A report by Praxis Global Alliance and YourNest Venture Fund

Executive Summary:

Theme of Sports, Fitness and Wellness is emerging with a large multi-$B opportunity in India (large market with robust growth drivers)

  • Sized at ~USD 35B in 2016 and expected to grow @~17% CAGR to reach USD 90B by 2022
  • Robust Demand growth drivers: affluence, sedentary lifestyle, increasing awareness about health and fitness, backed by
  • Supply drivers: Development in sports infrastructure, more trainers, greater advertising spend backing sporting events
  • Trend evident as new sports leagues are emerging, more corporates/residential complexes are creating facilities, new health focused TV channels are seeing viewership growth and the mass consumer is diversifying beyond just cricket

Across the consumer spectrum, the time to ride the SFW wave is now

  • From the SFW trend seen in other countries, SFW market growth kicks in at USD 4K GDP per capita levels and starts to taper at USD 30-35K GDP per capita levels
  • India, currently at a GDP per capita of ~USD 1.7K has massive growth headroom

Opportunity is being created not just in SFW but more importantly, in peripheral products/services like gear, apparel, food items and several other brand extensions (>2.5 times the opportunity than Sports itself)

  • Several brands have extended their brands and offerings to SFW and will create bigger plays (e.g. Harley gears > Harley bikes)
  • Healthy food variants of several brands is already >25% of the staple flagship variants

SFW is attracting investment not only from VC/PE but several profitable verticals like apparel, personal care and consumer services are pumping in money to ride this growth wave

  • Consumer services businesses (yoga, gym, spas and salons, ayurvedic centers, etc)
  • Consumer products (yoga mats, organic foods, sports merchandise, etc)
  • Specialized high-performance apparel and personal care goods (functional food, sweat-resistant apparel, marathon shoes, etc)
  • Infrastructure (training academies, amateur sports facilities, coaching in schools, etc)

Large brands and retail footprint already being created (e.g. Decathlon crossed Rs 1,000 cr in sales). Realizing full potential from the opportunity will entail diligent micro-segmentation, brand repositioning and technology led product/service innovation.