An interesting observance with padel is the rise of new clubs and courts around the country. Padel is a relatively new sport to South Africa with the first commercial courts installed in 2020.
The rise in popularity of the sport globally and in South Africa is nothing short of amazing. With over 200 courts built locally in the last 3 years, this number is anticipated to reach near 300 toward the end of 2023. The padel market in South Africa and Africa in general is still in its infancy compared to a developed market like Spain where padel is the second most popular activity following soccer with 15,300 courts installed.
Historically from 2016 to 2021 CAGR (compounded annual growth rate) of the padel market was 22% with more clubs being built due to investors entering the market. CAGR for the number of clubs established during 2022 was rated at 24% while the number of courts grew by 28% with 8,200 new courts built. The global padel market is projected to grow at a CAGR of 22% from 2023 to 2026, with Europe being the largest market for the sport. This growth is attributed to the increasing popularity of padel, which is considered an accessible and social sport that can be enjoyed by players of all ages, genders and skill levels.
According to the latest global padel report by Playtomic, powered by Deloitte, the expansion of padel globally is forecast at 85,000 paddle courts by 2026, this is doubling the 40,000 existing courts worldwide. The entire padel network is valued around €2 Billion and this is expected to experience considerable growth as the sport is professionalized.
The fascinating thing about the above numbers is that padel clubs are the most valued segment of the market and cater for around €1.2 Billion of the revenue with manufacturers only contributing around €200 Million. Clearly the revenue stream is through the operation of padel facilities, which leaves no doubt that more clubs and courts will be installed across the country. Equipment sales via racquets, balls and accessories account for around €450 Million with clothing and apparel sitting at €100 Million. The balance of the numbers can be found through media and television rights and ticketing with €35 Million and € 15 million respectively.
Predictions for the club operators segment indicate a 35% CAGR from €1.2 Billion to just over €4 Billion in 2026 tripling the estimated current value.
Current market trends in SA indicate there is no let up on the amount of courts being installed with the subscriber base and participation rate continuing to grow nationally. The Gauteng market appears to be a prominent focus for the next 2 years as demand increases in the province, however there remains plenty opportunity in the Western Cape and KZN provinces amongst others.
Growth forecasts indicate that investors are looking at installing padel courts and clubs across the country with many clubs actively looking for suitable locations and venues to place their courts. Interestingly golf clubs appear to have a symbiotic relationship with padel clubs both locally and abroad.
The appeal of padel is in its simplicity and ability to cater to multiple genders and players of all ages. The game attracts people due to its social interaction with opportunities to meet new people as well as provide a form of physical exercise in a fun and inclusive environment
The padel experience is not solely about playing padel, what is becoming more popular is the establishment of clubs that offer retail facilities for the sale and rental of equipment and apparel. Add to this that many clubs and venues are offering food and beverage services the padel game is becoming a hotspot for social interaction and exercise. Many corporate companies are using padel as team building opportunities due to the interactive, fun and social nature of the sport. The benefits of the game are many, everything from stress relief, cardiovascular workouts and social networking make the sport a game changer like few before it.