Invest in
the new
economy :
sport

An economy
in great shape

In the midst of profound transformation, the sport industry is continuing to see strong growth thanks to the growing attention to well-being and health along with the diversification and expansion of populations practicing sports. Additionally, digitalisation trends and technological innovations are opening up new sport activities, thereby increasing the addressable market on a worldwide scale.

The sport economy represents 2% of worldwide GDP, with growth estimated at +6% per year over the next 3-5 years. This can be explained by a steady rise in household spending and a still very low equipment utilisation rate, notably in the emerging economies. At present, the global sport market has reached revenues of $800 billion and represents five million jobs, including 450,000 in France (source: PWC, Deloitte, Inseec-sport, 2019). Sport is consequently a sector with momentum underpinned by long-term growth.

Sport,
an economic
heavyweight

$800 billion

Value of the global sport market

2 %

Share of global GDP generated by sports

+6 %

Estimated growth over the next 3-5 years

5 million

Jobs worldwide in the sport sector

A playing field
for innovation
at the heart of
societal trends

Sport represents a major economic topic in terms of both the wealth and the generation of positive externalities it creates.

Trans-generational and practiced by all social categories, sport is a vector for educational values, integration and social mixing. It also constitutes an innovative tool for inclusion and a source of leverage for territorial development.

Additionally, the practice of sports is steadily growing. This momentum can be explained by new motivations linked to health and the seeking out of contact with nature along with changes in urban mobility favouring modes of transportation with less impact on the climate.

Finally, innovation and technological changes are spurring the far-reaching transformation of this economy, boosted by the emergence of new practices, a broader profile of persons practicing sports and the new forms of consumption, which have become more connected and community-based.

Sport,
a winning strategy

Transformed by innovation, digital technologies, social trends and new consumption habits, the sport economy offers visible growth momentum and makes a positive contribution to the economy on the extra-financial level.

This momentum affects a large range of investments. Four sectors stand out in particular. First, athletic performance, through innovations (connected watches, cardio belts) and food (probiotics, food supplements). Following this are sport equipment and material (accessories, sportswear) and sport infrastructures and organisations (stadiums and fitness centres as well as sponsoring and events). The final sector involves digital consumption, with notably the rapid emergence of e-sport and online platforms.

Investing in sport thereby offers exposure to a very broad and highly diversified universe with weakly correlated sectors.

Numerous
drivers
of growth

There are numerous drivers of growth in this theme.

Sport is a factor that is being increasingly integrated into governmental social and health plans, boosted by a rapid raising of awareness in reaction to the health crisis. More particularly in the emerging economies, the increase in disposable income and the development of infrastructures are also contributing to the growth of the sport economy.

This acceleration can notably be explained by the emergence of new practices and the broadening of the categories practising sports (senior citizens and women, for example).

Technological innovation is also playing a major role as a facilitator of sport activities. Digitalisation is making available a large number of connected objects and applications that are revolutionising our relationship with sport. It allows the improvement in performances and diversifies conditions under which sports are practised (for example, remotely).

These different drivers are contributing to shaping the sports of tomorrow.

Source: Mandarine, current drivers, may change over time.

An unbeatable
solution

In order to help investors gain exposure to the growth generated by the sport economy, Mandarine Gestion has created the Mandarine Global Sport strategy, an equity fund that aims to capture the growth and innovation dynamic of companies with at least 30% of their sales in this theme. Bolstered by a broad and diversified investment universe, the objective of Mandarine Global Sport is to select the best companies regardless of market capitalisation everywhere in the world.

Mandarine Global Sport uses financial and extra-financial criteria in order to validate the quality of companies and the long-term nature of their growth. This strategy has additionally received the French government’s SRI label, confirming its responsible approach.

Actualités sur le même sujet