Pickleball Equipment Business

Pickleball, a sport that blends elements of tennis, badminton, and table tennis, has seen a remarkable surge in popularity. This growth has sparked a significant increase in demand for pickleball equipment, creating new opportunities in the sports market. According to the Sports & Fitness Industry Association (SFIA), pickleball participation increased by 51.8% from 2022 to 2023, making it the fastest-growing sport in America.

This rapid expansion of pickleball has led to a booming market for equipment such as paddles, balls, nets, and specialized footwear. Both established sporting goods companies and new startups are vying to meet the needs of millions of new players. For entrepreneurs, this presents a unique opportunity to enter a dynamic and growing industry, however, like any business, success in the pickleball equipment market requires careful consideration of various factors.

This report provides an analysis of the pickleball equipment business landscape. It examines key factors that can influence success in this growing market, offering insights to guide potential entrepreneurs in evaluating whether starting a pickleball equipment business is the right choice for them. The following sections detail market trends, competitive analysis, startup costs, and other relevant considerations for those interested in entering this industry.

Learn more about the pickleball industry

Business Overview

The pickleball equipment industry has experienced significant growth in recent years, mirroring the sport’s rising popularity. This section provides an overview of the key market trends, product categories, sales trends, and regional market dynamics that shape the pickleball equipment business landscape.

Market Size

• The US pickleball market has seen explosive growth, with player numbers increasing from 3.1 million in 2017 to 13.6 million in 2023. (Source: Sports & Fitness Industry Association, SFIA)
• Pickleball participation has grown an average of 223.5% over the last three years. (Source: SFIA)
• The pickleball paddle market reached $152.8 million in 2021 and is expected to grow at a 7.7% compound annual growth rate (CAGR) through 2028. (Source: Market Reports World)

Target Demographics

• Pickleball attracts players of all ages, from young adults to seniors. (Source: SFIA)
• The largest player group is aged 18-34, representing 28.8% of all players. (Source: SFIA)
• As of 2021, the gender split was 60.5% male and 39.5% female players. (Source: SFIA)

Key Product Categories

The pickleball equipment market encompasses a wide range of products, including:

1. Paddles: The primary equipment for playing, available in various materials and designs.
2. Balls: Specially designed plastic balls with holes, available for indoor and outdoor play.
3. Nets and court equipment: Portable nets, boundary lines, and other court accessories.
4. Apparel: Specialized clothing and shoes designed for pickleball players.
5. Accessories: Bags, grip tape, protective eyewear, and other related items.

As the sport continues to grow, so does the demand for high-quality, innovative equipment, creating opportunities for new businesses to enter the market and established companies to expand their offerings.

Sales Trends

Online stores now account for about 63.9% of sales in 2023 (Global Market Insights Inc.). This trend is particularly evident on Amazon, where sales of pickleball equipment grew 118% compared to last year in 2023, with a 60% jump in the last 6 months of the year (Jungle Scout).

Regional Trends

In the US, the South Atlantic Region leads in player numbers, while the West North Central Region shows the fastest growth (Source: SFIA). Pickleball is also growing in popularity in countries like Canada, Spain, and Japan, with new international federations forming to promote the sport (Source: International Federation of Pickleball).

Competitive Landscape

As pickleball has grown from a niche sport to a mainstream activity, the equipment market has seen a mix of established sports brands and pickleball-specific companies vying for market share. The competitive landscape is characterized by innovation in product design, varying growth rates among key players, and shifting market shares, particularly in online sales channels.

Several companies have emerged as leaders in this growing market. According to Amazon market share data for pickleball products (Jungle Scout):

• Joola: 8% market share (+109% YoY growth)
• Mten: 7% market share (+100% YoY growth)
• Franklin Sports: 6% market share (-11% YoY decline)
• Selkirk Sport: 5% market share (+16% YoY growth)
• Niupipo: 4% market share (-50% YoY decline)

The pickleball equipment market is highly dynamic, with rapid changes in market share and growth rates. New entrants like Mten are showing strong growth, while some established players like Franklin Sports and Niupipo have seen declines in their Amazon market share. This volatility suggests that there are still opportunities for new and innovative companies to capture market share, despite the presence of established leaders.

Regulations Affecting the Industry

Pickleball equipment regulations can vary in different countries and regions, but in general, there are few regulations for equipment manufacturers. Of particular importance, in the United States, the USA Pickleball Association (USAPA) sets equipment standards for official play. These include:

• Paddles: USAPA sets guidelines for paddle size, weight, surface texture, and materials. Only paddles that meet these criteria are approved for official tournaments.
• Balls: The USAPA specifies the size, weight, bounce, and hardness of pickleball balls. Balls used in official games must be on the approved list.
• Nets and Court Equipment: Nets and other court equipment must meet defined dimensions and material standards for use in competitions.

Financial Considerations

Starting and running a pickleball equipment business involves several financial aspects aspects to understand before starting a business. Some of these include the different revenue streams and profit potential, as well as initial investment. Let’s explore these key financial factors to help you get a clearer picture of what it takes to run this type of business:

Revenue Streams

A pickleball equipment business can generate income through several channels, each with its own advantages and challenges:

Direct-to-consumer sales (online and in-store):

• Pros: Higher profit margins, direct customer relationships
• Cons: Requires significant marketing effort, customer service responsibilities

Wholesale to retailers:

• Pros: Larger order volumes, broader market reach
• Cons: Lower profit margins, less control over final pricing

Amazon and other online marketplaces:

• Pros: Access to a large customer base, established platform
• Cons: High competition, platform fees, less brand control

Custom orders for clubs or teams:

• Pros: Bulk orders, potential for repeat business
• Cons: May require customization capabilities, longer lead times

Licensing deals for unique designs or technologies:

• Pros: Passive income stream, broader market reach
• Cons: Requires innovative designs or technologies, legal considerations

To maximize revenue, many successful pickleball equipment businesses employ a combination of these streams, adapting their strategy based on market conditions and business goals.

Seasonal Trends

Understanding seasonal trends is helpful in creating financial projections, along with cash flow and inventory management. Here’s a more detailed look at these trends:

Spring and Early Summer (March to June):

• Peak season for outdoor play in many regions
• Sales increase significantly, especially for outdoor equipment
• New players often enter the sport during this time
• Marketing focus: Emphasize outdoor play, beginner equipment, and starter sets

Summer (July to August):

• Continued strong sales, but may slow slightly due to vacations
• Increased interest in tournament-grade equipment
• Marketing focus: Promote high-performance gear, tournament participation

Fall (September to October):

• Transition period as outdoor play decreases in cooler climates
• Opportunity to promote indoor equipment
• Marketing focus: Indoor court locations, weatherproof gear

Holiday Season (November to December):

• Significant sales spike due to gift-giving
• Increased demand for gift sets and premium equipment
• Marketing focus: Gift guides, holiday promotions, and package deals

New Year (January):

• Sales boost from New Year’s resolutions related to fitness and new hobbies
• Opportunity to attract beginners with starter kits
• Marketing focus: New Year, new hobby promotions

Late Winter (February):

• Sales may dip in colder regions
• Increased sales in warmer areas and for indoor equipment
• Marketing focus: Indoor play, warm weather destination tournaments

Profit Margins

Profit margins can vary depending on the product type and sales channels (Pickle Biz Advisor):

Product Mix – Different products offer varying profit margins:

• Paddles: 30-50% margin High-end paddles can offer better margins but may have lower sales volume
• Balls: 20-40% margin Lower margin but higher turnover rate
• Nets and court equipment: 25-45% margin Lower sales frequency but potentially higher per-item profit
• Apparel and accessories: 40-60% margin Can be a significant profit driver with the right branding

Sales Channels

• Direct-to-consumer (online): Highest margins (40-60%) but requires marketing investment
• Wholesale to retailers: Lower margins (20-30%) but potential for larger volume
• Amazon and online marketplaces: Moderate margins (30-40%) with a built-in audience, but platform fees apply

Is This a Million Dollar Idea?

Many new business owners wonder if their idea could be a million-dollar business. While the actual figures will be different, here is a hypothetical example to show what it would take to have a million dollar pickleball equipment business.

Imagine you start a small company making professional pickleball paddles:

• Retail price: $100 per paddle
• Cost to manufacture: 40% of $40 per paddle
• Profit margin: 60% (when sold directly to consumers)

Reaching $1 Million in Sales $1,000,000 / $100 = 10,000 paddles per year

This means you need to sell:

• 28 paddles per day
• 196 paddles per week
• 833 paddles per month

To determine if these sales figures are achievable for you, consider your local market size and your potential reach. Research the number of active pickleball players in your target area and their purchasing habits. For instance, if there are 20,000 players in your region and each buys a new paddle every two years on average, the annual market demand would be 10,000 paddles. However, you’ll need to factor in competition and your expected market share. If you aim to capture 20% of this market, your annual sales would be 2,000 paddles. Compare this to the 10,000 paddles needed for a million-dollar business to assess whether your local market can support your goals or if you need to expand your reach through online sales or to other regions.

It’s important to note that while you would reach $1 million in sales, this is far different from how much profit you would make. If the total annual revenue was $1 million and the cost to manufacture is 40%, then you would make $600,000, which is before operating expenses. Operating expenses will vary by owner and business model, but the most common ones could include:

• Marketplace fees, such as Amazon
• Marketing and advertising
• Shipping and logistics
• Employee wages and benefits
• Rent for storage or manufacturing space
• Utilities and office supplies
• Insurance and professional services

These expenses can significantly reduce the net profit and should be calculated before starting the business.

Startup Costs for a Pickleball Equipment Business

Starting a pickleball equipment business can offer promising investment opportunities, given the sport’s rapid growth and increasing demand for equipment. However, the investment required and potential returns can vary widely depending on the specific business model chosen. This section provides a general overview of investment considerations for entrepreneurs interested in entering the pickleball equipment market.

The startup costs for a pickleball equipment business can range from relatively low to quite substantial, depending on the business model:

1. Online Retail: Starting an online store to sell pickleball equipment may require the least initial investment, potentially as low as $5,000 to $20,000. This could cover inventory, website development, and initial marketing costs.
2. Brick-and-Mortar Store: Opening a physical retail location will require more capital, potentially ranging from $50,000 to $200,000 or more, depending on location, size, and inventory levels.
3. Manufacturing: Developing and manufacturing pickleball equipment would likely require the highest initial investment, potentially exceeding $500,000, to cover product development, manufacturing equipment, and initial production runs.

Is This a Good Business To Start?

The decision to start a pickleball equipment business depends on various factors. Here are key points to consider:

Positive Factors:

• The pickleball market is expanding rapidly, with a 51.8% increase in players in 2023, indicating strong demand for equipment.
• Multiple revenue streams are available, from equipment sales to coaching and event planning.

Challenging Factors:

• The market faces strong competition from both established brands and new entrants.
• Success is tied to the sport’s continued popularity, which may fluctuate over time.

Next Steps

If you’re intrigued by the potential of starting a pickleball equipment business, the next step is to do some in-depth research before making any commitments. The following steps will guide you through a process of discovery and analysis, helping you determine if this venture aligns with your goals, skills, and local market conditions. By following these steps, you’ll gain valuable insights that can inform your decision-making process and potentially set the foundation for a successful business.

1. Immerse Yourself in the Pickleball Community: Spend time at local pickleball courts and clubs. Observe games, talk to players, and understand their equipment preferences and purchasing habits. This firsthand experience will provide invaluable insights into your potential customer base.
2. Conduct a Local Market Analysis: Research the number of pickleball courts, clubs, and tournaments in your area. Identify existing equipment suppliers and potential gaps in the market. This information will help you assess the local demand and competition.
3. Create a Preliminary Business Model: Outline your potential products or services, target audience, and revenue streams. Consider factors like online vs. brick-and-mortar sales, equipment types, and additional offerings like lessons or court construction. This exercise will help you visualize your business structure and identify potential challenges.
4. Consult with Industry Professionals: Reach out to successful pickleball equipment business owners outside your local area. They may be willing to share insights about startup costs, profit margins, and common pitfalls to avoid. Their experiences can provide a realistic view of what to expect in this industry.

By following these steps, you’ll gain a clearer picture of the pickleball equipment market and your potential place within it, which will help in determining whether this business opportunity is the right investment for you.

Sources

• Sports & Fitness Industry Association (SFIA): https://www.sfia.org/reports/1261_Pickleball-Participation-Report-2023
• Global Market Insights Inc.: https://www.gminsights.com/industry-analysis/pickleball-paddle-market
• Market Reports World: https://www.marketreportsworld.com/global-pickleball-paddle-market-21083924
• World Metrics: https://worldmetrics.org/pickleball-industry-statistics/
• USA Pickleball: https://www.places2play.org/
• Pickle Biz Advisor: https://picklebizadvisor.com/projecting-revenue-in-a-pickleball-business/
• Pickleball Union: https://pickleballunion.com/
• Jungle Scout: https://www.junglescout.com/blog/amazon-market-watch-pickleball-padel-2024-sports-trends/
• International Federation of Pickleball: https://theipf.org/