Americans are taking it outside in record numbers: Some 178.5 million people ages six or older in the U.S. — about 57.3% of the population — participate annually in an average of 62.5 outdoor recreation outings each as of 2023.¹ This encompasses everything from biking, hiking, rock climbing, and camping to kayaking, paddling, swimming, jogging, and more.

Outdoor activities can offer myriad physical and mental wellness advantages, including reducing chronic disease risks and overall stress levels, improving sleep, and increasing attention levels and memory.² But playing outside is running up some significant economic  benefits too: Outdoor recreation generated $1.2 trillion in revenue in 2023, according to the latest data from the U.S. Bureau of Economic Analysis (BEA).³ The BEA estimates the outdoor recreation economy is valued at nearly $640 billion, and accounts for about 2.3% of the nation’s gross domestic product (GDP).⁴

Read more: Power players and the business of sports

Taking a growth hike

The pandemic helped fuel the growth of outdoor play among existing enthusiasts — as well as new recreationalists who discovered mountains of open-air hobbies — with 6.9 million more people taking to activities al fresco in 2021 than 2019.⁵

The growing appreciation for the great outdoors has also inspired a flow of new and enhanced innovations to hit the market. Developments in technology are helping make for more comfortable, immersive experiences that adventurers can both enjoy and share with others — from lighter, stronger, more waterproof camping fabrics and biodegradable gear to solar-powered chargers and smart cameras.^6,7 And with inflation showing signs of some cooling, the affordability of some types of outdoor equipment could shift: Sports  equipment decreased 2.8% and sports vehicles, including bikes, dropped 7.5% year-over-year, with sporting goods overall falling 5.3% for the same period according to the February Consumer Price Index.⁸

Going fishing

Which activities reel in the biggest bucks? The BEA reports boating and fishing rank first in 34 U.S. states and Washington D.C, contributing $36.8 billion to the economy, propelled by Florida ($4.2 billion), California ($3.1 billion), and Texas ($2.8 billion).⁹ Using RVs motors into second at $26.3 billion, followed by hunting/trapping at $14 billion, and snow activities at $7.7 billion.¹⁰

Pursuits like biking (26.6%), snow activities (25.2%), hunting/trapping (19.3%), and climbing/hiking/camping (13.9%) are seeing the biggest boosts in participation.¹¹

States get in the race

California is home to the largest recreational economy among U.S. states, generating $81.5 billion, followed by Florida with $57.8 billion, and Texas, with $55.8 billion.¹²

Outdoor economy rankings size by state, in billions

Among all U.S. states, Massachusetts has the highest rate of growth in the outdoor recreation economy, climbing by 13.3% in 2023.¹³

Retail adventures

The sporting goods industry on the whole grew by 7% annually from 2021 to 2024 according to a McKinsey & Company report, and the climbing gear market in particular is projected to grow 9.5% from 2021-2026.^14,15 According to the Empower Personal DashboardTM, spending at outdoor store REI was up 3.46% year-over-year in 2024.

Retailers like Dick’s Sporting Goods are finding innovative ways to make the most of the opportunity. At a time when some big-box stores are shrinking their space, Dick’s is upsizing to real estate that averages 120,000 to 140,000 square feet to accommodate its House of Sports megastores.¹⁶ The spaces are designed to deliver an immersive customer experience through rock-climbing walls, simulated golf, skating rinks, batting cages, and running tracks — bringing traditionally outdoor activities inside as a draw to attract more shoppers and keep them shopping longer.¹⁷

Read more: Trading spaces: Big-box stores are shrinking

Happy trails

The outdoor recreation economy is thriving — and to try to maintain that momentum and continue to reap the economic benefits, 24 states have created their own Office of Outdoor Recreation. The investment signals they prioritize championing outdoor recreation to attract businesses and visitors, generate job growth, and build healthy, robust communities.¹⁸