A study by VTB, Russia’s second-largest state-owned bank, showed that in the first quarter of 2024, Russians spent Rub 42 billion (€438 million) on health and sports-related costs, 21 percent up from the previous year.
The sporting goods industry is reaping the benefits of improving health consciousness among the Russian population. VTB estimated that sales of sporting goods climbed by 3 percent in physical terms and 11 percent in monetary terms to Rub 1.7 billion (€18 million). This trend indicates a growing interest in an active lifestyle, which bodes well for the industry’s future.
An independent study by a think tank, Perviy OFD, paints a similar picture, though concrete figures are different. The analysts also reported a 3 percent rise in sales in physical terms, estimating that Russian sporting goods retailers sold 14 million items of sporting goods during the first quarter. However, Perviy OFD calculated the sales value at Rub 13 billion (€135 million). This was 11 percent higher than in the previous year. The difference in the sales figures reported by VTB and Perviy OFD can be attributed to the different methodologies used by the two organizations. VTB assumed that improving sporting infrastructure – a trend primarily seen in the big Russian cities in the last few years – is one of the reasons driving sales up.
“We note the growing attention of Russians to their health,” commented Rostislav Yanykin, Head of the Transactional Retail Business Department at VTB, adding that this implies rising interest in active lifestyle. “The incentive for this is the emergence of a large number of new sports facilities, the organization of public spaces, park areas, and dedicated bicycle paths.”
The future of the Russian sporting goods retail industry is closely tied to the government’s support for sporting infrastructure. However, the consistency of this support is now in question. As revealed by Azat Kadyrov, the first deputy Russian sports minister, the authorities plan to reduce budget spending on sporting infrastructure from Rub 55.8 billion (€583 million) in 2024 to Rub 41.5 billion (€434 million) in 2025 and Rub 43 billion (€449 million) in 2026.
Russian officials have already raised the alarm over the budget cuts. Dmitry Svishchev, a member of the Russian Parliament, called the reduction in sports funding “a dangerous trend.” Galina Isotova, acting Chairwoman of the Russian Accounts Chamber, called the state costs associated with sports “a drop in the bucket,” suggesting the state should expand investments in sporting infrastructure.
