The COVID-19 pandemic reshaped our world in countless ways, and nowhere is this more evident than in the outdoor recreation industry. As lockdowns subsided, millions of Americans sought solace and adventure in nature. Nearly 7 million people took up outdoor activities – from skiing to hiking – fueling a remarkable transformation in the industry and setting the stage for long-term growth and innovation into 2024.

The Impact of Early Resort Closures

March, a pivotal month for the ski industry, typically sees a surge in revenue second only to December. Yet, the early closure of ski resorts due to the pandemic in 2020 delivered a crushing blow. According to the National Ski Areas Association (NSAA), a staggering 93% of ski areas had to halt operations prematurely, leading to an estimated $2 billion loss – not just from skiing and snowboarding but from summer events like weddings and conferences.

A Surge in Outdoor Retail

Despite the initial setbacks, the outdoor retail sector saw a resurgence by 2021, a trend that has only continued to grow. According to IBISWorld, the market size of the sporting goods retail industry, encompassing everything from camping gear to athletic footwear, was $114.5 billion in 2023. This growth, averaging 6.7% annually between 2018 and 2023, outpaced the overall economy, underscoring the enduring appeal of outdoor activities.

Matt Eby, CEO of Seawall Capital, attributes this growth to the lifestyle shifts induced by the pandemic. Seawall Capital, which acquired Kent Outdoors – home to brands like BOTE and Kona Bicycles – in 2020, has witnessed firsthand how new hobbies born from pandemic boredom have evolved into lifelong passions.

“People had extra time because they weren’t commuting anymore; the work-from-home environment enabled them to pick up new activities that became hobbies,” Eby notes. “Hobbies become habits, and habits become part of your lifestyle.”

Climbing the Product Pyramid

When individuals venture into a new outdoor activity, they often start with basic equipment, gradually upgrading as their skills and enthusiasm grow. This progression, known as climbing the product pyramid, represents a long-term investment in gear and lifestyle. Brands like Kent Outdoors, catering to the higher end of this pyramid, are seeing sustained interest despite economic challenges.

“It’s a true lifestyle for them,” says Eby. “Once you’ve already decided you are a mountain biker and you’ve got a brand that you prefer – let’s hope it’s Kona – you have a high willingness to spend for that product because it enables you to engage in the lifestyle and activity you love.”

Expanding the Enthusiast Base

The pandemic didn’t just bring existing enthusiasts back to the outdoors; it created a wave of new participants eager to explore everything from golf to snowsports. Golf equipment, camping gear, and climbing supplies have seen significant sales spikes, reflecting a broader trend toward embracing outdoor activities.

Climbing, in particular, has rebounded strongly. After the U.S. fitness industry lost $29.2 billion in revenue between March 2020 and June 2021, the climbing gear market is projected to grow at a compound annual growth rate (CAGR) of 9.5% from 2021 to 2026, according to a market outlook report.

Innovation Fuels Continued Growth

The outdoor industry thrives on innovation. Brands constantly develop new products that deliver on performance promises and bring something fresh to the market. Whether it’s Black Crows adapting its offerings to meet the growing demand for alpine touring or ski resorts expanding terrain to accommodate new enthusiasts, innovation remains critical to sustaining growth.

Sustainability: The New Frontier

As outdoor recreation grows, so does the industry’s focus on sustainability. Consumers increasingly look for brands committed to quality and environmental protection. Eby emphasizes that authenticity is crucial: “You can’t just slap a sticker on a product that says ‘carbon neutral.’ Consumers will see through that.”

Brands like Burton Snowboards and Patagonia lead the charge, aiming to achieve carbon neutrality by 2025. These efforts resonate deeply with consumers who want to ensure the natural spaces they love are preserved for future generations.

The Future of Outdoor Recreation

The outdoor recreation industry is on the brink of a new era, driven by a generation that values experiences over possessions. Now entering their prime years and starting families, millennials are poised to become a powerful market force. The industry can expect continued growth and innovation as they introduce their children to outdoor activities.

“I reap the benefits for my kids – with how many sports they do and how fast they grow, we can find more curated, higher-quality gear at the same price or less as they grow,” says Cam Zink, co-founder of SENDY, an online marketplace for buying, selling, and renting outdoor gear.

In a world where sustainability and adventure go hand in hand, the outdoor recreation industry is thriving, adapting to its consumers’ changing needs and values. As long as the industry continues to innovate and prioritize sustainability, it will remain a vital part of our culture for years.

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