Transcript of "The European Golf Industry is Benefiting from Rising Golf Participation Rate in the UK"
TABLE OF CONTENTS1. Golf Industry Performance Worldwide 1.1. An Overview 1.2. Global Golf Equipment Demand 1.3. Global Golf Economy2. The US Golf Industry 2.1. Industry Performance 2.1.1. Industry Segmentation 2.1.2. Golf Course Revenues 2.1.3. Golf Supplies/Equipment Market 2.2. The US Golf Equipment Industry Forecast 2.2.1. Cause and Effect Relationship 2.3. US Golf Economy Number of Golfers Rounds Played Average Rounds Played 2.3.1. Golf Facilities in the US 2.3.2. Golf Course Closures 2.4. Golf Industry Trends and Developments in the US 2.5. The US Macro Economy Factors and Impact over Golf Industry 2.5.1. Population Growth and Golf Participants 2.5.2. The US Economy, Contribution of Golf Industry 2.5.3. Personal Disposable Income (Historical and Present Performance) 2.5.4. Inflation 2.6. The US Golf Industry Driving Forces3. The European Golf Industry 3.1. Industry Performance 3.1.1. Golf Facility Operations Market
3.1.2. Golf Equipment Revenues 3.1.3. European Golf Industry Future Outlook 3.1.4. Cause and Effect Relationship 3.2. European Golf Economy Number of Golfers by Demography 3.2.1. Golf Facilities 3.3. Golf Industry Trends and Developments 3.4. Golf Course Developments by Geography 3.4.1. Golf in Central & Eastern Europe 3.4.2. United Kingdom 3.4.3. Golf in Nordic countries 3.5. European Macro Economy Factors and Impact over Golf Industry 3.5.1. Europe Population 3.5.2. Gross Domestic Product 3.5.3. Inflation 3.6. Growth Drivers4. Opportunities in Asian Markets 4.1. Developing Golf Facilities in China 4.2. Expanding Golf Equipment Market in India 4.3. Golf Merchandise Exposition Golf Tourism in India5. Industry Competition and Players Profile 5.1. Types of Players 5.2. Company Profiles 5.2.1. GolfSmith 5.2.2. Dick’s 5.2.3. Sports Authority6. Appendix 6.1. Abbreviations
6.2. Definitions6.3. Research Methodology Data Collection Methods Approach6.4. Disclaimer
LIST OF FIGURESFigure 1: Golf Economy StructureFigure 2: The US Golf Industry Segments 2011Figure 3: The US Golf Course Revenues (2006-2011)Figure 4: Golf Equipment Revenues in the US (2006-2011)Figure 5: The US Golf Clubs Market by Value (2006-2011)Figure 6: Golf Balls Retail Sales in the US (2006-2011)Figure 7: The US Golf Equipment Market Forecast (2011-2016)Figure 8: The US Golf Clubs Market Forecast (2011-2016)Figure 9: Total Number of Rounds Played in the US (2006-2010)Figure 10: Total Number of Golf Facilities in the US (2000, 2005 and 2010)Figure 11: US Golf Course Closures (2006, 2007 & 2010)Figure 12: Total Population in the US (2000-2010)Figure 13: The US GDP at Current Prices (2000-2010)Figure 14: Personal Disposable Income in the US (2000-2010)Figure 15: The US inflation, Average Consumer Prices in % (2007-2015F)Figure 16: The US Golf Participants by Age in 2010Figure 17: Golf Participation by Working Group, 2011Figure 18: Incremental Rounds Played by Aging Population in the US (2006-2015)Figure 19: Golf Course Demand by Countries in Europe in 2011Figure 20: Golf Course Supply by Countries in Europe in 2011Figure 21: Golf Facility operations Revenues in Europe (2006-2011)Figure 22: European Golf Equipments Market by Value (2006-2011)Figure 23: European Golf Facility operations Direct Revenue Forecast (2011-2016)Figure 24: European Golf Equipments Market Forecast by Value (20011-2016)Figure 25: Percentage of Female Golfers in 2010Figure 26: The UK Consumer Expenditure on Golf Equipment (2006-2010)Figure 27: Europe GDP at Current Prices (2006-2010)
Figure 28: Dick’s Total Revenues (2006-2011)LIST OF TABLESTable 1: The US Export of Golf Balls to Countries Worldwide in 2009 by ValueTable 2: Relation between Independent factors and the US Golf IndustryTable 3: Total Number of Golfers in the US (Age 6+) (2006-2011)Table 4: Change in Number of Rounds Played by States in 2010Table 5: Missouri Golf Equipment and Supplies Retail Sales (2009-2011)Table 6: Top Golf Courses in the US (2010)Table 7: Opportunities & Threats in European Golf IndustryTable 8: EU Imports of Golf Equipments by Value & Volume (2006, 2008 & 2010)Table 9: Relation between Independent Factors and the European Golf IndustryTable 10: Demographic Distribution of Number of Golfers in European countries in 2010Table 11: EU Golf courses and Number of Registered Players by Demography in 2010Table 12: Total Number of Golf Courses and Players by Demography in England (2006-2011)Table 13: Total Number of Golf Courses and Players by Demography in Ireland (2006-2011)Table 14: EU 27 Population aged between 65 years old or over, Present and ProjectionsTable 15: EU 27 Young Age Dependency Ratio, Present and ProjectionsTable 16: Population aged between 65 years old or over, Present and ProjectionsTable 17: GDP per Inhabitant in PPS, EU 27=100 (2010)Table 18: Golfsmith Net Revenues and Gross Profit (Jan 2010 & Jan 2011)
GOLF INDUSTRY PERFORMANCE WORLDWIDEIn Golf, participants are divided into four major categories: core golfers, occasional golfers,juniors and range users. In recent years, Golf has gained popularity in many parts of theworld such as Japan, Thailand, China, UK& Ireland, Germany and South Africa; while theUS is leading in terms of number of players and golf economy.The structure of golf industry is fragmented with large number of male participants thanfemale while this trend is slowly changing and increasing number of women are entering intothe golf business, hired in different areas. With rising interest for golf in all age groups andincreasing female participation, market for golf products and facilities are taking anorganized structure.GLOBAL GOLF EQUIPMENT DEMANDNorth America account for the largest market for golf equipment and accessories but in recent years a fall in demand has been observed which The overall market for golf affected global golf equipment market, reflecting a flat equipment worldwide reached output. The overall market for golf equipment worldwide USD 13.70 billion in 2011, grew only 0.50% from 2010 reached USD ~ billion in 2011, grew only 0.50% from 2010. The economy of the US and Europe are stillstruggling to achieve stability. However changing weather conditions have caused lowdemand for golf equipments and accessories.Looking at general macro economy conditions, India and China are emerging markets forgolf. However these emerging economies hold a negligible share in golf equipment marketand may not be able to pay off losses incurred.
GLOBAL GOLF ECONOMY In general terms, golf economy has been divided into Worldwide, the leading countries two parts: Direct and Indirect segments. Direct in terms of revenue generation segment is a combination of golf equipments, clubs and participants are, The US, Europe (UK & Ireland) and Japan fees, courses and tournaments. While indirect segment include golf tourism and real estate relatedto golf.There are almost ~ golf courses worldwide, generating total industry revenues of USD ~billion. The leading countries in terms of revenue generation and participants are, The US,Europe (UK & Ireland) and Japan.THE US GOLF INDUSTRYThe US golf industry is one of the largest in the world ranking and has advanced golffacilities. While in recent times, its growth rate is slower than expected because of the highcost involved in the game and present condition of the economy which does not allowspending much on leisure activities.Figure: The US Golf Industry Segments 2011 Country Clubs Public golf courses Private golf courses
GOLF COURSE REVENUES Total golf course revenues were up 0.90% in 2010 and The US golf course revenues 0.94% in 2011 reaching to value of USD ~ billion and USD were up 0.90% in 2010 and ~ billion respectively. The figures suggest a positive growth 0.94% in 2011 in golf demand and supply while growth rate is relatively low. During first half of 2011, economy reflected arecovery in growth but in the second half of the year the fall in GDP, declining currency rates andfalling industrial profit affected the golf industry performance. Bad weather was also accountablefor fall in golf course direct revenues.Figure: The US Golf Course Revenues (2006-2011) USD Billion 2006 2007 2008 2009 2010 2011
GOLF SUPPLIES/EQUIPMENT MARKET In 2009 consumer purchases of golf supply/equipment In 2009, consumer purchases declined by 11.45% reaching USD ~ billion compared to of golf supply/ equipment USD ~ billion in 2008. Golf market showed a positive declined by 11.45% response in 2010 driven by economy overcoming fromrecession and increasing golf events in the country. Golf equipment revenues in 2010witnessed 1.64% growth to USD ~ billion.Figure: Golf Equipment Revenues in the US (2006-2011) USD Billion 2006 2007 2008 2009 2010 2011Figure: The US Golf Clubs Market by Value (2006-2011) USD Billion 2006 2007 2008 2009 2010 2011
In 2009 golf ball sales was USD ~ million falling In the US Golf balls retail sales 3.33% from previous year, while sale of used balls increased in 2010 and 2011 at a increased during the period because of cost cutting slow growth rate of 0.8% and 0.9% respectively strategy adopted by some of the public and private golf clubs. Golf balls retail sales increased in 2010 and 2011at a low growth rate.Figure: Golf Balls Retail Sales in the US (2006-2011) USD Million 2006 2007 2008 2009 2010 2011Table: The US Export of Golf Balls to Countries Worldwide in 2009 in ValueCountries Export Value in USD millionsUnited KingdomCanadaJapanSouth KoreaAustraliaNetherlandsHong KongSingaporeMexicoSouth Africa
THE US GOLF EQUIPMENT INDUSTRY FORECAST In normal economic condition AM Mindpower expects In the US demand for golf equipment retail sales to grow at a CAGR 3.63% but taking equipments is expected to present economy condition into consideration, market is be low in year 2012 expected to grow at a CAGR 3.08% from 2012-2016. Demand will be low in year 2012 as well due to loosinginvestor’s confidence, slow recovery and recent fall in golf tourism market.Figure: The US Golf Equipment Market Forecast (2011-2016) USD Billion 2011 2012 2013 2014 2015 2016In 2011, golf clubs accounted for 30.60% of the US golf equipment market and are furtherexpected to grow 4.38% in 2013. The future growth is expected to be driven by recoveringcountry’s financial condition, rising employment rate and government’s approval ofestablishing new golf facilities.
Figure: The US Golf Clubs Market Forecast (2011-2016) USD Billion 2011 2012 2013 2014 2015 2016THE US GOLF ECONOMYNUMBER OF GOLFERSThere was a fall in number of golfers in 2009 compared to 2000 (~ million) & 2005 (~million). Numbers fell again in 2010 by 3.32% to ~ million due to fall in number of Coregolfers by 3.60% from ~ million in 2009 to ~ million in 2010.Table: Total Number of Golfers in the US (Age 6+) (2006-2011) 2006 2007 2008 2009 2010 2011EAdult Female 18+Adult Male 18+Total Adults Girls 6-17 Boys 6-17 Total JuniorsTotal Golfers
ROUNDS PLAYEDIn 2009, ~ million rounds of golf were played in the country down by 2.30% in 2010 to ~million. A fall in rounds played is not only the impact of uncertain economy conditionprevailing in the country but also changing weather conditions accountable for fall in totalrounds played during 2010.Figure: Total Number of Rounds Played in the US (2006-2010) No. of Rounds Played in millions 2006 2007 2008 2009 2010THE EUROPEAN GOLF INDUSTRYINDUSTRY PERFORMANCEIn last 20 years Europe’s golf industry is showing a positive growth well both in terms ofdemand and supply and the number of golfers has been increasing with expanding market forgolf course supplies. Within Europe, a major portion of golf demand and supply comes fromfew countries such as the UK and Ireland who are the leading producers and consumers.
Figure: Golf Course Demand by Countries in Europe in 2011 UK & Ireland Germany Sweden France Netherlands SpainFigure: Golf Course Supply by Countries in Europe in 2011 UK & Ireland Germany France Sweden Spain ItalyGOLF FACILITY OPERATIONS MARKET In terms of direct revenues, European golf industry The European golf industry is generated USD ~ billion in 2010 an increased from USD ~ benefiting from rising golf billion in 2009 while decline from revenues generated in participation rate in the UK 2007 to USD ~ billion. Initially the major sources of revenues were tourism, golf facilities and constructionindustries but during recession all the three industries faced heavy losses and so did golfindustry in many European countries.
In 2011, golf facility operations reached USD ~ billion rise from USD ~ billion in 2009compared to USD ~ billion in 2007. These figures reflect unstable economic environmentduring the years.Figure: Golf Facility operations Revenues in Europe (2006-2011) USD Billion 2006 2007 2008 2009 2010 2011GOLF EQUIPMENT REVENUES Production of golf equipments grew faster in the last A major portion of the demand for 10 years but in recent past (during global economic golf equipment is coming from Western part of the Europe slowdown) the sector has witnessed fall in demand, reduced golf facility revenues and golf clubmembership.
Figure: EU Production of Golf Equipments by Value (2006-2010) USD Million 2006 2007 2008 2009 2010Table: EU Imports of Golf Equipments by Value & Volume (2006, 2008 & 2010) 2006 2008 2010ValueVolumeNote: Value in USD Million, Volume in ‘000 tonnes
EUROPEAN GOLF INDUSTRY FUTURE OUTLOOKThe recent economic changes affected forecast for European golf industry as well. Golf istreated as an expensive sport compared to other outdoor sports, with high membership feeand is also regarded as a status symbol. Falling national income and trade have led themanufacturers of golf equipments to reduce their production estimate for 2012 and 2013. TheUK accounts for a large demand of golf products though sales is expected to fall in thecountry during 2012 and number of tournaments are expected to be low compared to previousyears.Figure: European Golf Facility operations Direct Revenue Forecast (2011-2016) USD Billion 2011 2012 2013 2014 2015 2016In short term demand for golf equipments will be low and accordingly manufacturers willplan to reduce production quantity. Keeping macro economic factors and industry factors intoconsideration we expect the golf sector to recover from this situation by 2014 driven by newplanned tournaments and recovering economy, which may once again give a boost to golftourism.
Figure: European Golf Equipments Market Forecast by Value (20011-2016) USD Billion 2011 2012 2013 2014 2015 2016EUROPEAN GOLF ECONOMYEuropean golf market is developing with increasing number of golfers of all age groupsoffering ample of opportunities for golf equipment and accessories retailers in the region.Golf is popular only in 7-8 European countries and only few of these have mature demandand supply, while in other countries the sport is still in its early phase. In 2009 there was a3.30% decrease in the number of golfers in UK and Ireland, known as largest golf markets inthe region.NUMBER OF GOLFERS BY DEMOGRAPHYIn most European countries, male golfers have leverage and dominate in terms ofparticipation rate. Currently, around three fourth golfers are male, and one fourth accounts forwomen and junior golfers.Table 1: Demographic Distribution of Number of Golfers in European countries in 2010Countries Male Female JuniorBulgariaPolandUK & IrelandPortugalLithuaniaCyprusHungary
SpainGreeceEstoniaItalyNorwayDenmarkA large number of female golfers belong to Germany, Austria and Switzerland with femaleparticipation rate crossing 27%. Mainly Germany and Austria has leading position in terms oftotal number of female golfers.Figure: Percentage of Female Golfers in 2010 Germany Austria Switzerland Netherlands BelgiumGOLF FACILITIESGrowth rate of opening new courses started falling from 2008 onwards, reflecting effect ofglobal crisis, increasing unemployment rate, struggling European economy and fallingnumber of golf players.There are many other issues such as climate change, insufficient water supply, landavailability and government policies in European countries restricting establishment of newgolf courses.
Table: Total Number of Golf Courses and Players by Demography in England (2006-2011)Years Courses Players Male Female Juniors201120102009200820072006GOLF INDUSTRY TRENDS AND DEVELOPMENTSTHE UK SPORTS TOURISM AND GOLFWALES GOLF TOURISM AND ECONOMYGOLF INDUSTRY RECOVERY FROM RECESSIONJUNIOR GOLF IN ENGLANDWEATHER FORECASTS VIA MOBILE FOR GOLFERSNEW GOLF BAG STORAGE SYSTEM
GOLF COURSE DEVELOPMENTS BY GEOGRAPHYUNITED KINGDOMIn the UK after football, golf is considered as the second most important structured sport.Although only 4.50% of adults play the game regularly, the penetration rate is doubled,considering the infrequent and holiday players.Figure: UK Consumer Expenditure on Golf Equipment (2006-2010) USD Million 2006 2007 2008 2009 2010Moreover, the game is also very lucrative financially, as it needs permanent single-sport sitesand also involves spending on personal and facility equipment, clothing, socializing as wellas travel. Golf as a sport demands a high level of commitment, thus, making it difficult formajority of the adults, in terms of both time and money.GOLF IN NORDIC COUNTRIESNordic countries showed a fast economy growth before 2008 compared to other countries inEurope. On the other hand during recession Nordic countries were highly affected. Thesecountries have large number of affluent population supporting golf industry. In Sweden golfhas gained popularity with almost 6.30% registered golfers. In Denmark and Norway golf isgrowing at faster rate led by easy accessibility of golf facilities.Although demand for golf apparel and accessories is not the same in all the Nordic countries,such as, Norway has low demand for golf apparel compared to Denmark due to change inclimate conditions.
OPPORTUNITIES IN ASIAN MARKETSDEVELOPING GOLF FACILITIES IN CHINAEXPANDING GOLF EQUIPMENT MARKET IN INDIAGOLF MERCHANDISE EXPOSITIONGOLF TOURISM IN INDIAFor more information, please contact firstname.lastname@example.org
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