Sports - Kenya

Kenya

Revenue in the Sports market is projected to reach US$32.97m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.15%, resulting in a projected market volume of US$36.67m by 2029.
In global comparison, most revenue will be generated in the United States (US$49,760.00m in 2024).
The average revenue per user (ARPU) in the Sports market is projected to amount to US$9.18 in 2024.

Market

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Analyst Opinion

As the popularity of digital technologies increases, the Sports Market in Kenya is also experiencing growth. Factors driving this growth include the rise in sports awareness among consumers and the convenience of online sports services. Despite negligible growth rate, the market is impacted by factors such as lack of infrastructure, funding challenges, and limited access to advanced training facilities. This is especially evident in sub-markets such as American Football and Baseball, where the infrastructure is often not as developed compared to other sports. As a result, the growth rate of the overall market may be slower than expected, but it is steadily expanding as efforts are made to improve infrastructure and accessibility.

Customer preferences: Amidst the growing health and wellness trend in Kenya, consumers are increasingly looking for sports products and services that promote a holistic approach to fitness. This includes a focus on mental well-being and mindfulness through activities such as yoga and meditation. As the population becomes more health-conscious, the demand for sports gear and equipment suited for these activities has also seen a rise. In addition, there is a growing interest in outdoor sports and adventure activities, as people seek to connect with nature and pursue an active lifestyle.

Trends in the market: In Kenya, the Sports Market is seeing a growing trend of mobile sports betting, with more and more Kenyans using their smartphones to place bets on their favorite sports teams. This trend is significant as it allows for a wider reach to potential customers and has the potential to increase profits for sports betting companies. However, it also raises concerns about the potential negative effects of gambling addiction and responsible gambling measures need to be implemented. Additionally, the rise of mobile betting could also lead to increased competition and pressure for traditional brick and mortar betting locations.

Local special circumstances: In Kenya, the Sports Market has rapidly expanded over the past decade, largely due to the increasing popularity of football and the countrys success in international competitions. Additionally, Kenyas favorable climate and diverse landscape make it an ideal location for outdoor sports activities, such as hiking, running, and safari tours. Despite challenges such as inadequate infrastructure and lack of government support, the market continues to grow, driven by the enthusiasm of local communities and the emergence of innovative sports clubs and organizations. This unique blend of factors has created a dynamic and thriving Sports market in Kenya, with the potential for significant future growth.

Underlying macroeconomic factors: In Kenya, the Sports Market is influenced by macroeconomic factors such as economic stability, government policies, and global trade trends. The countrys strong economic growth has led to an increase in disposable income, allowing for greater spending on leisure and recreational activities, including sports. Furthermore, the governments investment in sports infrastructure and policies promoting sports events have contributed to the growth of the market. On a global scale, the increasing popularity of sports and the rise of international sporting events have also positively impacted the Sports market in Kenya. Additionally, with the countrys population being relatively young, the demand for sports activities is expected to continue to grow in the foreseeable future.

Methodology

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.