If trying to grow a business in the outdoor industry has felt exceedingly tough in 2025, you’re not alone, according to data and insights shared by Matt Tucker, executive director, client development in Circana’s sports equipment practice.
At the Outdoor Media Summit in Durango, Colo., Tucker shared that overall consumer behavior has shifted as higher food prices, tariffs, job insecurity and other factors have put pressure on Americans’ discretionary spending in 2025, and those factors have created challenges for outdoor brands and retailers as well a few opportunities.
SESO followed up with Tucker to gather more insights into the challenges and opportunities in the outdoor industry as we head toward the holiday season and into 2026.
The Big Picture: Shifting Consumer Spending
Overall retail sales have seen modest growth, but where consumers are putting their dollars is the real story. In the 12 months ending in June 2025, there was a 2.4% increase in total retail sales, reaching $3.3 trillion. However, this growth isn’t evenly distributed.
Consumers are dedicating a larger portion of their wallets to food and beverages, which now account for 52% of annual spending — a 3-point increase compared to 2021. This shift comes at the expense of general merchandise. While categories like home improvement (+5%) and home textiles (+6.4%) have shown strong growth, others have faced headwinds. Fashion, for example, saw a 1.4% decline, with apparel down 1.7% and footwear dropping 2.9%. Accessories increased by 1.3%.
“We’re spending more on food, which leaves less discretionary income for other areas like apparel and footwear and equipment that are so important to the outdoor industry,” Tucker said. “We’ve got a tighter hold on our wallets and we’re really picking and choosing.”
Lower income, younger consumers and Hispanic consumers are reporting the largest reductions in discretionary spend and spending on general merchandise. That’s due to job insecurity and a tough job market, the disproportionate impact of job reductions on people of color, ICE raids and the government shutdown’s impact on SNAP benefits, Tucker said.
Price increases continue to influence purchasing decisions. In August 2025, a significant portion of general merchandise subcategories experienced price hikes of over 5%. In sports equipment, the price of 17% of goods increased between 5% and 10%, 14% of goods increased between 10% and 20% and the price of 13% of goods increased more than 20%. This “invisible inflation” is impacting discretionary spending, as wage growth struggles to keep pace with rising costs.
As of October 2025, 38% of consumers reported in a survey conducted by Circana that they planned to cut back on spending because of tariffs and their implications. The majority said they would cut back on restaurant visits, clothing, footwear and accessories, travel and hotels as well as entertainment. Twenty-three percent said they would cut back on gym memberships and 16% cited exercise and sports equipment as an area they would cut back on.
The other shift is at the channel level, Tucker said, with more consumers shifting toward ecommerce and the club channels, such as Costco, and consumers pulling back from specialty and mass retail.
That’s driven by convenience, particularly when it comes to shopping for children, buying technology, or buying furniture or sports equipment, he said.
“Over half of [sports equipment] dollars sold are done online,” Tucker said. “Now that’s not just Amazon. That’s also Dickssportinggoods.com. That’s rei.com and Backcountry, all that.”
In addition to seeking value and being able to navigate prices across multiple retailers, there’s also the “endless aisle,” he said, which means consumers can shop for all sizes, colors and other factors online. There’s also the “need now” trend, meaning consumers don’t plan ahead in the same way as they used to, knowing they can order an item and receive it within the same day or next day.
“It’s speed, it’s availability and it’s cost,” he said.
When consumers shift channels, that means they’re introduced to new brands they haven’t seen at the stores they formerly shopped at. Another opportunity is in beauty and wellness, one of the few categories that’s still experiencing growth.
“It is a really good indication of what’s possible in other industries,” Tucker said. “I’m not saying that outdoor shops should sell makeup. What I’m saying is that consumers are looking for little luxuries. It’s all part of overall health and wellness, feeling good, looking good. I think that is a lesson that other industries can learn from.”
Key Trends in the Sports and Outdoor Industry
Despite some challenges, the sports and outdoor industry is showing resilience and some pockets of growth. While the overall sports equipment market declined by 1% over the 12 months ending August 2025, certain segments are performing well, such as running/walking in apparel and footwear, as well as team sports, golf, fishing and snow sports in sports equipment. The health and fitness equipment category returned to growth in 2025.
“Whether it’s golf, some categories of fishing — particularly marine electronics, people that own boats tend to have those — snow sports, segments of cycling, those areas tend to have a higher-income participant,” Tucker said. “Those sports aren’t cheap to participate in, right?”
Overall, outdoor sports equipment sales declined 3% in the last 12 months to $14 billion, with camping equipment sales remaining soft, down 10% in dollars year-to-date through August.
Coolers, food and trekking poles were the only categories among sports equipment accessories that saw growth in the 12-month period ending August 2025.
“I believe that the (sales) growth that we’re seeing in food right now is based on the continued popularity of running and jogging,” Tucker said, referring to energy gels and bars. “That’s been, especially for specialty retail, a big growth driver.”
Industry Highlights and Top Performers for 2025
Even within a challenging market, several categories and brands are demonstrating strength:
- Running/walking is a major growth driver in activewear, with running and jogging apparel up 25% vs. last year and running inspired/road running/walking footwear making up 60% of total footwear sales.
- The at-home fitness trend has found new life. Year-to-date, free weight equipment sales have grown 17% in dollars, driven by trends like “rucking” (walking with weights). Cardiovascular machines, especially under-desk treadmills, are also up 7% in dollar sales.
- The portable drinkware market has cooled slightly. Sales fell 2% over the past year, totaling $4.3 billion. After a long period of dominance by insulated cups, traditional bottles are making a comeback, surpassing insulated containers in sales for the first time since February 2023.
- In cycling, electric bikes are a major growth engine. While the overall adult bike market has seen declines, electric road bikes (+25% dollar growth) have gained. Helmets also saw a notable 7% growth, contributing 32% of the absolute dollar growth among growing cycling subcategories.
Top Outdoor Brands to Watch
Based on year-over-year growth in the 12 months ending August 2025, several brands and categories have distinguished themselves:
- Outdoor apparel: New Era, Free People, New Balance, Helly Hansen, Ariat, Arc’teryx and 686 are among the strongest performers in outdoor apparel. Headwear, outerwear bottoms, handwear, knit shirts, jeans, dresses and active knit shirts were the strongest performers.
- Footwear: HOKA, ASICS, On, Birkenstock, New Balance, Timberland and Topo Athletic were the strongest performing footwear brands. Road running, fashion slides, mule/clog, winter/snow boots, lite hiking, fishing/water boots and high shaft boots were the strongest performing categories.
- Equipment: Owala, HydroJug, California Innovations, RTIC, Westinghouse, Ninja and Ez Up were the strongest performing brands in outdoor equipment. Soft sided coolers, hard sided coolers, energy food, optics accessories, portable power accessories, outdoor cookware-service and wearable hydration were the strongest performing categories.
Tucker pointed out that many of the most successful brands have versatile utility, appeal to a wide demographic and are widely available.
“When you look at HOKA and On, you can run in them. You can walk in them,” Tucker said. “I see a ton of seniors wearing HOKA and On because they’re comfortable and supportive. But I also see a lot of core competitive runners wearing them. The audience is wider than most brands. They’re still telling that performance story, but it’s very inclusive.”
Looking Ahead
Many retailers and brands aimed to absorb increased tariffs thus far, but Tucker anticipates more price increases — and continued pressure on consumers going into 2026.
“It’ll be interesting to see how new models compete with old ones once prices increase, we might see some top sellers start to well up from discounted older product when the new models come out,” Tucker said. That’s something that brands need to anticipate – that a new launch may actually push sales to some other products.
Marketers should focus on communicating value and durability, and appeal to a consumer base that is increasingly prioritizing quality over quantity. Understanding the nuances of different demographics — from price-sensitive young adults to families sacrificing personal purchases — is essential for effective targeting.
To compete with ecommerce and club channels, specialty retailers need to carve out their niche, whether it’s in community building or other ways that make them important and relevant to consumers, Tucker said. That could mean sharing insights about trails or where to fish or where the best hikes are.
“I think the fear among some is that retailers could potentially just become warehouses and people buy from them online,” Tucker said. “But I think you still have the purists out there that want to support local.”
Kate Robertson can be reached at kate@shop-eat-surf-outdoor.com.
