The U.S. economic impact of the outdoor industry has exceeded the trillion-dollar mark for the first time.
The U.S. Department of Commerce’s Bureau of Economic Analysis late last week released economic data from its Outdoor Recreation Satellite Account for 2022, showing the outdoor industry generated $1.1 trillion in economic output for the United States, up 19% from 2021.
According to the BEA’s sixth annual report, the outdoor industry makes up 2.2% of GDP in the U.S. and accounts for 4.98 million jobs, which is 3.2% of the nation’s workforce.
The economic numbers match the participation data trends in the outdoor market, according to Kelly Davis, director of research at the Outdoor Industry Association.
“It means we’ve got a sustainable and healthy industry,” she added. “Very few industries get to over 2% GDP, and outdoor did it.”
In fact, the outdoor industry outpaced the growth of the entire economy. Adjusted for inflation, the outdoor recreation economy increased 4.8% in 2022, compared with a 1.9% increase for the overall U.S. economy.
“Not only that, we’re a job-creation machine,” she added. Davis pointed to the industry creating more than 600,000 jobs in 2022.
“The state of the outdoor recreation economy is strong, and sustained investment in outdoor recreation and our shared public lands and waters pays dividends for our local and national economies and quality of life,” said Jessica Turner, president of the Outdoor Recreation Roundtable, in a news release.
“Our industry continues to provide benefits to communities across the country – big, small, urban, and rural alike.”
Outdoor Recreation by Industry
Across the country, the retail trade industry group was the largest contributor to U.S. outdoor recreation in 2022, accounting for $153.6 billion, or 27.3%.
At the state level, retail trade was the largest contributor in 28 states. The states with the largest contributions were California ($19.1 billion), Texas ($13.4 billion), and Florida ($12 billion).
Arts, entertainment, recreation, accommodation, and food services was the second-largest industry group that contributed to the outdoor economy a total of $144.5 billion or 25.6%.
Manufacturing was the third-largest industry group that contributed a total of $77.6 billion or 13.8% to the outdoor economy.
“Outdoor recreation is not only a source of physical and mental health benefits but also a key driver of job creation and economic development for rural and urban communities alike,” said Taldi Harrison, director of community and government affairs for REI Co-op.
“The latest findings from the Bureau of Economic Analysis underscore the importance of continued investments in public lands, recreation infrastructure, and reducing barriers to increase participation.”
Outdoor Recreation by Segment
The BEA report also broke out the economic impact by segment:
- Biking – $4.3 billion
- Boating – $47.3 billion
- Climbing – $10.2 billion
- Canoeing and Kayaking – $1.1 billion
- Equestrian – $10.2 billion
- Fishing – $12.5 billion
- Hunting, Shooting, and Trapping – $18.8 billion
- Motorcycling and ATVing – $18.5 billion
- RVing – $70.8 billion
- Skiing and Snowboarding – $7 billion
- Snowmobiling and Other Snow Activities – $6.2 billion
The skiing and snowboarding category was the largest conventional outdoor activity in three states.
“Ski areas and rural mountain communities nationwide have amazing economic success stories to share,” said Kelly Pawlak, president of the National Ski Areas Association.
The states with the largest contributions in the snow category were Colorado ($1.4 billion), California ($688.2 million), and Utah ($601.8 million).
Job Creator
“This latest BEA data confirms the compelling case for the outdoor recreation economy as a powerful driver of both GDP and jobs,” said Julie Sutton, senior director of government affairs and global impact for VF Corporation. “The data also shows that a deep love for the outdoors is shared across the country.”
In 2022, member companies of the Professional TrailBuilders Association saw a 43% growth in revenue and a 37% growth in employees, according to Aaryn Kay, executive director of PTBA.
“Communities are demonstrating their values and priorities through an increased investment in outdoor infrastructure, especially trails,” Kay said.
Representatives from Arkansas, Maine, New Mexico, and Utah all spoke to ORR about the importance of outdoor recreation to the economic well-being of their states.
“With a continual rise in people drawn to the outdoors, Utah’s outdoor recreation sector continues to be a catalyst for economic growth and job creation,” said Jason Curry, director of the Utah Division of Outdoor Recreation.
Jenny Kordick, executive director of Maine Outdoor Brands, said, “with increased investment in our outdoor assets and support for new and existing companies, product innovation, and workforce development, Maine’s outdoor industry is poised to meet rising demand for outdoor recreation and contribute to a resilient, environmentally responsible economy.”
Fuel for Industry Efforts
This comes at a time when the industry is experiencing macroeconomic challenges, including lower consumer spending and retail sales that are “a little bit off,” Davis said.
“But that doesn’t necessarily mean that everything is terrible,” she added. “It simply means that not many people have a lot of disposable income right now. But they are continuing to participate in outdoor and spend on outdoor.”
The strong economic numbers should fuel the efforts of brands and retailers in the industry who are pushing for industry support from government leaders, according to Davis. It gives businesses an opportunity to talk about how important the industry is in terms of tax revenue generation and job creation, she added.
“If you want public lands to remain accessible, if you want the areas in which people recreate to be protected, you can use these numbers for that,” Davis said.
Bart Schaneman can be reached at [email protected].
