2024 Outdoor Industry Trends Executives Should Understand
2024 Outdoor Industry Trends Executives Should Understand
Outdoor industry trends are reshaping the market in 2024, and executives need to stay current to stay competitive. After experiencing 5% growth between 2021 and 2022, largely driven by the pandemic, outdoor sales have started to decline, dropping by 3%, according to the latest Outdoor Industry Association (OIA) Outdoor Retail Sales Trends Report. For retailers hoping to weather the storm, staying informed on the current trends is critical. Adapting to the evolving landscape can be the difference between thriving and struggling. Below is a rundown of five key trends that are shaping the future of the outdoor market.
5 Trends Outdoor Industry Executives Need to Know
Among the major trends affecting the outdoor industry, these five are essential to monitor. Let’s dive into each one:
1. Outdoor Activity Participation Is Growing More Popular but More Casual
The OIA's 2024 Outdoor Participation Trends Report indicates that while outdoor participation is on the rise, the demographics of participants are shifting. The report found that U.S. outdoor participation grew by 4.1% in the past year, reaching a record 175.8 million people, or 57.3% of all Americans aged six and older. Female participation increased by 1.9%, contributing to this growth.
But while the number of overall participants is increasing, the frequency of participation fell. Where the average participant engaged in 87 outings in 2022, in 2023 this fell to 62.5 outings, indicating a trend toward casual participation. Only 90 million Americans fall into the core participants category, defined by engaging in 51 outings or more annually. Casual participants tend to prioritize socializing over owning the latest gear, favoring activities such as hiking, camping, cycling, fishing, and jogging.
2. Despite Increased Participation, Sales Are Shrinking
The trend toward casual participation helps explain why sales revenue is shrinking despite more people getting involved. Over the past year, the 3% decline in sales affected all retail channels, including online stores, big-box retailers, and specialty shops. Independent specialty retailers were hit hardest, with half reporting sales drops of 10% or more.
The data suggests sales declines are actually steeper than they appear. Sales by unit fell across almost all categories, including apparel (6.1% decline), equipment (5%), and footwear (10%), while accessories sales remained flat. If revenue totals weren't being offset by inflation of prices per unit, declines would be even sharper. Moreover, inflationary tendencies are being offset by previous years' overproduction and inventory overstock, so retailers aren't seeing any revenue benefits, says Don Bushey, owner of Boulder's Wilderness Exchange Unlimited.
3. Market Segmentation and Channel Diversification Are Successful Strategies
To maintain sales, industry leaders are finding new ways to reach market niches. Adam Chamberlain, Rab and Lowe Alpine's US Country Manager, highlights that even within niche markets like technical outdoor apparel, segmentation is key, and certain segments align better with particular retailers. Cassie Abel, Wild Rye's CEO, emphasizes that women are looking for products and experiences tailored to them. Meanwhile, Jonathan Degenhardt, Managing Director of Deuter and Ortovox US, points out that diversifying sales channels helps maintain stability when one channel is disrupted.
4. Accessories Are Outperforming Other Categories
Not all product categories are suffering declines. Accessories stand out as the sole category with sales growth, increasing by 4.2% to $1.4 billion. Top-selling items include insulated mugs, cups, tumblers, and casual pants, all benefiting from their appeal to both casual and frequent outdoor enthusiasts. This category’s performance shows that while big-ticket items like equipment and footwear may struggle, smaller, lifestyle-oriented purchases are keeping consumers engaged.
5. Executive Recruiters Are Seeking Innovative Leadership
Changing trends in the outdoor industry call for innovative strategies, driving brands to recruit executives equipped for the challenge. Today's outdoor executive needs to be comfortable with digital technology and applying tools such as AI and data analytics to make data-driven decisions about tasks such as financial planning, marketing, and sales. Executives also need to stay familiar with ways technological innovations are driving customer demand for high-tech outdoor equipment such as GPS-connected backpacks, next-generation air tents, and smart blankets. Innovative leaders versed in today's technology and trends can help their brands keep up with industry changes.
Recruit Top Talent to Navigate Outdoor Industry Changes
If you're looking for top talent to help you navigate changes in the outdoor industry, Profile Search can be your guide. We have over 30 years of experience helping outdoor brands fill leadership positions, specializing in the director, VP, and C-suite levels. We leverage industry expertise and proprietary assessment tools to help you quickly complete urgent talent searches vital for your company's success. We provide high-touch service, maintaining multiple communications at any time of day to keep you engaged in strategic decisions. Our blog supports you with industry news and tips to help you keep up with today's trends.
Contact Profile Search to discuss how we can help you recruit the best talent to position your organization for success in today's changing outdoor industry.