After a mixed 2023, sporting goods companies continue to face macroeconomic headwinds, winner-takes-all competition, and rising levels of physical inactivity worldwide. Despite these challenges, many executives say they are more optimistic than ever over the past few years.

One reason for the more positive outlook is that consumers’ preferences are evolving. More are choosing sports that are quicker to pick up, require less commitment, and are more social, i.e., pickleball, running, and off-course golf, which have seen rising levels of engagement.

And sport has never been more popular among the older demographic, creating a market where participation is just as important as performance.

Operational priorities are also changing. After supply-demand imbalances following the pandemic, companies have turned to integrated business planning and advanced analytics to navigate more volatile times. Meanwhile, sporting ecosystems and sustainability demands offer routes to innovation.

These are some themes in the “Sporting Goods 2024 – Time to Move” analysis, the fourth annual sporting goods industry report from the World Federation of the Sporting Goods Industry (WFSGI) and McKinsey & Company.

Based on its research, consumer surveys and interviews with industry decision-makers, the report highlights the major challenges facing sporting goods companies and the trends likely to shape the big decisions over the next 12 months.

“The report highlights an improving industry outlook,” said Emma Zwiebler, WFSGI interim CEO. “Despite a challenging economic and business landscape, the sporting goods industry demonstrated its resilience in 2023, with shifting preferences and generational opportunities paving the way for sustained growth as we head into 2024. However, it also highlights the urgent need to address the staggering levels of global physical inactivity.”

According to World Health Organization (WHO) research on activity among adults, 28 percent of adults and 81 percent of adolescents globally failed to meet the organization’s recommended levels. In a hyper-competitive market, only a minority of sporting goods companies grew revenues and expanded margins consistently. This group is well-placed to maintain its momentum in 2024, but many other companies see an uncertain future.

“While the year ahead will be marked by uncertainty, it will also offer opportunities,” said Alexander Thiel, a partner at McKinsey & Company. “As the global population continues to expand, and more people adopt healthier and more active lifestyles, brands, retailers, and manufacturers have chances to grow. But this potential should be contrasted with continuing political and economic unpredictability, which is playing out in almost every region globally.”

Key Themes For 2024
The Sporting Goods 2024 – Time to Move report highlights five key themes that will shape the fortunes of sporting goods companies this year. They include:

  • Mixed markets. Companies must find a winning formula and channel strategy amid uneven growth in the world’s biggest markets and increasingly polarized performance.
  • Shifting consumer preferences and generational opportunities. In the face of a cost-of-living crunch, consumer confidence is pressured, but social sports and rising participation among older generations offer opportunities.
  • Planning, planning, planning. The key to being prepared lies in integrated business planning, often through advanced analytics.
  • From sustainability targets to actions. While many companies are progressing, others remain at the starting block. The report outlines ten impact areas and suggests initiatives to help companies progress.
  • Playing the sports ecosystem game. The future is about offering more than a single idea. Customers want value adds such as the chance to meet like-minded people and buy a range of products in one place.

Over the turbulent recent past, sporting goods industry winners have set themselves apart through their ability to perform consistently in unpredictable market conditions. The challenge for the wider industry in 2024 will be to navigate volatility while making bold decisions that will unlock opportunities to grow.

The World Federation of the Sporting Goods Industry (WFSGI) is the global, not-for-profit trade association for the sporting goods industry. WFSGI is officially recognized by the International Olympic Committee (IOC) as the industry representative within the Olympic Movement.

To download the full report, go here.

Image courtesy World Federation of the Sporting Goods Industry