Report Warns: Global Sports Industry Faces $1.6 Trillion Loss by 2050

Climate change and rising physical inactivity pose significant threats to the global sports industry. A report from the World Economic Forum (WEF) warns these issues could result in a $1.6 trillion decline by 2050.

Key Findings of the WEF Report

The WEF’s report, “Sports for People and Planet,” was developed in collaboration with management consultancy Oliver Wyman. It incorporates insights from 125 organizations and a review of over 130 sources.

• Current Industry Value: The global sports market generated $2.3 trillion in 2022.
• Future Projections: Expected to rise to $3.7 trillion by 2030 and $8.8 trillion by 2050.
• Physical Inactivity Impact: Only one in five young people currently meet activity guidelines.
• Inactivity Trends: Projections indicate that one in three adults may be inactive by 2030.

Sector Vulnerabilities

The report highlights three main areas at risk:

• Sports Tourism: Heavily reliant on active populations and stable environments.
• Sporting Goods: Faces declining demand if physical activity rates drop.
• Participatory Sports: Threatened by reduced engagement levels.

Climate Change and Sports

Climate concerns are also critical. The sports sector not only suffers from environmental degradation but also contributes to it. For instance, recent events, such as FIFA’s Club World Cup, illustrate how extreme weather can disrupt elite sports.

Clean water shortages, particularly in Asia where most sporting goods are manufactured, pose additional challenges. Without addressing these environmental threats, the industry’s growth potential may not be fully realized.

Innovative Practices and Sustainability

To combat these challenges, some companies are adopting sustainable practices:

• Adidas is utilizing recycled materials in its products.
• Decathlon is expanding repair, rental, and resale services.
• Formula E promotes electric vehicle technology.

However, issues persist. Many professional sports teams continue unsustainable practices, such as frequent new kit releases contributing to waste.

Future Opportunities in the Sports Industry

Despite these challenges, the WEF believes the sports industry can grow significantly. Currently contributing over two percent to GDP in many Western economies, it supports approximately one in 25 jobs.

Potential growth drivers include:

• Increased sports tourism, especially during major events.
• Rising interest in women’s sports.
• Emerging market engagement in the sports sector.

Upcoming Global Sports Events

Key athletic events on the horizon include:

• 2026 Winter Olympics
• Expanded FIFA Men’s World Cup
• Commonwealth Games
• Rugby League World Cup

These events are expected to attract significant sports tourists and fans interested in travel packages.

Conclusion and Industry Call to Action

The report emphasizes a collective responsibility among stakeholders. Addressing physical inactivity and climate concerns is vital for the future of the sports industry. Industry leaders and political figures will meet at WEF’s upcoming gathering in Davos to discuss sustainable growth in the sector.