Outdoor Market Trails GDP Growth Despite Sales Uptick

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

Shaping the Future of Outdoor Industry Gatherings

Dear OIA Members and Industry Partners, 

OIA is proud to stand at the heart of the outdoor industry, delivering resources and opportunities that drive our businesses and communities forward. Industry gatherings are essential to our shared success, and we are committed to leading the way. 

We have been actively engaged in broad discussions with many stakeholders about the future of industry gatherings. As a member-led collective, these conversations have been invaluable in shaping our vision for OIA’s role in convening the industry, and I want to take this opportunity to share our path forward.  

Our commitment to serve as a catalyst for connection:  

OIA Events: We will lead the industry with cornerstone events that create opportunities for collaboration, community, and action. Our sold-out inaugural sustainability Catalyst Conference this November provides the industry with an opportunity to innovate solutions for people, product, and the planet. We are in the planning phase for next spring’s Capitol Summit in Washington, D.C ., to use our outside voices to save outdoor companies money, fuel innovation, invest in recreation, expand outdoor access for all, and protect our environment. 

Strategic Partnerships: With great enthusiasm, yesterday we announced our new partnership with Switchback to grow an event that can deliver multiple benefits to a wide range of outdoor industry members. OIA will also partner with other organizations where the industry and our members gather to deliver content that drives growth and opportunities for engagement through education sessions, existing OIA programs, and new initiatives. 

 OIA’s mission remains clear: We’re a passionate group of business leaders, sustainability experts, policymakers, and outdoor enthusiasts committed to business growth and innovation while protecting—and growing access to—the benefits of the outdoors for everyone. Our team is excited about the opportunities ahead and is dedicated to leading our industry with the vision, resources, and commitment you have come to expect from us.  

Join the Conversation: From the timing of events to the content they deliver, we aim to shape gatherings that bring value to all members and reflect the voices and needs of our entire community. We value your insights and encourage you to share your thoughts on our future direction. Click here to provide your feedback and help shape the future of our industry. 

 

Together we are a force, 

Kent Ebersole 
President, Outdoor Industry Association 

New California and Canada Sustainability Regulations: Key Impacts for Outdoor Brands

In a significant step towards enhancing sustainability and consumer safety, California has recently enacted two pivotal bills that will reshape compliance for manufacturers and retailers. The Responsible Textile Recovery Act of 2024 (SB 707) and the Household Product Safety: Toxic Substances: Testing and Enforcement (AB 347). Concurrently, Canada is implementing a new PFAS reporting rule, requiring importers to disclose specific per- and polyfluoroalkyl substances. These regulations will require immediate attention from outdoor industry brands and manufacturers. Our Clean Chemistry and Materials Coalition is here to support members with guidance and collaboration to ensure compliance and sustainable progress.

Two sustainability bills signed into law in California:

  • The Responsible Textile Recovery Act of 2024 (SB 707)
    • What is it? This law adopts a stewardship program for textiles, requiring producers to fund, design, and implement a program via a producer responsibility organization (PRO) for collecting, sorting, and recycling textile articles.
    • How does this impact outdoor brands? If you sell textile products in the State of California, you will be subject to this rule, which is slated to go into effect on January 1, 2030.
  • Household Product Safety: Toxic Substances: Testing and Enforcement (AB 347)
    • What is it? This law requires covered manufacturers to register with the Department of Toxic Substances control, pay a registration fee, and provide a statement of compliance.
    • How does this impact outdoor brands? If you produce textile articles, juvenile products, or food packaging products, you will be subject to this rule, which is slated to go into effect on July 1, 2029. 

New PFAS Reporting Rule in Canada:

  • What is it? The Notice with respect to certain per- and polyfluoroalkyl substances (PFAS) creates reporting requirements covering 312 PFAS when manufactured, imported, or used above certain thresholds.
  • How does this impact outdoor brands? If you are the importer of record of any covered product under this notice, you must submit your report to Environment and Climate Change Canada (ECCC) by January 29, 2025.

Looking for expert guidance on how to ensure your brand is meeting new and upcoming sustainability requirements? OIA’s Clean Chemistry and Materials Coalition provides members with a scalable action plan for eliminating and replacing harmful chemicals and materials, delivering supply chain transparency, recycling and emission disclosures and more. Contact our sustainability team to learn more sustainability@outdoorindustry.org

Meet Your New OIA Board Directors

As the outdoor industry’s member-led collective, OIA catalyzes meaningful change in every element of the industry. To set our businesses and industry up for future success, we rely on a clear strategy and value-based collaboration. The OIA board of directors helps shape our strategic plan. The individuals on the board, through their seats at the governance table, support the success of every member company across four critically aligned areas of market research, sustainability, government affairs, and inclusive participation. 

This summer, three new and two incumbent members were elected to the OIA Board of Directors by the OIA membership. We are proud to welcome back incumbent directors Sarah Matt and Janice Tennant, and to introduce you to the new directors: Jon Chong, Jason Parkin, and Jeff Tooze.

To the former and current board leaders, OIA members, and fellow outdoor enthusiasts, thank you for your participation in this year’s election and for treading the path with us! 

“I am thrilled for the opportunity to shape the future of our industry’s member-led collective and carry forward Patagonia’s legacy on the OIA Board. As a technologist, I look forward to leveraging technology and data to innovate member-focused solutions and chart a purpose-driven, sustainable, and successful path ahead.”

  • Jon Chong, Patagonia Chief Technology Officer

“For decades, the outdoor industry has been the tip of the sustainability spear; breaking trail and demonstrating climate leadership across all industries. I look forward to continuing this history of innovative work and finding new, powerful ways we can collectively leverage our $1+ trillion industry to maximize our positive impact for people and planet. And while our tent is already large, it can always include more, so I am eager to continue welcoming more individuals and groups into our community so that we can all thrive together towards a brighter future.”

  • Jason Parkin, Compose[d] Founder, President and CCO

“For 20 years, I’ve been on OIA’s Trade Advisory Council, and I have found it to be a highly effective group influencing changes on trade-related policy and legislation, while also protecting domestic manufacturing interests. OIA is a great organization and, I’m proud to play an even larger role in shaping OIA’s strategic initiatives.”

  • Jeff Tooze, Columbia Vice President of Global Customs & Trade