The offline golf market in the first quarter of 2024 declined by 19% year-on-year, continuing the trend of widening declines following a 10% decline in 2023.

Despite the market decline, online channels are thriving, with an estimated online market share of 32%.

The decline is expected to continue in the near future due to the base effect of the COVID-19 boom and the contraction of consumption due to inflation.

The downward trend in the domestic golf club market, which had been experiencing rapid growth during the COVID-19 period, is now in full swing. According to GfK, a global market intelligence firm, the offline golf club market in 2023 was KRW 700 billion, down 10% from 2022. In the first quarter of 2024, the decline deepened, falling 19% compared to the first quarter of 2023 (based on sales revenue).

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The domestic golf club market saw unprecedented growth in 2021 and 2022, with year-on-year increases of 39% and 21%, respectively, driven by the COVID-19 boom. However, with the COVID-19 boom fading and inflation and consumption contraction taking hold in the second half of 2022, the market has entered a clear downward trend. However, the market has not yet returned to pre-COVID-19 levels. The market size in 2023 is still 64% higher than in 2019.

Looking at the overall market, including online channels, the golf club market in 2023 is estimated to be around KRW 1.1 trillion. Even considering the online market, this represents a 10% decline from 2022.

However, even in the golf club market, which is dominated by offline channels, the influence of online channels is expanding in the long-term trend. The online channel sales share of the domestic golf club market, which was 23% in 2019, is estimated to have reached 32% in 2023 (based on sales revenue). This is largely due to the increase in non-face-to-face purchases driven by COVID-19 and the influx of young golfers. Major distributors are also increasing the reliability of genuine purchases by entering various online platforms, lowering the barrier to entry for online shopping. GfK interprets this as a phenomenon that is occurring as small and medium-sized retailers can easily enter online platforms.

The trend of a few top brands dominating the majority of the market continued in 2023. Even in 2023, the top 10 revenue-generating brands accounted for 79% of the overall market (based on sales revenue).

Hyun Byung-hwan, a manager in the GfK Market Intelligence division, said, “Given the base effect, the market decline is expected to continue. As the market direction has shifted rapidly from a good time for all to a downward trend, the consumer movement is becoming more segmented and the channels for purchasing golf clubs are diversifying, leading the golf club market into a new era of transition. Top brands facing fierce competition need to develop strategies to enhance consumer trust and purchase convenience in the expanded sales channels.”

• Based on GfK Market Intelligence: Sales Tracking
• Unless otherwise stated, all figures are based on sales revenue.

About GfK

For over 89 years, GfK has built trust with clients all over the world by solving critical questions in the decision-making process. Providing a full understanding of the dynamics that influence consumer purchase behavior, markets, brands, and media trends, GfK enables clients to grow. In 2023, GfK combined with NIQ, uniting two industry leaders with unique global influence. With a holistic understanding of the retail market delivered alongside advanced analytics through cutting-edge platforms, and the most comprehensive consumer insights, GfK drives “Growth from Knowledge.”

Website: http://www.gfk.com

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GfK Korea
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Eun-jeong Kim, Team Leader