In the past 30 years, the global trade in sporting goods has tripled. Who is the winner? | Global Trade Observer
2024-08-07
한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina
In the past 30 years, driven by fitness enthusiasts and major global events, the global trade in sporting goods has grown significantly.
According to the latest data from the World Trade Organization (WTO) database, trade in sporting goods has tripled since 1996, reaching annual imports of nearly $64 billion by 2022. During this period, China became the main exporter, while the European Union and the United States became the main importers.
In the past 30 years, global economies have been continuously reforming tariffs. What impact have tariff reductions had on the trade in sporting goods?
Main import destinations: America and Europe
From the data trend, people have gradually developed a strong interest in health and fitness since the 1990s. From the mid-2000s to the mid-2010s, the global import volume of sports products has accelerated.
Research by WTO data expert Tomasz Gonciarz and others shows that global imports of sporting goods are mainly concentrated in the Americas and Europe, with these two regions accounting for nearly three-quarters of total imports.
Among them, the Americas are far ahead with an import volume of US$26.2 billion, but the average tariff rate is relatively high at 19.9%; Europe follows closely with an import volume of US$19.8 billion and a lower tariff rate of 9.9%; Asia ranks third with imports of US$15 billion and the lowest tariff rate of 7.2%.
There were two exceptions to the steady growth of sporting goods imports between 1996 and 2022. The first was in 2009, when there was a sharp contraction. Gonzás et al. believe that this may have been the result of the 2008 global financial crisis.
Another surprise is that sporting goods products have seen rapid growth in 2021. Gonzás and others believe that this may be because consumers around the world have become more health-conscious as sports centers reopen.
According to the WTO classification, sporting goods are divided into eight categories: water sports, golf, supplies and equipment, racket sports products, footwear, sportswear, swimwear and balls.
Over the past 30 years, it can be seen that the sporting goods with the largest growth are water sports (+73%), golf (+54%), supplies and equipment (+46%), and racket sports products (+36%). Products in the category of "supplies and equipment" refer to general sports practice and outdoor activities. The growth of this category is particularly prominent. Between 2019 and 2020, imports of most other categories declined, but this category still increased.
The impact of tariff reduction on sporting goods trade
Research by González et al. shows that significant reductions in tariffs over the past nearly three decades have played a role in making sports products more accessible and affordable.
The most-favored-nation tariffs applicable to imports of sports products have been reduced from 18% in 1996 to about 12% in 2022.
Among them, the largest reductions were in footwear, swimwear and sportswear, with tariffs falling from about 22% to 14%. However, tariffs on these three categories of products have always been higher than those on the other five categories, such as golf and water sports.
WTO data shows that China has long been the world's most important exporter of sporting goods. In 1996, China accounted for 32% of global sporting goods exports, and this share increased to 59% in 2010. In 2022, China still accounted for 43% of global sporting goods exports.
In 2022, China's exports of racket sports products were particularly prominent, accounting for 63% of the world's exports.
Meanwhile, Vietnam has also seen significant growth. In 1996, Vietnam accounted for only 2% of global sporting goods exports; by 2010, this share had increased slightly to 6%. Since then, Vietnam’s exports have continued to grow, reaching 20% in 2022.
Several other economies are also important exporters of certain subcategories of sporting goods. For example, Pakistan’s exports of balls accounted for 16% of global exports in 2022, while Vietnam and Indonesia’s exports accounted for 30% and 12%, respectively.
In terms of imports, the United States has been the largest importer of sporting goods since 2010, accounting for 31% of global imports in 2022. It is followed by the European Union, Japan and the United Kingdom, accounting for 22% and 6% respectively.
In terms of per capita sports goods imports, Switzerland's spending is particularly high, reaching $105. Canada and Australia spend more than $60 per capita, followed by the United States, South Korea and the United Kingdom, all spending more than $50 per capita.
At the same time, global sporting goods imports have experienced substantial growth over the past three decades, with an average annual growth rate of 5%. This trend was particularly evident in 2021, with a surge of 25%.
Among them, the "water sports" category had the largest increase between 1996 and 2022, increasing by about 4.7 times. The import volume of "footwear" and "articles and equipment" also increased significantly, increasing by 4.4 times and 4.3 times respectively. The "sportswear", "balls" and "rackets" categories had the smallest growth, increasing by only 2 times.
WTO analysis shows that the significant growth in water sports products in 2021 was mainly driven by increased imports from the European Union and the United States, which increased by 81% and 76% respectively. Together, these two economies account for about 65% of global water sports product imports. Meanwhile, Canada, the third largest importer, more than doubled its imports, up 141%.
At the same time, trade patterns for golf products have changed. The EU has dropped to sixth place in imports of these products. While the United States remains the leading importer of these products, Asian economies such as Japan and South Korea are not far behind. Between 1999 and 2008, golf product imports to these Asian economies more than doubled. A similar situation was seen for racket sports products, whose imports doubled during this period.
South Korea has become the fourth largest importer of golf products between 2017 and 2022. Its annual imports of golf products more than doubled during this period. Among the top seven importers, South Korea was the only economy that did not see a decline in imports between 2019 and 2020, growing by 1%. In addition, South Korea's golf product imports have maintained consistent annual growth over the past seven years.
It is worth mentioning that from 1996 to 2009, the annual import volume of global sports shoes increased by an average of 2%; from 2010 to 2018, this growth rate accelerated, reaching an astonishing annual growth rate of 13%, which partly reflects changes in fashion and lifestyle habits as sports shoes began to turn to non-sports uses.
(This article comes from China Business Network)
