McKinsey reports that virtual workouts and digital devices are transforming the sporting goods industry. It reports that “Digital forms of individual or community-based exercise have become more popular and have created new possibilities for sporting-goods companies.
The global consultancy says that despite enduring a big slump at the start of the COVID-19 pandemic, the sporting-goods market has made a “swift comeback,” with consumers in China and the United States fueling the recovery.
In the sportswear vertical, McKinsey expected growth to reach 8% to 10% a year through 2025, with the market totaling about $450 billion (in U.S. dollars) globally. But, the company warns, “profits are becoming concentrated among a small group of players, which means the rest must adapt their business models quickly.”
In 2021 sporting-goods industry sales recovered to almost pre-pandemic levels. McKinsey says the industry trends they highlighted last year, including “the explosion of digital commerce and changes in consumer behavior,” will continue into 2022, but, they add, “exciting new developments are shaping up as well.”
Take a look at their analysis of the top five trends that will transform the sporting-goods market in 2022 and the strategies they say businesses must adopt to meet consumer expectations.