Global sports equipment market larger than ever despite small annual gain

Worldwide, 21 brands each recorded over $1 billion in annual sales to bring in a combined total of $41.5 billion on an aggregate basis. Seven companies – Adidas, Garmin, Pon Bike, Giant Group, Shimano, Amer Sports, and Trek – generated more than $1 billion in annual global sales in markets outside the U.S.

Aggregate sports equipment revenues fell slightly by 0.4 percent in the U.S. to $49.4 billion in 2022 but were up by 2.5 percent in 2021 elsewhere in the world, at $62.9 billion. A strong US dollar, which appreciated 12 percent against the euro and 20 percent against the yen, meant that results from firms reporting in currencies other than the dollar were much better on a constant currency basis. 

The best-selling sports equipment sector in 2022

After 2021’s supply constraints, the bicycle business grew in 2022. Four of the top six best-selling sports equipment companies are involved in the bicycle business, led by Shimano, which grew its annual revenues in yen on the strength of both Bike Components and Fishing. Shimano and Giant Group together represented more than $6.8 billion in aggregate non-US revenues or 26 percent of the non-US business of all the top brands.

The entire bicycle business grew by 10.1 percent in 2022 at wholesale, as bike and component makers scrambled to refill the distribution chain after supply constraints in 2021 negatively impacted the segment. Pon Holdings, which acquired the Cannondale, Schwinn, GT, and other bike brands from Dorel Holdings in 2021, reported 85 percent sales growth in euros last year to land sixth on the global ranking.

Of the other sectors showing gains, 9.6 percent of the 2022 global sports equipment sales were in the Team category (up 14.2% from 2021). Ski took 1.5 percent (+15.0%), and Diversified saw the biggest sales improvement with an increase to 6.8 percent (+18.7%) in global sports equipment sales. This was largely driven by the resurgence of Amer Sports, which recently reported its strongest H1 since its 2019 acquisition by a joint venture led by China’s Anta Sports.

Elsewhere, stronger than forecasted golf participation pushed the category’s equipment sales up by 9.4 percent in 2022, with Acushnet gaining 20 basis points of global market share and Callaway’s share staying stable despite 14.5 percent of revenue growth.

Fitness companies struggled after pandemic-impacted boom year in 2021

The Fitness segment, despite a recent report from Technavio showing 9 percent CAGR growth for the Home Fitness sector of the business through 2027, did not have a stellar year in 2022. Companies such as Peloton, iFit, and Nautilus suffered sales erosion post-pandemic as more consumers returned to the gym, and overall category sales fell by 21 percent.

Peloton, which lost more than $1 billion in annual sales and 100 basis points of market share in 2022, continues to develop a strategy designed to attract a wider base of younger, fitness-oriented consumers to the brand. In recent months, the company has hired a new Chief Product Officer, struck a content deal with Lululemon, and partnership agreements with the National Basketball Association and Liverpool FC.

iFit Health & Fitness installed a new CEO and CFO in the final quarter of 2022, and Nautilus has worked to reshape its business through cost-cutting, a sell-off of its namesake trademark for $13 million and renaming complete with a new stock ticker to Bowflex on Nov. 1.

The electronics segment, dominated by Garmin and GoPro, declined by 7.0 percent last year.