Outdoor Recreational Products Industry Insights - Spring 2018

May 4, 2018

A strong macroeconomic climate coupled with a growing desire among consumers to lead active, healthy lifestyles (driven by Millennials) has resulted in growing M&A activity and healthy deal multiples in the outdoor products industry.

Secular trends continue to drive consumers outside, leading to increasing participation in outdoor activities.

The M&A market has been dominated by both hyper-acquisitive strategic buyers, motivated to expand category offerings, fill product gaps and bolster e-commerce capabilities, as well as resurgence of financial sponsors actively seeking add-on acquisitions for platform companies and smaller, high-growth investments.

The Outdoor industry faces a shifting political landscape involving public lands that anchor recreation, resulting in outdoor industry companies responding with political activism.

The U.S. sportswear market is seeing a major shift from traditional in-store purchases to higher velocity digital purchases. Brick-and-mortar outdoor retail specialists face competition from pure “e-tailers” and direct-to-consumer (D2C) brands that price aggressively.

Outdoor brands have become more fashion-conscious to meet consumer preferences for versatile outerwear that is stylish yet possess the functional capabilities of traditional outdoor gear. This trend, defined as “athleisure,” consists of casual, comfortable clothing designed to be suitable for both exercise and everyday wear.

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