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Golf Etc. of America
Golf has grown faster than motion pictures, financial services, hotels, and communications, all of which generally are thought to be the fastest growing industries. Only amusement and recreation in general have grown somewhat faster than golf in terms of revenues. Golf has been experiencing uniquely strong growth in both interest and in spending over the last decade and compares very favorably with other industries.
Overall growth in the industry over the past 11 years, which is estimated to be 7.5% CAGR (compound annual growth rate) – as measured by spending on equipment, fees, and apparel – has come from a mix of favorable population trends, increasing participation, and increased spending per golfer. With most of the non-inflationary increase due to real increases in spending, the industry was able to get consumers to increase their spending velocity or frequency of purchase. This implies that equipment technology and better marketing have shortened the purchase cycle of golf equipment.
According to the National Golf Foundation, since 1986 the number of golfers has increased 34%, from 19.9 million to 26.7 million. In the same time-span, golfer spending in the US on fees and equipment has grown from $7.8 to $22.2 billion. Over the last 12 years, golf’s revenue growth rate has been 7.5% annually. The inflation factor during this period is roughly 3%, so the real growth rate is probably in the 4% to 5% range.
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