The sporting and athletics goods market across the world was valued at $96.21 billion in 2020, the report found. The market was severely impacted by the COVID-19 pandemic, contracting for the first time since the 2008 financial crisis. A McKinsey & Co. report detailing the extent of the industry crisis tied damages to a number of pandemic factors, like a decrease in activity among populations and a leap to digital fitness, among other consumer shifts.
Most sporting and athletic goods retailers suffered amid the COVID-19 pandemic. A Federation of the European Sporting Goods Industry (FESI) survey found that 45% of companies declared a loss of turnover ranging between 50% and 90% since the beginning of the global health crisis.
However, some of these leading companies still managed to finish the year positively. Under Armour, for example, reported a surprise profit in its Q4 earnings last month, boasting a 25% boost in online sales. Analysts are also predicting growth — to the tune of 15% — for athletics goods giant Nike.
The market is projected to bounce back after the tough year, with the report estimating a compound annual growth rate (CAGR) of 14.7% between 2020 and 2021, making for a fairly swift recovery to $110.33 billion. Growth will slow from there, according to the report, leveling off at a CAGR of 7% between 2021 and 2025 to reach $142.84 billion by the end of the period. This will amount to a nearly 30% value expansion in four years.
The Asia-Pacific region will continue to play a crucial role in driving growth after accounting for 48% of the market in 2020. Market growth will be driven by recovering consumer interest (fewer pandemic restrictions and less economic stress) as well as innovation by major players in the industry. These factors will drive steady economic growth over the forecast period, with emerging markets predicted to grow faster than developed markets during the forecast period.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.