Sporting goods are widely used in various physical activities such as cricket, soccer, rugby, basketball, tennis, and other sports. Sporting goods offer protective gear, sports equipment, footwear, and apparel that enhance safety, comfort, and efficiency in sports. The rising interest of youth and adults in sports and fitness activities has propelled demand for products like balls, rackets, running shoes, protective gear, and apparel.
The global Europe sporting goods market is estimated to be valued at US$ 164.15 Bn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Rising Participation in Sporting Events
Several multi-national sporting leagues and tournaments are gaining popularity in the region. For instance, soccer is the most popular sport with large fan participation in tournaments like UEFA Champions League. The upcoming 2024 Paris Olympics and 2028 Los Angeles Olympics are also expected to boost interest in various sporting disciplines. This rising participation in sporting activities and events provides opportunities for sporting goods manufacturers and retailers to increase product sales and build brand visibility. Innovation in sports equipment catering to emerging sporting categories can further aid market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The European sporting goods market is highly competitive. However, high capital requirements and economies of scale of existing players make the threat of new entrants moderate.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of alternative product options. Buyers can switch to other brands easily if not satisfied in terms of pricing and quality.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to a sufficient number of suppliers for raw materials in Europe. However, suppliers may threaten forwarding integration if buyers do not meet their demands.
Threat of new substitutes: Threat of substitution is moderate as the industry keeps modifying its products and services as per latest trends and needs.
Competitive rivalry: Intense rivalry exists between key players.
SWOT Analysis
Strength: Strong brand image and recall value. Wide distribution network across Europe.
Weakness: High research and production costs. Vulnerable to currency and commodity price fluctuations.
Opportunity: Growing popularity of outdoor activities and fitness trends presents an opportunity. Potential of e-commerce and customization.
Threats: Stringent regulatory policies. Rising environmental concerns regarding materials used.
Key Takeaways
The Global Europe Sporting Goods Market Size is expected to witness high growth over the forecast period driven by increasing health awareness and discretionary spending. The global Europe sporting goods market is estimated to be valued at US$ 164.15 Bn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030.
North America currently dominates the region holding over 30% share owing to rising demand for sports and fitness goods. However, Central and Eastern Europe is emerging as a lucrative market and is expected to register fastest growth through 2030 with nations like Poland and Hungary spending more on sporting activities.
Key players operating in the Europe sporting goods market are Abbott Laboratories, Novartis AG, Eli Lilly and Company, Merck & Co., Inc., GlaxoSmithKline plc. Major players are investing heavily in R&D to develop innovative products. They are also adopting organic and inorganic growth strategies like mergers, acquisitions and partnerships to gain higher share. Customization and sustainability are becoming key focus areas to attract newer customers.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it