The sports industry has entered a period of rapid development. In recent years, China’s sports industry has been developing continuously. In 2020, the total scale (total output) of the national sports industry was 2.74 trillion and the added value was 1.07 trillion. Compared with 2019 before the epidemic, the total output decreased by 7.2% and the added value decreased by 4.6%. It is expected to reach a market scale of 5 trillion by 2025, occupying an important position in the national economy. In terms of structure, China’s sports industry has also gradually changed from the traditional sports manufacturing industry to the multi structure industrial model of sports manufacturing, sports service and sports consumption. People’s demand for new outdoor sports such as cycling, water sports, ice and snow sports, rock climbing, fishing, marathon and equestrian is rising.
The youth sports training market is booming, and policies help the national fitness. The state continues to promulgate documents on the reform of basic education, such as the new deal of “raising scores for physical education and entering aesthetic education into the high school entrance examination”. The proportion of physical education scores in the middle school entrance examination has been continuously improved to activate the physical education and training market. In addition to routine running and solid ball throwing, the sports content of the national high school entrance examination also includes foot basketball around the bar, volleyball mat, table tennis forehand attack, pull-up, gymnastics, martial arts, BMI assessment, etc. some sports assessments with professional characteristics open up market space for sports training institutions. Combined with the “double reduction of education”, it is expected that the proportion of extracurricular sports activities will continue to increase. Under the background of “great health”, relevant departments have issued a number of policies to boost the development of sports industry.
The ice and snow industry has entered the fast lane of development. The outbreak of the epidemic in 2020 affected the operation of China’s ski resorts, cancelled ice and snow events, and impacted China’s ice and snow industry. In 2020, the scale of the ice and snow industry decreased by 26.84% year-on-year to 381.1 billion yuan. With the effective control of the epidemic situation in China and the active introduction of corresponding support measures by the national government, the ice and snow event service industry, mass ice and snow sports and training industry and ice and snow tourism have gradually recovered. China’s ice and snow industry has rebounded significantly in 2021. It is estimated that the total scale of China’s ice and snow industry will exceed 100 billion yuan in 2025, and more than 50 million people will participate in ice and snow sports.
The Winter Olympic Games have led to the warming of the ice and snow industry, and it is becoming a reality for 300 million people to go on ice and snow. The Winter Olympics will comprehensively enhance the popularity of the ice and snow industry in terms of ice and snow sports, ice and snow tourism, ice and snow equipment and investment and financing of the ice and snow industry. Under the stimulation of supply and demand such as the Beijing Winter Olympics, the return of ice and snow outbound tourism, the upgrading of tourism consumption and the national layout of ice and snow facilities, it is expected that the number of ice and snow leisure tourists in China will reach 305 million in the ice and snow season from 2021 to 2022, China’s ice and snow leisure tourism revenue is expected to reach 323.3 billion yuan.
Investment suggestion: the consumption demand of China’s sports industry has gradually shifted from physical consumption such as traditional sports clothing and sports equipment to service consumption such as event tickets and fitness training. Sports + tourism has become an important content of sports consumption. We rank the sports related sub industries according to the degree to which the sports industry is affected by the epidemic: sports event holding > stadium operation > comprehensive sports service > sports equipment sales > sports clothing sales > sports training. In 2025, the total scale of China’s sports industry will strive to exceed 5 trillion yuan. As a long-term project, the Winter Olympic Games will become an important catalyst for the rise of ice and snow sports industry. Driven by the Beijing Winter Olympic Games, relevant events marketing, sales of surrounding derivatives and other activities will be carried out gradually. Relevant companies in the industrial chain may enter the performance cashing period. It is suggested to continue to pay attention to the opportunities brought by the recovery of sports sector and offline sports activities. It is suggested to pay attention to: China Sports Industry Group Co.Ltd(600158) , Lander Sports Development Co.Ltd(000558) , Shuhua sports, Beijing Yuanlong Yato Culture Dissemination Co.Ltd(002878) and other sports and Winter Olympic concept related companies.
Risk warning: the epidemic situation has a continuous impact on the sports industry; The economic benefit of stadium operation management is less than the expected risk; The development of sports industry is less than the expected risk; Industry systemic risk.
