October 17, 2024
The outdoor market continues to face challenges, underperforming compared to the broader U.S. economy despite slight growth in sales. Over the past year (August 2023 to July 2024), the outdoor market saw a modest 1% increase in total dollars sold, reaching $28.3 billion. However, units sold declined by 3.1%. This performance contrasts with the U.S. GDP, which grew by 1.4% in Q1 2024 and 3% in Q2 2024, highlighting the disconnect between the economy’s overall strength and the outdoor industry’s sluggish growth.
Our latest State of the Outdoor Market Report examines economic indicators, sales trends, consumer behavior, and evolving market opportunities. Key findings include:
1. Sales Trends:
While total sales in dollars grew slightly, unit sales declined, particularly in the Independent Outdoor Retail segment, which saw a 6.6% drop. Retail eCommerce sales were also down by 2.3%.
Footwear emerged as a bright spot, showing growth in both dollars and units sold, while apparel and equipment sales declined.
2. Economic Context:
Inflation rose by 2.5% from August 2023 to July 2024, but increased wages (+3.5%) and stable employment have allowed consumers to maintain buying power. Despite this, consumers are prioritizing spending on essentials, which has affected discretionary purchases in the outdoor sector.
3. Consumer Behavior and Motivation:
The outdoor participant base grew by 4.1%, with 175.8 million Americans now engaging in outdoor activities. However, the core group of frequent outdoor enthusiasts has shrunk.
A shift in motivations is evident, with more consumers engaging in outdoor activities for mental health and wellness rather than physical fitness or skill development. Wealthier, older individuals are particularly likely to use the outdoors as a coping mechanism, contributing to a rise in casual outdoor products like backyard games and insulated drinkware.
4. Market Opportunities:
Despite declines in traditional outdoor gear sales, there are opportunities for growth in casual outdoor products. Brands and retailers should focus on aligning their offerings with the changing motivations of outdoor consumers, particularly by catering to both casual participants and core outdoor enthusiasts.
Overall, while the outdoor market faces headwinds, understanding shifts in consumer motivations and adapting to these changes presents a pathway for future growth.
Stay Ahead with OIA’s Industry-Leading Research
To help our members better understand the markets and the people they serve, OIA sponsors and produces comprehensive research that offers expert insights into participation trends, market forces, and consumer behavior. With access to this data, you’ll gain a deeper understanding of the evolving outdoor market and how to meet the needs of today’s outdoor consumers.
Leverage our research to drive your strategy forward. Explore OIA’s latest reports and resources to ensure your brand is positioned for growth and success in this dynamic landscape.
Kelly Davis
OIA Research Director
