China Sporting Goods Manufacturing Sees Solid Growth (Jan–May 2025)

China's Stationery and Sporting Goods Industry Report: Performance Overview for January–May 2025

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1. Overall Industry Performance

In the first five months of 2025, China's stationery and sporting goods industry demonstrated resilience amid a stable domestic economic recovery and increasing global market volatility. 

According to data from the National Bureau of Statistics, over 3,200 large-scale enterprises in the sector recorded total operating revenue exceeding RMB 120 billion (approximately USD 16.71 billion), representing a year-on-year growth of nearly 8%—outpacing the average growth across the broader light industry.

However, while revenue grew, total industry profit slightly declined by 0.01%, reflecting a divergence between sales and profitability. This was largely driven by intensifying domestic competition, rising raw material and labor costs, and weaker overseas demand. The industry’s profit margin stood at 5%, slightly below the light industry average.

From January to May, total exports from the stationery and sporting goods sector reached USD 26.432 billion (about RMB 189.71 billion), a year-on-year decline of 2.6%, highlighting persistent export pressures. Adapting to foreign markets and managing external risks remain crucial challenges for enterprises.

2. Subsector Performance Analysis

Performance across subsectors showed clear divergence, indicating a gradual optimization of industry structure.

(a)  Sporting Goods Manufacturing Sees Solid Growth

The sporting goods manufacturing segment recorded operating revenue of RMB 56 billion (approx. USD 7.8 billion), up around 8% year-on-year. Total profits surged by nearly 19%, making it the standout performer amid overall industry profit pressures.

(b)  Stationery and Office Supplies Face Slower Recovery

This segment achieved revenue of RMB 53 billion (approx. USD 7.38 billion), growing around 7% year-on-year. However, total profit dropped by more than 20%, indicating intensified profitability challenges.

(c) Amusement and Entertainment Equipment Remain Under Pressure

Enterprises in this segment recorded revenue of RMB 18 billion (approx. USD 2.51 billion), with a 7% year-on-year growth in sales but an 11% decline in profit, reflecting operational stress.

Across the industry, the profit margin remains below the average for the light industry. Total assets grew by 7%, while liabilities increased by 5%, suggesting cautious optimism in expansion. Meanwhile, inventories rose by 7%, indicating increasing operational prudence.

3. Import and Export Performance

(a) Exports

China Customs data show that from January to May 2025, the industry’s exports under 125 product codes totaled USD 26.432 billion (RMB 189.71 billion), down 2.6% year-on-year.

• Stationery and Office Supplies: USD      15.06 billion (RMB 108.09 billion), down 6.35% year-on-year, dragging down      the overall export performance.

• Sporting Goods: USD 10.627 billion      (RMB 76.29 billion), up 3.11%, providing crucial support to the industry’s      export strength.

• Amusement Equipment: USD 746      million (RMB 5.35 billion), down 0.7%.

Export Destinations Performance:

• United States: USD 5.77 billion      (RMB 41.44 billion), down 9.27% year-on-year. In May alone, exports to the      U.S. were USD 1.034 billion (RMB 7.43 billion), down 26% year-on-year and      5% month-on-month—indicating continued pressure.

• Europe: Exports maintained recovery      momentum, becoming a key driver of growth.

• Emerging Markets: Demand weakened      due to local substitution efforts, though Belt and Road markets remained      relatively stable.

Overall, global exports remain challenged by tariff frictions, weakening external demand, and policy uncertainty, posing growing risks for Chinese exporters.

(b) Imports

During the same period, imports under the 125 tax codes totaled USD 1.123 billion (RMB 8.06 billion), a slight decline of 0.2%.

• Stationery and Office Supplies: USD      691 million (RMB 4.96 billion), down 2.31%.

• Sporting Goods: USD 354 million      (RMB 2.54 billion), up 4.02%.

• Amusement Equipment: USD 78 million      (RMB 560 million), down 0.59%.

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4. Key Industry Characteristics and Challenges

• Revenue Growth vs. Profit Pressure:      While revenue grew faster than the light industry average, the decline in      profits shows tightening margins and a strained profit environment.

• Rising Costs and Inventory Pressure:      Higher raw material and labor costs, along with growing inventories, are      increasing operational risks for businesses.

• Heavy Export Dependence Amid Global Uncertainty: Trade frictions, geopolitical risks, and global economic      sluggishness are exacerbating export volatility, while many companies lack      sufficient risk management capabilities.

Conclusion

From January to May 2025, China's stationery and sporting goods industry maintained overall stability in a complex global environment. The sector demonstrated considerable resilience and growth potential. However, it continues to face notable challenges, including squeezed profit margins, declining foreign demand, and inventory buildup. Going forward, improving cost control, enhancing product value, and strengthening international competitiveness will be essential to sustaining the industry's momentum.

Source: 

China Stationery & Sporting Goods Association (CSSGA), China Customs