Sports - South Korea

South Korea

Revenue in the Sports market is projected to reach €969.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.13%, resulting in a projected market volume of €1,131.00m by 2029.
In global comparison, most revenue will be generated in the United States (€46,140.00m in 2024).
The average revenue per user (ARPU) in the Sports market is projected to amount to €60.61 in 2024.

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Sports market in South Korea has seen slow growth due to increasing competition from traditional and emerging sports, declining participation rates, and shifting consumer preferences towards other forms of entertainment. While there is still niche popularity in Soccer and Baseball, the overall market growth has been minimal. Factors such as the saturation of existing markets and the high costs associated with participating in sports are limiting growth potential.

Customer preferences: Sports and fitness have become increasingly popular among South Koreans, who are prioritizing health and wellness. This trend is reflected in the rise of fitness apps, virtual training programs, and online fitness communities. Additionally, there is a growing demand for sustainable and eco-friendly sports gear and apparel, highlighting the importance of environmental consciousness in consumer preferences. The rise in popularity of outdoor and adventure sports also aligns with the countrys emphasis on outdoor education programs for children.

Trends in the market: In South Korea, the Sports Market is experiencing a surge in demand for virtual and augmented reality technology. This trend is driven by the growing popularity of esports and virtual sports events, creating new opportunities for industry stakeholders. Additionally, with the rise of at-home fitness and online coaching platforms, we can expect to see an increase in personalized training services and a shift towards digital engagement and monetization models. This will not only enhance the fan experience and generate new revenue streams, but also offer a more convenient and accessible approach to sports participation and training for athletes and enthusiasts alike.

Local special circumstances: In South Korea, the Sports Market is heavily influenced by the countrys strong emphasis on education, leading to a highly competitive and organized youth sports culture. This unique aspect of the market has led to a strong grassroots development program, producing talented athletes in various sports. Additionally, cultural values such as hierarchy and discipline play a significant role in the organization and management of sports teams and leagues. This cultural influence has also shaped the way professional sports are marketed and consumed in South Korea.

Underlying macroeconomic factors: The growth of the Sports Market market in South Korea is influenced by macroeconomic factors such as government policies promoting sports, the countrys economic stability, and increasing investment in sports infrastructure. South Korea has a strong sports culture and is hosting major international sporting events, which has led to increased public interest and investment in the sports sector. Additionally, with rising income levels and leisure spending, there is a growing demand for sports and fitness products, driving market growth. Furthermore, favorable government policies, such as tax incentives for sports-related businesses, are also contributing to the markets growth.

Methodology

Data coverage:

The data encompasses B2C and B2B revenues. Figures are based on media spending, merchandise spending, and ticket spending. All monetary figures for merchandise and tickets refer to consumer spending on goods or tickets in the respective segment, which can be online and offline.

Modeling approach / Market size:

Market sizes are determined through a combination of bottom-up and top-down approaches, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per ticket, price on sport goods). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, and internet consumption. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function or linear forecasting, as it fits the development of either strong growing markets or more sophistacted and saturated markets, such as soccer in Europe.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). We also account for the different cycles of international tournaments, such as world cups or continent cups. Consumer Insights data is reweighted for representativeness.