The Sports market in Eastern Africa has seen minimal growth due to various factors such as low adoption of digital technologies and limited awareness among consumers about the benefits of online services. This is further impacted by the dominance of traditional sports like Soccer, American Football, Basketball, Baseball, and Cricket which may hinder the overall growth rate.
Customer preferences: In Eastern Africa, there is a growing demand for sports and fitness activities, driven by rising health consciousness and increasing disposable incomes. As a result, there has been a surge in the popularity of sports tech products, such as fitness trackers and mobile apps, to help individuals track and improve their physical well-being. This trend is also fueled by the desire for convenient and personalized fitness solutions, as well as the growing interest in virtual coaching and online fitness classes. Additionally, the rise of social media and influencer culture has also led to a preference for trendy and technologically advanced sports gear and equipment.
Trends in the market: In Eastern Africa, the Sports Market is experiencing a rise in digital platforms, with many sports organizations leveraging technology to enhance fan engagement and offer immersive experiences. In addition, there is an increasing use of mobile apps and websites to facilitate ticket sales, merchandise purchases, and in-game betting. This trend is expected to continue and even accelerate, given the regions growing internet and smartphone penetration rates. For industry stakeholders, this presents opportunities for revenue growth and improved customer experiences, particularly as the region continues to attract major sporting events. Furthermore, this digital shift could also increase the accessibility of sports for marginalized communities, potentially promoting inclusivity and diversity.
Local special circumstances: In Eastern Africa, the Sports Market is heavily influenced by the regions passion for sports, particularly football (soccer). The local culture places a strong emphasis on physical activity, with a large percentage of the population actively participating in sports. Additionally, the climate and terrain provide ideal conditions for outdoor sports, making sports facilities and equipment a lucrative market. However, market growth is hindered by factors such as poor infrastructure and lack of government support. This has led to the rise of innovative solutions, such as mobile-based training programs, to cater to the unique needs of the local market.
Underlying macroeconomic factors: The Eastern African Sports market is significantly impacted by macroeconomic factors such as population growth, rising disposable incomes, and government investments in sports infrastructure. Countries with a growing middle class and high population density are experiencing an increase in sports participation and consumer spending on sports-related products and services. Additionally, favorable government policies, such as tax incentives for sports development and hosting major sporting events, are driving market growth in the region. Furthermore, the increasing penetration of digital technologies in the region is creating new opportunities for sports businesses to reach and engage with a larger audience, thus fuelling market growth.
Data coverage:
The data encompasses B2C and B2B revenues. Figures are based on media spending, merchandise spending, and ticket spending. All monetary figures for merchandise and tickets refer to consumer spending on goods or tickets in the respective segment, which can be online and offline.Modeling approach / Market size:
Market sizes are determined through a combination of bottom-up and top-down approaches, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per ticket, price on sport goods). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, and internet consumption. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function or linear forecasting, as it fits the development of either strong growing markets or more sophistacted and saturated markets, such as soccer in Europe.Additional notes:
The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). We also account for the different cycles of international tournaments, such as world cups or continent cups. Consumer Insights data is reweighted for representativeness.
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