The All England Lawn Tennis Club World Championships, popularly known as Wimbledon, is the oldest tennis tournament in the world and widely regarded as its most prestigious.
The event, which draws to a close this Sunday (July 16), relies on the supply of a staggering 55,000 tennis balls to ensure the smooth running of the tournament, but this is only a small fraction of the 300 million tennis balls made globally every year.
It’s an industry which has encountered significant supply chain disruptions over the past three years, as demand patterns shifted and logistics networks faced congestion, according to analysis from S&P Global Market Intelligence.
While most supply chains have returned to normal, the tennis industry is now grappling with long-term challenges concerning sourcing and sustainability. S&P said the value of UK imports of tennis rackets and balls witnessed a notable 42% increase in 2022, reflecting a combination of heightened demand, rising prices, and the alleviation of supply chain bottlenecks. However, imports have since declined by 5% in the first four months of 2023. The surge in import values can be attributed mainly to inflation, with the average import price per racket increasing by 45% and per ball experiencing a 32% inflation rate in 2023.
Other key findings from the S&P analysis indicate that the tennis industry's supply chains have undergone significant shifts in sourcing. In 2022, 51% of UK tennis-ball imports originated from mainland China, compared to 40% in 2021 and an average of 46% over the previous five years. Concurrently, imports from Thailand, Pakistan, and the Philippines have increased, displacing those from the European Union.
The S&P analysis also shed light on three critical environmental, social, and governance (ESG) concerns faced by tennis ball supply chains. Firstly, the US government has accused three countries, collectively representing 49% of global rubber supplies, of violating labour rules. This raises concerns about the ethical sourcing of rubber used in tennis balls. Secondly, the reliance on Asian exports, which account for 96% of global exports, contributes to significant carbon footprint issues, particularly since 75% of these supplies are directed to Europe and North America.
Lastly, the recycling of tennis balls presents a pressing challenge. While the rubber recycling industry has experienced substantial growth, with Indian imports witnessing a remarkable 161% increase year over year in the 12 months leading up to April 30, 2023, the majority of recycling efforts are currently focused on tyres rather than tennis balls. As a result, tennis balls often end up in landfills or are locally shredded for repurposing in flooring surfaces.
The findings of the analysis emphasise the need for the tennis industry to address these long-term challenges in its supply chains, specifically in terms of ethical sourcing, carbon emissions reduction, and effective recycling practices. As the demand for tennis products continues to evolve, ensuring the sustainability and resilience of these supply chains will be crucial for the future of the sport.
The full S&P report can be viewed here