Tapping the Outdoor Economy 2024
All it took was a year of being locked up at home for people to realise what they were missing out on. Since the onset of the pandemic, outdoor recreation has boomed as people choose to spend more of their leisure time getting out in nature.
The outdoor economy now presents a sizeable market opportunity for brands of all stripes, as consumers look to soak up the physical and mental benefits of spending more time outside. Statista data published in 2024 shows that UK consumers spent £12.3bn per annum on sports and outdoor recreation equipment, double the amount spent in 2018. In the US, the outdoor recreation industry makes a significant contribution to the national economy – responsible for an astonishing 2.2% of the country’s total GDP in 2022, according to a 2023 report from the US Department of Commerce. It also employs around five million people, around 3.2% of national employment.
Newcomers are a key demographic for retailers to watch here. In 2023, 7.7 million Americans tried one or more outdoor activities for the first time, according to the Outdoor Industry’s Participation Trends report for 2024. That’s a 4% rise on the previous year, bringing the total to 57% of all Americans aged six and above taking part in some form of outdoor activity. Growth is being driven by new young participants and also greater diversity, with increasing numbers of women, people of colour and seniors. While a huge proportion of growth is being driven by popular activities like hiking, running, camping and swimming, more niche pursuits such as climbing, fishing and nature photography are also on the rise.
Brands and retailers are getting involved here – continuing to reimagine outdoor apparel with technical clothing that blurs the line between functionality and style. The rise of ‘Gorpcore’ (which supposedly takes its name from Good Ol’ Raisins and Peanuts’ trail mix) has seen outdoor enthusiasts and urban youth alike gravitate towards high performance clothing that combines street style with practicality. This approach is exemplified by a spree of high-profile brand collaborations between outdoors brands and luxury labels in recent years – see Jil Sander x Arc’teryx, The North Face x Gucci, and Adidas by Stella McCartney and Terrex. See the Palace x Berghaus collaboration, dropped in August 2024, for another brand new example combining street style cache with trusted performance wear.
The opportunities extend well beyond clothing however, with brands in food and drink, tech and FMCG also tapping into the rising interest in all things outdoorsy. Whatever the core offering, brands are finding ways to adapt and cater to a rising demographic of part-time hikers and casual campers. Below we’ve rounded up some of the innovative ways disparate brands are getting involved in the outdoor industry, whether it’s providing easier access, offering portable products more suitable for camping, or creating a retail experience to help weekend warriors get prepared.
Houdini Sportswear
The Swedish outdoor brand opened the doors to its Houdini Circle retail space in September 2023, providing a space for the brand to bring all its circular practices under one roof.
No Normal
Swiss company No Normal Coffee has created a new way to package coffee. The company’s website currently features only one product, a coffee paste packaged in an aluminium tube.
Arc'teryx & Skip
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Arc’teryx has partnered with Skip, a spinoff from Google’s X Labs, to create the MO/GO pants, an innovative “ebike for hiking.”
Dick’s Sporting Goods
American sports retailer Dick’s Sporting Goods has launched a new store format, Dick’s House of Sport in Victor, New York, offering customers a variety of immersive trial experiences across multiple sports.
Terra
Terra is an AI-powered compass that allows users to go on adventures and leave their phone behind, created by design studios Modem Works and Panter & Tourron.
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