Global activewear market set to be worth $353.5 billion in 2020
According to a new report from Spanish investment firm Comprar Acciones, the value of the global activewear market should reach $353.5 billion in 2020, as the segment remains somewhat resistant to the economic impact of the Covid-19 pandemic.
The firm also stated that the market is expected to grow at a 3.7% CAGR over the next six years, reaching $439.17 billion by 2026.
Noting that many major activewear companies have successfully adapted to changing consumer behavior during the pandemic by investing in online direct-to-consumer sales, the firm further predicted that athleisure sales will account for 31% of apparel revenues in the U.S. in December.
In terms of specific companies, Comprar Acciones highlighted the strength of Nike’s online sales, which rose 75% in the fourth quarter ending in June of this year, and 82% in the first quarter that ended in August.
This surge in e-commerce helped offset significant declines in Nike’s brick-and-mortar network, 90% of which was closed during the fourth quarter, meaning that the company’s annual net sales only dropped 5% despite the disruption caused by the health crisis.
Elsewhere, Comprar Acciones pointed out Adidas’ 93% increase in e-commerce sales in the third quarter and the 66% increase in Puma’s digital sales year to date.
The firm also called attention to the importance of the athleisure segment during the pandemic, explaining that “besides embracing direct-to-consumer sales, dominant sportswear brands are also capitalizing on the thriving athleisure market.”
“According to NPD, athleisure items like sweatpants and sweatshirts are projected to account for 31% of total apparel spending in the US during the 2020 holiday season. Comparatively, the segment had a 26% share in the 2019 holiday season,” the company added.
Athleta, the Gap-owned women’s workout clothes brand, for example, posted a 35% increase in net sales in the third quarter, while Old Navy – also owned by Gap – saw sales in its activewear segment rise 55%. Abercrombie & Fitch’s women’s loungewear brand, Gilly Hicks, posted a double-digit increase in sales in the most recent quarter, thanks to a 100% rise in its online sales.
According to a Euromonitor and Coresight study cited by Comprar Acciones, the U.S. athleisure market is expected to reach $105.1 billion in sales in 2020, down 9.2% from the previous year. However, a rebound is anticipated in 2021, when the market should see a 7.9% rise in annual sales.
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