EXEC: Houlihan Lokey Highlights Developments Driving Active Way of life Trade’s Progress

Houlihan Lokey’s Summer 2025 “Fit for The Future” report recognized six key tendencies, together with the fragmentation of sports activities participation, the social attraction of sports activities, growing old energetic people, and girls in crew sports activities, which collectively favorably form the energetic life-style panorama.

The six tendencies embrace:

• Fragmentation of sports activities participation. The funding agency famous that whereas total participation is rising solely reasonably, shoppers are “engaging in a broader mix of activities, often with higher intensity. People are shifting from single-sport routines to diverse, personalized combinations of sports, leading to increased fragmentation and more dynamic participation patterns.”
• Social sport as a cultural motion. Houlihan Lokey acknowledged, “Group fitness is evolving into a lifestyle driven by community, safety and shared motivation. Running and cycling clubs are booming (+59 percent participation in 2024). They offer inclusive spaces and turn workouts into social rituals, especially among Gen Z.”
• Tariffs and geopolitics reshape provide methods. Geopolitical developments and evolving commerce dynamics are prompting firms within the sporting items business to proactively put together for potential adjustments in price buildings and provide chain complexity. Houlihan Lokey acknowledged, “Tariff uncertainty is encouraging brands to rethink sourcing, explore local production, and accelerate automation—strengthening resilience and unlocking new efficiencies in a rapidly evolving trade environment.”
• Women in crew sports activities. Women’s participation is rising throughout all sports activities, however most notably in historically male-dominated crew sports activities, comparable to soccer, rugby and handball. Houlihan Lokey stated, “This shift reflects broader cultural changes and rising interest among younger generations. While participation rates still trail those of men, the momentum is clear. UEFA Women’s EURO 2025 in Switzerland drew record crowds, with more than 600,000 tickets sold. With strong growth in both athlete numbers and fan engagement, this trend opens new opportunities for investment, sponsorship, and media innovation.”
• Active growing old drives participation. The inhabitants aged 55 and over is now the “primary engine of growth” in sports activities participation, particularly in mature markets just like the U.S. and the U.Ok. Houlihan Lokey stated, “This pattern challenges conventional assumptions about goal demographics and requires a rethinking of product growth, distribution, and engagement methods. To keep aggressive, companies should embrace inclusive design, age-friendly companies, and data-driven personalization. Recognizing the financial energy and life-style aspirations of energetic seniors shall be key to capturing worth within the subsequent wave of market growth.
• Staying true: defending model worth amid growth. Houlihan Lokey burdened the significance of “maintaining a clear and consistent brand identity” as many sporting items manufacturers develop into new classes and value tiers. The agency stated, “Strategic growth requires balancing innovation with authenticity, ensuring that every move reinforces core values rather than diluting them. Brands anchored to a distinct purpose are better positioned to build long-term trust, navigate competitive shifts, and scale with impact. Whether entering adjacent markets or refining positioning, clarity of mission and disciplined execution remain key to preserving brand equity and driving sustainable growth.”

Houlihan Lokey’s report highlights the colourful progress in endurance sports activities, together with marathons, path runs, and impediment races, following the pandemic, drawing document numbers of members. This progress is pushed by “Gen Z and Millennials seeking purpose, challenge and community.”

Houlihan Lokey’s report additionally highlighted findings exhibiting a surge in first-time entrants underneath 30 years of age in ultra-marathons and Ironman races, momentum round hybrid competitions like Hyrox that mix energy and cardio in a race format, and beginner athletes more and more adopting professional-level coaching routines.

Houlihan Lokey acknowledged, “Supported by digital coaching platforms, recovery science, and performance diagnostics via the rising popularity of wearable devices, they are competing more often and at higher levels than ever before.”

Other tendencies driving sports activities participation highlighted within the report embrace:

• Outdoor and journey sports activities on the rise. Nature-based actions proceed to draw new members, providing versatile and lifestyle-driven methods to remain energetic.
• Outdoor life-style. Young shoppers are redefining out of doors engagement, with 67 p.c figuring out as “outdoorsy,” breaking stereotypes about digital-native life. With 80 p.c of Gen Z and Millennials desirous to spend extra time exterior, manufacturers have a chief alternative to cater to this shift in client conduct.
• Racket sports activities growth throughout generations. Pickleball is increasing quickly from the U.S. to Europe, interesting to all age teams with its accessibility and social nature. Flexible, social actions like padel tennis and off-course golf are equally gaining attraction.
• Urban mobility progress. Enhanced biking infrastructure and rising demand for micro-mobility options, comparable to e-scooters, are reshaping city transportation.