SPORTING GOODS REPORT 2024: TIME TO MOVE

The World Federation of the Sporting Goods Industry (WFSGI) and McKinsey & Company have teamed up to present our third annual Sporting Goods Industry Report — “Sporting Goods 2024: Time to Move”.

After a mixed 2023, sporting goods companies continue to face macroeconomic headwinds, winner-takes-all competition, and rising levels of physical inactivity around the world. Despite these challenges, however, many executives say they are more optimistic than at any time over the past few years.

As the pandemic lessens its grip, supply chain disruptions abate, and inflation slows, it is now “Time to Move”. The title reflects two important and timely issues: how stakeholders need to adapt to a continually changing and challenging business environment, and how to create a healthier, more physically active world in light of worrying inactivity trends. According to the World Health Organization (WHO) 28% of adults and an incredible 81% of adolescents fail to meet the organization recommended levels of physical activity.

Key themes for 2024
This year’s report highlights five key themes that will shape the fortunes of sporting goods companies over the coming year:

• • Mixed markets. Companies need to find a winning formula and the right channel strategy, amid uneven growth in the world’s biggest markets and increasingly polarized performance.
  • • Shifting consumer preferences and generational opportunities. In the face of a cost-of-living crunch, consumer confidence is under pressure. But social sports and rising participation amongst older generations offer opportunities.
    • • Planning, planning, planning. The key to being prepared lies in integrated business planning, often through advanced analytics.
      • • From sustainability targets to actions. While many companies are making progress, others are still at the starting blocks. In the report, we outline ten impact areas and suggest initiatives that may help companies move forward.
        • • Playing the sports ecosystem game. The future is about offering more than a single idea. Customers want value adds such as the chance to meet similarly minded people and to buy a range of products in one place.