Sports clothing equipment supply chains have been in a decline since the pandemic, with US imports dropping to US$15 billion in 2023 from US$21 billion in 2021, according to a new S&P Global Market Intelligence report.

It noted that the Olympics represent a chance to rekindle interest in sports and fitness, boosting demand for sports shoes, clothing, bikes and more.

"The Olympic and Paralympic Games Paris 2024, from July 26 onward, represent an opportunity to promote sports and fitness, and, in turn, reverse a general downturn in global trade in sports clothing, footwear and equipment," said Chris Rogers, head of Supply Chain Research, S&P Global Market Intelligence.

"Shipments historically increased in Olympic summer games years, rising an average of 11% year over year between 1992 (Barcelona) and 2021 (Tokyo) while non-Olympic years rose by just 3% on average," he added.

The analysis noted that from a peak of US$20.97 billion in 2021, US imports of sports products, including sports shoes and clothing, bicycles and fitness equipment, fell to US$14.85 billion in 2023.

"So far in 2024, imports of sports products to the US and EU combined fell by 11.3% year over year (y/y) in the first quarter of 2024 and by 2.9% y/y in May," it added.

The S&P Global Intelligence report said the outlier was a 22.8% y/y rise in sports apparel imports to the EU in April, potentially linked to the Euro 2024 soccer championships as well as the Olympics.

Like many other industries, the sporting goods sector has undergone a marked supply chain restructuring over the past ten years.

The report noted that mainland China's share of global exports of sports apparel, footwear, bikes and sports equipment fell to 30.4% in 2023 from 48.9% in 2016, while Vietnam has seen significant growth, with its share rising to 13.8% from 1.2% during the same period, with gains across sports footwear and apparel. 

"Vietnam accounted for 62.4% of EU and US sports shoe imports in the first five months of 2024, up from 54.9% in 2022," S&P said.

Meanwhile, the report found that the triathlon illustrates the challenges involved.

US and EU imports of swimwear fell by 9.4% year over year in the first five months of 2024, while the cycling sector has been in a steady downturn since 2021, except for a recent rise in shipments linked to new smart bike trainers.

"Dedicated sports clothing supply chains remain more fragmented with a mix of global exporting centres (e.g. mainland China, Vietnam, India and Bangladesh) and regionally focused countries (e.g. Mexico for the US, Morocco for Europe)," S&P said.

The report added, "Supply chain decision-makers need to take a dynamic approach, for example, dealing with protests and strikes in Bangladesh, when building a team of suppliers for sports apparel."