The golf equipment market is expected to grow at a CAGR of 2% during the forecast period. Increasing focus on healthy lifestyles, drivers.2, and drivers.3 are some of the significant factors fueling golf equipment market growth.
Increasing focus on healthy lifestyles
Market definition
Golf equipment includes a wide range of products that are used by the golfer in the process of playing golf. This includes golf clubs, golf balls, golf bags, and golf shoes. To calculate the market size, the report has taken into consideration the revenue generated from the retail sales of golf equipment to individual consumers.
Golf facility operations contribute the largest share of revenue to the golf economy. They generate their revenues from membership fees, range fees, golf car rentals, and associated spending on food and beverages. The revenue generated helps in supporting the supply sectors, including golf equipment manufacturers. Golf supplies mainly include golf equipment such as golf balls, golf carts, tees, golf apparel, golf clubs, rangefinders, and golf books.
The global gold equipment market considers the following categories:
By product segment includes:
Golf clubs
Gol balls
Golf bags
Golf shoes
By retail formats segment includes:
Offline
Online
The geographic coverage of the report is global with the following segments:
North America
Europe
APAC
South America
MEA
The exhibit below provides an illustrative view of the offerings that are included to create the market definition of the global golf equipment market. This market definition has a significant impact on the market sizing provided in the report.
Offerings of vendors included in the market definition
Vendor Products included in the market definition Acushnet Holdings Corp. Men's UA Storm Speedround Golf Bag and Men's UA Spieth 4 GORE TEX Golf Shoes Amer Sports Corp. Wilson Staff Women's Cart and Weekender Bag and Wilson Staff Women's Cart Bag Bridgestone Corp. TOUR B JGR Fairway Woods and 14 way stand bag Callaway Golf Co. Chrome Soft Golf Balls and MAVRIK Staff Bag Mizuno Corp
Mizono balls and Mizono bags Nike Inc. Nike Air Max 270 G and Nike Sport Lite Golf Bag PUMA SE Women IGNITE Blaze Pro Golf Shoes and Women IGNITE Blaze Sport DISC Golf Shoes Ralph Lauren Corp RLX Nylon Golf Stand Bag Sumitomo Rubber Industries Ltd. Golf equipment Under Armour Inc. Men's UA Storm Speedround Golf Bag and Men's UA Spieth 4 GORE TEX Golf Shoes
Market segment analysis
The global golf equipment market has been analyzed based on various dimensions and segments to help suppliers within the industry gain a better understanding of the structure of current demand and the components of demand that will drive growth in the future. It is expected that suppliers in the global golf equipment market outperform the overall industry would focus on the higher potential segments within the market.
The product, retail formats, and geography segments of the global golf equipment market have been reviewed both qualitatively and quantitatively.
Market segments
Segment name Description Product Golf clubs, golf balls, golf shoes, and golf bags. Retail formats Offline and online Geography North America, Europe, APAC, MEA, and South America
Market size 2019
Recent trends and developments in the global golf equipment market have been tracked and quantified to size the market in 2019. The market size for 2019 has been developed by considering the following factors.
To estimate the size of the global golf equipment market, Technavio has tracked the recent trends and developments in the industry. The market size has been developed in terms of value and volume, considering the following factors:
Revenues: Taken in local currencies, if not available in US dollars, for each country and vendor and then converted to US dollars using the yearly average currency exchange rate of 2019, the base year. This implies that the figures reflect industry trends, not distorted by fluctuations in international exchange rates.
Exclusions: The report does not consider the effect of inflation and price fluctuations during the forecast period
Currency: Unless explicitly mentioned, all revenues are represented in US dollars
The market sizing has been built and validated using multiple demand-side and supply-side approaches for a detailed understanding of the global golf equipment market. The specific market sizing approaches used for evaluating the global golf equipment market are:
Top down: Validated the market based on the contribution of golf equipment to the global leisure products market
Segmental extrapolation: Validated the market based on extrapolation of the size of one or more segments of the market
Combination: Using a combination of more than one approaches described above and integrating the results in the data model
Within the above-mentioned market sizing models, analysts have made assumptions and estimates listed below:
Revenue generated by the leisure products companies manufacturing fitness equipment
Retailer sales of sports equipment
For this report, we have also used the following macro data in modeling the market size for 2019
GDP growth
Per capita income
Disposable income
Commodity price fluctuation
Demographic factors such as total population and age groups
Based on the above data models, Technavio has estimated the total market for the global golf equipment market as $ 9,419.44 million in 2019.
Market outlook: Forecast for 2019 - 2024
The market outlook has been developed by studying the combined impact of factors that drive growth in conjunction with the challenges faced by the industry to estimate a compounded annual growth rate of 1.98% between 2019 and 2024.
The global golf equipment market was valued at $9,419.44 million in 2019 and is estimated to grow to $10,389.63 million in 2024. This will create an incremental growth opportunity worth $970.19 million between 2019 and 2024, which translates to around 11% of the market size in 2019.
While the global golf equipment market will show overall growth, there will be years of growth and decline mixed together between 2019 and 2024. The year-on-year growth will vary between a range of 6.27% and -4.17%, indicating an environment of volatility in the market.
Market outlook has been developed by studying the combined impact of factors driving market growth and the challenges faced by the industry to estimate a CAGR of 1.98% for the period 2018-2023.
Estimating growth rates for emerging and high-growth markets
Modeling developing and high growth markets is a challenge given the uncertainties around the evolution of the market. Hence, we start by developing an optimistic and pessimistic range and then use it to build a realistic estimate of the market size based on various marked modeling techniques and inputs from industry participants.
Estimating growth rates for mature markets
Mature markets are characterized by stable and high adoption rates, with slower growth rates due to several factors, including:
The growth in the underlying population using golf equipment
Impact of demographic changes
Change in product mix
The 1.98% growth forecast is a realistic assessment of the market. However, the market could grow at a rate higher than the projected figure if the following factors come into play:
Increase in the replacement rate
Increase in the customer base
Conversely, the 1.98% growth forecast could be missed with the market growing slower than expected if the following factors come into play:
Increase in competition from local or regional players
Competition from the introduction of improved products
Supply disruption from raw material suppliers
Global - Market size and forecast 2019 - 2024 ($ million)
In 2020, the global golf equipment market is expected to witness a major downfall due to the COVID-19 pandemic. An increase in the number of patients with COVID-19 in developed economies, such as North America and Europe, will have a significant impact on the market. The decline in offline retail sales due to the pandemic has had a significant impact on the demand for sports equipment. Various retailers and brands in the global golf equipment market face short-term challenges related to cash flow, supply chain, health and safety, and low consumer demand. As employees working in retail stores can also be affected by COVID-19, retailers are either working with a small workforce or temporarily closing the stores as per government orders. This may adversely impact the revenue generated by companies.
In 2020, the total revenue from golf equipment witnessed a decline due to the lockdown imposed to combat COVID-19. The pandemic has become a challenge for the market. As per data published by the Centers for Disease Control and Prevention (CDC), as of July 12, 2020, the total number of people diagnosed with COVID-19 and the deaths associated with this disease in the US were 3,236,130 and 134,572, respectively. This led to a nationwide lockdown and the shutting down of golf courses, which resulted in a decline in the demand for golf equipment.
Some of the major vendors in the global golf equipment market have witnessed a fall in revenue due to COVID-19. For instance, Achushnet Holdings Inc., the parent company of major golf brands such as Titleist, FootJoy, and Kjus, witnessed a major decline in revenue. The company estimated a decline of around $40 million in revenue in Q2 2220. In Q1 2020, the company witnessed a 17% decline in the revenue of Titleist Golf Balls. Similarly, the Q1 2020 sales of Callaway Golf Co. decreased to $442 million, compared to $516 million for the same period in 2019. This decrease is primarily attributed to the impact of COVID-19.
Global - Market size and forecast 2019-2024 ($ million) exclusive of COVID-19 Impact
Year 2019 2020 2021 2022 2023 2024 Market Size 9,419.44 9,717.09 10,044.56 10,409.18 10,823.46 11,306.75
Global market: Year-over-year growth 2019 - 2024 (%)
