Why did so many people play golf during the pandemic? How did it affect the golfing industry? What are its opportunities?
Golf is a sport enjoyed by all people of different ages. It may not look like the most entertaining sport, but it has a wide variety of enthusiasts from different demographics. In the United States, 25.1 million people played golf on a golf course in 2021, which resulted in a 26.1 USD billion market size of the golf course industry.
Golf itself brings a lot of benefits to the body. One of them being cardiovascular health. It keeps our heart rate up and prevents you from adapting to a heart disease or ‘bad’ cholesterol. Research shows that regularly playing golf may even lead to an increase in life expectancy due to its benefits provided to individuals.
Considering the outstanding market performance in the United States and the positive benefits of golf towards its consumers, it leads us to the question of what are the opportunities of the golf industry? How did the pandemic affect the golfing industry? Read more to find out!
The Rise of Pandemic Golfers
The rise of the Covid-19 pandemic caused immense uncertainty and major shifts of life. It led the world in a perpetual state of chaos which still remains up til now. Many industries fell, and many industries grew. One of the industries who survived and thrived during the pandemic was the golfing industry.
The National Golf Foundation says that the total number of golfers worldwide has reached 66.6 million, up from 61 million five years ago, stating that the biggest demographic mostly belonged to women and minorities. Even after two years since the pandemic, brands like Callaway and Titleist became a long-standing brand, and has elevated companies to capitalizing the changing demographics and trends within the sport.
Pandemic golfers is a term used to describe individuals who are new to the sport and started playing the sport because of the pandemic. One of the motives behind this term is because people wanted to stay healthy and exercise outside, while still being able to maintain social distance. Especially in driving ranges or golf courses, it provides a wide space that allows players to still play the golf while protecting themselves from Covid-19.
After people found out the essence and enjoyment of golf, it broke the stereotype that golf isn’t just an ‘old people’ thing to do, rather it has a deeper meaning to it in terms of being able to connect with other people while staying healthy at the same time. The mindset that people should go out and enjoy the little things in life has increased since the pandemic, which became the main drive in new individuals who have never tried golf before, to challenge themselves in a game of golf.
Market Overview of the Golf Industry
There are approximately 100 golf courses in Indonesia, with most 50 of them in the Greater Jakarta Area. They usually hold up to 200 thousand golfers in the country. With a population of 260 million people, there are less than 0.1 that play golf in Indonesia.
Golf in Indonesia is priced premium because of the services that are considered as ‘luxurious’. Because of the high cost, the sport is played by the more affluent segment, with an age range between 40-60 years old. However, there is currently a rise in the Gen-Z demographic as the pandemic allowed them to try a new sport. Golf courses and driving ranges in Indonesia have also provided promotions so all people in different economic backgrounds can play the sport.
Interestingly, according to a market analysis report, the golf cart and buggy industry is expected to grow at a CAGR of 4.6% over the next five years. This growth is a result from the growing mentality of eco-friendliness and sustainability. Considering that these carts are electricity powered, it shows that this segment is expected to grow the most.
Aside from golf carts and buggies, the country club and golf course industry are also growing. Analysis from revenue data shows that the country club and golf course market is worth USD 25.8 billion and is projected to grow 1.5% in a stable condition.
Another supporting item of golf is the golf apparel market. The global market for golf apparel, footwear, and accessories is expected to experience a CAGR of 4% during 2020-2024. One example of a brand, Acushnet, which owned Titleist and FootJoy, enjoyed an increase of second-quarter net sales in the U.S. and grew 117.1%, fueled by a 98.1% increase in Titleist golf ball sales and a 111% increase in Titleist golf club sales. Callaway, another golf apparel brand, has also seen growth.
Future Opportunities of the Indonesian Golf Industry
The interest in this sport surged in the second half of 2020 because it was a suitable socially distanced outdoor activity. Though golf course industries have to adapt by offering opportunities for night play, of course games, as well as single riders and eco friendly transport, the growth for this industry provides a positive outlook for the future.
The rise of interactive golf experiences that go beyond the typical 18 hole course has helped golf grow, especially to new audiences. The golf experience in this type of play is usually aimed for a more social and gamified experience along with drinks and food. Virtual trainers have been available too and used for entertainment purposes, as well as high-level training.
Enter Indonesia’s Golf Industry with BRIGHT Indonesia
It would take a lot of in-depth research about Indonesia’s golf industry. In order to enter the Indonesian market, you would need the right local partner to assist you.
BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.
BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:
- Provide assistance for you in expanding and developing your business by identification of potential partners.
- Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arrange business meetings, and act as a liaison.
- Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
- Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.
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