Global Sports Industry Faces $1.6 Trillion Loss Due to Climate Change and Inactivity, Report Warns
A new report released by the World Economic Forum (WEF) highlights alarming trends that could lead to a staggering $1.6 trillion loss in the global sports industry by 2050. The study underscores the significant threats posed by climate change and rising levels of physical inactivity among individuals, putting the future of this multi-trillion-dollar sector at risk.
The report, titled “Sports for People and Planet,” represents the first comprehensive attempt to assess the size and potential growth of the sports sector. It is the result of consultations with 125 organizations and the review of over 130 sources, compiled in a joint effort with management consultancy Oliver Wyman.
While the report projects total worldwide revenues in sports-related businesses to rise from $2.3 trillion last year to approximately $3.7 trillion by 2030, it warns that this potential growth could be derailed if current trends persist. Only one in five young people currently meets the recommended daily guidelines for physical activity. If this situation does not change, one in three adults is projected to be ‘inactive’ by 2030, up from one in four in 2010. The anticipated result is a staggering 800 million fewer active individuals globally, threatening participation rates across sports, tourism, merchandise sales, and long-term fan engagement.
The authors point out that the sectors most exposed to these risks include sports tourism, sporting goods, and participatory sports—areas heavily reliant on an active population and stable environmental conditions.
The report also emphasizes the industry’s vulnerability to climate change. Sport contributes significantly to environmental degradation while being susceptible to its effects, such as extreme weather patterns and pollution. Notably, events like the FIFA Club World Cup have illustrated how poor weather can negatively impact the viability of elite sports and grassroots initiatives alike.
The WEF’s findings indicate that inadequate supplies of clean water could disrupt production chains for sports equipment, particularly impacting Asia, where most sports apparel is manufactured.
Despite these challenges, the report suggests that the sports sector can use its major events to foster innovation and influence consumer behavior towards more sustainable practices. Initiatives mentioned include Adidas’ use of recycled materials and Formula E’s role as a testing ground for electric vehicles. However, concerns remain over certain problematic practices within the industry, such as soccer clubs frequently releasing new kits, many of which end up in landfills.
On a more optimistic note, the report reveals that the global sports industry contributes over 2% of GDP in most Western economies, supporting one in 25 jobs. The WEF and Oliver Wyman believe the industry can grow at an even faster rate, particularly in burgeoning markets and women’s sports.
With the Winter Olympics and various global tournaments on the radar for 2026, there will be ample opportunities for sports tourism, with fans increasingly interested in travel packages that combine participation and spectating.
The issues raised in the report are set to be a focal point at next week’s WEF gathering in Davos, Switzerland, where industry leaders and government officials will discuss actionable strategies for sustainable growth in sports. If stakeholders do not act to utilize resources more responsibly and fail to prioritize sports infrastructure, the industry’s promising trajectory may falter.
