Golf surged in popularity in 2020 by nearly every metric, as people sought out the socially distanced outdoor activity amid the pandemic.
More than 24.8 million people played golf in the U.S. in 2020, up more than 2% year-over-year and the largest net increase in 17 years, according to the National Golf Foundation. The sport also saw the largest percentage increase in beginner golfers and youth golfers since 1997 — the year a then-21-year-old Tiger Woods won his first major championship at the Masters.
Now almost two years since the pandemic first hit the U.S., and even as other activities have opened back up, golf has continued to grow in 2021, providing long-standing golf brands like Callaway and Titleist a boost. It has also elevated companies looking to capitalize on the changing demographics and trends within the sport.
Golfers continue to flock to courses
For many in the golf industry, it was unclear if the growth seen in 2020 was a function of the pandemic or a new inflection point for the sport.
Through the end of July — the peak of golf season in the U.S. — the number of rounds played in 2021 was up 16.1% compared to 2020, according to data from the NGF. While the July-specific figures were down 3.1% compared to 2020, a month in which nearly all golf courses had been reopened following pandemic closures in certain states, the 2021 numbers are significantly higher than previous year averages.
While those increases are being mainly driven by older, already passionate golfers — the average number of rounds played by golfers grew to 20.2 in 2020, an all-time high since NGF started tracking that statistic in 1998 — younger golfers, and especially female players, saw significant upticks.
“New participants are increasingly younger; they’re hooked on the game and they want to get better,” David Maher, CEO of golf conglomerate Acushnet Holdings, said on the company’s second-quarter earnings call with analysts in August. “A lot of the energy is coming from avid dedicated players who are simply playing more and consistently; more juniors, more women, more younger [players], and more families.”
The number of female golfers grew 8% in 2020, the largest uptick in five years, according to NGF data. Forty-four percent of people who played a round of golf on a course in 2020 were under the age of 40, and nearly the same amount of people in their 30s played golf as those in their 60s, according to NGF data.
Golf equipment companies seeing growth in sales
That increase in new golfers has been a boon for Acushnet, which owns golf brands like Titleist and FootJoy.
Acushnet’s second-quarter net sales in the U.S. grew 117.1%, fueled by a 98.1% increase in Titleist golf ball sales and a 111% increase in Titleist golf club sales. Over the first half of its fiscal 2021, sales in the U.S. have been up 75.2%.
Callaway, which owns several golf equipment and apparel brands including its eponymous line of balls, clubs, and other equipment, has also seen growth.
Earlier this month, the company raised its financial outlook for its third quarter as well as for the entirety of 2021, citing overperformance of its brands as well as mitigation of some supply chain disruptions.
“More people are joining golf courses, [there are] more entrants into the game, more consumers and we think the long-term trends are going to be quite attractive,” Callaway CEO Chip Brewer said on CNBC in June. “The market is going to be larger coming out the pandemic than coming in.”
Dick’s Sporting Goods, which sells golf products in its stores as well as golf-specialty retailer Golf Galaxy, has pointed to the sport as one of its growth drivers in recent quarters.
“We’ve continued to see consistent growth in the golf business,” Dick’s Sporting Goods CFO Lee Belitsky said on the company’s 2022 second-quarter earnings call with analysts on August 25. “The golf business has remained very strong for us.”
While the company does not break out the performance of Golf Galaxy stores in its earnings report, CEO Lauren Hobart said that the “golf business has been tremendous at both Dick’s and Golf Galaxy.”
The company has “invested in talent and elevated the in-store service model to become trusted advisers for golf enthusiasts of all levels,” Hobart said, and it recently opened its first next-generation Golf Galaxy prototype store outside of Boston. At that location, the Golf Galaxy Performance Center, golfers can not only buy golf products, but take lessons, practice in hitting bays, and have custom club fittings.
In May, South Korean private equity firm Centroid Investment Partners acquired TaylorMade Golf for $1.7 billion, the largest acquisition in the golf goods industry to date. TaylorMade, which produces clubs, balls, and apparel, was sold to KPS Capital Partners by Adidas in 2017 for $425 million.
“The industry is currently experiencing high demand, increased participation with strong long-term opportunities around the world,” Jinhyeok Jeong, founder and CEO of Centroid Investment Partners, said in a press release at the time of the transaction. South Korea is the third-largest market for golf in the world behind the U.S. and Japan.
Overall, golf equipment sales have slowed in recent months, according to NPD data — sales across June, July and August 2021 are down 2% compared to 2020 after the first half of 2021 doubled what was seen in 2020. However, the June, July and August 2021 sales numbers are up 50% compared to those months in 2019.
NPD Group senior industry advisor Matt Powell said more consumers are expected to embrace healthier living post-pandemic, and that will include an increase in outdoor and sporting activities, which should benefit golf.
However, it is still unclear how the supply chain issues plaguing other industries will impact golf equipment, which could limit growth.
Executives from both Acushnet and Callaway cited the ongoing supply chain issues in Vietnam as potential road bumps ahead. Acushnet and Callaway both declined to comment for this article.
“There are inventory issues but when we look at most of the categories that we track we’ve seen business start to plateau,” Powell said. “But, [golf sales] are resetting at a new higher level and while we’re not getting massive growth, it’s a much bigger business than it was two years ago.”
