Global Sports Market estimate.

Worldwide sales of sports equipment, apparel, and footwear increased a healthy 4% to $278.4 Billion USD (€ 185.6 Billion*) in 2007 according to a new report from The NPD Group, Inc.

U.S. share of the market decreased from 40% to 36% mostly due to weakness in the dollar. Conversely, Europe increased its market share based on the strength of the Euro and in spite of slow sales growth in Europe (+2%).

The fastest growing markets were: South Asia & Central Asia (+13%), Middle East (+16%), and Central and Eastern Europe (+20%). “This increase is being driven by wealth,” said NPD’s Renaud Vaschalde, who authored the report, “Sales are increasing in those countries where the level of economic development allows the population to purchase more discretionary goods, and we are seeing that sports brands have become an important social status symbol. Good examples of this are Kazakhstan, Israel, Poland or Slovakia.”

Western Europe, Scandinavia, Japan, and Canada posted flat growth rates. “Almost all developed countries are finding it difficult to increase growth rates above the rate of inflation.” notes Vaschalde. Europe experienced a very strong upward trend in 2007 on bikes and accessories (+7%). However, the equipment market, excluding bikes (+0%), suffered due to comparison with 2006, which was a World Cup year, and lack of snowfall during ski season. The main segment, apparel, has seen its prices remain below the level of inflation level, with no growth in units.

Despite its slowing economy, the U.S. posted the highest growth rate among the top six developed countries, showing a 3% gain in the sports market. The growth was evenly distributed between footwear (+3%), apparel (+4%), equipment (+3%), and bikes (+3%).

In Asia, the sport and sport-inspired apparel & footwear market is the force driving the upward trend there. Despite a sluggish Japanese market, Asia has several countries soaring at the moment.

“Our analysis shows that more than a third of the overall global revenue in the sports market is being generated by sport-inspired sneakers and garments vs. sneakers and garments actually used for sports. If we take out equipment and bikes, the ratio goes beyond 50% of the business done on ‘sport- style’ rather than ‘sport- use.

“So, it comes as no surprise that manufacturers are jumping on the lifestyle wave in the hopes that their businesses can ride it into profits,” said Vaschalde.

This sport-fashion trend is even more of an opportunity for big brands (Nike, adidas, Reebok, Puma). They already have a huge lifestyle business (as opposed to brands specialized by sport). The big sport brands can also afford to be present in the less mature markets, precisely where the sport-fashion business is booming and the consumers are focused on brand names.

The next wave…China

For the first time The NPD Group, Inc. Global Sports estimate can provide some insights into the Chinese market in 2007.

China is believed to be a $ 7.9 billion market growing +15% in 2007.

The sport & sport inspired Chinese market is:

* On footwear a $1.6 billion market
* On apparel a $ 3.3 billion market
* Equipment including bikes a $ 3 billion market.

The NPD Group is now able to estimate top countries market size broken down by sport consolidating for each sport sales intended for sport use and NON sport use. The estimate by sport covers apparel, equipment and footwear.

For China, we estimate for instance:

* Football/soccer (excluding Rugby and American Football) at $ 252 million
* Running at $ 550 million
* Basket ball at $ 118 million
* Swimming at $ 244 million

*Exchange rate calculation: 1€=$1.5

Methodology: This study’s estimates of the global sports market’s size are based on The NPD Group, Inc.’s consumer panel tracking data, statistical projections, and the company’s extensive sports industry expertise. The NPD Group measures the athletic footwear and sports apparel markets in 10 countries, representing 73% of the global sports sales. For the remaining 27%, NPD estimates are based on assumptions related to Gross Domestic Product development.

To view charts CLICK above on ‘More Images’.