Emerging Themes for Investors in the Outdoor Enthusiast Market

Sameer Tejani & Samantha Pinkes • June 16, 2025

As a result of recent project work, in tandem with over 30+ years of experience serving PE clients across a variety of markets and subsectors, we have compiled our top list of emerging investment themes in the outdoor enthusiast sector for the first half of 2025. Highlighting various headwinds and tailwinds, the following items are Stax top six key investment themes in the outdoor enthusiast sector:

Emphasis on proving tariff resiliency, either based on markets the Company sells into (e.g., ex-US market presence) or where the Company manufactures (e.g., non-Chinese mfg.).
For companies that do have differentiated cost positioning, opportunity exists to opportunistically gain share as competitors face higher prices—both at the retailer and consumer level.
Across the board, companies are still seeking to understand consumer price elasticity in a high tariff environment, impacting the ability to pass on price increases without
impacting demand levels.

Emphasis on proving tariff resiliency, either based on markets the Company sells into (e.g., ex-US market presence) or where the Company manufactures (e.g., non-Chinese mfg.).
For companies that do have differentiated cost positioning, opportunity exists to opportunistically gain share as competitors face higher prices—both at the retailer and consumer level.
Across the board, companies are still seeking to understand consumer price elasticity in a high tariff environment, impacting the ability to pass on price increases without
impacting demand levels.

Emphasis on building recurring revenue exposure across products and services business, often via tech-enablement (e.g., tech-enabled product with an integrated app)
Additional benefits include greater repeat participation with the product due to social/community engagement, gamification, etc. benefits from tech usage—e.g., tech-enabled golf ball with an app to track performance, compete against peers, etc.

Emphasis on building recurring revenue exposure across products and services business, often via tech-enablement (e.g., tech-enabled product with an integrated app)
Additional benefits include greater repeat participation with the product due to social/community engagement, gamification, etc. benefits from tech usage—e.g., tech-enabled golf ball with an app to track performance, compete against peers, etc.

Branded products companies are increasingly leveraging owned manufacturing capacity for both own branded product, as well as white labeled offerings (e.g., for corporate partners, other brands, etc.), reducing brand-specific risks.

Branded products companies are increasingly leveraging owned manufacturing capacity for both own branded product, as well as white labeled offerings (e.g., for corporate partners, other brands, etc.), reducing brand-specific risks.

Though outdoor activity has remained mostly flat post-Covid, individuals that remain engaged, particularly those that are newer to outdoor, have high propensity to spend, supporting ongoing category growth.

Though outdoor activity has remained mostly flat post-Covid, individuals that remain engaged, particularly those that are newer to outdoor, have high propensity to spend, supporting ongoing category growth.

Brands are increasingly seeking to be precise in consumer targeting, aligning brand positioning and messaging to the specific needs and preferences of that target audience. As such, brands with a strong DTC channel presence are often advantaged given their customer connectivity and access to data; that said, brands selling across channels are increasingly completing scaled consumer research to understand consumer needs on a regular basis.

Though outdoor activity has remained mostly flat post-COVID, individuals that remain engaged, particularly those that are newer to outdoor, have high propensity to spend, supporting ongoing category growth.

Companies that are able to leverage connection to professionals are seeing success in the broader enthusiast spaces, with consumers seeking out brands for hobbyist use cases that are “approved” by professionals (e.g., purchasing biking gear used by professional cyclists).
Increasingly, professionals across spaces are acting as social media influencers, broadening their reach to new audiences and supporting brand expansion.

Companies that are able to leverage connection to professionals are seeing success in the broader enthusiast spaces, with consumers seeking out brands for hobbyist use cases that are “approved” by professionals (e.g., purchasing biking gear used by professional cyclists).
Increasingly, professionals across spaces are acting as social media influencers, broadening their reach to new audiences and supporting brand expansion.

About Grant Thornton Stax

Grant Thornton Stax has 30+ years’ experience working across numerous deals in a variety of markets, including the sports & outdoor markets, and has continued expanding expertise. More recently, Grant Thornton Stax has expanded its offering to include ESG and Impact advisory, which can be intertwined with our core CDD work to help investors throughout the investment lifecycle, maximizing value creation potential. To learn more visit www.stax.com or click here to contact us.