Sporting and Athletic Goods Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,600 sporting and athletic goods manufacturers in the US design, engineer, and manufacture a wide range of sporting, athletic and fitness related goods and equipment. Products include sports equipment (excluding sports apparel and footwear) used to play team sports, like baseball, basketball, football, and hockey; individual sports, including golf, tennis, bowling, and swimming; fitness equipment; and products used in outdoor recreational activities, such as fishing, camping, hiking and rock climbing.
International Sourcing And Sales Risks
An increasing percentage of finished sporting and athletic goods and raw materials are being sourced from foreign countries, particularly China and other developing countries in Asia.
Protecting Brands And Distribution Rights
The marketing success of many sports and athletic goods manufacturers often depends on maintaining strong brand names, trademarks, and proprietary technologies or product designs.
Industry size & Structure
The average sporting goods manufacturer employs 24 workers and generates $7-8 million in annual revenue.
- The US sporting and athletic goods manufacturing industry consists of about 1,600 companies that employ 38,700 workers and generate $12.4 billion in annual revenue.
- The industry is dominated by a small number of large manufacturers having several different products and brands, but is also characterized by a large number of very small manufacturers who market specialized products in niche markets.
- The 50 largest manufacturers generate 70% of the industry's revenue, yet 51% of manufacturers have less than 5 employees.
- In 2023, participation rates were 68% of the population for fitness sports, followed by 57% for outdoor sports, 42% for individual sports, 25% for team sports, 18% for racquet sports, 15% for water sports, and 10% for winter sports, according to the Physical Activity Council.
- Millions of Americans participate in team and individual sports including basketball (29.7 million), baseball (16.7 million), soccer (14.1 million), football (7.3 million), court volleyball (6.9 million), ice hockey (2.5 million), softball (2.3 million), lacrosse (2 million), and rugby (1.1 million).
Industry Forecast
Sporting and Athletic Goods Manufacturers Industry Growth
Recent Developments
Jan 23, 2025 - Producer Prices Up, Employment Down
- Producer prices for sporting and athletic goods manufacturers rose 2% in November 2024 compared to a year ago, according to the Bureau of Labor Statistics (BLS). Employment by sporting and athletic goods manufacturers fell 4.3% in October 2024 compared to a year ago, while wages at miscellaneous durable goods manufacturers rose 1.1% during the same period. US manufacturing activity contracted in December 2024, marking the ninth consecutive month of contraction for the Manufacturing PMI, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.3% in December, up from the 48.4% recorded in November. A reading above 50% indicates manufacturing expansion.
- The global sports protective gear market is expected to grow from $4.2 billion in 2024 to $4.5 billion in 2025, a CAGR of 7.4%, according to The Business Research Company. The forecast for the global sports protective gear market through 2029 is expected to increase by a CAGR of 8.4%. Boosting growth in the sector involves a rise in organized sports leagues, extreme sports, the influence of professional athletes, rising youth sports participation, and helmet design innovations. An increase in the number of people participating in sports and recreational activities is forecast to spur growth in the protective gear market. Protective gear can lower the risk and increase safety during sports activities. The Asia-Pacific was the leading sports protective gear market in 2024, and North America is projected to be the fastest-growing region in the forecast period.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
- A new study by the National Retail Federation (NRF) of the estimated impact of president-elect Donald Trump’s tariff proposals shows the tariffs could increase costs of major consumer product categories including apparel, toys, furniture, household appliances, footwear, and travel goods. The study looked at the impact of Trump’s proposed universal 10-20% tariff on imports from all countries and an additional tax on imports from China. Per the study, consumers would pay $13.9 billion to $24 billion more for apparel, $8.8 billion to $14.2 billion more for toys, $8.5 billion to $13.1 more for furniture, and $6.4 billion to $10.9 billion more for household appliances with the proposed tariffs in place. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. US retailers would be unable to absorb the increased costs and would need to raise prices “higher than many consumers would be willing or able to pay.” According to Jonathan Gold, NRF vice president of supply chain and customs policy, “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”
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