McKinsey flags youth sports as India’s next big growth opportunity

MUMBAI: The next sporting superstar could also be the next big business opportunity. A new McKinsey report suggests that investing in youth sports could deliver far more than medals and match winners, positioning grassroots participation as a powerful driver of long-term growth in India’s sports economy.

The report identifies youth sports as one of the fastest-growing segments of the US sports industry, forecasting a 9 per cent compound annual growth rate (CAGR) through 2035. According to McKinsey, the expansion is being fuelled by higher participation rates, increased parental spending and stronger connections between grassroots programmes and professional sports.

Although the study focuses on Latino consumers in the US, it points to trends that could resonate strongly in India, where investments in grassroots sports infrastructure have accelerated in recent years.

McKinsey argues that younger participants play a pivotal role in expanding the sports economy because they become not only future athletes but also lifelong fans, ticket buyers, media subscribers and consumers of sports merchandise. In the US, Latino consumers account for 25 per cent of youth sports participation, a share that exceeds their contribution to the broader sports economy.

India is witnessing a similar rise in grassroots sporting activity, with growing investment in cricket academies, football training centres, badminton academies and school-level competitions. However, despite the momentum, youth sports remains a relatively modest commercial segment compared with professional leagues and marquee tournaments.

The report highlights that grassroots participation generates multiple revenue streams extending well beyond competition. These include coaching services, sports facilities, equipment sales, sponsorships, tournaments and increased media consumption, creating opportunities across the wider sports ecosystem.

India’s recent success in Olympic disciplines has also encouraged greater private investment in grassroots development, while several professional leagues have introduced structured youth pathways to identify and nurture future talent.

McKinsey contends that the commercial value of youth sports extends beyond producing elite athletes. By engaging children at an early age, the sector helps cultivate lifelong supporters who continue to spend on live events, digital content, merchandise and sporting experiences well into adulthood.

For India’s sports industry, where media rights have long dominated the revenue conversation, the report suggests that the next phase of growth may begin much earlier on school grounds, academy pitches and neighbourhood courts, where tomorrow’s fans and athletes are taking their first steps today.