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Market Monitor: Outdoor & Recreation

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Market Monitor: Outdoor & Recreation

 Making the right decisions for your business starts with having the most accurate and current information available. Our Outdoor & Recreation  Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.

Outdoor & Recreation Market Insights

  • According to the Outdoor Industry Association, the Outdoor Recreation market experienced a slight downturn of 3% in retail sales for FY 2023 compared to FY 2022.
  • While M&A activity in the Outdoor Recreation sector was sluggish in the first four months of 2023, there has been a remarkable uptick in completed transactions during the same period in 2024.

Transactions Overview

  • 2023 Transactions Overview
    • 12 transactions completed through YTD April 2023.
    • 10 strategic acquirers and 2 financial buyers.
  • 2024 Transactions Surge
    • YTD April 2024 saw 32 completed transactions.
    • 24 acquisitions by strategic buyers and 8 by financial buyers.

Market Dynamics and Opportunities

  • This surge is especially promising amid concerns regarding high interest rates and inflation. Moreover, new entrants targeting emerging trends like pickleball, outdoor adventure, camping, and peak physical performance enhancement indicate a vibrant market landscape.

Consumer Spending Shifts

  • Consumer spending patterns suggest a shift towards focused expenditure on specific sports or activities within the Outdoor Recreation segment, potentially impacting broader market segments.

M&A Outlook

  • Anticipated M&A activity acceleration throughout 2024.
  •  Financial buyers eyeing entry into the Outdoor Recreation market, while others seek to bolster existing portfolios following a tepid 2023.
  •  Strategic buyers prioritize enhancing core competencies and expanding within their niche domains.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Tyler Dale, Managing Director: tdale@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Brennan Anderson, Vice President: [email protected]