The global sportswear market was valued at USD 425.37 billion in 2022 and is expected to reach USD 635.69 billion by 2028, growing at a CAGR of 6.93%. Increasing participation of athletes in sports activities, awareness of fitness & wellness, and athleisure trends all contribute to the adoption of sportswear. Moreover, the growth of the manufacturing industry also contributes to the expansion of the sportswear market. Facilities owners concentrate on producing and delivering products to their clients at a faster, cheaper, and higher quality rate and for efficient production cycles, which minimizes operational costs and waste. Hence, increased adoption of sportswear among the end-users is expected to drive the market demand for sportswear during the forecast period.
Sportswear is usually preferred in various sports and fitness activities for its comfort, functionality, and performance-enhancing features among various individuals. It encompasses various products, such as athletic apparel, footwear, and accessories. Serval factors, such as fitness, wellness, and athleisure, drive the intense surge in demand for sportswear. The rise in participation of individuals in various sports activities and the adaption of innovative technologies are expected to drive high demand for sportswear products in the sportswear market. Moreover, major vendors are inclined towards adopting online distribution channels along with their in-store or offline distribution channels to expand their customer base in the market.
RISK FACTORS IN THE MARKET
Foreign exchange policy is the biggest risk factor the sportswear market faces and will continue to face. These policies can include actions taken by a government to control its currency exchange rate, such as imposing capital controls, implementing currency controls, or introducing restrictions on foreign currency transactions. Changes in foreign exchange policies can lead to increased volatility in currency exchange rates. This is happening because of increased demand and restricted supply.
Supply chain management risk is a critical concern for sportswear companies as it can impact their supply chain, product quality, delivery timelines, and overall business operations. Sportswear companies often face fluctuating demand due to seasonal trends, fashion preferences, and changing consumer behavior. This uncertainty can result in challenges in forecasting demand accurately, leading to either excess inventory or stockouts. Further, counterfeit sportswear can dilute legitimate companies' brand image and reputation. If counterfeit products are of poor quality or fail to meet customer expectations, it reflects negatively on the genuine brand.
MARKET TRENDS & OPPORTUNITIES
Rising Popularity of Athleisure Wear
The surging popularity of athleisure wear among Gen Z and millennials can be attributed to the increased focus on fitness and wellness, the convenience of remote work, celebrity endorsements, high-quality standards, versatility for various occasions, and the potential for innovation and sustainability. Rising demand for athleisure products among athletes, celebrities, health-conscious people, gyms, etc. Polyester, cotton, etc., is the fabric used to absorb sweat-wicking. Comfortable to wear during exercise also creates demand in the global sportswear market. Women's participation also raises the need for this athleisure.
Government Initiatives Supporting Demand for Sportswear
The government organizes various sports programs within their respective countries to promote sports engagement. For instance, programs such as the National Football League, the National Hockey League, Major League Baseball, and the National Basketball Association showcase the government's commitment to sports in the United States. Similarly, in India, programs like Khelo India, Fit India Movement, and Special Area Game Scheme have been introduced to encourage youth participation in sports. These initiatives are pivotal in motivating individuals to engage in physical activities, as they recognize the importance of sports for overall health and well-being.
Raw Material Price Fluctuation
Price fluctuation depends on the demand and supply of the market. The organization buys raw materials such as textiles and handlooms to manufacture the product. The price of the raw material affects various things, such as production cost, price for the consumer, profitability, etc. Sportswear companies buy cotton and polyester material in huge quantities due to manufacturing apparel and footwear.
INSIGHTS BY PRODUCTS
The apparel products segment dominated the global sportswear market share in 2022. There is a high demand for sportswear apparel such as t-shirts, tops & shirts, and shorts. People increasingly wear sportswear for workouts and everyday casual wear, which has led to a surge in demand for stylish and versatile sportswear options. Advances in fabric technology have led to the development of performance-enhancing materials. These fabrics are designed to offer features like moisture-wicking, breathability, UV protection, and even muscle support, making sportswear more functional and appealing to consumers.
INSIGHTS BY ACTIVITY TYPE
The global sportswear market by activity type has been broadly classified into sports, training & activewear, swimming, and others. In terms of revenue, the sports segment dominated the activity-type market, generating over USD 232 billion in 2022. The sports segment experienced significant growth, emerging as the leading segment during the forecast period. This rise in industry share can be attributed to the increasing involvement of individuals in various sports activities, including baseball, basketball, soccer, and many other sports. The growing interest and participation in these sports have fueled the demand for related products and services, consequently driving the market's expansion.
Moreover, the surge in people's engagement with fitness activities such as gym workouts, cycling, running, yoga, and other forms of exercise has further contributed to the growth of the training and activewear segment. As individuals prioritize their physical well-being and adopt healthier lifestyles, the global sportswear market for high-quality training apparel and activewear has grown substantially. Swimming is a versatile and effective exercise that offers a full-body workout while being gentle on the joints. As individuals place greater importance on maintaining an active lifestyle, swimming gains popularity due to its numerous benefits and adaptability. The increased awareness, accessibility, and sustainability contribute to the expanding global sportswear market.
INSIGHTS BY END-USER
The global sportswear market by end-user has been broadly classified into male, female, and children. The male segment has dominated the industry. The demand for sportswear has been higher among males due to factors like participation in sports activities, gym workouts, and outdoor pursuits. Other factors influencing sportswear demand in the male segment are high disposable income, health consciousness, carer opportunity, athleisure wear, emerging trend, premium products, etc. Many sportswear companies target the men's segment and offer various products, such as Nike, which offers sports shoes, T-shirts, Shorts, tracksuits, jackets, hoodies, etc. Furthermore, the U.S. is the leader in the men’s sportswear (apparel and footwear) market. Men aged 21–38 are the major contributors to sportswear sales, followed by 39–54 years.
INSIGHTS BY DISTRIBUTION CHANNEL
The global sportswear market has numerous products under the offline segment. Most vendors prefer to do brick & mortar forms of business with a business outlet with either one or more than one physical location. At present, many customers prefer to opt for these stores rather than online sales channels. Furthermore, the demand for sportswear through online channels is increasing due to the rising internet penetration worldwide. Moreover, the number of smartphone users is rapidly growing, contributing to the success of online sportswear sales. Various vendors are expanding their presence in other countries by collaborating with e-commerce players or through their proprietary websites.
North America accounted for the highest share of the global sportswear market, accounting for over 37% share in 2022. North America dominates the demand for sportswear in the global market owing to the huge potential of innovative products as well as the high disposable income of consumers. Moreover, since the majority of the population in North America lives in urban areas and holds good education, awareness of fitness and wellness is also high in the region. With the rise in disposable income, the personal spending of an individual also increases. This has mainly driven the demand for sportswear products in the country. The region is the largest market for sportswear due to the kind of lifestyle that the population in this region enjoys and the kind of culture they have.
The APAC region has significantly grown in the sportswear market over the past decade. Factors such as increasing disposable income, urbanization, changing lifestyles, and a growing emphasis on health and fitness have contributed to the rising demand for sportswear in countries like China, India, Japan, South Korea, and Australia. Furthermore, European countries generating considerable demand for sportswear include Germany, France, Italy, the UK, Spain, Poland, Netherlands, Belgium, Hungary, and others. Most European countries have structured physical education programs in schools, which include regular sports activities and encourage students to participate in various sports.
The global sportswear market is highly fragmented, with many local and international players. Some key leading vendors in the global sportswear market are Nike, adidas, ANTA Sports Goods, ASICS Corporation, lululemon athletica, Puma, Under Armour and V.F. Corporation, and others. The competition among these players is intense. The rapidly changing technological environment could adversely affect vendors as customers expect continual innovations and upgrades in sportswear. The present scenario forces vendors to refine their unique value proposition to achieve a strong industry presence.
Recent Developments in the Global Sportswear Market
- adidas: In 2022, the company partnered with Foot Looker, one of the athletic retailers, for new product innovation in the market. With this, the company aims to achieve more than USD 2 billion in retail sales by the end of 2025.
- PUMA: In May 2023, the company partnered with Formula 1 races. The company provides motorsport apparel, footwear, and accessories. In addition, products are available PUMA stores around the world. Through this partnership, the company's diverse consumer groups increase brand awareness among Gen Z and the affluent.
- ANTA Sports Goods: In 2022, the company developed the supply chain management model. Through the new model, the organization increases the fastest delivery and quality, reduces costs, covers a diverse range, and analyzes store inventory. This helps the company to increase efficiency and create a good brand representation among consumers.