Global Sports Industry At Risk Of $1.6T Loss By 2050

A new World Economic Forum report, developed in collaboration with Oliver Wyman, highlights both the significant growth potential and mounting risks facing the global sports industry.  As reported in an exclusive story from The New York Times' sports-focused publication, The Athletic, The Sports for People and Planet report reveals sport generates $2.3 trillion annually in total revenues. With projected compound growth of 10% over the next five years, the sector is expected to reach $3.7 trillion by 2030, with long-term forecasts indicating expansion to $8.8 trillion by 2050, "but it also warns that the industry’s full potential will not be realized if only one in five young people meet recommended daily guidelines for physical activity, as is currently the case, or if the various environmental risks that threaten the sector are not addressed," the article adds. 

Drawing on analysis from Oliver Wyman and insights from more than 125 organizations, the report finds that sport’s long-term growth is at risk due to rising levels of physical inactivity, especially among youth. Additionally, climate-related risks, such as heat stress, extreme weather and pollution, add several realistic scenarios that contribute to major risks for the sector's growth trajectory. 

However, there is potential for the sector to keep momentum and combat loss in the coming years. As the story reads, "WEF and Oliver Wyman say the global sports industry already contributes more than two per cent of gross domestic product in most Western economies, and supports one in 25 jobs. They believe the industry can grow at an even faster rate (10 per cent) in the coming decades than it is currently (seven per cent). The key drivers will be sports tourism, continued interest from institutional investors, women’s sport going mainstream and emerging economies leaning into the sector’s potential." 

Read the full article here (paywall).