The report identifies physical inactivity as a market with potential for sporting goods companies.
McKinsey & Company and the World Federation of the Sporting Goods Industry (WFSGI) have together issued their fifth annual report on the sporting goods industry, titled Sporting Goods 2025 – The new balancing act: Turning uncertainty into opportunity.
The report examines key trends in the global market for sporting goods, with insights from two proprietary surveys, market research and analysis, and interviews with executives from Colnago, Decathlon, Lululemon, On, TRX and Victory Group.
It identifies physical inactivity as a major untapped market, where sporting goods players can take targeted action to empower sedentary consumers to increase their physical activity levels.
SGI Europe got hold of WFSGI CEO Emma Zwiebler and asked her two questions about the results.
SGI Europe: What was the most surprising or most positive thing in the report as you and WFSGI see it?
Zwiebler: A positive aspect I see from this year’s report is the growth of an active lifestyle as an identity. The long-term loyalty of these customers deepens due to their increased focus on physical activity, so much so that they feel it’s part of who they are. Brands, therefore, have a captive audience. This is important not only from an industry-growth perspective but also in terms of supporting improved long-term public health.
What are the most important things that need to be done concerning physical inactivity in the future?
As we know, when people are active, companies have to spend less to keep them returning as repeat customers. It’s making that conversion from inactive to active that is much harder. It’s time to work together as an industry to look at that 1.8 billion inactive adult market highlighted in Sporting Goods 2025 and turn it into an opportunity rather than a long-term business and health risk.
Other insights from the report
- Active lifestyle as identity: the fit are getting fitter, presenting an opportunity for sporting goods brands to develop products that meet the emotional and functional needs of active consumers and foster long-term loyalty.
- Reshuffling of market share: challenger brands and new entrants are expanding faster than the main players, because of a decline in barriers to market-entry.
- Boom in blending live sports with entertainment: opportunities lie in combining in-person and digital offerings and capitalizing on the intersection of sports and entertainment.
McKinsey & Company and WFSGI will be hosting a webinar on March 17, providing actionable insights and strategies to navigate industry complexities. Register here.
Download the complete report here.
