Golf's 2020 Resurgence: A Look at the Industry's Remarkable Turnaround
The golf industry experienced a significant resurgence in 2020 as people sought outdoor activities to escape pandemic-related stress. With a notable increase in rounds played, new participants, and optimistic sentiments, the industry saw promising growth despite challenges. Learn more about the trends, insights, and impact of this golf boom.
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Presentation Transcript
Back in the Swing Golf was another outdoor activity benefiting from people s desire to escape their homes and the stress and anxiety they experienced during the pandemic. Total 2020 rounds increased 13.9%, second only to 1997 s 14.6% increase, the most since that year. A massive surge in YOY increases of rounds played during October (+32.2%), November (+56.6%) and December 2020 (+40.0) contributed to an almost record year and all the more amazing considering March s rounds decreased 8.5% and April s 42.2%. The rush to the links, even during January 2021, continued as rounds played increased 21.4%, and increased the most regionally in West North Central states, which are typically the coldest of any winter.
More Playing-Through- the-Pandemic Insights With more golfers taking to the links during 2020, the net decrease in 18-hole equivalent golf courses (18HEQ) was only 169, compared to 246 during 2019, the most the National Golf Foundation (NGF) ever reported. Another important metric is the number of golfers per 18HEQ (two 9-hole courses equals one 18-hole course in the data), which almost returned to its 1986 level of 1,882. 2020 s 1,856 golfers per 18HEQ were 99% of the 1986 number. The increased play during 2020 was a financial boost for all courses, especially public courses, as NGF data found 56% of public courses reported their financial situation was good, compared to 23% during the NGF s 2016 survey.
Core and New Participants The good news for the golf industry during 2020 was 6 million new and returning on-course golfers and an 8% increase in total golf participation (on- and off-course combined), although many didn t play because of COVID- 19 and financial concerns. The four groups representing increases in new golfers were youth +630,000, beginners +570,000, women +450,000 and non-Caucasian Americans +320,000. The industry would, of course, like to retain most of these new golfers for 2021 and subsequent years. According to NGF data, golfers 35 49 increased their play during May August 2020 more than other age groups, or 25% more than their normal number of rounds during previous years. Of golfers 65+, 49% indicated they played less than previous years.
Golfers Are an Optimistic Lot By the very nature of the game, golfers are eternally optimistic. According to a January 2021 Sports & Leisure Group Research (SLGR) survey, 65% said they were optimistic about the game of golf, compared to 44% in the 2020 survey and 34% in the 2019 survey. The SLGR regular 2020 surveys revealed golfers have been more confident than Americans in general, peaking at 43% during a Q2 survey, with all Americans approximately 10 points less, and 33% and 29%, respectively, in the January 2021 survey. 59% of golfers in the January 2021 survey said they would play more golf when a COVID-19 vaccine and other traditional forms of entertainment were available to them, with only 14% saying they would play less.
Facility Management Insights The downside of substantially more people playing golf during 2020 and into 2021 is the impact on course maintenance. According to the latest SLRG survey, 51% of those at public courses and 49% at private clubs said the impact and stress were significant. In another January 2021 SLRG survey of golf course architects and superintendents, 43% said golf course renovations would have the most significant interest to guests and members, with an expanded junior golf program second at 33%. Of the architects surveyed, 70% said, allocating 10 to 12 acres of land for a range is a worthwhile investment of which 64% of superintendents agreed.
Golf Equipment Sales Boom Off the Tee With more golfers playing during 2020, it follows retail sales of golf equipment, apparel and accessories would increase proportionally. After being 31% behind 2019 sales during early June 2020, the $1 billion in sales during Q3 was the largest ever since 1997. According to the SLRG survey cited on slide #5, 52% of golfer said they would spend more for golf merchandise during 2021 than they did during 2020. Only 10% said they would spend less. Almost all categories of equipment were on golfers 2021 purchase list, including drivers, woods, hybrids, irons, wedges, putters, shoes and bags, with volume demand for balls and apparel flat.
Advertising Strategies Golf courses, especially public and semi-public facilities, should take advantage of the surge in rounds played and aggressively market themselves as, undoubtedly, more people will be seeking outdoor activities during spring, summer and fall 2021. Reward golfers who played during summer 2020 and helped to generate the positive trend in the industry with a discounted fee during a specific summer month. Sporting goods stores, specialty golf shops and course pro shops can continue the increased spending for equipment, clothing and accessories by offering special beginners packages and offers to established golfers to upgrade their equipment.
New Media Strategies Courses can invite new golfers of 2020 (beginners, women and non-Caucasian Americans) to post short videos about why they decided to play during 2020, what they enjoy most and inviting others to become new golfers. Consider offering a foursome of Gen Zers a free round in exchange for recording video segments of their enjoyment and camaraderie and posting their videos on Snapchat to engage with other Gen Zers. Sporting goods stores, specialty golf shops and course pro shops may also find it advantageous to try social commerce, promoting the selection and purchase of products directly through their social media sites.
