(MENAFN- KNN India)
New Delhi, Aug 2 (KNN)
In a striking development within the global sports goods industry, a recent World Trade Organisation (WTO) report has unveiled a seismic shift in market dynamics over the past three decades.
The report, titled "Sports goods trade sees threefold growth over past 30 years," authored by Tomasz Gonciarz, Thomas Verbeet, and Roy Santana, presents a comprehensive analysis of the evolving landscape.
The most notable finding is the exponential growth in global imports of sports goods, surging from a modest USD 15 billion in 1996 to a staggering USD 64 billion in 2022 - more than quadrupling in value.
While China maintains its position as the market leader, accounting for 43 per cent of global imports, its dominance is facing unprecedented challenges.
After reaching a peak market share of nearly 60 per cent in
2020, China's grip has loosened, settling at 43 per cent in 2022. This decline opens the door for emerging players in the field.
Vietnam emerges as the dark horse in this race. From a negligible market share of less than 2 per cent in 1996, Vietnam has catapulted its position, claiming an impressive 20 per cent of the global market by 2022 - a tenfold increase.
Indonesia has also made significant strides, particularly in ball manufacturing, now responsible for 12 per cent of global ball exports.
In contrast, India's performance in the sports goods market remains stagnant. Despite starting from a similar position as Vietnam in 1996, India has failed to capitalise on the growing market, maintaining its less than 2 per cent share through 2022.
The report highlights substantial growth across various product categories. Water sports equipment saw the most dramatic increase at 373 per cent, reaching USD 2.5 billion in 2022.
Footwear and sports articles and equipment followed closely, growing by 345 per cent (USD 20 billion) and 330 per cent (USD 17 billion) respectively. Golf equipment, tracksuits, and balls and rackets also saw significant growth.
On the import side, the United States has maintained its position as the largest importer since 2010, accounting for 31 per cent of global imports in 2022. The European Union follows at 22 per cent, with Japan and the United Kingdom each holding 6 per cent of the market.
The report also notes the role of tariff reductions in making sports products more accessible.
The most-favoured-nation (MFN) tariff on sports products imports decreased from 18 per cent in 1996 to approximately 12 per cent in 2022, with the largest decreases seen in footwear, swimwear, and tracksuits.
An intriguing aspect of the report is the analysis of per capita spending on sports goods. Switzerland leads with a remarkable USD 105 per capita, followed by Canada and Australia at over USD 60.
The United States, South Korea, and the United Kingdom each spend more than USD 50 per capita, while the European Union and Japan hover around USD 30.
(KNN Bureau)
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