Athletic & Sporting Goods Snap Shot
There are roughly 1,052 companies in this sector that manufacture a range of sporting and athletic goods, including balls, bags, clubs, gloves, skates, protective equipment, boards, fishing gear and other supplies. These finished products are then marketed to wholesalers and retailers. According to IBIS World Reports, athletic & sporting goods manufacturing sector had total revenues of approximately $9.1 billion and net profits of approximately $398 million for a net margin of 4.4%.
Revenues and profits in the Athletic & Sporting Goods Manufacturing sector are expected to continue to grow as consumers become more health-conscious, which will stimulate demand for athletic equipment. As a result industry revenue is expected to increase at an annualized rate of between 0.5% to 1% and grow to $9.3 billion, as manufacturers benefit from strong demand from downstream markets. In addition, high rates of obesity will likely translate to heightened healthcare expenditures. Therefore, the government will likely invest in schools’ physical education programs and pass legislation to promote healthy lifestyle choices.
Trends in sports participation influence demand for different types of sporting equipment. While an overall rise in the number of consumers participating in sports bodes well for the sector, changing consumer preferences for certain types of sports will also affect demand. For example, as more consumers participate in equipment-intensive sports, such as hockey and scuba diving, industry revenue will reap the benefits of more equipment sales. That said, participation in sports is expected to decline slightly over the next five years as the population ages.