The combination of fashion and sportswear is the current trend in the sportswear market. The sportswear market is categorized into sports apparel and sports footwear. The global sportswear market has huge potential with rapid innovation and increasing health awareness among the people. The reasons for the growth of the market include the increase in per capita expenditure for sportswear, the popularity of outdoor recreation, the increase in the number of yoga participants and fitness club members and the rise of e-commerce which has increased the online penetration of sportswear products around the world.
The global sportswear market is trending with innovation, health awareness, the popularity of athletics, the combination of smart clothing and the development of functional clothing. However, market growth will be hampered by the availability of counterfeit goods, rising labor costs and less negotiating power from buyers.
Sportswear market overview
The growing awareness of leading a healthy lifestyle and the growing trend of access to sports and fitness, as well as sports activities such as the Soccer World Cup, Olympic Games and Cricket World has helped boost the market.
As a result, it has driven the industry to about $239.95 billion in 2018 and is expected to register a CAGR of 10.4% from 2019 to 2025. The total addressable market for sportswear space is projected to reach $479 billion worldwide by 2025.
As a low-growth category of clothing and footwear as a whole, sportswear is increasingly taking part over time. Sportswear grew from about 18% in the clothing sector in 2007 to about 26% in 2019.
The sportswear apparel market has shown a compound annual growth rate (CAGR) of 6.5% over the past five years, one and a half times of apparel market
North America is the largest sportswear market in the world, with more than 30% market share and the market size of the US market is estimated at $62 billion and it is expected to grow at a CAGR of 3.1% over the next five years. However, the demand for sports equipment in Europe has grown faster than in North America and the Asia Pacific. Europe’s sportswear industry is now estimated to reach $115,709 million and $172,315 million by 2025. Moreover, experts predict a CAGR growth of 5.5% from 2018 to 2025.
The market share of the Asia Pacific is also growing significantly due to the growing population and increasing disposable income of customers.
The global sportswear market can be segmented based on products, end-use, distribution channels and geography. In terms of products, the market can be divided into sportswear, sports footwear, and others.
On an end-user basis, the market can be categorized into men, women and kids. The men’s section is for a large part of the global sportswear market. However, the women’s section is expected to expand significantly during the forecast period.
Depending on the distribution channel, the global sportswear market can be divided into online channels and offline channels.
Geographically, the global sportswear market can be segmented into North America, Europe, Asia Pacific, the Middle East and Africa and South America. Due to the increase in the adoption of new and advanced technology, North America registers a large share of the market during the forecast period. The Asia-Pacific region may witness significant growth due to increased consumer disposable income.
Prominent sportswear products
The two product segments boosted both sportswear revenue and overall market growth; clothing and footwear.
Sports footwear is classified into tennis shoes, soccer shoes, basketball shoes. The industry also saw a trend of brands using high-tech technology to make footwear.
The clothing segment including Jersey, trouser, sneakers, sweatshirts, jacket, coat, hoodie, jogger, shorts, sports bra, leggings, etc. also played a key part in the increased revenue of the athletic apparel industry. This segment is expected to register the highest CAGR of 10.7% starting 2019 and up until 2025.
Growth of key players in the field
In 2018, Nike firmly captured 41% of the world’s market share, revenue was $36.80 billion, while Adidas, Puma, Under Armor had 22%, 10%, 9% market share and $25.73 billion, $6.63 billion, $5.38 billion in 2018, respectively. Nike has 45% and 18% of sales coming from North America and Western Europe, respectively, while Adidas has 29% and 21% from North America and Western Europe.
Sportswear in the wake of Covid-19
Despite challenges, sportswear appears to be a resilient category amid COVID-19. While the pandemic seems to intensify consumers’ desire in their health and well-being, sportswear is in a good position to benefit from it as consumers express this desire through active lifestyles.
Sportswear seems like a winner after COVID-19. The sportswear brands gain their connection with customers and conduct business through more profitable channels.
Sportswear companies, over the past few years, have woven digital engagement into their DNA. The ability to talk directly to viewers without any physical footprint, broaden their messages, and drive engagement allows online sales to accelerate faster during the lockdown.
By looking at sportswear ecosystems from textile manufacturers to retailers, different players across the supply chain can capture a considerable amount, although brands are certainly in the driving seat.
Bangladesh potentiality in the sportswear industry
Although the world’s second-largest garment exporter after China, Bangladesh has a small presence in the global sportswear market. Bangladesh is moving fast towards achieving its $50 billion dream target by 2021 but lags far behind with $35 billion.
Quality at cheaper rates attracts the buyers most. Sportswear brands like Decathlon, Puma and Adidas are engaged in Bangladesh. Hummel, Fila, Columbia sportswear, Under Armor are also buying sportswear from Bangladesh. Not only Jersey, but Bangladesh has also been providing a variety of high-end sports and activewear for various famous football, cricket, badminton, golf clubs in the United States, EU and other countries.
However, according to EPB, in 2018, the sportswear export value was 10% of the total export value of US$ 32.92 billion and the amount insignificant in terms of the global market. So, we can say that Bangladesh has a huge potentiality in the global sportswear market.