"The Hobby" is a +$10B Annual Market...And Growing Fast
WeThe Hobby
There are many industries you likely know little about (Stevedoring and Marine Cargo Handling, anyone?)...
...and according to industry research on sports trading cards (another behind-the-scenes industry), the total value of "the hobby" is somewhere between $10 to 12 billion dollars annually.
That is (as we like to say in Rochester, NY) a "YUGE" market!
When explaining this statistic to friends and loved ones who might be less familiar with just how big this market has gotten, let's compare that $10-12bn annual size with some more well-known industries.
(Note: this article will refer to "market cap" aka Market Capitalization; for those who want to learn more about Market Capitalization and what it means, click here)
Online dating, home security, online grocery delivery, pet care services, and electric scooter/bike share industries are all estimated to have similar market sizes to sports trading cards.
Besides home security, sports trading cards is also the oldest and most mature industry of the group, as the hobby traces it roots all the way back to the late 1800s.
So we have established that sports trading cards are a relatively large and mature industry, but what does that mean for understanding where future growth comes from?
What is driving strong trading card market growth?
Most simply, hobby market growth boils down to three key drivers:
- Product & Content Innovation (more/better products and services)
- New Entrants (more customers)
- Additional Value-Chain Opportunities (ancillary services that serve growing hobby fanbase)
From AI/ML grading and authentication services to new products and content across the fan/collector ecosystem, #innovation has been central to the evolution of the hobby:
"Look at the innovation we did in trading cards, every time a rookie debuts with their team we created a unique rookie patch 1x1, now we are creating 500 per year." - Michael Rubin, CEO Fanatics Holdings
"My vision is to use breaking [live box opening] for younger fans to connect with what trading cards are at their core: unique artifacts that encapsulate historical achievements and moments in time" - Ken Turner, CMO Fanatics Collectibles
WeTheHobby is a believer in this market. With dozens of market caps for individual player cards (analogous to holding an individual equity stock) in the tens of millions of dollars, new investors pouring in to realize strong asset appreciation, and younger fans drawn to the spectacle and thrill of #thehobby...
...the time is almost upon us for trading cards to move from small-cap to large-cap.