Playtomic´s co-founder points out the most important factors for padel´s growth
A few weeks ago, the long-awaited Global Padel Report 2024 was released, showing how the sport is growing around the world. Padel Alto spoke with Pablo Carro, co-founder of Playtomic and a key person behind the report.
— The sport has grown quickly, with 2,500 new clubs opening just last year," he says.
The 2024 report highlights the remarkable interest the Global Padel Report has garnered, significantly more than in previous years. Carro attributes this increase to several key factors.
— First, Playtomic's increasing relevance in the market has significantly enhanced the overall coverage of the sport, he explains.
He continues:
— Secondly, the report's content has been improved, incorporating aspects like club management. Lastly, the industry's overall importance has grown. The industry has experienced rapid growth, with the opening of 2,500 new clubs last year alone.
When asked about the preparation process for the report, Carro explains,
— It takes at least six months. We've been releasing the report since 2022. It's an annual report that looks at the state of padel today. It's not only a forecasting of the industry's growth but also a global compilation of player behavior, club management, and demographic data. We gathered this data in partnership with PricewaterhouseCoopers, giving us the credibility of the largest tech company in the industry.
”Padel boosts social relationships”
Carro elaborates on the social nature of padel as a significant draw for many players.
— Padel boosts social relationships, generating higher dopamine levels and endorphins than many other sports. This social component is essential for the sport's growth and is something we've focused on with our tech product at Playtomic. We've developed a tech product that answers to that – delivering a tech product that is tailored to the social and engaging nature of padel.
The report details the infrastructure development essential for the sport's growth, noting that nearly 6,000 new courts were built last year alone.
— We need the infrastructure to be built. There's no game, no sport, no social interaction without infrastructure. Normally, that takes time because it's not an easy job. It implies real estate deals, licenses, and permissions everywhere. The more the sport is known across city halls, the easier it becomes to build the club, but it takes time.
”Different situations in different markets”
Carro also addresses the varying growth rates in different regions:
— We see different situations in different markets. For instance, in Germany, certain limitations regarding permissions and licensing slow growth, but we are incredibly positive about the evolution of Germany. On the other hand, you can see the US, where 2023 was the year we generated the path and the appetite for padel. Now we know that 600 courts will be added, proving that something big will happen there.
The Global Padel Report 2024 predicts continued strong growth, especially in regions where the sport is just beginning to gain momentum. Pablo Carro points to Asia as a market with significant potential, while also expecting further expansion in Europe’s "Big Three" – Germany, the UK, and France.
— These countries have just started their journey, and significant growth is expected, he says.
— Asia is a kind of blue ocean that has not been explored yet, Carro says.
The US is a very interesting market with tremendous potential. Pablo Carro explains that it's important to recognize that the country is made up of 50 states, each with its own development, which needs to be considered.
— It's essential to understand that the US is not just one country but 50 states, each with its dynamics, Carro explains.
— Florida, California, and Texas are prominent states representing a significant portion of the population, but it will take at least five years to achieve substantial coverage nationwide.
”Location becomes crucial”
Carro emphasizes the importance of strategic planning and location in establishing successful padel clubs.
— It's a real business, right? I mean, so that's the first thing to say. You need to take care of many factors to ensure a successful and profitable business. In countries like Germany, you can spend weeks, months, or even years trying to find a proper location, planning and drafting the club layout, and then dealing with permissions and licensing. It's new, so new things tend to be complicated regarding permissions and licensing. Once the city hall supports the project, location becomes crucial.
In recent years, Sweden has experienced significant growth followed by a rapid decline in the number of padel courts. This has made other countries take notice and avoid repeating the mistakes made in Sweden.
Carro highlights the unique situation in Sweden.
— There is no doubt that the tech-dominant partner has delivered a good service for Swedish Clubs. I’m hesitant to point fingers, but it seems that they also created somewhat isolated clusters within clubs, rather than fostering a multi-club environment, it might be hindering the development of smaller communities and the overall growth of the sport. Of course, this is likely due to a combination of factors," Carro explains.
Pablo Carro concludes by stating that they share data to support the sport's growth.
— As industry leaders, we must facilitate the industry's growth into new territories.
