The Impact of "COVID-19": How Is the Global Golf Industry Changing?

Analysis Report on US NGF and Golf Data Tech: Sharp Increase in Rounds from May, Golf Equipment Companies Also Booming

The U.S. golf industry is experiencing a sharp upswing as it recovers from the aftermath of COVID-19. Photo by Golf.com

[Asia Economy Reporter No Woo-rae] "An incredible surge."

This is about the global golf industry. After struggling due to the spread of the novel coronavirus infection (COVID-19) in March, it has recently shown a sharp recovery. Golf is an outdoor sport. It is relatively safe from COVID-19. In the U.S., 'single-player' rounds are possible, further reducing the risk of transmission. We reviewed the post-COVID-19 golf industry report analyzed by the National Golf Foundation (NGF) and Golf Datatech in the U.S.

The boom continued through January and February this year but faced a crisis in April. More than half of golf courses were closed, and the total number of rounds dropped sharply by 42%. Recovery began in May, with a notable increase in rounds for five consecutive months. August saw a remarkable 20.6% increase compared to 2019. This means about 10 million more rounds than last year. The explosive growth of 27 million additional rounds over the past three months is evident. Most golf courses have turned profitable.

The National Golf Foundation reported that rounds increased by 39% in Texas, 37% in Florida, and 31% in Arizona, with every state seeing at least a 2% rise. They optimistically predicted, "Even if golf course performance declines in the second half, there will be an 8% growth compared to last year." As golfers flock back to play, golf equipment companies are also showing clear signs of recovery. The industry is returning to normal after the COVID-19 shock.

Golf Datatech stated, "Since July, all golf equipment has recorded breakthrough sales," adding, "Sales of woods and irons increased by more than 50% compared to the same period last year." Sales rose by 27% for golf balls, 32% for putters, 64% for wedges, 74% for woods, and an astonishing 83% for irons. Not only golf clubs but also golf shoes, gloves, and bags saw a 60% increase compared to the previous year. Equipment sales in July reached $389 million (446.4 billion KRW), the highest ever.

In August, sales hit $331 million (379.8 billion KRW), $80 million (9.18 billion KRW) higher than the same period last year. David Maher, General Manager of Acushnet Company, responsible for Titleist and FootJoy, explained, "The increase in rounds played correlates with demand for equipment." It is unfortunate that the golf-related retail market is still in the red. Compared to last year, it remains down by 4.1%, a strong aftershock of COVID-19.

Clubhouse restaurants, pro shops, and convenience facilities have been closed for months, causing delays in recovery. It is hopeful that beginners are joining golf as COVID-19 remains difficult to control. However, whether new golfers will continue to stay at golf courses is uncertain. The National Golf Foundation cautiously noted, "Increased exposure to golf does not necessarily mean more people will fully engage in golf."