ALBANY, New York. – The global licensed sports merchandise market is chiefly driven by innovation and development of more attractive and stylish sports apparel, sports accessories, and other product varieties. The market is also significantly influenced by the improved economic conditions across developing economies such as India and China, owing to which, sports lovers are spending lavishly on licensed sports merchandise.
With growing consumer base and huge market potential, the global licensed sports merchandise market is expected to witness considerable growth in the next few years. Transparency Market Research estimates that the market, which valued at US$27.63 bn in 2015, will reach US$48.17 bn by 2024, expanding at a CAGR of 6.4% from 2016 to 2024.
North America to Remain Top Regional Player
Transparency Market Research estimates that the global licensed sports merchandise market will exhibit a healthy 6.4% CAGR from 2016 through 2024. If the prediction holds true, the market will rise from a valuation ofUS$27.63 bin in 2015 to US$48.17 bn by 2024. Of the key product categories in the market, the segment of sports apparel dominated in 2015, accounting for 39.8% share of the market’s total revenues.
From a geographical perspective, North America dominated the global licensed sports merchandise market in 2015, accounting for a nearly 54% of the market’s overall revenues. The region is also expected to retain dominance over the forecast period in terms of revenue contribution to the global market, but is likely to lose prominence to Asia Pacific in terms of growth rate.
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Rising Popularity of Sports Leagues to Prove Beneficial to Market
In developed regions such as North America, which alone accounts for more than half of the global licensed sports merchandise market’s revenues, the demand for licensed sports merchandise is chiefly driven by the rising popularity of sporting leagues and their increasing fan bases. In the region, prominent sporting leagues such as the Major League Baseball (MLB), the National Football League (NFL), and the National Basketball Association (NBA) enjoy huge popularity in merchandise sales. The NFL and MLB together account for nearly 50% of theNorth America licensed sports merchandise market in terms of revenue. In 2014, retail sales of NFL merchandise witnessed a rise of nearly 5.2% as compared to 2013.
In other developed and developing regions, the rising e-commerce or online sales have had a notable impact on the market’s growth in addition to the factor of rising fan following of prominent sporting leagues. The rapid expansion of the Internet and the growing acceptance of e-commerce as a safe and viable alternative to traditional bricks-and-mortar retailing, have supported growth of the licensed sports merchandise market in countries such as India and China. In the near future a potential rise in the number of e-commerce and fashion websites is set to create lucrative growth opportunities for the market.
Rising Demand for Pirated Merchandise to Keep Market Growth in Check
Piracy of licensed sports products such as t-shirts, jerseys, and hats has increased at a significant rate in the global market in the past few years. The increased global consumption of pirated products is a key factor holding back the market for licensed sport merchandise. According to The Street, an American financial news and services website, the worldwide sales of counterfeit products are growing in the sports world, with counterfeit goods valuing up to US$960 bn in 2015 alone. The rising problem of piracy of sports products is likely to pose a serious threat to the licensed sports merchandise market, which in turn is projected to restrain the global licensed sports merchandise market in the next few years.
In the highly competitive global market for licensed sports merchandise, the introduction of innovative and technologically advanced products is key to growth and improved rate of consumer retention, observes a recent report published by Transparency Market Research (TMR). Of late, emergence and increased consumer adoption of product categories such as smart clothing, which include workout gear capable of monitoring vital workout signs, reactive materials or fabrics, and wearable devices have changed the consumer perception about sports merchandise by leaps and bounds.
Some of the key companies to have played a major role in bringing about this change in the global market are Adidas – Reebok, Nike Inc., VF Corporation, G-III Apparel, Dick’s Sporting Goods, Jarden Corporation, Knight Apparels, New Era Cap, Under Armour, and Great American Products.
This review of the market is based on a market research report recently published by Transparency Market Research, titled “Licensed Sports Merchandise Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 – 2024.” – PRNewswire