Sporting and Athletic Goods Manufacturers NAICS 339920

May 22, 2025 - Cooler Growth Forecast

• Sales for the US sporting and athletic goods industry are projected to grow at a CAGR of 0.36% between 2025 and 2029, slower than the overall economy's projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if average prices rise due to tariff implementation. The durable goods manufacturing sector forecast indicates that the labor force is expected to diminish, barring immigration reform that allows greater numbers. However, new technologies could support labor productivity for the industry.
• Consumer confidence levels fell in April 2025 month over month, dropping by 7.9 points, according to the Consumer Confidence Index from the Conference Board. Consumer confidence levels have fallen for five consecutive months, reaching levels not seen since the beginning of the COVID pandemic, according to The Conference Board, which publishes the monthly index. In addition, the final index of consumer sentiment from the University of Michigan dropped 8% in April 2025 from the previous month, according to CFO Dive. An index measuring consumers’ expectations for the future fell nearly a third since January, the steepest three-month percentage decline since the 1990 recession. According to survey director Joanne Hsu, “Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.”

• According to a report in Yahoo Finance, sporting equipment manufacturers will face challenges amid new and impending tariffs by the Trump administration. President Trump has imposed additional tariffs on Chinese imports as well as a tariff on all steel and aluminum imports and some goods from Canada and Mexico. Yahoo Finance’s Sports Report host Joe Pompliano addressed the impact on golfing goods manufacturer Topgolf Callaway, which uses parts from China for some of its products. Topgolf Callaway is expecting a $5 million headwind on its EBITDA outlook this year. He also noted that Amer Sports, which owns Wilson Sporting Goods, generates 11% of its revenue from balls and rackets imported from China; tariffs on Chinese goods equate to $112 million of the company’s more than $5 billion in sales.
• Sports participation by Americans reached a new high in 2024, according to the Sports & Fitness Industry Association’s (SFIA) Topline Participation Report. The report found that 80% of Americans, or 247.1 million people, participated in at least one sport, fitness exercise, or outdoor research activity in 2024, the highest rate since SFIA has been tracking activity levels. The report tracks participation rates of Americans aged six and older across more than 120 different sports, fitness, and outdoor activities. Pickleball remains the fastest-growing sport, with participation up 311% from three years ago. The racquet sports category is performing well, with five out of seven racquet sports posting higher year-over-year participation totals. Many sports featured in the 2024 Paris Olympic games saw an uptick in participation in 2024 including wrestling, basketball, volleyball, and track and field.