Part
01
of one
Part
01
What is the size of the sports apparel market in the Middle East, focused only a tier 1 and tier 2 cities?
Hello! It is my pleasure to respond to your query in providing you with the size of the Middle Eastern Sports Apparel Market.
TIER 1 & TIER 2 MIDDLE EASTERN CITIES & FINDINGS
Cities are tiered for multiple reasons, but most often on the basis of population. Tier 1 cities have 100,000+ populations, while Tier 2 cities have populations between 20,000 – 49,999. In reviewing MongaBay’s list of the biggest cities in the Middle East (by population), we find that there are 208 Tier 1 cities and an unknown number of Tier 2 cities. Despite a deep dive, I could find no (valid, reliable) source that provided me with a list of Tier 2 cities – nor a complete list of the populations for all the Middle Eastern countries so I could determine that myself.
In looking at the market size of any industry within a large region like this, we can safely assume that the largest majority, by far, of market revenue comes from both Tier 1 and Tier 2 cities. Since Tiers 3 and 4 cities are much smaller, they represent a very small piece of the overall market (most typically). So, we can assume that the overall market for the region – can be used as the estimate for market size that you’re seeking.
First, we’ll take a look at the overall global Sports Apparel Market, then we’ll get into how it relates to the Middle East, and finally, we’ll look at the overall Middle Eastern Sports Apparel Market.
SPORTS APPAREL MARKET: GLOBAL (2013 – 2017)
Just-Style reports that, “The Middle East and Africa is set to be the most dynamic region for apparel and footwear over 2015 – 2020 with value sales of US $134 B by 2020.” They also report that sportswear is one of the fastest growing segments in this over-arching market. AlliedMarketResearch reports that the overall global Sports Apparel Market “is expected to reach $184.6 B by 2020” (showing a CAGR of 4.3% between 2015 – 2020).
The top factors affecting the growth of this market include:
• Increasing amounts of disposable income
• Increasing numbers of fitness-conscious consumers
• Increasing selection of fashionable, trendy sportswear
• Increasing numbers of women participating in sports and fitness
According to CatalystCF, the global retail sales of sports apparel equaled US $263 B in 2013, or just over 15% of the entire clothing market. This article states that the CAGR through 2017 was expected to be 7.5%, so we can get the current global market by doing a few calculations.
• 2013: $263 B
• 2014: $263 B X 7.5% ($19.7 B) = $282.7 B
• 2015: $282.7 B X 7.5% ($21.2 B) = $303.9 B
• 2016: $303.9 B X 7.5% ($22.8 B) = $326.7 B
• 2017: $326.7 X 7.5% ($24.5 B) = $351.2 B
So, from these calculations, we can estimate the global market size for this industry to be approximately $351.2 B.
Of this, they report that, in 2013, the Middle East/Africa Sportswear Market was estimated to be worth $15 B with an expected growth rate of 10.1%. So, let’s calculate what this is in 2017 dollars.
• 2013: $15 B
• 2014: $15 B X 10.1% ($1.5 B) = $16.5 B
• 2015: $16.5 B X 10.1% ($1.7 B) = $18.2 B
• 2016: $18.2 B X 10.1% ($1.8 B) = $20 B
• 2017: $20 X 10.1% ($2 B) = $22 B
So, these calculations tell us that, in 2017, the Sportswear Apparel Market in the Middle East & Africa is estimated to be worth about $22 B. However, Fibre2Fashion reports that in the Middle East alone, this market grew by 16% over the past few years (not the 10.1% reported by CatalystCF). So, if we re-calculate these figures from 2015 – 2017 (the years showing the most growth), we get a bit different figure.
• 2015: $16.5 B X 16% ($2.6 B) = $19.1 B
• 2016: $19.1 B X 16% ($3 B) = $22.1 B
• 2017: $22.1 X 16% ($3.5 B) = $25.6 B
So, with these calculations, we can estimate the 2017 Sportswear Apparel Market in the Middle East and Africa to worth an estimated $25.6 B. Now, let’s look at the Middle Eastern market on its own.
SPORTS APPAREL MARKET: MIDDLE EAST
The majority of available market research combines the Middle Eastern and African markets, and, while other available research pulls out the South African market and separates that from the ME/African region, all of this research is behind paywalls and therefore unavailable. So, with the data available, it is not possible to separate these two markets (Middle East & Africa) with any ease. Additionally, I was not able to locate any reports that specifically focused on the Middle Eastern region, again, except those behind paywalls. If we make some general assumptions, and understand that these assumptions could lead to a big difference in the actual market size, we can get a very rough estimate of this market.
We already know that the ME region is the larger and faster-growing of the two. We also know that MapsOfTheWorld reports that there are approximately 50 Tier 1 and 2 cities in Africa (whereas, you remember that the ME has 208 Tier 1 alone). So let’s put some numbers together and see what we get.
We’ll start by calculating how much bigger the Middle East region is to the African region, based on the number of Tier 1 and 2 cities. 50 is 24% of 208, so the Middle East is about three (3) times larger than Africa (76%). Now, if we put the overall market size numbers with these percentages, we get the following:
Overall ME/African Market = $22 - $25.6 B
$22 B X 76% (ME) = $ 16.7 B
$25 B X 76% (ME) = $19 B
From these calculations, we can get a rough estimate of the Middle Eastern Sports Apparel Market as being somewhere in the range of $16.7 - $19 B in 2017.
___________________
SUMMARY
The global Sports Apparel Market is estimated to be worth approximately $351.2 B in 2017. Within this market, the Middle Eastern / African region can be estimated at between $22 and $25.6 B in 2017. Within this smaller market, the Middle Eastern region holds about 76% of the market, and is estimated to be worth between $16.7 and $19 B in 2017.
___________________
Thank you again for your question, and I hope this information gives you what you need. Please contact Wonder again for any other questions you may have!