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Outdoor Industry Association Releases 2006 State of the Industry Report: Evolving Outdoor Industry is Healthy, Defined by Potential
Editor’s Note: For years, ATTA’s leadership has actively engaged in the outdoor industry and has held membership status in the Outdoor Industry Association. ATTA’s leadership remains active members in the OIA and believes that the natural symbiosis between the ATTA and OIA will yield important benefits for the consumer, and ultimately for the people, places and cultures of the places where consumers recreate and travel. OIA research are complimentary to ATTA research (ATTA’s State of the Industry Report is slated for an October 2006 release at the 2006 Adventure Travel World Summit) and are provided to AdventureTravelNews™ readership for the adventure travel community to be able to monitor how a closely related industry is tracking with ours. The full OIA report is available for purchase (free to OIA Members) at www.outdoorindustry.org.
Outdoor Industry Association (OIA), the national trade association for the Outdoor Industry, recently released its State of the Industry Report.
"Outdoor recreation occupies an enviable position at a unique time in our nation's history," notes Frank Hugelmeyer, President of Outdoor Industry Association. "It offers a solution to the pressing problems of obesity and inactivity, Americans are increasingly drawn to the active outdoor lifestyle, and the Industry is beginning to receive recognition as a major contributor to America's economic vitality. More than ever, it is our potential that defines us."
The State of the Industry Report finds that the Outdoor Industry is facing significant changes including an evolving participant and consumer as well as increased competition in the retail landscape. At the same time, the outdoor lifestyle is gaining in popularity and Americans are looking to accessible recreation as a solution to the inactivity crisis. The Industry continues to attract the attention of investors, and the outdoor business community has matured into a vibrant $33 billion industry. The forward looking 2006 State of the Industry report explores the potential in the Outdoor Industry through four key sections: Who's Playing, Who's Selling, Where We're Playing, and Where We're Headed.
Who's playing: Two of the largest segments of the population are Baby Boomers (born 1946-64) and Millennials (born 1978-2003.). Boomers will remain a strong foundation for the Industry, but the Millennials will change the way we do business, the places we play, and how we define ourselves.
- Boomers are participating in a broader mix of activities, blending adventure with comfort.
- Millennials embrace adrenalin sports like moto-cross and wakeboarding as well as more traditional outdoor human-powered activities like climbing and snowboarding.
- Millennials respond to activities they see in the media and those that are easily accessible
- Compared to Boomers, Millennials see activity in terms of "big air," competition and achievement (not nature and wellness)
- Millennials, like Boomers, integrate activity into a broader lifestyle and prize social connections more than the activities themselves
Who's selling: Americans are increasingly drawn to the active outdoor lifestyle, ringing up $33 billion in retail sales this past year alone. At the same time, the Outdoor Industry is attracting greater competition as more merchants and manufacturers across more channels angle to capture a share of the market.
- For the past five years, Outdoor Industry businesses have outperformed the S&P 500.
- Investment continues to flow into the Industry with recent acquisitions of established outdoor brands at strong multiples.
- Over the last year, online purchases jumped from 12% to 16.3% of total Industry sales.
Where we're playing: Traditionally, outdoor recreation was synonymous with the backcountry. But as Americans battle the inactivity crisis, and outdoor enthusiasts increasingly seek activities that can be done before dinner, close to home recreation opportunities are more important than ever.
- Outdoor Industry and policy makers must expand focus to include frontcountry and urban recreation areas.
- By embracing these new playgrounds and ensuring that all Americans have places to play close to home, we are creating a healthier nation.
- OIA hopes to bring quality parks and trails within 15 minutes of every child in the U.S.
Where we're headed: This industry is and will always be a product of peoples' passion. Like many of its greatest innovations, however, its growth and success requires that we continue to build on our strong foundation, while adjusting to the new realities brought by Millennials. Whether our participants are young or old, mountain bikers, bird watchers or day hikers, they share common goals that draw them to the active outdoor lifestyle:
- Connection to the playgrounds where they recreate.
- The value of good health/wellness and the simple joy of being in nature.
In addition to using numerous primary and secondary research for the State of the Industry Report, OIA conducted numerous interviews with a wide variety of business executives, including a survey of 210 Outdoor Industry professionals, to understand where the Industry is today, where we are headed, and how we are going to get there.
The Outdoor Industry Association® (OIA) is a national trade association whose mission is to ensure the growth and success of the outdoor industry. For more information go to http://www.outdoorindustry.org or call 303.444.3353.