According to a new report published by Allied Market Research titled, "Golf Equipment Market by Type and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2017-2023," the global golf equipment market size was valued at $8,156 million in 2016, and is expected to reach $9,666 million by 2023, registering a CAGR of 2.2% from 2017 to 2023.
Golf is a sport activity popular among business individuals as it is used as a means to offer closure of business deals. Golf equipment consists of various items that are essential to play the sport of golf, and are also crucial in providing an enriched experience to the player. Golf equipment include golf balls, golf shoes, golf clubs, and other aids such as wedges and putters. The key factors that fuel the golf equipment market are increasing consumers’ disposable income, growth in professional and amateur female golfers, and trend of golf tourism, owing to setup of golf courses across the world. However, factors such as busy work schedules leading to lack of any leisure activity and high membership costs resulting in lower registrations impede the global golf equipment market growth.
The golf clubs segment is expected to dominate the golf equipment industry during the golf equipment market analysis period. Assorted and customizable golf clubs are gaining traction among consumers, which is anticipated to increase the market demand for golf clubs segment. However, the golf balls segment is expected to generate significant demand among consumers, owing to the recurring requirement of these equipment in golf.
The population of middle-income groups has witnessed an upsurge, owing to economic growth as a result of increase in disposable incomes and decline in poverty levels. In 2016, about 3.2 billion population were in the middle-income group, and this number is projected to grow by 160 million people every year for the next five years, reaching around 4 billion by 2021. Developing economies with a large populace, such as, China, India, and Indonesia in Asia-Pacific, as well as in Africa, the Middle East, and Latin America, are expected to witness a surge in middle-income groups. The middle-class population in developed economies, such as U.S., Japan, and European countries, is expected to grow at an annual growth rate of 0.5%, as compared to the developing economies such as China and India, which would grow at 6.0% or more per annum. This population on an average currently spends around $35 trillion in infrastructural activities, and is expected to spend $29 trillion by 2030. As the income of middle-class population increase above basic needs, consumers can have discretionary funds to spend on the goods& services and leisure activities which can improve their lives. Thus, growth in middle-class population will lead to expansion of consumer base of golf equipment market
The golf equipment market is restricted by the economic condition of a region and specific consumer base; as a result, the distribution channels are also limited in number. The specialty stores segment leads the market, in terms of sales of golf equipment, while on-course stores segment is outperforming sales of equipment compared to online stores.
Key Findings of the Golf Equipment Market :
- In terms of value, the golf clubs segment is expected to grow at a CAGR of 1.4% from 2017 to 2023.
- North America is expected to dominate the market in the future, registering CAGR of 1.4%, in terms of value, while Asia-Pacific is projected to show consistent growth throughout 2023, growing at a CAGR of 4.4%, in terms of value.
- The specialty store segment accounted for more than 46.6% golf equipment market share of the total market in 2016.
- Japan, China, and are collectively accounted for more than half of the total Asia-Pacific market in 2016.
- China is expected to grow at a CAGR of 9.1%, in terms of value.
In 2016, North America accounted for around half of the total market, and is expected to maintain its position during the forecast period. Developing lifestyle and rise in disposable income of consumers are expected to drive the Asia-Pacific market.
Major players operating in the market are Acushnet Holdings Corp. (U.S.), Roger Cleveland Golf Company, Inc. (U.S.), Golfsmith International Holdings, Inc. (U.S.), Nike, Inc. (U.S.), Amer Sports Corporation(Finland), Bridgestone Sports Ltd (U.S.), Sumitomo Rubber Industries Ltd.(Japan), Callaway Golf Company (U.S.), TaylorMade Golf Company (U.S.), and PING (U.S.),
Other golf equipment brands in the value chain include Ben Hogan Golf Equipment Company (U.S.), Dunlop Sport (UK), and MAMIYA-OP CO., LTD. (Japan).