Licensed Sports Merchandise Market

Licensed Sports Merchandise Market Outlook

The global licensed sports merchandise market estimated a value of US$ 30 Billion in 2020. Backed by the mushrooming popularity of FIFA football world cup and T-20 World cup,

the sports apparels like cricket kits, jerseys, caps, shoes etc. Over the forecast period, the market worth for licensed sports merchandise is projected to surpass US$ 59 Billion through 2031, following a CAGR of 7%.

Market Analysis	Values
Market Size (2021)	US$ 30 Billion
Projected Value (2031)	US$ 59 Billion
Value CAGR (2021-2031)	7%
Market Share of North America	34.5%

 

Revenue from Licensed Sports Merchandise Industry from 2016 to 2020 Compared to Demand Outlook for 2021 to 2031

Over the past half decade, the global licensed sports merchandise market has touched new heights with the new developments in material quality and latest fashion trends, forecasts to expand at a CAGR of close to 7% over the forecast period of 2021 to 2031. During the historical period, the market grew at a CAGR of 6%

The market is dominated by professional sporting leagues across the globe. With organized and improved marketing and retailing along with brand tie-ups with major vendors, it is expected to surpass US$ 59 Billion mark by the end of 2031. Online distribution of licensed sports merchandise plays a significant role in driving the market over the futuristic outlook.

Broadening Commercial Sports Popularity Spurring Licensed Sports Merchandise Demand?

Commercialization of sports events and tournaments has created a stir across the global sports merchandise market. Products such as jerseys, socks, tracksuits, t-shirts, lowers and activewear, which are printed with the logos of major sports teams, have gained immense traction among consumers who prefer fashionable casual and gym wear. Other factors, including rising expenditure capacities of the consumers, along with increasing investments in sports licensing across the globe, are projected to drive the market further

Increasing popularity of countless global sports among the teenagers owing to increasing adoption of cross-cultural fashion trends are expected to fuel the licensed sports merchandise market in the region during the forecast period. Moreover, the demand is also influenced by latest fashion trend. Fashion is very important in the sports sector. An example of this is the recent admission by Levi’s that denim clothing sales have fallen because of the growing popularity of fashionable sports clothing.

A significant number of consumers purchase sports items for leisure purposes only. For instance, in the running footwear category, one out of every five pairs of shoes is purchased exclusively for leisure purposes, according to NPD’s Online Consumer Data, it’s not unusual to see people wearing running shoes with technically advanced features to work or when socialising at weekends.

What are the Key Market Trends & Growth Opportunities in Licensed Sports Merchandise Market?

Developing newer fabrics with superior properties coupled with apparels with increased functionality would present significant market opportunities to the industry participants. Moving ahead, In October 2021, Nike has opened a new sport research lab naming it as Lebron James innovation centre with advanced product creation, testing facilities and more.

In addition to dramatically reducing its carbon footprint, shifting from SF6 to nitrogen encouraged Nike engineers and designers to imagine new shapes and sensations of Air. This fuelled a major leap in designs, the Air Max 360, for example, was Nike’s first sneaker to cushion the entire sole with a bed of air that sparked the excitement for Nike Air that remains strong today. 

There are significant opportunities in the sporting goods, hobby and leisure spaces. Personal computer and console games revenue is predicted to increase substantially worldwide before 2022. Global public interest in sports has also increased, and consumers are increasingly buying sporting goods and toys online. In the U.S., e-commerce revenue for toys and hobbies is predicted to increase in 2019; similar expansions are also forecasted in Europe in countries like Germany.

Country-wise Analysis:

What Makes Asia a High Potential Market for Licensed Sports Merchandise?

Presently, China being the world's second largest economy, is forecast to reach US$ 10.2 Bn, trailing a CAGR of 7.6% over the analysis period 2021 to 2031. Currently, China will remain among the fastest growing in this cluster of regional markets. Moreover, the mounting popularity of sports like cricket, hockey has fuelled the market growth in recent years. Along with this China's sports goods market is growing quickly.

In September, 2020 China Sport Show was organized at the National Convention and Exhibition Center (Shanghai). These type of events fuels the market and stimulate sales of sports accessories such as helmets, pads, bats, and balls are in huge demand in the countries like India and China. Online sports such as EA FIFA is also very popular in Asia Pacific.

In China and Japan, sports such as table tennis and badminton are very popular, and licensed sports merchandise for these sports are in huge demand across these countries. In recent years, other sports such as basketball and baseball are also becoming very popular in the region, thereby giving a further boost to the sales of licensed sports merchandise.

How Licensed Sports Merchandise Market Will Flourish in North America?

In 2021, North America accounts for nearly 34.5% market share, expanding at a CAGR of 6.7%. The regional market is likely to be dominated by United States as it has 3 of the top 5 sporting leagues in the world. The licensed sports merchandise market in the U.S. was estimated at US$ 9.3 Bn in the year 2020.

Innovating newer fabrics with superior properties coupled with apparels with increased functionality would present significant market opportunities to the industry participants. Moreover, popularity of major sports leagues such as NFL (National Football League), NBA (National Basketball Association), and MLB (Major League Baseball), with each league having followers in millions exhibits immense growth potential.

In the country, people are very passionate about sports, and they spend a lot on buying the licensed sports merchandise of their favourite teams and players. People are also very cautious about their health, and they indulge in many activities and sports to stay fit. They also buy licensed sports merchandise such as gym equipment and other items to achieve their fitness goals.

Category-wise insights

Which Merchandised Product Generates Highest Revenue?

Based on product, licensed sports footwear is likely to dominate the market, expanding at a CAGR of 7.3% annually throughout the forecast period. Owing to the changing aesthetics and fashion trends, the quality and styles of footwear have considerably evolved to provide maximum comfort to the consumers.

Among all these merchandise products, sports apparel and sports footwear are very popular. People admire and idealize their favourite sportspersons and want to buy their jerseys and support them. Merchandise footwear sold being licensed by famous celebrities such as Michael Jordan and LeBron James have gained reasonable popularity among urban consumers across the globe.

Which Distribution Channel is Considered Ideal for Licensed Sports Merchandise Market?

Licensed sports merchandise is available through these platforms - online websites, department stores, specialty stores, and other platforms. Although online marketing has beaten physical shopping experience in most consumer goods segments, consumers still prefer to be physically present while buying footwear. A market share of 55% is anticipated for offline stores.

This has further led to the proliferation of organized retail outlets and has improved customer-manufacturer interaction. Simultaneously, with globalization and rise of the Internet, online shopping has become a huge part of licensed sports merchandise. For licensed sports merchandise, consumers can directly shop on manufacturers’ websites or on third-party websites such as Amazon, Walmart, and others.

Competitive Landscape

Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions to expand their market ground.

• In August 2021, Adidas AG has agreed to sell its underperforming Reebok business to Authentic Brands Group Inc. for up to 2.1 billion euros ($2.5 billion), adding another well-known name to the buyer’s growing line-up of consumer companies.
• In December, 2020, Fanatics had acquired licensed sports merchandise company WinCraft. Fanatics will now have a more significant presence with non-apparel merchandise, as WinCraft specializes in hard goods, such as sports-themed clocks and banners.

Report Scope

Report Attributes	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East & Africa
Key Companies Profiled	Adidas AG Asics Corporation Columbia Sportswear Company Dicks Sporting Goods Inc. G-III Apparel Group Hanes Brands Inc. Nike Inc. Puma Inc. Shiv Naresh Sports Skechers Under Armour INC Yonex Co. Ltd.

Key Segments Covered

• Product

  • Apparel
  • Footwear
  • Accessories and Toys
  • Games & Software
  • Domestic and House Wear
  • Other Products

• Distribution Channel

  • Online
  • Offline Stores
    • Licensed Sports Merchandise Sales through Department Stores
    • Licensed Sports Merchandise Sales through Specialty Stores
  • Others