Outdoor Recreation Industry Sees Significant Growth With Changes In Consumer Behavior Sparked By Covid-19
As the U.S. sporting goods industry experiences marked growth since 2020, parents getting their children started in outdoor activities represents a huge part of the pie.
Posted by: Forbes / Feb 28th, 2023
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The COVID-19 pandemic significantly influenced consumer behavior, particularly in the realm of outdoor recreation. Lockdowns in 2020 confined people indoors, but in response, Americans flocked to outdoor activities, such as skiing, hiking, and fishing. Ski resorts suffered substantial losses as they closed early in the spring of 2020, resulting in an estimated $2 billion in lost revenue, including income from summer events.
However, in 2021, several factors converged, propelling growth in the retail sector of the outdoor industry, a trend expected to continue into 2023. The sporting goods retail industry's market size reached $67.8 billion in 2023, experiencing a 6.7% annual growth rate from 2018 to 2023, surpassing the overall economy's growth rate.
Matt Eby, CEO of Seawall Capital, attributed the surge in outdoor activity to pandemic-induced behaviors. People with more time, thanks to reduced commutes and remote work, embraced new activities that transitioned into lasting hobbies. These activities became integral to lifestyle changes, influenced by shifts in work-life balance expectations.
When individuals adopt new outdoor activities like mountain biking or snowboarding, they typically start with basic equipment and progressively upgrade as they gain expertise. This cycle reflects a product pyramid with different price points and engagement levels. Top-level enthusiasts willingly invest in high-quality gear that aligns with their chosen lifestyle.
Activities such as golf, camping, and snowsports have experienced substantial growth. Climbing equipment, although not strictly outdoor recreation, has seen significant growth, with a 9.5% compound annual growth rate (CAGR) from 2021 to 2026, partially due to gym closures during the pandemic.
Ski touring is one of the outdoor activities that
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Snowsports witnessed an 11.7% increase in 2021 and a 27.2% two-year growth rate, with touring (uphill skiing or skinning) becoming a significant driver of outdoor recreation. Ski areas have adapted to this trend, offering terrain and products tailored for touring.
Innovative product offerings are essential to engage consumers in the outdoor industry. Brands that prioritize high-quality, performance-oriented, and innovative products tend to thrive.
For individuals interested in trying activities like climbing or skiing without committing to expensive gear, rentals offer an avenue for growth, though it currently represents a relatively small portion of the market.
SENDY, an online gear marketplace initiated by action sports icons Travis Rice and Cam Zink, facilitates buying, selling, and renting outdoor gear in North America. This platform connects adventure enthusiasts, reduces waste, and allows people to try new activities without major financial commitments.
A father and mother ride mountain bikes together
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Despite the rapid growth in outdoor equipment, further expansion is expected, particularly due to the Millennial generation entering parenthood, leading to increased spending on outdoor activities for their children. This growth should be accompanied by a focus on sustainability, with consumers seeking brands engaged in genuine environmental action.
Brands like Burton Snowboards and Patagonia have committed to becoming carbon-neutral, responding to consumer demands for sustainable practices. The outdoor industry's continued growth and sustainability efforts are expected to ensure these activities remain accessible for future generations to enjoy.