The Development Trend of the Sports Industry in Canada
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The Development Trend of the Sports Industry in Canada

The COVID-19 epidemic has changed the exercise habits of Canadians, driving the upsurge of home fitness and outdoor sports. Business opportunities for home fitness equipment and outdoor sports products have emerged, including for home fitness equipment, bicycles, golf, camping, skiing products, and other hot products. Online sales growth has been amazing. The sports climate in Canada is prosperous, chain fitness channels are expanding rapidly, various sports equipment and supplies are in great demand, and the products are more diversified.
Published: Dec 23, 2021
The Development Trend of the Sports Industry in Canada

Fitness has become a trend in recent years. More than 16.2 million Canadians aged 12 and over participate in at least 150 minutes of moderate to vigorous aerobic fitness exercise every week. The output value of Canadian sports and fitness-related industries is estimated to reach 32 billion U.S. dollars. There is great demand for various sports equipment and supplies such as fitness equipment, skating, and ski equipment, ice hockey equipment, skateboards, in-line skates, rackets, and bicycles, and the market has great potential for business opportunities.

An overview of the changes in the lives of Canadians in the post-epidemic era:

  1. From January to August 2020, the Canadian retail market reached 381.2 billion Canadian dollars. E-commerce volume reached 22.159 billion Canadian dollars, for a growth of 68.73% compared with the same period the year before. E-commerce’s proportion in the retail industry for this period increased from 3.26% to 5.81%. In addition, online and mail orders where approximately 14.3 billion Canadian dollars, an increase of 44.59% from the previous year, accounting for approximately 3.75% of the overall retail market. Affected by the epidemic, total retail sales in Canada declined by about 6.2% in 2020. At the same time, total retail e-commerce sales increased to 52 billion Canadian dollars, bucking the trend and growing 20.7%, accounting for approximately 8.7% of total retail sales. It can be observed that after the outbreak of the epidemic, Canadians changed their consumption habits, and the proportion of e-commerce and online shopping increased significantly.
  2. Sales for the sports goods market from January to August of 2020 was 7.375 billion Canadian dollars, a decrease of 8.27% from the same period of the previous year. Among them, physical store sales accounted for about 70% and online sales accounted for about 30%. There are approximately 4,580 companies engaged in the manufacturing and sales of sports goods. Due to the impact of the epidemic and some supply chain disruptions, the growth rate of the sports goods market in 2020 was approximately 1.2%. Taiwan is Canada's third-largest import trading partner for sports goods. The number of sports goods purchased from Taiwan in the first three quarters of 2020 was approximately CAD 82.31 million, a 19.3% increase over the same period in 2019. This reflects that the epidemic has indeed caused the Canadian sports goods market to shrink, but the subsequent business opportunities for Taiwan manufacturers has been huge. Orders have been placed in advance to prepare inventory, so the number of purchases from Taiwan has increased.

An overview of the impact of the post-epidemic era on the Canadian sporting goods market:

  1. The Canadian sporting goods industry includes bicycles, camping equipment, fitness equipment, sportswear and shoes, and other sporting goods and accessories. In recent years, the production scale of sports goods in Canada has gradually shrunk, and nowadays it relies on imports. Canada’s sports goods market has a total sales volume of approximately 5 billion Canadian dollars. There are approximately 4,580 sports equipment manufacturing and sales companies, and approximately 31,657 related employees. Most of the manufacturers are concentrated in Ontario, Quebec, and British Columbia.
  2. Part of the supply chain was disrupted by the impact of the epidemic in 2020, and the sports goods market growth rate in 2020 was 1.2%. June is the peak season for outdoor sports equipment sales in North America, and after the gradual relaxation of the closures, revenue rose. For example, bicycle sales increased by 63% compared to the same period in 2019, and other sports equipment showed increasing trends, such as golf (growth-51%), camping equipment (increased by 31%), water sports such as canoes and boats (increased by 56%), bird watching and natural ecological viewing tools such as telescopes (increased by 22%), etc.
  3. During the first three quarters of 2020, Canada’s imports of sports goods from abroad amounted to approximately C$1,634.41 million; a 4% decline from the same period in 2019. The top 10 import sources were China (49.75%), the United States (25.08%), Taiwan (5.04%), Vietnam (3.09%), Mexico (2.56%), Thailand (2.41%), Italy (1.23%), Czech Republic (0.81%), Germany (0.75%), and Indonesia (0.72%).

Sports goods popular in Canada in the post-epidemic era:

  1. Fitness equipment:
    Canadians are following the trend of home exercise. Treadmills, dumbbells, yoga mats, and other home fitness equipment are selling well, and sales rates of fitness equipment are growing by triple digits. Sales of new and second-hand fitness equipment has grown substantially, including sales of Stepping machines up 230% over 2019, and sales of treadmills soaring 280%. In addition, dumbbells, Elliptical Trainers, and exercise bikes, etc. are also hot products.
  2. Bicycle:
    During the epidemic, all indoor entertainment and fitness venues, such as gyms and yoga classrooms, were temporarily closed. Because cycling can maintain social distancing, the entire bicycle industry, including the sales of new and second-hand bicycles, and the demand for maintenance services have been driven. At present, the top three import sources of Canadian bicycles are China (with a market share of nearly 50%), Taiwan (with a market share of nearly 30%), and the United States (with a market share of nearly 10%). Among these, most of the cheap bicycles come from China. Taiwan and the United States mainly focus on mid-and high-priced bicycles. From January to October 2020, the number of Taiwanese bicycles exported to Canada was approximately 32,559 units. Canadian consumers are more interested in mid-and high-end bicycles made in Taiwan. In addition, in response to technological innovation, market orientation, and the prosperity of the concept of environmental protection and green energy, the main sales focus of the bicycle market in recent years has been on high-end bicycles and electric bicycles.
  3. Ski products:
    Affected by the epidemic, due to the temporary suspension of overseas manufacturing plants, the lack of raw materials, and the reduction in the number of shipping vessels, Canada imported ski products (snow pants, snow boots, snowboards, ski fixtures, and equipment, etc.) from abroad declined in the first three quarters of 2020. The decline has led to a significant reduction in the supply of ski products and related equipment on the market. December was the peak season for ski products, but in 2020, Canadians worried that they would not be able to buy them, so started to purchase ski products as early as September.

Opportunities and transformation suggestions for Taiwan's sports goods industry in the post-epidemic era:

  1. Taiwan is the third-largest source of imports for Canadian sports goods. The purchase of sports goods amounted to approximately CAD 82.31 million, an increase of 19.30% over the same period in 2019. During the epidemic, Canada's purchases of sporting goods from Taiwan and Mexico grew against the trend, compared to other competing countries such as the United States, China, and Vietnam, where purchases were significantly reduced. This is a good time for Taiwanese manufacturers to enter the Canadian market. In terms of individual products, the main sports products imported by Canada from Taiwan are fitness equipment, golf balls and accessories, surfboards and other water sports equipment, skating products, ski products, bowling balls, and other non-inflatable ball products.
  2. Canadian sports goods sales channels can be divided into two categories: retail channels and e-commerce channels. Major retail channels include large chain stores and comprehensive sports goods specialty stores. One interesting feature of e-commerce is that large chain stores have the most outstanding sales performance.
  3. If Taiwanese companies plan to expand the Canadian sporting goods market, they can contact Canadian sporting goods wholesalers. In addition, affected by the epidemic, people's consumption habits are increasingly relying on online shopping. Canada's purchases of sports goods from Taiwan have grown against the trend, and its purchases from other competing countries such as the United States, China, and Vietnam have been significantly reduced. This is a good time for Taiwan to enter the Canadian market. Looking forward to the post-epidemic era, people's consumption habits will rely more on online shopping. It is recommended that Taiwan companies find appropriate channels through local importers/distributors and increase sales through online sales.
Published by Dec 23, 2021 Source :taiwantradeshows

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