as knife has very few substitutes for cutting applications in both household and commercial sectors.
Competitive rivalry: High, as the market has many global and regional players competing on pricing and product innovations.
SWOT Analysis:
Strengths: Established brand names and reputation for quality and durability. Technology and design innovations to cater changing consumer needs.
Weaknesses: Rising raw material costs and increasing competition from Asian manufacturers. Dependency on economic cycles can impact demand.
Opportunities: Growth in online retail channels. Expanding applications in industries like food processing and logistics provides new growth avenues.
Threats: Trade barriers and regulations. Increased environmental regulations around disposal of knife blades. pricing pressures from private label brands.
Key Takeaways:
The global Knife Market size was valued at USD 4 billion in 2022 and is expected to witness high growth at a CAGR of 6.1% over the forecast period due to increasing demand from food processing and logistic industries. North America currently dominates the market due to high consumption levels and presence of leading manufacturers. The Asia Pacific region is anticipated to grow the fastest over the coming years led by China, India and other Southeast Asian countries experiencing rapid urbanization and infrastructure growth.
Regional analysis: The Asia Pacific region is expected to witness the highest growth in demand for knives during the forecast period. Expanding middle-class population and rising disposable incomes are driving the market in the region’s emerging economies. China holds the largest market share currently owing to a huge domestic demand and presence of manufacturing bases. India and other Southeast Asian countries are projected to exhibit high growth on account of infrastructure expansion and industrialization.
Key players: Key players operating in the knife market are Olfa Corporation, Stanley Black & Decker, Inc., Milwaukee Electric Tool Corporation, Irwin Industrial Tools, Workpro, DeWalt, Pacific Handy Cutter Inc., Hyde Tools Inc., Craftsman, U.S. Blade Manufacturing Co. Inc., Roberts Consolidated Industries, Inc., Q.E.P. Co., Inc., Apex Tool Group, LLC, Fiskars Group, and Klein Tools, Inc. These companies are engaged in new product development and expansion into growing regional markets to increase their revenue share.
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