Mid-Year Review: Has Golf Reached its Peak?
Due to the impacts of the pandemic on normal economic activity, making comparisons to 2020 doesn’t tell the whole story. Here, in my review of the first 6 months of this year, I compare performance over the same period in 2019.
At the beginning of 2021, the question everyone was asking was whether golf could continue to sustain its upward trajectory as the U.S. economy heated up and golfers had access to alternative activities.
Even in the face of supply issues, particularly for products made abroad, the results for the first 6 months of 2021 are very encouraging as the golf economy continues to prosper.
In fact, we are actually seeing significant ongoing momentum in terms of retail sales. Prior to April this year, when retail sell-through totaled over $425 million, golf equipment sales had never reached $400 million in any single month. This June, we saw the third consecutive month with sales above $400 million.
Category Comeback: Apparel
In regard to apparel, COVID-19 was particularly hard on golf clothing manufacturers, during 2020, as many Green Grass golf shops closed for extended periods of time. Once opened to the public they urged golfers not to linger; dressing rooms were frequently closed; return policies were tightened (or not allowed at all); and people were encouraged not to touch/feel the merchandise. Additionally, many large resorts lost significant traffic from European and Asian visitors, and these customers would typically spend significantly on apparel.
As we come out of that difficult period, the bounce back in golf apparel sales through the first 6 months of the year has been particularly welcome news to battered apparel brands. After being mired in a negative position, the golf apparel category finally turned the corner during the first half of 2021, and the $552 million first half is the largest since Golf Datatech started tracking golf apparel sales: beating the previous high of $536 million from 2015.
Combining equipment and apparel sales thru the on- and off-course channels, total consumer demand in dollars for golf products was 66% higher than last year for the first 6 months of 2021. What’s even more impressive is that sales were up 23% when compared to the 2019. At some point consumer demand for new products will have to slow down. However, so far it has held up very well to the pressures of the pandemic.
2021 Mid-Year Rounds Played Insights
In 1998, Golf Datatech undertook the task of creating the golf industry’s first monthly projections of rounds played by state and region around the country. The company’s objective, from day one, was to provide accurate estimates of the health of golf by tracking rounds, which are the engine that drives almost every other aspect of the industry. We also receive support from the National Golf Federation (NGF) in helping to deliver course data and WeatherTrends in an effort to provide the industry with granular detail at the market level.
According to data compiled directly from golf course owners and operators, rounds of golf played through the first six-months of 2021 at public, private and resort courses, were up 23%. When compared with 2019, rounds played remained up in the high single digits.
However, June 2021 data showed a very small improvement (+0.4%) in rounds vs. the same month last year: suggesting the tsunami in rounds might finally be slowing, and comparisons to 2020 will become increasingly hard to beat.
Tee time capacity at golf courses has not increased significantly from a year ago, if at all. Last year saw a summer of excellent weather with minimal precipitation and relatively mild temperatures across much of the nation, making for difficult comps.
Over the next 6 months of this year, It will prove difficult for rounds to stay on pace with last year, but if we can remain within a few percentage points of the 2020 levels, it will be a big win for the industry.
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