Golf Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The golf equipment market is expected to register a CAGR of 2.73% during the forecast period (2021 - 2026).
The COVID-19 has negatively impacted the golf equipment market on account of the nationwide lockdown and social distancing norms. Golf is mostly being played in the Americas, Europe and Oceanian countries who were highly impacted by the pandemic resulting in a decline in the equipments market. However, the situations started to improve after mid-year with improved sales and market growth.
The market is highly impacted by product innovations carried out by the key players and the huge investments in marketing and promotional activities, so as to reach a wide customer base.
With the substantial growth of the golf tourism industry, the market is anticipated to have a positive outlook in the coming years. European countries are expected to invest heavily in the infrastructural enhancements pertaining to the game and host many international golf events and competitions.
Furthermore, the participation rates, especially among millennials, in pro-golf tournaments are increasing, which is likely to directly boost the sales of golf equipment during the forecast period.
Surge in Number of Golf Courses
Globally, there has been an increase in the number of golf courses, especially in the top golfing countries, over the past few years. The United States, the United Kingdom, Japan, Germany, Canada, South Korea, Sweden, France, and Italy are some of the key leading countries in the golf industry, and most (more than 50%) of the golf courses are located in these countries. Most of these courses belong to private clubs, golf-centric real estate places, and golf resorts. There are more than 30,000 golf facilities across the world, and more than 70% of these are open to the public, and hence, are largely accessible. At present, globally, more than 200 golf courses are under construction and over 350 golf courses are in the planning stages. This indicates a significant rise in demand for golf equipment during the forecast period.
Rise in Demand for Golf Equipment from Asia-Pacific
The Asia-Pacific golf equipment market is led by Japan, followed by China, South Korea, and Thailand, among the other countries in the region. As of 2017, Asia-Pacific had approximately 4,570 golf facilities and accounted for 14% of the overall global market. In the past few years, there has been a phenomenal growth in the Asia-Pacific golf industry, led by China, followed by India, Australia, and Thailand, in course supply. China is one of the fastest-growing countries in the Asia-Pacific region, in terms of the number of golf courses, owing to the rise in awareness about golf and an increase in the golfer's population in the country. Moreover, increasing media exposure to international golf events has aided the rise in popularity of golf among the masses. This encourages the youth to play such sports, which has further boosted the sales of golf equipment in the region.
The golf equipment market is highly competitive. The market is dominated by players like Acushnet Holdings Corp., Callaway Golf Company, Nike Inc., Bridgestone Corporation, and Sumitomo Rubber Industries. The companies are adopting competitive strategies, by investing more to develop new technologies for the production of golf equipment. These players are differentiating their products, in terms of design (size and weight) and quality, in order to gain a competitive advantage. Furthermore, the leading companies have adopted strategic expansion as their key strategy, in order to broaden their geographical presence and customer base. For instance, in 2017, Samsung and TaylorMade collaborated to develop a specific myRoundPro experience that utilizes the features of the compatible Samsung Gear devices to provide consumers with a unique experience.