The Sports & Fitness Industry Association’s (SFIA) 2026 State of the Industry Report identifies tariffs as the top concern for the first time across companies, regardless of whether business improved, declined, or remained stable, underscoring the widespread impact of U.S. trade policy on the sports and fitness marketplace.
The SFIA wrote in the report, “This level of alignment suggests that tariffs are not a temporary disruption, but a structural challenge affecting the entire industry.”
Despite this, supply chains are not shifting as dramatically as might be expected. Most companies (69 percent) report no change in sourcing strategies. Only 15.5 percent plan to increase manufacturing in the U.S., a figure that has declined over time and is now equal to the share planning to source more offshore.SFIA said, “This reflects the reality of global manufacturing in the sporting goods industry.”
“Supply chains are deeply embedded, with decades of investment in overseas production infrastructure,” SFIA’s study found. “Reshoring is costly and time intensive. As a result, companies are largely choosing to adapt within existing systems—absorbing costs, renegotiating supplier relationships, or passing price increases to consumers — rather than fundamentally restructuring their operations.”
At the same time, capacity demands are increasing. More than 60 percent of companies report needing additional manufacturing capacity, even as sourcing strategies remain unchanged. SFIA noted that “this creates a structural imbalance that is likely to place further pressure on supply chains.”
In addition to tariffs, top concerns include slower consumer spending, inflation and challenges in product sourcing.
Artificial Intelligence represents one of the few areas of forward-looking optimism. Companies increasingly view AI as critical to improving efficiency, optimizing inventory and enhancing consumer engagement. This is evidenced in that most companies plan to maintain or increase R&D investment. Even amid a year of cost pressures, only 1.9 percent of companies reported they plan to decrease R&D investment in 2026.
From a financial perspective, the industry continues to expand, though at a more measured pace. The sporting goods industry grew 3.4 percent in 2025, compared to 5 percent GDP growth. This gap reflects a shift away from the broad-based tailwinds of the pandemic era and toward a more competitive, performance-driven environment.
Importantly, demand remains resilient. Most companies met or exceeded sales expectations, reinforcing that consumer interest in sports and fitness remains strong. However, profitability tells a more nuanced story. Only 42.1 percent of companies reported increased profitability in 2025, highlighting the growing impact of cost pressures across the industry.
SFIA concluded in the report, “Overall, the industry is navigating a transition. Demand remains stable, but growth is becoming harder to achieve. Cost pressures are intensifying, and structural constraints — particularly around tariffs and supply chains — are limiting flexibility. The result is an industry that is still growing, but under increasing operational stress. The challenge moving forward will be to sustain that growth while managing rising costs, protecting margins, and maintaining accessibility for consumers.”
A bright spot is participation trends, as more Americans are engaging in sports and fitness activities, reinforcing a long-term shift toward active lifestyles.
In 2025, 80.5 percent of Americans ages six and older — approximately 250 million people — participated in at least one sport or fitness activity. This marks the seventh consecutive year of growth in the participation rate and reflects a sustained shift toward more active lifestyles.
However, the pace of growth is slowing. Participation rates increased by just 0.6 percent year-over-year, down from 1.2 percent the previous year. This deceleration suggests that the surge in activity following the pandemic has stabilized, and future growth may be more incremental.
However, significant opportunities remain to deepen engagement and expand access, particularly among underserved populations and in higher-cost activity categories, according to SFIA. Only 32.2 percent of Americans meet the recommended benchmark of 150 minutes of moderate activity per week, while 45.3 percent are classified as occasionally active.
SFIA reported that several global sporting events are being hosted in the U.S. — including the 2026 Soccer World Cup and the 2028 Olympic and Paralympic Games — and that this offers an opportunity to build on this momentum.
“The next decade presents a powerful opportunity to inspire more Americans to get active,” said Alex Kerman, senior director and head of research at SFIA, in a press release. “By focusing on access, affordability, and engagement, the industry can translate this moment into lasting progress that gets more Americans active and strengthens communities across the country.”
Image courtesy SFIA
