With the strong growth driven by the current boom, the question of a potential market saturation inevitably arises. Kautz, however, remains confident about this development. In his view, the market is far from being fully developed – and he still sees potential for new facilities, even in Cologne.
The fact that he and his two partners, Simon Schmitz and Philippe Krükel, believe in the long-term development of the sport is also reflected in their commitment. The founders invested around €1.5 million in the facility, with the lease running for 20 years.
At the same time, Kautz expects competition to increase as the number of facilities continues to grow: “Wherever money can be made, a market develops – and at some point, that market becomes saturated.” In the future, success will no longer depend solely on having a court available, but rather on the quality of the offering, the overall experience, the location, and ultimately the price. According to the managing director, these factors will determine which operators are able to establish themselves in the market in the long term.
The Cube believes it is well positioned for this competition – even though, in the fast-moving sports and fitness market, it can never be ruled out that the next trend sport will eventually take the spotlight. Kautz is particularly keeping an eye on pickleball, although he believes the market for the sport is not yet large enough in Germany. His prediction: “It will take another two or three years before pickleball really arrives.”
Despite all the enthusiasm, Sweden shows that rapid growth also comes with risks. During the peak of the padel boom, thousands of courts were built in the country, which has a population of around ten million people.
The COVID-19 pandemic accelerated this development even further: While many other sports were forced to pause, padel remained possible. Courts were built at a rapid pace. Shortly afterwards, some facilities had to close because supply had exceeded demand. However, padel itself has by no means failed in Sweden: The sport remains popular and has since settled back at a more sustainable level.