Market Overview:
The Europe sporting goods market consists of a wide range of products that includes sports equipment, sports apparel, sports footwear and others. Key sporting equipment includes balls, rackets, bats, hunting equipment, archery equipment etc. Sporting apparel includes shirts, t-shirts, shorts, pants, sweatshirts, jackets, socks, gloves etc. Sporting footwear includes shoes, boots and other accessories required for sports activities. The demand for high-performance and fashionable sports apparel and footwear is increasing among sports enthusiasts and recreational participants. Furthermore, the trend of outdoor recreational activities is growing significantly across Europe. Increasing health awareness, high disposable income and growing popularity of various sports and recreational activities are major factors driving the growth of Europe sporting goods market.
Market key trends:
One of the key trends in the Europe sporting goods market is increasing participation in outdoor recreational activities. According to Outdoor Industry Association, more than 118 million European citizens participate in outdoor recreation yearly. Activities such hiking, camping, cycling and other adventure sports have witnessed substantial growth over the past few years. For example, according to British Activity Survey, cycling participation increased by approximately 1 million between 2016 and 2017 in the UK alone. Consequently, the demand for sporting goods equipment associated with these activities is growing at a robust pace. Furthermore, rapid urbanization and busier work schedules have prompted consumers to focus on better work-life balance and stress management through active recreation. Thus, participation in outdoor sports provide a break from hectic lifestyles which in turn is propelling the market growth.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the Europe sporting goods market is moderate. Existing players have established brand recognition and distribution channels which act as a barrier. However, the market is growing at a steady pace providing opportunities.
Bargaining power of buyers: Buyers in the Europe sporting goods market have moderate to high bargaining power. The market has large buyers like professional sports clubs and leagues who can negotiate on price and dictate terms.
Bargaining power of suppliers: A few large suppliers exist for raw materials and components used in sporting goods. However, suppliers have low to moderate bargaining power given the availability of substitute suppliers.
Threat of new substitutes: Threat from substitutes is moderate. While other recreational activities can substitute sports, customer loyalty to favorite sports keeps the threat low.
Competitive rivalry: The market is highly competitive with the presence of global and regional players. Companies compete based on brand, innovation, quality, and pricing.
Key Takeaways
The European Sporting Goods Market Size was valued at US$ 164.15 Bn in 2023. The market is expected to grow at a CAGR of 6.8% during 2023-2030. High participation in sports and increasing health consciousness among consumers is driving the market growth.
By region, Germany accounted for the largest share in the Europe sporting goods market in 2023. This is attributed to strong domestic demand fueled by high participation in sports including football, tennis, and winter sports. Spain and UK are also major regional markets expected to grow steadily.
Key players operating in the Europe sporting goods market are Adidas AG, Nike, Inc., Under Armour, Inc., PUMA SE, Amer Sports, Odlo, Hammer Sports, Polar Electro, KETTLER, and WaterRower. Major players are focusing on innovation, brand partnerships with celebrity athletes and leagues to enhance their market presence.
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