The US Golf Participation Equipment Demand and Forecast

Additional Information

EXECUTIVE SUMMARY

North America accounts for the largest market for golf equipment and accessories. The US is the preferred destination for all types of businesses and leading in terms of trade. Country accounted for the highest percentage of global golf participation rate and retail sales of golf supplies. Recent macro economy changes affected the participation rate and forced to lower down future prediction of the industry as well.

There was a fall in number of golfers in 2010 by 3.32% to ~ million due to fall in number of core golfers by 3.60% from ~ million in 2009 to ~ million in 2010. During 2011, economy uncertainty, rising unemployment and bad weather conditions accounted for fall in golf course visitors and so as golf course revenues. Overall golf course visitors again fell 0.76% in 2011. In the US, the largest number of golfer’s come under the age group of 30-49 while slowly golf is gaining popularity among younger generation.

The present report on “The US Golf Participation Equipment Demand and Forecast” provides a detailed study on the US golf environment and future prospects for investors. The report has assessed the industry performance in terms of participation rate, equipments demand including industry trends/developments, macro economy environment and growth drivers in the study. Future forecasting aids to understand expected growth/fall in the demand and reasons behind change. The report also covers the profiles of major players in the market and their expansion strategies.

Key Findings

• By 2016, the US golf course revenues will grow at a CAGR 3.75% led by positive growth in golf facilities and operations.
• In 2009 consumer purchases of golf supply/equipment declined by 11.45% reaching USD ~ compared to USD ~ billion in 2008. Golf equipment revenues in 2010 witnessed 1.64% to USD ~ billion.
• In 2009 the sale of golf clubs in sets was USD ~ billion, -20.12% decline as compared to 2008. During the same period, sales of individual clubs (not sold in sets) declined 9% to USD ~ million and sales of Golf bags were USD ~ million.
• Golf balls retail sales increased in 2010 and 2011 at a low growth rate. During 2009, it has been observed that off-course specialty retailers profit margin also declined, led to reduction in retail stores by 6.90%
• The US import of golf balls reached USD ~ million and trade surplus reached USD ~ million.
• In 2011, golf clubs accounted for 30.60% of the US golf equipment market and further expected to grow 4.38% in 2013. The future growth is expected to be driven by recovering country’s financial condition, rising employment rate and government approval of establishing new golf facilities.

Key points for consideration:

• From 2013 onwards investors can contribute in golf related real estate industry in order to benefit from the recovering demand. As of now, golf related construction industry is incurring losses but it is expected that by 2014 the industry will return to its growing trend.
• Hotels and golf resorts are expected to earn profits with rise in number of golf tournaments in the country and increase in tourist’s arrival.
• Low interest for golf apparel among aging golfers will continue while junior golfers will drive the demand.
• Green fee is expected to rise in public golf courses.
• Lack of enough water supplies will continue to be an area of concern.