In the first authoritative study of the kind, which has been sponsored and partly funded by the World Federation of the Sporting Goods Industry, NPD Group estimates that global consumption of sporting goods reached US$235 billion in 2005. Sports apparel represented the biggest chunk at $102.6 billion. Sports footwear took up around $47 billion. The balance of about $85 billion was represented by sports equipment including some $26 billion worth of bicycles and accessories.

The USA came out as the largest single market by far with sales of $98.4 billion, representing 42 percent of the global market. Europe came next with a market share of 30 percent, indicating expenditures of around $70 billion, close to our own estimates including the emerging markets. Asia as a whole made up 19 percent of the total turnover, followed by Latin America with a share of 4 percent and by the Middle East and Africa with 2 percent.

This means Americans spent on average $330 per capita on sporting goods in 2005, compared with US$207 for Canadians, $85 for the average European, $12 forAsians and $5 in both the Middle East and Africa. The disparities indicate the enormous potential of certain emerging markets. NPD and WFSGI believe that the 2008 Olympics in Beijing and the 2010 FIFA World Cup in South Africa will go a long way to stimulate higher consumption levels in the respective continents.

NPD’s figures are based on the exchange rate of the dollar as of Dec. 31, 2005. They include sales taxes where they are charged to the consumers. Using a methodology that we have also adopted in our recent Russian market study, they cover all kinds of distribution channels including the unofficial and counterfeit market, which still plays a strong role in certain emerging economies.

Naturally, the size of the market depends very much on its definition. NPD officials indicate that their estimates are largely based on what consumers consider as sports apparel or footwear. Particularly in the USA, where the market is more sports-oriented than in Europe, about one-quarter of the sports apparel market can be regarded as lifestyle. NPD’s U.S. figures include all kinds of T-shirts, for example. NPD’s definition of the market is a little narrower in Europe, but it corresponds more or less to the same types of products. For the other markets, NPD has used a variety of methodologies and simulation methods, largely based on macroeconomic ratios. It has also made use of some of the data compiled by Sporting Goods Intelligence in various surveys and market research reports.

NPD was ideally suited for this arduous task, as its authoritative consumer and retail panels for the sports apparel and footwear cover basically two-thirds of the existing world market. The whole report, which is expected to be updated annually in the future, covers each of the four segments (including one for sports equipment and one for all kinds of bicycles and accessories) in more than 100 different countries around the world, including the mysterious and challenging Chinese market (for more information, e-mail renaud_vaschalde@npd.com).