The Sports & Fitness Industry Association (SFIA) released its 2024 State of the Industry Report, highlighting 4.2 percent year-over-year industry growth in 2023, favorable profitability and inventory trends and robust sports and fitness participation rates.
The report features an in-depth analysis of the trends and issues affecting the sports and fitness products business, including participation, economic performance and the industry environment.
SFIA noted that the sporting goods industry experienced a 4.2 percent growth in 2023, slightly trailing the U.S. GDP growth rate of 4.9 percent. Historically, any growth above 4 percent has been considered healthy for the industry.
The 4.2 percent growth rate is the highest single-year increase since 2011, with the exception of 2021 and 2022, where the industry saw exceptional growth of 15.8 percent and 4.3 percent, respectively, due to the positive impacts of the pandemic.
Last year’s growth coincided with a year in which the market saw the lowest number of total inactive Americans (64.9 million people) since the SFIA began tracking the metric.
In 2023, over 58 percent of companies reported increased profitability, surpassing the 55.2 percent percent rate of 2022. The number is higher than all previous years since 2015, with the one exception being the boom-year of 2021 when it was slightly lower at 59.1 percent. On the other side of the coin, 18.2 percent of companies reported that profits had decreased. This positive trend aligns with pre-pandemic levels and is the lowest figure the SFIA has seen since the pandemic, indicating a recovery in the industry.
“As participation in sports and fitness activity is at historically strong levels at both the Core and Casual levels, the industry is growing and executives feel positive about the future. Our member companies are meeting this demand by delivering high-quality products, innovation, and attractive looks,” stated Tom Cove, president and CEO of the SFIA. “At the same time, SFIA research shows our companies remain highly concerned by macroeconomic factors such as stubborn inflation, potential recession, and recurring supply chain disruptions.”
SFIA noted that the report showed that inventory levels have normalized, and only 33 percent of companies reported year-end inventory levels are up compared to 67 percent in 2022.
Looking ahead, companies are optimistic about 2024, with 86.5 percent of surveyed respondents forecasting domestic sales growth and 65.4 percent noting international sales growth—both at the highest levels the SFIA has seen in the last five years.
As far as concerns for executives in 2024, increasing market share was the top concern, followed by potential economic recession and inflation at numbers two and three.
“There are many reasons to feel optimistic about the industry as we factor in both participation and business intelligence data,” said Cove. “If Americans continue to make active lifestyles a priority, which the year-over-year data suggests will be the case, we see the state of the industry continuing to grow and remain strong.”
To learn more about the 2024 State of the Industry Report and for SFIA members, go here.
