Golf industry in Japan is in the mature stage and is second in the world after the US. Golf as a sport plays a vital role in the Japanese culture. Japan’s foremost golf course was established in 1901 with four holes. The country has recorded around 2,362 golf courses along with golfer’s population of 7.9 million during FY’2013. Japan has majority of 18-hole golf clubs and courses in terms of distribution of golf courses by size in 2013.
Japan golf industry comprises of market segments such as golf courses, driving ranges and golf equipment and apparels. Post plaza agreement of 1985, the industry touched high revenues, where golf membership fee, real estate prices and stock prices were over inflated in the economy. However, in 1991, the golf industry faced downtrend in terms of revenues, golfer’s population and number of round played at golf courses. Further, there was a remarkable decline in consumption expenditure on sporting activities. Once the golf club membership fee at various golf courses was publicly traded and listed at stock exchange and in newspapers during bubble price period, has now lost the authentic value due to series of bankruptcy of golf courses post bubble burst.
Japan Golf industry revenue reached to USD 14,553.4 million in 2013 and registering a negative CAGR of 2.6% over a period of 2008-2013. The market witnessed a slowdown due to ongoing exchange rate fluctuation, global crisis of 2008 and greater east Japan earthquake of 2011, which affected the golf businesses and consumption outlay per household in the country. Within the golf industry of Japan, golf courses revenue grew at a negative CAGR of 2.8% during 2008-2013. The golf courses are in the country are either far located from the cities or majorly found in Hyogo, Chiba, Shizuoka, Tochigi and Ibaraki. On the other hand, revenue from driving ranges and sales of golf equipment and apparels have augmented in the country in 2013 in comparison to previous years, which was due to greater focus of major golf operators and golf equipment manufacturers on the production of innovative equipment and fashionable apparels in the recent years.
In general, Japan golf industry is projected to shrink further, and the revenue generated by the market is expected to reach USD 14,297 million by 2018 from USD 14,553.4 million in 2013 and thereby registering a negative CAGR of 0.4% over a period of 2014-2018. This decrease will be on account of drastic change in population structure, and a decline in golfer population. Population of Japan is expected to decline and is anticipated to reach 125.1 million by 2018 from 126.9 million in 2013.
Rapid decrease in the population of Japan is likely to influence the other population parameters such as birth rate, baby boomer and young people population, and death rate and thereby, will influence the golfer population in the coming years from 2014-2018. Nonetheless, focus towards baby boomer population, creating golf awareness among youth, increasing golf popularity among female, increase in number of golf tournaments for handicap and amateurs golfers and golf tourism expansion are few attempts that golf courses operators and associations will execute to boost the golf enthusiasm in the country.
Rapid decrease in the population of Japan is likely to influence the other population parameters such as birth rate, baby boomer and young people population, and death rate and thereby, will influence the golfer population in the coming years from 2014-2018. Nonetheless, focus towards baby boomer population, creating golf awareness among youth, increasing golf popularity among female, increase in number of golf tournaments for handicap and amateurs golfers and golf tourism expansion are few attempts that golf courses operators and associations will execute to boost the golf enthusiasm in the country.
The report titled “Japan Golf Industry Outlook to 2018 - Driven by Rising Demand for Women Golf Apparels” provides detailed overview on the golf Industry in Japan and will aid readers to identify the golf infrastructure, ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, golf course operators, driving ranges owners, golf equipment and apparels manufacturing companies, suppliers and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.