The market for licensed sports merchandise is projected to grow at a CAGR of 7.2% during the forecast period of 2023 to 2030. One of the primary aspects that is contributing to the expansion of the market is the growing number of people who are interested in participating in sporting activities. This trend is also being fuelled by the acceleration of urbanisation and the expansion of the online retail sector. In addition to this, there has been a considerable expansion in the number of local, national, and even international sports leagues, both of which are contributing to the expansion of the market. The consumer preference is continually shifting away from traditional retailing channels and toward online platforms that offer a diverse selection of products, a convenient shopping experience, and the ability to purchase authentic premium-quality goods at competitive costs. Another reason that is contributing to the industry's expansion is the introduction of cutting-edge fabrics that are breathable, lightweight, and waterproof in athletic apparel and accessories. Products such as jerseys, socks, tracksuits, t-shirts, bottoms, and activewear that are printed with the logos of major sports teams have experienced an enormous surge in popularity among consumers who desire fashionable casual and gym wear. It is anticipated that further factors, such as expanding spending capacities among consumers and growing investments in sports licencing across the world, will drive the market even further.
It is anticipated that the market for officially licenced sports merchandise will expand in the not-too-distant future as a result of the growing propensity of the younger population toward product that show support for their favourite team, such as phone cases, mugs, helmets, balls, key chains, and wallets. A further factor that would contribute to the expansion of the global market is the rising popularity, particularly among younger people, of a variety of national and international leagues.
Increasing Awareness about Licenced Merchandise Boosting Sales
When merchandise is sold bearing copyrighted logos, designs, and other brandings, the licencing businesses owe a specific amount of royalties to the sports organisations on whose behalf the logos and designs are used. This helps to reduce trademark infringements committed against teams and athletes and also contributes to the prevention of the production of counterfeit goods associated with sports-related businesses.Players are required to comply with stringent regulations for their sports kits, which may include clothes and other products. These protocols are mandated by multiple regulatory frameworks that belong to different sporting events. Because of this, teams are now required to give the athletes with officially licenced sports items. In addition, a number of sporting events have their logos and names promoted on various types of sports products. Additionally, new prospects for expansion exist now as a result of this development. Customers' awareness of licenced sports merchandise is growing as a direct result of the fact that the vast majority of people throughout the world place a high value on sports. And as a consequence of this, the sports organisation now has the choice of adopting more cutting-edge forms of advertising rather than more conventional forms of advertising in order to communicate with sports fans from outside the organisation. There is a correlation between the quality of the relationship between a sports team and its fans and an increase in the consumer's intent to make a purchase of that team's merchandise.The Licensed Sports Merchandise industry is currently poised to reap the rewards of huge worldwide marketing activities.
Significantly Increasing Number of Sports Enthusiasts
An increase in the number of people participating in sports has resulted in a rise in the number of people purchasing licenced sports products. Since the beginning of this century, there has been an exponential increase in the number of people taking part in sporting events. This can be attributed to two factors: an increasing desire for entertainment on top of a heightened awareness of the importance of maintaining a healthy lifestyle. The geographical spread of various sports to a variety of places as well as the expansion of media coverage for various sports have both contributed to the growth of the market. The advent of several sporting leagues and an increase in the level of fan participation has transformed the sports industry into a veritable treasure trove of uncharted pathways and innumerable prospects. The growing proportion of people who are members of the working class means that a sizeable proportion of them are more inclined to participate in sports and fitness as a kind of recreational activity. This is connected once more to the changing lifestyle patterns that are currently prevalent. In addition, many people participate in a variety of various endurance sports.
Increased Commercialization of Sports
The increasing commercialization of sporting events and competitions has caused a commotion in the international market for sports items. The introduction of new opportunities to popularise sports products is a topic on which there is relatively little disagreement. The federal government as well as state and local authorities are making significant investments in sports apparel and equipment. This emerging trend can be ascribed to the efforts of government officials to increase the number of people who attend sporting events. The commercialization of sports at worldwide levels has resulted in the creation of job possibilities for a significant portion of the world's population. In addition, sporting events have evolved into centres where major corporations and organisations concentrate their financial investments. The total volume of revenues within the global market for licenced sports products is expected to increase as a result of the variables that have been discussed above. The global market for sports items has been assisted to be driven by the increasing popularity of international leagues such as the English Premier League and La Liga. In addition, the use of officially sanctioned sports products has assisted in preserving a level of sophistication and uniformity throughout all sporting events. It is reasonable to anticipate the arrival of new revenue streams in the international market for sports items.
Increased Access to Sports Merchandise due to Online Shopping Platforms
The most important factor in the development of the licenced sports merchandise market is the rise of the industry of online shopping, also known as e-commerce. Consumers enjoy shopping online because it enables them to select their preferred products in a manner that is both more convenient and of a higher quality at a lower price.
Availability of Counterfeit Merchandise is the Most Impactful Restraint
The availability of counterfeit merchandise in a lot of countriesis one of the issues that is significantly barricading the market growth for licenced sports merchandise. Additionally, it is possible that the expansion of the market in the foreseeable term would be limited by increases in the pricing of goods. The outbreak of the coronavirus, which has restricted investment and disrupted the supply chain, is expected to be a barrier to the growth of the licenced sports items industry. Furthermore, one of the most significant challenges facing the sector during the research age may be the stringent restrictions controlling licenced sports products that are enforced by the government.
Video Games and Software to Account to the Largest Growth During the Forecast Period
Based on the type of product, the market for licenced sports products has been segmented into submarketsthat include sports footwear, sports apparel, videogames, sports accessories and toys, and others. During the forecast period 2023 to 2030, it is anticipated that the market share held by sporting goods, including clothes and accessories, will increase considerably. When compared to the previous period, the revenue growth rate of video games and computer software is anticipated to improve significantly during the forecast period. It is anticipated that the key drivers for the expansion of the market will be licencing for traditional games inspired by popular movie franchises and the shift toward video gaming supported by a growing consumer base. Both of these factors are expected to contribute significantly to the growth of the market. In addition to this, increasing levels of discretionary income have resulted in greater levels of consumer expenditure on leisure and entertainment goods such as athletic equipment and video games. The robust performance of mobile games is primarily responsible for the increase in sales of video games, which are expanding at a faster rate than sales of sporting gear and toys combined.
Online Platform to Emerge as an Independent Distribution Channel
The market based on distribution channel is segmented as non-store-based and store-based distribution channels in terms of the distribution channel segmentation. The store-based category encompasses a wide variety of retail establishments, including supermarkets, hypermarkets, and specialty stores.It is anticipated that online sales, also known as e-commerce, would play a significant role in the sales of licenced sports items all over the world. During the forecast period e-commerce will establish itself as the most dominant distribution channel for licenced sports items. Growth in the business has been sparked by a number of factors, including the quickening pace of the increase in the number of internet connections and the growing acceptance of e-commerce as a secure and workable alternative to more conventional methods of selling. E-commerce and internet purchasing in general are becoming increasingly appealing to customers. Brand recognition is another factor that contributes to the success of online sales channels, since it is responsible for luring customers to a company's website. One of the consumer commodities that is in highest demand through online retailers is licenced sporting goods and equipment. Therefore, the rise in the number of e-commerce and fashion websites is going to generate the potential for new opportunities for the expansion of this sector in the not-too-distant future.
North America Dominating Revenues
The Licensed Sports Merchandise Market of North America dominated the global market in 2021. This is mostly attributable to the high living standards in the region and the robust purchasing power of customers in the region. In addition, the size of the market is likely to expand in the near future because of the tremendous popularity of sports leagues in the region, including the National Hockey League (NHL), the National Basketball Association (NBA), the Canadian Football League (CFL), and the National Football League (NFL). In 2021 North America accounted for over 25% of the total revenues. The market for licenced sports items in North America is the largest in the world. This is mostly because to the enormous popularity of major sports such as baseball, basketball, and soccer, particularly among students at tertiary educational institutions. People are adopting more physically active lifestyles, which, along with the rising popularity of health and fitness activities, is helping to fuel rise in demand for sports goods and licenced sports products. This, in turn, is contributing to the expansion of the market.In North America, celebrity endorsements continue to play a significant role in the marketing of various brands. The most significant market participants are also drawing ideas for product curation from American sports in order to better serve customers. For example, in 2021, Puma released a line of apparel called FtblFeat that combined football and American varsity sports. This collection of t-shirts and tees was also made available in the United States, both online and through traditional retail outlets.
Asia to Dominate Growth
It is anticipated that the Asia-Pacific region will be the market for licenced sports merchandise that will expand at the fastest rate during the forecast period of 2023 to 2030. This is due to the growing popularity of various international sports among teenagers, as well as the increased adoption of fashion trends that cross-culturally. Both of these factors are anticipated to boost the market growth of licenced sports merchandise in the Asia-Pacific region. during the forecast period of 2023 to 2030. In addition, the demand for sports licenced accessories such as sunshades, seat covers, cushions, phone cases, game cards, wallets, mugs, and keychains in developing Asia Pacific nations such as India, Japan, and China are anticipated to drive market growth. It is anticipated that China, the world's second largest economy, will lead the market growth in APAC region by growing at a CAGR of 8% .This demand is expected to be driven by the popularity of these items in these countries. In addition, the Juventus Football Club of Asia Pacific demonstrated its presence in the region by releasing officially licenced products in countries like as China, Japan, and Australia. These officially licenced products included automotive accessories, apparel, luggage, and electronic goods.Large multinational corporations place a significant emphasis on Asia-Pacific markets for their marketing and product distribution efforts.
Competition to Intensify as Market Remains Fragmented
The market for licenced sports items is a very competitive, and there are many significant companies operating across countries. Major companies that are dominating global market includes Adidas AG, Under Armour®, Inc., Nike Inc., Puma SE, and others. Tier 1 players in the market, are focusing on new product launch and partnerships as their primary strategy. These main companies seek to obtain a competitive edge over the other participants in the industry by engaging in long-term collaboration arrangements with a variety of sports teams, which further expands their consumer base. The corporations work together with well-known athletes from a variety of fields to promote their products and give value to the promotion of those products. In addition, these organisations operate brick-and-mortar specialty stores in addition to online retail outlets, allowing clients to purchase things easily and conveniently.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Licensed Sports Merchandise market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Breakup by End-User:
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
