The global market for sports and fitness clothing is expected to plummet by -8.5% in the year 2020 and thereafter recover and grow to reach US$231.9 billion by the year 2027, trailing a post COVID-19 CAGR of 4.4% over the analysis period 2020 through 2027. With social distancing seen as the only available and effective way to slow the spread of the disease until a vaccine arrives, all sporting events have been cancelled in 1st and 2nd quarters 2020 all over the globe. Annual competitions have been suspended, and major sporting events postponed or cancelled ranging from football, cricket, fencing, hockey, Formula 1 racing, cycling, sailing to skiing. The Tokyo 2020 Olympics has been postponed to July 2021. Few of the other major sporting events cancelled include MLB baseball which was scheduled in March 2020; Nippon Professional Baseball in Japan; KBO League in South Korea; NBA Basketball; South Korean Basketball League; Serie A in Italy; NBL in Australia; EuroLeague: Milan vs. Real Madrid; European Rugby Championship; Super Rugby; Asian skateboarding street championship; Alpine Skiing World Cup; Ski Cross World Cup; Snowboard World Cup; among numerous others. As a result the sporting industry is faced with immense financial challenges impacting event organizers, sponsors, broadcasting companies and participants alike.

With all sporting events likely to remain muted until 2021, demand for sporting goods such as sports apparel, gloves, and equipment has and will remain impacted. Even as governments around the world begin to cautiously loosen restrictions and reopen the economy, all public places such as gyms, cinema halls, large retail shopping malls, schools, colleges, pubs, bars remain strictly closed. The scenario spells financial ruin for most gyms and fitness centers. Faced with abrupt and complete loss of revenues several gyms are struggling to survive. Mirroring the tough economic and business climate, 24 Hour Fitness Worldwide Inc. based in the United States in the month of June 2020 filed for bankruptcy saddled with a US$1.4 billion debt load. Although few of the gyms are reopening, customer footfall is expected to be low and will bring no meaningful relief for companies. In the United States, over 48 to 58 out of 100 regular gym goers are expected to refrain from going to gyms until the end of the year. Gym memberships are expected to decline sharply in the coming years. Even among the existing customer base, rising unemployment rates, eroding household wealth, and shrinking disposable incomes will push customers to choose budget-friendly fitness options. The ruins of the global economy are made up of failed, collapsing, choking, struggling and decimated industries & businesses and among the vanquished is the apparel industry. Lockdowns, shelter-in-place, work from home, voluntary renunciation of social life, unemployment and loss of household income have together dealt an unprecedented blow, bringing the industry to its knees. Concern over future financial insecurity is limiting the consumer purchases only to the essential items such as groceries and other basic necessities. As businesses struggle to keep afloat, job cuts and bankruptcies are already sending millions into unemployment. Extreme poverty is expected to rise sharply in 2020 and 2021. Over 1.5% of the world population by the year 2021 will fall into poverty highlighting the massive humanitarian crisis triggered by the pandemic. The severe economic contractions seen in almost every country worldwide will mean that over 155 million people will be living in poverty by the year 2021.

The year 2020 alone is expected to see 90 million people enter the extreme poverty, which is defined as households living on less than US$1.90 a day. Middle-income countries will be worst affected and will see significant numbers of people slipping below the extreme poverty line. Additionally, the growing base of middle class population which has been responsible for the growth of consumerism and discretionary income related industries like apparel and textiles, is now under threat. The pandemic is expected to shrink the middle class population. The unprecedented challenges to both the lower and middle class population is come down hard on the sports and fitness clothing market. In short, high levels of unemployment and erosion of discretionary income will severely impact consumer spending on non-essential goods. Decisions to purchase new clothes, appliances, and cars will be first to be put on the back burner. Unemployment rates are climbing to worrisome levels in both developed and developing economies alike. In the United States, the worst hit by the pandemic, the devastation wreaked on the country's economy can be put into perspective by the fact that unemployment rates peaked in the country in June 2020 to 30.8 million. With the labor market in doldrums, consumer spending is plummeting. The economic anxiety among consumers has and continues to rise. Consumers have shifted to online and are spending much lesser than before the pandemic. Social outlook against this background remains grim with households expected witness erosion in wealth. Personal financial outlook, community, economy, job security confidence, and purchasing and investment confidence are all tumbling as the human and economic cost of the global pandemic rises. The loss in consumer confidence and erosion of household wealth and discretionary spending will impact virtually every industry and business worldwide and clothing and textiles will be no exception. A non-essential and discretionary product, sports & fitness clothing is expected to fall the steepest among all other apparel segments for the year 2020.