General
In 2019, the total golf clubs market value globally was US$ 3.66 billion. While, it’s estimated to grow at a compound annual growth rate (CAGR) of 2.5% from 2020 to 2027. The market is primarily driven by the growing popularity and selection of golf as a positive sport. Additionally, high-end hotels and resorts are incorporating sports activities into their hospitality facilities, and golf is one of them. Setting up a mini golf course to increase the inflow of customers and consider it a healthy leisure activity can help increase golf club sales. As per a report by the National Golf Foundation (NGF), the number of new golfers increased to approximately 2.5 million in 2015, an increase of nearly 14.0%. Historically, this number is a record high. Significantly, the number of golf enthusiasts has been growing.
Application Analysis
In aspect of revenue, golf clubs for leisure purpose occupy 80.3% of the market in 2019. It’s attributed to the fact that most towns and cities all over the world have golf courses, leading to the growing popularity of the sport. Golf tourism is becoming increasingly popular among enthusiasts, with many traveling to certain destinations for playing golf only. The development and increasing of golf courses, as well as increasing government efforts to promote golf tourism, have made the sport popular, subsequently the demand of its related equipment increasing, such as golf equipment.
It is expected that the professional application field will increased at a compound annual growth rate of 2.0% from 2020 to 2027. The rising number of professional golfers, along with the growing interest among amateur golfers and their efforts to become professionals, is a major factor driving this field. In the U.S., the sport attracted 2.6 million beginners in 2018, nearly the same number as the last year, and the numbers remain at or near all-time highs, according to a 2019 article in Golf Adviser. In 2017, there were 2.5 million junior golfers (6 to 17 years old), with an additional 2.2 million in that age group playing off the course.
Distribution Channel Analysis
In aspect of turnover, sporting goods retailers win the market with around 47% share in 2019. Consumer preference for high-end golf clubs is increasing, and high-end golf clubs are often sold in sporting goods retail stores. Such stores provide a very good shopping feeling and easier illustrate the parameters and golf clubs performance for consumers. These retail stores are often located on golf courses, ensuring high access and maximizing their revenue. In addition, club membership often comes with discounts, which further expedites consumers’ buying decisions. In terms of brand preference, consumer preference for TaylorMade, Callaway Golf, Wilson, Titleist and other reliable brands has increased.
forecast period due to the growing popularity of online-consumption and dependence on the internet among Generation X, Millennials, and Generation Z. Consumers prefer to purchase quality golf clubs through online platforms and official websites due to the availability of various products from different manufacturers. Additionally, online retailers offer kinds of value-added services such as cash on delivery, convenient returns policies, and integrated & centralized customer service.
Regional Analysis
Globally, North America is the absolute No.1 golf clubs market in 2019 with a share of 45.3%. According to the R&A, nearly 80% of golf facilities in North America are open to paying golfers on a per-round basis, unlike the situation at private courses. Therefore, it increases the number of participants and the range of golf equipment (such as clubs) in the area. According to the National Golf Foundation, more than 33 million Americans ages 6 and older played golf on and off the course in 2018.
The Asia-Pacific region provides amazing growth potential for golf clubs due to the increasing number of golf players and disposable income of the middle-class people. Asia Pacific is expected to hit the fastest CAGR of 3.3% during the forecast period. Sales of golf equipment are primarily determined by an increase in the number of golf events and an increase in the number of players. Although the sport is more commonly played by men, the number of female golfers has increased in the past decade. According to the HSBC Golf Report, Asia has the largest number of women golfers in the world, with six of the top ten players from Asia.
