Anand Rathi Advisors Limited (ARAL) has assembled a comprehensive report on the Indian sports sector. The report includes India’s sports economy ranging from the organization of sports events, the fitness industry, sports goods manufacturing, sports nutrition, etc.
According to ARAL, Indian sports economy is expected to reach US$12.6bn by 2027. The sports pundits have been claiming that India’s time as a sporting superpower has come.
The report also urged investors and industry heavyweights to invest in India’s sports economy.
Key highlights of the report
- Indian sports sector is expected to reach US$100bn by 2027, up to 4 times from US$27bn in 2020.
- Youth is the driving force in the sports industry. A total of 400 m people, larger than the population of the US and helps improve the sports economic conditions of India.
- The populace is inclined toward basic needs and consumption that support a healthier lifestyle and entertainment.
- Indian Premier League (IPL), with a record 9mn+ viewership, has raised gigantic popularity and growth of sports in India. Just like football unites Europe, the IPL can unify South Asia together. This will lead to more stability, economic prosperity, and peace in the region.
- The report estimates that Indian sports media would grow to over $13.4bn by 2027 from a market size of $1bn in 2020.
- Cricket allocations in the global media rights mix grew from 2.7% to 3.0%. Football leading the top spot at 42%.
- After China & Japan, India is one of the largest manufacturers of sports goods and equipment in Asia. It is listed as the 24th largest exporter of sports goods in the world in 2019. The sports goods market estimated to touch $6.6bn by 2027, presents a propitious future in investment.
- The Indian sports apparel market is estimated to grow to $21bn by 2023 from worth $14bn in 2020. The men’s wear sector will dominate the market.
- More than 4,000 nutraceutical start-ups in India, provide vitamins and minerals, nutritional bars, healthy snacks, energy, and sports drinks, etc.
Samir Bahl, CEO – Investment Banking, Anand Rathi Advisors Ltd., said,
“India emulates the west in terms of its consumption. We have seen the growth in education, e-commerce, D2C brands and believe sports will be an additional dimension to our consumption story. The recent IPL media rights auctions, gives us further confidence in stating that sports is at the cusp of explosive growth.”
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