The outdoor retail industry isn’t what it used to be. The days of gearheads dominating the market—where every buyer was a hardcore mountaineer, overlander, or backcountry survivalist—are shifting. Today, casual consumers are reshaping the industry, gravitating toward lifestyle apparel, insulated tumblers, and road-running shoes over technical gear.

That’s a problem—or an opportunity, depending on how you look at it.

The outdoor industry has always been built on rugged individualism, personal freedom, and self-reliance—values that collide head-on with today’s economic and cultural shifts. Inflation has eaten into discretionary spending. Government regulations have made it harder for small businesses to thrive. And, more than ever, retail is being driven by mass-market trends rather than serious outdoor enthusiasts.

For brands, retailers, and professionals in the overland, outdoor recreation, and adventure travel industries, this is a defining moment. How do you survive—and even thrive—in a market that’s changing fast?

The answer lies in understanding the shift, adapting without selling out, and doubling down on the core values that made this industry great in the first place.

Let’s break it down.

THE OUTDOOR INDUSTRY’S SHIFT: WHAT THE DATA TELLS US

1. Hardcore Gear is Struggling—Casual Products Are Winning

According to the 2024 Outdoor Retail Sales Trends Report, outdoor industry sales dropped by 3.2% in 2023, with total retail sales hitting $27.5 billion. But the real insight is in who’s buying what:

• Casual products are on the rise – Sales of insulated mugs, lifestyle backpacks, and casual apparel skyrocketed.

• Technical gear is struggling – Categories like climbing equipment, backpacking tents, and winter sports gear saw declines.

• Footwear is shifting – Sales of road running shoes are up 11.4%, while hiking boots are down. More people are “hiking” in running shoes, a clear signal of a less hardcore participant base.

2. Retailers Are Getting Hammered—Especially the Independents

If you’re a small, independent outdoor retailer, 2023 was a rough year:

• Independent outdoor specialty stores saw a 9.7% drop in sales.

• E-commerce sales fell 7.5%, struggling against direct-to-consumer brands and Amazon.

• The big winners? Athletic Specialty & Sporting Goods (ASSG) retailers like Dick’s and REI, which only lost 1% of sales, showing they’re adapting to a more casual market.

3. Inflation and Government Overreach Are Killing Consumer Spending

Here’s the ugly truth: Consumers have less money.

Since 2020:

• Food costs are up 20%

• Housing costs are up 24%

• Car insurance is up 28%

• Wages? Stagnant.

When people are struggling to afford the basics, they’re not spending $500 on a premium down jacket or overland gear upgrades.

And let’s not forget the burden of regulations on small outdoor businesses. While big-box retailers get government favors, small overland outfitters, gear shops, and independent brands fight for survival against zoning laws, taxes, and import restrictions.

HOW TO WIN IN 2025: STRATEGIES FOR SURVIVAL & GROWTH

If you’re in the outdoor industry, you have two choices: Adapt or disappear.

Here’s how to lean into what works while staying true to the outdoor lifestyle’s core values.

1. BUILD A COMMUNITY, NOT JUST A CUSTOMER BASE

Consumers aren’t just looking for products—they want connection. The brands and retailers that thrive will be the ones that foster real communities.

What does this look like?

• Local Meetups & Events: Host off-road rallies, guided hikes, or skills workshops.

• Social Media Engagement: Stop posting sterile product shots—tell stories, share adventures, and highlight real customers.

• Exclusive Member Perks: Create a VIP club for serious outdoor enthusiasts, with first dibs on gear, special discounts, and member-only events.

Example: Brands like KUIU and Origin USA have built die-hard fan bases by leaning into American-made quality and real-world performance.

2. REFOCUS ON FUNCTIONAL GEAR, NOT TRENDS

If you’re an independent retailer, stop trying to compete with Big Box stores on price. Instead, curate a selection of gear that actually matters to serious outdoor people.

• Avoid gimmicky trends – Focus on durable, long-lasting gear instead of disposable fashion.

• Highlight Made-in-USA products – Consumers are increasingly looking for American-made alternatives to Chinese imports.

• Educate instead of just selling – Teach customers why quality matters instead of just chasing the lowest price.

Example: Small businesses like GoFastCampers (GFC) have thrived by making high-quality, American-built overlanding gear—proving there’s still a market for premium craftsmanship.

3. EMBRACE THE OVERLAND BOOM

The overland and vehicle-based adventure market is exploding, even as traditional outdoor gear sales stagnate. If you’re not already serving this community, now is the time to start.

• Stock overland-specific gear – Recovery gear, rooftop tents, storage solutions, and camp kitchen setups.

• Host vehicle-based adventure events – Overland expos, off-road workshops, and trail runs.

• Leverage content marketing – Showcasing real-world use of gear in action, from weekend warriors to hardcore expeditions.

The best part? Overlanders are gearheads who invest heavily in their setups—meaning they’re less price-sensitive than casual hikers.

THE FUTURE OF OUTDOOR RETAIL: BACK TO BASICS

The outdoor industry is at a crossroads.

You can chase the mass-market casual consumer and become another forgettable lifestyle brand.

Or you can double down on quality, community, and real outdoor culture—the values that built this industry in the first place.

The choice is yours.

Now, what are you doing to keep your business alive in 2025? Drop a comment—I want to hear what you’re seeing in the field.

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Looking to engage with your local outdoor community? Join Working Groups and keep the discussion going while developing your outdoor business.