Rapidly Expanding Sports Sector Presents Fresh Opportunities for Economic Growth
Sports consumption is increasingly seen as a vital engine for economic growth. It plays a significant role in job creation, encompassing everyone from professional athletes to various service providers. Major sporting events draw international tourists, providing a boost to local economies. In addition, investing in fitness and wellness can lower healthcare expenses and improve productivity.
TroibNews 
**Editor's note**: Tang Jie is a researcher at the Chinese Academy of International Trade and Economic Cooperation, under the Chinese Ministry of Commerce. The article reflects the author's opinions and not necessarily the views of CGTN.
As the quality of life continues to improve, the way residents consume sports has seen notable changes. According to Global Sports Industry Statistics market data from Statista, the global sports market size is projected to grow to $796.8 billion by 2025, a significant increase from $471.3 billion in 2018. Additionally, the e-sports market is anticipated to rise to $1.8 billion by 2024, showcasing a compound annual growth rate (CAGR) of 20.7 percent from 2019. The fitness sector is also thriving, driven by increasing demand across various demographics, modalities, and business models. The International Health, Racquet & Sports Club Association (IHRSA) states that the global fitness industry is expected to reach $115.6 billion by 2026.
In China, the situation is equally promising, with the total output of the sports industry reaching 3.3 trillion yuan in 2022, reflecting a year-on-year growth of 5.9 percent, as reported by the Department of Sports Economy of the General Administration of Sport of China. The sports service industry contributed 918 billion yuan, constituting 70.1 percent of the added value of the sports industry. Meanwhile, the manufacturing of sporting goods and related products added 368.6 billion yuan, making up 28.2 percent, while the construction of sports venues and facilities accounted for 22.6 billion yuan or 1.7 percent.
The growth rate of the sports industry’s total size and value added significantly outpaces GDP growth during the same timeframe, indicating vast market potential. Between 2015 and 2019, the sports industry's size surged from 1.71 trillion yuan to 2.95 trillion yuan, averaging an annual growth rate of 14.6 percent. These figures highlight the swift development and market potential of China's sports sector, with the sports service industry and sporting goods manufacturing emerging as crucial pillars. As national fitness awareness rises along with sports consumption, the outlook for ongoing development remains strong.
Traditionally, sports consumption centered around buying items like equipment, apparel, and footwear. However, recent trends indicate a growing interest in a wider array of sports services, such as fitness and wellness offerings, as well as digital and virtual sports services. Innovations in fitness technology have expanded workout options for consumers, creating new revenue streams for forward-thinking companies throughout the value chain.
In China, since 2022, the revenue generated by sports events has gained further prominence. High-profile events like the Winter Olympics, World University Games, and the Asian Games have significantly boosted sectors such as accommodation, catering, and retail. The economic impact of these events, particularly the Winter Olympics, has been noteworthy. Following the Winter Olympics in 2022, China's ice and snow tourism saw participation soar to 224 million during the 2018 to 2019 ice and snow season, driving an output value of 800 billion yuan.
The expanding scope of sports consumption reveals substantial untapped potential. This potential can be harnessed through enhanced infrastructure, including the development of sports facilities and wellness centers, innovative service offerings, virtual reality (VR) experiences, and tailored fitness programs. Government initiatives that promote physical activity and invest in sports education further support this growth.
The role of sports consumption as a vital contributor to economic growth is increasingly recognized. It fosters job creation across a spectrum of roles, from professional athletes to service providers. Major sporting events draw international tourists, boosting local economies. Furthermore, investments in fitness and wellness can lead to reduced healthcare costs and improved productivity.
Experts predict that China's sports industry is entering a "golden decade." By 2035, it is expected to become a pillar of the national economy, with its added value reaching approximately 5 percent of the GNP. The enhancement in quality of life has significantly widened the parameters of sports consumption. This trend underscores the vast growth potential within the sports services sector, which could serve as a new engine for economic advancement. By encouraging innovation, investing in infrastructure, and implementing supportive policies, the full potential of sports consumption can be unlocked, fueling sustained economic growth.
Alejandro Jose Martinez contributed to this report for TROIB News
As the quality of life continues to improve, the way residents consume sports has seen notable changes. According to Global Sports Industry Statistics market data from Statista, the global sports market size is projected to grow to $796.8 billion by 2025, a significant increase from $471.3 billion in 2018. Additionally, the e-sports market is anticipated to rise to $1.8 billion by 2024, showcasing a compound annual growth rate (CAGR) of 20.7 percent from 2019. The fitness sector is also thriving, driven by increasing demand across various demographics, modalities, and business models. The International Health, Racquet & Sports Club Association (IHRSA) states that the global fitness industry is expected to reach $115.6 billion by 2026.
In China, the situation is equally promising, with the total output of the sports industry reaching 3.3 trillion yuan in 2022, reflecting a year-on-year growth of 5.9 percent, as reported by the Department of Sports Economy of the General Administration of Sport of China. The sports service industry contributed 918 billion yuan, constituting 70.1 percent of the added value of the sports industry. Meanwhile, the manufacturing of sporting goods and related products added 368.6 billion yuan, making up 28.2 percent, while the construction of sports venues and facilities accounted for 22.6 billion yuan or 1.7 percent.
The growth rate of the sports industry’s total size and value added significantly outpaces GDP growth during the same timeframe, indicating vast market potential. Between 2015 and 2019, the sports industry's size surged from 1.71 trillion yuan to 2.95 trillion yuan, averaging an annual growth rate of 14.6 percent. These figures highlight the swift development and market potential of China's sports sector, with the sports service industry and sporting goods manufacturing emerging as crucial pillars. As national fitness awareness rises along with sports consumption, the outlook for ongoing development remains strong.
Traditionally, sports consumption centered around buying items like equipment, apparel, and footwear. However, recent trends indicate a growing interest in a wider array of sports services, such as fitness and wellness offerings, as well as digital and virtual sports services. Innovations in fitness technology have expanded workout options for consumers, creating new revenue streams for forward-thinking companies throughout the value chain.
In China, since 2022, the revenue generated by sports events has gained further prominence. High-profile events like the Winter Olympics, World University Games, and the Asian Games have significantly boosted sectors such as accommodation, catering, and retail. The economic impact of these events, particularly the Winter Olympics, has been noteworthy. Following the Winter Olympics in 2022, China's ice and snow tourism saw participation soar to 224 million during the 2018 to 2019 ice and snow season, driving an output value of 800 billion yuan.
The expanding scope of sports consumption reveals substantial untapped potential. This potential can be harnessed through enhanced infrastructure, including the development of sports facilities and wellness centers, innovative service offerings, virtual reality (VR) experiences, and tailored fitness programs. Government initiatives that promote physical activity and invest in sports education further support this growth.
The role of sports consumption as a vital contributor to economic growth is increasingly recognized. It fosters job creation across a spectrum of roles, from professional athletes to service providers. Major sporting events draw international tourists, boosting local economies. Furthermore, investments in fitness and wellness can lead to reduced healthcare costs and improved productivity.
Experts predict that China's sports industry is entering a "golden decade." By 2035, it is expected to become a pillar of the national economy, with its added value reaching approximately 5 percent of the GNP. The enhancement in quality of life has significantly widened the parameters of sports consumption. This trend underscores the vast growth potential within the sports services sector, which could serve as a new engine for economic advancement. By encouraging innovation, investing in infrastructure, and implementing supportive policies, the full potential of sports consumption can be unlocked, fueling sustained economic growth.
Alejandro Jose Martinez contributed to this report for TROIB News
