Golf rounds in the U.S. soared by 13.9% and retail equipment sales increased by 10.1% over 2019 levels, according to Golf Datatech LLC’s first-of-its-kind 2020 National Golf Performance Report. The year did bring a 14.2% dropoff in apparel sales, attributed to many pro shops not being fully operational for several months and travel lockdowns. But the last two months of 2020 brought an encouraging sign for that segment as well, with total apparel sales growing 11% from the previous year.
Golf Datatech LLC’s first-of-its-kind 2020 National Golf Performance Report indicates that golf rounds in the U.S. soared by 13.9%, and equipment sales increased by 10.1%, over 2019 levels.
The 13.9% increase in rounds is the largest total year increase since Golf Datatech began collecting and projecting rounds played in 1998, topping the previous largest increase of 5.7% in 2012. The 10.1% improvement in retail sales bettered the previous all-time high percentage gain of 10.0% in 2005.
The year-over-year surge in rounds and retail sales are primarily a result of golf being positioned as a nearly ideal socially distanced activity during a pandemic, Golf Datatech reported. Fueled by a combination of avid players, newcomers and infrequent golfers, 2020 demand for all things golf surged during the second half of the year. In fact, 2020 spending reached near-record levels, as overall golf equipment sales eclipsed $2.81 billion, the third highest annual total of all-time, trailing behind only 2008 ($2.91 billion) and 2007 ($2.87 billion).
The 2020 surge in rounds was finished with a strong December showing, with December rounds played soaring 37% higher than in 2019, Golf Datatech reported. This was led by a strong showing in warm-weather markets, along with some incremental increases in markets that would typically have minimal activity due to cold weather.
While rounds played and equipment sales experienced sharp increases in 2020, apparel sales went the other direction and dropped by 14.2%, Golf Datatech reported. Golf apparel is predominantly sold thru on-course golf shops, but due to COVID-19 restrictions, many pro shops were not fully operational for several months. Additionally, a lack of international travel and lockdowns during the critical spring season in warm-weather markets had a detrimental impact on many resorts, which sell a significant amount of logoed golf apparel.
While on-course sales declined, apparel sales at off-course specialty outlets, particularly those with a strong online presence, enjoyed significant growth in 2020, Golf Datatech reported. Moreover, the last two months of the year saw total apparel sales up 11%, a hopeful sign heading into 2021.
“While the global pandemic wreaked havoc on many segments of our economy, the golf industry experienced a significant boost in rounds played and equipment sales,” said Golf Datatech Partner John Krzynowek. “On the equipment side, sales increased by low single digits in both 2018 and 2019, but the double-digit gains in 2020 can only be attributed to the pandemic and golf being a respite for so many.
“Combining equipment and apparel sales thru the on and off-course channels, total consumer demand in dollars for golf product was 3.2% higher than in 2019,” Krzynowek added. “Given the state of the golf economy in late spring, anything in positive territory had to be considered a big win, and December data continues to impress and suggest the business may still have room to run in early 2021.
“We’ve never seen an annual increase [in rounds] remotely close to this, as the previous record increase occurred in 2012, a year when we had nearly perfect weather across much of the United States and rounds played grew by 5.7%,” Krynowek said. “While there is no doubt that the pandemic provided a positive jolt of energy to the golf business in 2020, a warmer and drier climate across broad swaths of the US also generated more potential tee times, which the golf community passionately consumed…and continued to ask for more.
“Golf has fared better than many other US industries during the pandemic, as on-course and off-course facilities effectively adapted their operations to accommodate customers, while adhering to CDC, local and National Health departments guidelines,” he concluded. “Overall, the golf industry can be proud of how it has handled the adversity brought on by the pandemic thus far but must always be aware that until a vaccine is distributed, and broad-based immunity is present, we must all continue to be on guard.”
Golf Datatech’s 2020 Rounds Played Report can be accessed at: https://www.golfdatatech.com/cms/wp-content/uploads/2021/01/Golf-Datatech-December-Rounds-Played-Report-2020.pdf
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