The sports equipment market grows by 0.9%

The branded athletic footwear and apparel markets probably grew faster – we’ll publish our findings shortly – because of the strong athleisure fashion trend that has driven them recently. Millennials, in particular, seem to be more interested in wearing the latest sneakers than buying a new backpack or another type of sports equipment – a factor that likely contributed to Adidas’ and Nike’s pullout from the golf equipment market.

Our estimates are based on public reports or, if they are missing, on input from managers or industry experts. We make all possible efforts to strip apparel and footwear from the companies’ overall revenues. For companies that don’t report in U.S. dollars, the figures are converted to dollars at the average rate calculated by the OECD for each year. The currencies are listed at the bottom of the chart on page 3. In contrast with previous years, the euro/dollar exchange rate remained about the same in the last two years, making it easier to compare the evolution of the market in the U.S. and the rest of the world.

There were some differences last year in the development of the sports equipment market in terms of geographies and product categories. Sales of sports equipment in the U.S. went up by only 0.4 percent last year, to $33.5 billion, due in part to a series of bankruptcies by major U.S. sports retailers like Sports Authority, Sport Chalet and Golfsmith.

The retail landscape remained healthier in Europe, where many small and traditional independent sports retailers are protected by the voluntary groups, and in Asia, where the rates of growth and consumption are higher. Outside the U.S., the sports equipment market went up at a slightly higher rate of 1.4 percent, reaching a level of $40.8 billion for the year.

Looking at the various sports activities, brands involved in the fitness and bicycle markets came out generally in better shape than those that are dealing with traditional sports such as golf, tennis and snow sports. As previously reported, the alpine ski market declined last year by an estimated 3 percent, contributing to Groupe Rossignol‘s major diversification drive into cycling and outdoor and to Newell Brands’ decision to sell Völkl, Marker and other former winter sports properties of Jarden Corporation. Climate change has strongly affected the winter sports market in recent years, reducing participation levels and reinforcing the trend toward ski rentals.

In recent years, new technologies have been the biggest driver of the sports equipment market. With its emphasis on fitness, which remains a strong growth category, Fitbit has been performing much better than GoPro and its action cameras. Many bicycle companies have benefited from the drive to e-bikes, which we cannot consider to be sports products unless some physical effort is involved, as is particularly the case with many models of mountainbikes now in the market.

Shimano remained comfortably at the top of the sports equipment market with a share of 4.7 percent and a sales increase of 7.2 percent, driven by its innovative bicycle accessories. Vista Outdoor came next, and its strength in firearms and ammunition was positively affected by expectations that Hillary Clinton would win the U.S. presidential elections and ban shooting.

Vista’s growth and that of American Outdoor Brands, which is also a strong factor in the U.S. guns market, were partly fueled by acquisitions. The takeover of other companies also helped major players in the buoyant fitness equipment sector like Life Fitness, Johnson Health Tech and Nautilus to raise their market shares.

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