…The worldwide sports apparel market was predicted to earn over 191 billion US dollars in revenue in 2022.
SAT, APRIL. 29 2023-theGBJournal| In 2021, it was valued at US$ 171.25 billion, revenue growth is anticipated to continue, reaching approximately 249 billion dollars in 2026 and 287.70 billion dollars by 2029, with a CAGR of 5.53% to 6.7% for the projected period (2022-2029).
Sportswear or active wear is any apparel, including shoes, worn for physical activity or participation in sports. For practical, comfortable, or safety reasons, most sports and physical activity include the wearing of specialized gear, the majority of sports and physical activities require the use of sport-specific clothing for reasons of convenience, comfort, or safety. Tracksuits, shorts, T-shirts, and polos are examples of sportswear.
Swimsuits (for swimming), wet suits (for diving or surfing), ski suits (for skiing), and leotards (for gymnastics) are examples of specialized equipment. Trainers, football boots, riding boots, and ice skates are examples of sports footwear. Sportswear can occasionally be worn for casual fashion.
Polyester, microfiber, calico, and spandex are some of the most frequent fabrics utilized in the manufacture of sports apparel, at first, sports gear was largely worn by sportsmen, but it is gradually grew popular among regular gym-goers and other non-athletes, sports gear adoption has been relatively significant in developed regions such as the United States, Canada, Mainstream Europe and heavy Asian blocks , while rising countries in South America, India and Africa are swiftly catching up.
The market is divided into three categories: men, women, and children, women are the most rapidly expanding consumer type in the market due to an increase in demand for stylish and fashionable sports clothing and female sports activities; the men’s sector, on the other hand, accounts for the highest share of the market due to increased male engagement in sports, there’s an upcoming market in the LGBTQIA community.
The urge to be Fit
The worldwide desire to be fit has made physical activities such as yoga, workouts, aerobics, swimming, going to the gymnasium etc. more popular. The urge to stay current with fashion trends while retaining a sporty and fit appearance is driving the sports wear market ahead. Using Nigeria as an example, more people are becoming interested in becoming flat-stomach baddies and muscular-built guys.
In 2021, 64 percent of millennials and Generation Y in the United States reported purchasing athletic shoes, this is due to the growing popularity of street style, which encourages customers to mix activewear into their unique style.
According to International Health, Racquet & SportsclubAssociation data, the United States has 39,570 gymnasiums in 2018 with over 6 billion visits. Furthermore, the growing popularity of fitness apps in technology gadgets has prompted people to engage in fitness activities to improve their health, for example, according to World Economic Forum data from September 2020, fitness applications saw a 50% increase in usage in the first half of 2020.
Innovative product introduction
Many technologies, such as nanotechnology and microfibers, are gaining popularity in the sportswear business, many people have begun to adopt more active lifestyle’s, this has increased demand for sportswear.
Sports gear businesses’ marketing has improved.
The leading competitors in the sports apparel market are leveraging the media industry and investing substantially on advertising and celebrity brand endorsements to entice customers to participate to buy sports wears.
Furthermore, the partnership of sportsmen with luxury brands is pushing customers to purchase active wear; most users buy wear because their favorite personalities are ambassadors, which is why there has been a significant surge in sports endorsement deals.
Sportswear brands typically spend 10-11% of sales on marketing, Approximately 75% of the marketing spending indicated above for sports brands is related to team and athlete endorsements, for example Puma struggled to sustain momentum in the early 2010s as trends shifted, a new management team was installed in 2013, and a turnaround strategy was implemented, the strategy included emphasis on sports performance to generate a halo effect for the brand and employing celebrities and athletes in marketing to increase desirability among customers, Puma’s financial performance has improved, with sales growth of 16% per year over the last five years (through 2022e) and an operating profit margin of 8%, also Nike sponsored 13 teams, including France, Adidas sponsored seven teams, including Argentina, and Puma sponsored six teams, including Morocco, in the recently ended FIFA 2022 World Cup.
Government initiatives in sports
Many governments throughout the world have implemented sports programs in schools and academic institutions, this will also increase worldwide sportswear sales.
The tremendous increase in female sports interest
Women’s sportswear products account for the vast majority of sportswear revenue in the United States, In 2021, women’s sportswear generated 35.57 billion US dollars more than men’s and children’s sportswear combined,this tendency is expected to continue until the 2020s.
Partnerships with celebrity influencers, particularly women, have been critical to Puma’s comeback journey, These includes Rihanna from 2015 to 2018, Selena Gomez from 2018 and, more recently, Dua Lipa, among others, Puma’s product approach resulted in a focus on a holistic offering for women, with the goal of “owning the space where the gym meets the runway.” Overall, the strategy has been successful, with women’s sports gear accounting for approximately 35% of Puma’s revenue, compared to 20-25% for Nike and Adidas.
The market is divided into two distribution channels: e-commerce stores and retail outlets.
Retail outlets
Total mail-order and e-commerce sales of sporting goods in the United States from 2003 to 2021 billion U.S. dollars
By Type
The clothes and shoes category has the largest market share and is expected to grow during the forecast period 2023 to 2032.
In 2022, North America dominated the market with the highest revenue share of 45%. Asia-Pacific will grow at the fastest CAGR from 2023-2032.
The United States is the largest player in the global activewear industry. By 2026, the activewear industry is expected to generate more than 85 billion U.S. dollars in the United States alone.Nike and Adidas have the highest sales revenue compared to other sportswear brands in the U.S by a large margin. The athletic footwear industry in the U.S. generated 14.5 billion U.S. dollars in 2022. Of that, Nike was the top earner.
Market powerhouses
Brand
Market Cap
Share Price
Adidas
$31.22 B
$175.02
Columbia Sportswear
$5.51 B
$88.73
FILA Inc.
$1.80 B
$29.58
Nike, Inc
$191.27 B
$124.45
Lululemon Athletica Inc
$48.75 B
$376.71
PUMA
$9.10 B
$60.82
Ralph Lauren
$7.63 B
$115.77
Anta sports
$34.71 B
$12.75
Shimano
$16.08 B
$177.13
Dick’s Sporting Goods
$12.51 B
$146.23
Topgolf Callaway Brands
$4.19 B
$22.62
Academy Sports
$5.21 B
$67.74
Planet Fitness
$6.91 B
$77.59
Under Armour, Inc
$3.73 B
$8.01
JD Sports Fashion
$10.53 B
$2.03
On Holding
$10.09 B
$31.89
Insight is written and orinally published by wavysport.
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