Sporting and Recreational Goods Wholesalers NAICS 423910

Sep 30, 2025 - Shifting Participation Trends Amid Economic Headwinds: SFIA

• According to SGB Media, the Sports & Fitness Industry Association's mid-year report shows mixed trends in US sports participation, with pickleball leading individual activity growth at 14.7% and winter sports posting the strongest category gains at 1.7%. However, overall activity rates declined slightly, with 22.9% of Americans now considered inactive. Economic uncertainty and tariff concerns are cited as key barriers to participation, particularly for families. For sporting goods wholesalers, the shifts highlight the need to recalibrate inventory and demand forecasting. Growth in winter sports and pickleball suggests opportunities for targeted product expansion, while declines in Olympic-featured and team sports may require cautious ordering and promotional adjustments. Wholesalers should monitor seasonal trends and regional engagement to align with evolving consumer behavior and mitigate risk.
• US consumer mood indicators have weakened, signaling potential headwinds for spending. The Conference Board’s Consumer Confidence Index fell 1.3 points in August 2025, with the decline driven by younger consumers under 35, while confidence among those over 55 improved. Meanwhile, the University of Michigan’s Consumer Sentiment Index slipped to 55.4 in early September from 58.2 in August, down 21% year over year. Inflation expectations held steady, but persistent worries about prices and tariff impacts remain. Consumer sentiment and confidence are leading indicators of discretionary spending, which drives two-thirds of U.S. economic activity. A continued slump suggests households may curb purchases and delay big-ticket decisions, raising risks for retailers, service providers, and the broader economy.

• Following a summer surge in imports, US container ports are projected to see declining cargo volumes through year-end due to rising tariffs and trade policy uncertainty, according to the Global Port Tracker report by the National Retail Federation and Hackett Associates. July saw a near-record 2.36 million TEU as retailers accelerated shipments ahead of tariff hikes. However, forecasts show steady declines from September through January 2026, with December expected to be the slowest month since March 2023. Sectoral tariffs and reciprocal trade measures are expanding, impacting a broader range of goods and complicating long-term planning for retailers. The trend signals mounting pressure on US retail supply chains. For logistics providers, importers, and retailers, the volatility in trade policy and port activity underscores the need for agile inventory strategies and diversified sourcing. Rising costs and constrained planning windows may lead to higher consumer prices and margin compression across the retail ecosystem.
• The US sporting and recreational goods wholesalers industry is projected to grow at a 3.77% CAGR from 2025 to 2029, slower than the overall economy's projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. Retail spending could soften with the growth of spending on consumer services. Another factor that may limit consumer spending is higher tariffs on consumer goods. In 2025 and into the forecast period, real disposable income may be supported by continuing nominal wage growth, lower inflation rates, and higher employment levels. 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 prices rise due to tariff implementation.