Sportswear brands face new crossroads as growth slows and consumer habits change
Hoka sneakers Credits: Courtesy Hoka After several years of strong performance, the global sportswear and sporting goods industry is entering a period of tempered growth, with annual expansion projected to ease from 7 percent between 2021 and 2024 to 6 percent through 2029, according to McKinsey’s Sporting Goods 2025—The New Balancing Act report. This moderation — particularly evident in Asia-Pacific, Western Europe and Latin America — is compelling brands to shift focus from rapid revenue expansion to a dual agenda balancing topline growth with operational efficiencies. The deceleration comes at a time when macroeconomic pressures, including inflation and geopolitical uncertainty, continue to weigh on consumer spending. Yet, even as shoppers become more selective, sportswear remains firmly embedded in the cultural mainstream, evolving far beyond its performance roots into a core component of modern wardrobes and identity expression. The polarisation of active and inactive consumers One of the report’s most striking findings is the widening gap between active and inactive populations. While physical inactivity has steadily risen, now projected to reach 35 percent globally by 2030, the most engaged consumers — especially Gen Z and Millennials — are integrating fitness ever more tightly into their personal identities. For these consumers, sport and style are increasingly inseparable, driving demand for products that blur the line between performance and everyday fashion. This presents both a challenge and an opportunity for sportswear brands. Capturing the inactive segment — 1.8 billion people globally — will require innovation not only in product design, but also in marketing strategies that remove barriers to entry and reshape perceptions of sport and movement. At the same time, brands must deepen their emotional connection with active consumers, catering to the growing desire for apparel and footwear that supports hybrid lifestyles. Challenger brands reshape market dynamics The report highlights a significant shift in market share dynamics. Between 2019 and 2024, Nike and Adidas ceded three percentage points of market share to a wave of challenger brands offering hyper-targeted products and sharper cultural relevance. From Lululemon and On to emerging players like Hoka and Arc’teryx, these brands are winning by positioning themselves as purpose-driven, lifestyle-centric and deeply connected to the communities they serve. This fragmentation underscores a broader shift in consumer expectations, with sportswear buyers gravitating toward brands that feel authentic and personally relevant, rather than monolithic global giants. For both incumbents and newcomers, the key to long-term growth will lie in balancing scalable innovation with hyper-localised, emotionally resonant storytelling. The blending of sport, entertainment and retail As consumers seek more social, immersive experiences, sportswear brands are increasingly leaning into the convergence of fitness, entertainment and retail. From in-person fitness classes to hybrid digital-physical activations and sports-driven live events, brands have a growing opportunity to deepen engagement through community and spectacle. McKinsey projects the global live events ticketing market could reach 150 billion dollars by 2030, highlighting the potential for sportswear players to embed themselves into the broader lifestyle and cultural ecosystem. Successful brands will combine product innovation with experiences, building seamless journeys that blend digital convenience with the social, cultural and fashion-forward appeal of in-person moments. The outlook While the next phase for the sportswear sector will be more complex, brands that embrace this evolving landscape — balancing operational efficiency with lifestyle relevance, and catering to both elite athletes and everyday consumers — will be best positioned to capture growth. The race ahead is no longer just about performance; it’s about cultural fluency, community building and seamlessly integrating sport into the broader fashion conversation.
After several years of strong performance, the global sportswear and sporting goods industry is entering a period of tempered growth, with annual expansion projected to ease from 7 percent between 2021 and 2024 to 6 percent through 2029, according to McKinsey’s Sporting Goods 2025—The New Balancing Act report. This moderation — particularly evident in Asia-Pacific, Western Europe and Latin America — is compelling brands to shift focus from rapid revenue expansion to a dual agenda balancing topline growth with operational efficiencies.
The deceleration comes at a time when macroeconomic pressures, including inflation and geopolitical uncertainty, continue to weigh on consumer spending. Yet, even as shoppers become more selective, sportswear remains firmly embedded in the cultural mainstream, evolving far beyond its performance roots into a core component of modern wardrobes and identity expression.
The polarisation of active and inactive consumers
One of the report’s most striking findings is the widening gap between active and inactive populations. While physical inactivity has steadily risen, now projected to reach 35 percent globally by 2030, the most engaged consumers — especially Gen Z and Millennials — are integrating fitness ever more tightly into their personal identities. For these consumers, sport and style are increasingly inseparable, driving demand for products that blur the line between performance and everyday fashion.
This presents both a challenge and an opportunity for sportswear brands. Capturing the inactive segment — 1.8 billion people globally — will require innovation not only in product design, but also in marketing strategies that remove barriers to entry and reshape perceptions of sport and movement. At the same time, brands must deepen their emotional connection with active consumers, catering to the growing desire for apparel and footwear that supports hybrid lifestyles.
Challenger brands reshape market dynamics
The report highlights a significant shift in market share dynamics. Between 2019 and 2024, Nike and Adidas ceded three percentage points of market share to a wave of challenger brands offering hyper-targeted products and sharper cultural relevance. From Lululemon and On to emerging players like Hoka and Arc’teryx, these brands are winning by positioning themselves as purpose-driven, lifestyle-centric and deeply connected to the communities they serve.
This fragmentation underscores a broader shift in consumer expectations, with sportswear buyers gravitating toward brands that feel authentic and personally relevant, rather than monolithic global giants. For both incumbents and newcomers, the key to long-term growth will lie in balancing scalable innovation with hyper-localised, emotionally resonant storytelling.
The blending of sport, entertainment and retail
As consumers seek more social, immersive experiences, sportswear brands are increasingly leaning into the convergence of fitness, entertainment and retail. From in-person fitness classes to hybrid digital-physical activations and sports-driven live events, brands have a growing opportunity to deepen engagement through community and spectacle.
McKinsey projects the global live events ticketing market could reach 150 billion dollars by 2030, highlighting the potential for sportswear players to embed themselves into the broader lifestyle and cultural ecosystem. Successful brands will combine product innovation with experiences, building seamless journeys that blend digital convenience with the social, cultural and fashion-forward appeal of in-person moments.
The outlook
While the next phase for the sportswear sector will be more complex, brands that embrace this evolving landscape — balancing operational efficiency with lifestyle relevance, and catering to both elite athletes and everyday consumers — will be best positioned to capture growth. The race ahead is no longer just about performance; it’s about cultural fluency, community building and seamlessly integrating sport into the broader fashion conversation.
