Pickleball Equipment Business Overview
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.
The most common business models include:
- Manufacturing and Distribution: Producing pickleball equipment and selling through retail channels, distributors, and direct-to-consumer platforms
- Online Retail: Selling pickleball equipment through e-commerce platforms and websites. 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).
- Pro Shop Operations: Running equipment shops within pickleball facilities and clubs
Related: Checklist To Start A Business
How Do Pickleball Equipment Businesses Make Money?
Pickleball equipment businesses generate most of their revenue through product sales with varying profit margins across different categories. The highest margins typically come from paddle sales, which range from entry-level models to professional-grade equipment.
The most common ways to make money selling pickleball equipment include:
- Equipment Sales: Selling paddles, balls, and nets to individual players and facilities. Paddles range from entry-level to professional grade, while balls and nets need regular replacement.
- Athletic Footwear: Providing specialized pickleball shoes designed for court performance and player safety. Footwear represents 39.3% of product sales, making it the largest revenue category.
- Apparel and Accessories: Offering clothing, bags, grip tape, and protective gear designed for pickleball players. These items provide ongoing sales as players replace worn items.
- Facility Supply: Supplying equipment packages to recreation centers, clubs, and indoor facilities. This includes bulk orders of paddles, balls, and nets.
- Custom Equipment: Creating personalized paddles and gear for teams, clubs, or individual players. Custom products typically command higher profit margins.
- Maintenance Services: Providing paddle repair, grip replacement, and equipment maintenance for regular players. These services create recurring revenue opportunities.
- Training Equipment: Selling practice aids, ball machines, and training devices to help players improve their skills. This category appeals to serious players and instructors.
Industry Statistics
The pickleball equipment industry manufactures, distributes, and sells specialized gear and accessories for one of the fastest-growing sports. This industry falls under NAICS code 339920: Athletic Sporting Goods Manufacturing. Here are some statistics that show what’s happening in the pickleball equipment industry.
Pickleball Equipment Industry Size & Growth: The pickleball equipment market generated $1.5 billion in revenue last year. The industry is projected to reach $4.4 billion over the next decade, with an expected annual growth of 11.3%. This expansion stems from increasing participation rates, with over 48.3 million players actively engaging in the sport. The market benefits from broad demographic appeal, with particularly strong growth among players aged 18-34, who comprise 28.8% of participants (market.us).
Number of Pickleball Equipment Businesses: Major manufacturers and retailers dominate the market, with companies like Onix Pickleball, Selkirk Sport, Paddletek, Franklin Sports, and Engage Pickleball leading the industry. These companies operate through multiple distribution channels, including specialty stores, online platforms, and pro shops within pickleball facilities. The offline sales channel accounts for 51.8% of total sales, highlighting the importance of physical retail locations (market.us).
Pickleball Equipment Profit Margins: Different products offer varying profit margins:
- Apparel and accessories: 40-60% margin Can be a significant profit driver with the right branding
- 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
Startup Stories
Costs To Start a Pickleball Equipment Business
Starting a pickleball equipment business typically requires between $20,000 and $75,000, depending on the business model and size of the operation. The lower range represents an online-only startup, while the higher range reflects a small retail space with inventory.
There are several expenses to consider when starting a pickleball equipment business. Here are some of the main costs:
Initial Inventory: A starter inventory of pickleball equipment typically costs between $10,000 and $30,000. This includes a basic selection of paddles across different price points, balls in bulk quantities, nets, and essential accessories to meet initial customer demand.
Retail Space: If operating a physical store, retail space costs vary widely based on location and size. Monthly lease expenses generally range from $1,500 to $4,000, with additional expenses for utilities and basic store setup.
Website and E-commerce Platform: An online presence with e-commerce capabilities is essential for reaching customers and processing sales. Building a professional website with inventory management and payment processing systems costs between $3,000 and $8,000.
These estimates provide a general framework for planning purposes, but actual costs will vary.
Resources
- Sports & Fitness Industry Association (SFIA): https://www.sfia.org/reports/1261_Pickleball-Participation-Report-2023
- 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/