Outdoor products – whether recreational, lifestyle or DIY — were “in” in 2020, and the industry appears to be poised to enjoy another strong run this year amid the changing activities of the suddenly homebound. As winter turns to spring and then summer in many major markets, and consumers having learned to shop online in greater numbers amid the pandemic, categories such as gardening, backyard toys, sports equipment and others are preparing for a continuation of strong sales.

To be sure there are some caveats.  Logistics, from the factory floor to retail stores or online, will likely continue to be an issue: Stanley Black & Decker (SBD) CEO James Loree told analysts last week that the company’s tools and storage inventory was about four weeks shy of “ideal” level. And many companies remain cautious and are hedging their bets based on vaccine availability and how quickly markets broadly re-open.

More gardeners
For example, in the UK, where an estimated 3 million new gardeners took up the hobby during the pandemic, supplier Woodlodge, which is a new Royal Horticultural Society (RHS) licensee for garden pots, is dramatically expanding its inventory forecast, says Director Michael Wooldridge. But whether that translates into a sharp increase in sales depends more on production levels, and less on expected consumer demand for garden-related goods.

“I don’t want to miss the boat” for increased sales and “it’s critical to make hay, so you might as well order as much as possible because these products could run into 2022,” says Wooldridge. “But while you can put the orders through on a spread sheet, the reality is [that] factories are busy and… they can’t always gear up that quickly.”

Can the jump be replicated?
How long demand will linger in a post-pandemic world isn’t clear. Suppliers we polled expect the market to be strong this year, though that can vary widely by category. One reason is that those who bought such things as high-end grills, outdoor kitchens and furniture when they became suddenly homebound last spring aren’t likely to purchase them again a year later.

In many cases, outdoor activities have been newly incorporated into many consumers’ lifestyles, says Michael Stein, principal at Brand Capital Marketing, which represents decking supplier Trex,  outdoor furniture brand Brown Jordan and painting brand Wagner Spraytech for licensing. In footwear, for example, there’s been an influx of casual consumers trying to bridge the footwear gap between sneakers and professional performance gear.

What the impact on outdoor products will be once there are widespread vaccinations “is the new question” says Wooldridge, who expects a temporary “lull” in the gardening business once the homebound resume taking vacations. On the other hand, Stein pushes back against “an assumption that the exponential growth in outdoor product sales will impact negatively 2021 or the following year(s).  This is not something we are hearing from licensees as they saw a lot of new consumers that entered the market that otherwise were not ‘already shopping’ and there is pent up demand for doing projects they did not get to this past year.”

Seven in ten (69%) consumers in a recent poll said they’d gained a renewed appreciation for the outdoors as a result of the pandemic.

Perspectives and developments:

• RHS royalty revenue surpassed an earlier 2020 pandemic-related projection for a 33% decline, finishing the year with just a 10% decline to $1.6 million, says Licensing Manager Cathy Snow. The lower-than-expected decline was largely tied to increased interest in gardening in the UK. RHS, which typically gets 20 million visitors annually to its website, had already surpassed that by last May, says Snow. And based on rising consumer demand, RHS garden tools licensee Burgon & Ball will expand distribution for the first time to the 300-store B&Q, the UK’s largest home improvement chain.
• Trex, known for composite decking made from recycled materials, is continuing to expand brand licensing in outdoor products. Upscale outdoor kitchen supplier Danver will launch Trex-branded product later this year, while Structureworks, already a licensee for pergolas, extended its agreements to include lattices and trellis, says Stein.
• Outdoor sports gear rode a rollercoaster in 2020. The core outdoor sports market was down 8% in dollars and 13% in units through September, according to NPD. But the average selling price rose 5% to $36 as consumers purchased more expensive items. The declines were largely tied to a sharp drop in U.S. March-May sales, partly offset by gains during June-September. Outdoor sports equipment sales rose 12%, while those of apparel (-5%) and footwear (-4%) declined.
• Outdoor toy sales increased in 2020, fueled by families forced to forego summer vacations and camps. Summer season toy revenue jumped 24%, while those of scooters and skateboards increased 31%, according to NPD.
• Dick’s Sporting Goods is making a play for a larger outdoor products business with the Public Lands format that is slated to open its first locations in Columbus, OH and Pittsburgh, PA. The new stores will be in locations previously occupied by Dick’s Field & Stream chain, which it closed in 2020.