Shrinking Demand in the Golf Equipment Market and Limits to Product Advancement

「According to the Leisure White Paper 2025 (Japan Productivity Center), the golf equipment market is estimated at ¥376.0 billion, down 1.1% year on year.」

「In the golf business environment, the number of golf course users, which increased during the COVID-19 pandemic, peaked in fiscal 2022 and has since turned to a gradual decline (survey by the Japan Golf Course Owners Association). During the interim consolidated accounting period, golf course users trended slightly lower, affected by persistently high fees resulting from higher fuel costs and weather conditions such as record high temperatures from June onward.」

「According to the Leisure White Paper 2023 (Japan Productivity Center), the golf equipment market is estimated at ¥364.0 billion, up 4.9% year on year. This is believed to have resulted from the easing impact of COVID-19 and the resumption of events and other activities. However, some point to a decline in absolute demand resulting from the shrinking number of golfers due to Japan’s declining birthrate and aging population, as well as limits to product performance improvements imposed by competition rules. Business risks for companies across the industry therefore tend to be increasing.」

「According to the Leisure White Paper 2022 (Japan Productivity Center), the golf equipment market is estimated at ¥347.0 billion, up 9.5% year on year. The main factor was the impact of the state of emergency declared in response to the spread of COVID-19, and the market has shown signs of recovery since the declaration was lifted. However, some point to a decline in absolute demand resulting from the shrinking number of golfers due to Japan’s declining birthrate and aging population, as well as limits to product performance improvements imposed by competition rules. Business risks for companies across the industry therefore tend to be increasing.」

「In procurement, in addition to broad-based price increases, the rapid depreciation of the yen has increased the cost of sales ratio, making the securing of profit a challenge.」

「In the e-commerce services business, strong domestic demand for golf equipment continued, and sales grew, led by our own e-commerce site.」

「According to the Leisure White Paper 2021 (Japan Productivity Center), the golf equipment market is estimated at ¥317.0 billion, down 7.8% year on year. The main factor was the impact of the state of emergency declared in response to the spread of COVID-19, and the market has shown signs of recovery since the declaration was lifted. However, some point to a decline in absolute demand resulting from the shrinking number of golfers due to Japan’s declining birthrate and aging population, as well as limits to product performance improvements imposed by competition rules. Business risks for companies across the industry therefore tend to be increasing.」

「According to the Leisure White Paper 2020 (Japan Productivity Center), the golf equipment market is estimated at ¥344.0 billion, unchanged from the previous year. Based on these conditions, our Group is working to prevent excess inventory through appropriate inventory management and sales forecasting. However, if the golf equipment market and the performance of 株式会社ジープ fail to develop as forecast, inventory valuation losses or impairment losses on fixed assets could arise, potentially affecting our Group’s operating performance and financial position.」

「The golf equipment retail market continues to face the issue of intensifying price competition for consumables such as balls and gloves, as well as a high degree of dependence on new golf club products, particularly woods and irons.」

「The golf business continues to face issues including a declining golf population and aging player base, but signs of a certain recovery are also evident, including golf course revenue for April 2017 to March 2018 exceeding the previous year, according to the Ministry of Economy, Trade and Industry's Current Survey of Selected Service Industries.」

「The golf business continues to face issues including a declining golf population and an aging player base. To revitalize the industry, it is becoming important to expand playing styles suited to golfers' ages and preferences and attract younger golfers, and companies across the industry have begun taking various measures.」

「Domestic golf equipment shipments have declined in terms of overall market volume, partly due to weaker demand, but manufacturers have offset this by raising unit prices and other measures, resulting in positive growth in market size.」

「Regarding the environment surrounding the golf business, while the spillover effects of the 2020 Tokyo Olympics were expected, areas requiring attention included the gradual decline in Japan's golf population due to the diversification of leisure activities and the prolonged price competition in golf equipment sales.」

「According to the Golf Industry White Paper 2016 (矢野経済研究所), the golf equipment market is estimated at ¥259.2 billion, up 3.3% year on year. Manufacturers are working to reduce the proportion of markdown products sold, among other initiatives, and these efforts to improve conditions across the industry appear to be bearing fruit. At the same time, some point to a decline in absolute demand resulting from the shrinking number of golfers due to Japan’s declining birthrate and aging population, as well as limits to product performance improvements imposed by competition rules. Business risks for companies across the industry therefore tend to be increasing.」

「According to the Golf Industry White Paper 2016 (矢野経済研究所), the golf equipment market is estimated at ¥259.2 billion, up 3.3% year on year. Manufacturers are working to reduce the proportion of markdown products sold, among other initiatives, and these efforts to improve conditions across the industry appear to be bearing fruit. At the same time, some point to a decline in absolute demand resulting from the shrinking number of golfers due to Japan’s declining birthrate and aging population, as well as limits to product performance improvements imposed by competition rules. Business risks for companies across the industry therefore tend to be increasing. If the golf equipment market fails to grow as forecast, this could affect the operating performance of our Group.」