The U.S. Commerce Department Bureau of Economic Analysis (BEA) released its updated estimates for the outdoor recreation economy for 2024 this past week, and the increased numbers, which seem to continue growing even as the outdoor retail industry struggles, prompted some additional interest in what’s behind that $1.3 trillion! number that we use day in and day out as a means to justify what we do and where we work.

Our Industry Leadership at Work
Prior to 2017, the federal government did not measure the economic impact of outdoor recreation. After years of lobbying by the various trade associations and other activity specific non-profits, the bipartisan Outdoor Recreation Jobs and Economic Impact Act (Public Law No: 114-249) was signed into law by Barack Obama in 2016, requiring the federal government to measure the sector’s impact on the economy to help inform policy makers and business leaders about the number of jobs created and consumer spending driven by outdoor recreation industries.

The law also requires that the Commerce Department submit a comprehensive analysis to Congress capturing the outdoor recreation sector’s contribution to the economy. This annual data is vital to showing how the outdoor recreation industry has a significant impact on the national economy and job creation and contributes to the health and vitality of the nation. 

This would not have happened without the efforts of ASA, OIA, NMMA, and many others representing brands, retailers, adventure travel and consumers in the outdoor space.

What’s in the Number?
Many executives in the outdoor recreation non-profit space, raising money and lobbying government officials, or entrepreneurs looking to raise money for their new business ventures, are quick to start every conversation with that “1.3-trillion-dollar-outdoor-recreation-economy!” tag, so those we speak with know we are no fly-by-night operation in a backwoods industry. We’re big time! And $1.3 trillion! used to be a lot of money — until we realize that it is now equal to just 3.6 percent of the U.S. national debt.

So, what’s in that number? Turns out it’s not as great for the human-powered outdoor business that many of us grew up in over the last 40 years. But, on the other hand, it may not support the feeling of inadequacy some may feel when they assess their “measly” $250 million technical apparel brand or outdoor footwear line against the $1.3 trillion! outdoor recreation economy.

First, the $1.3 trillion! number takes some liberty with rounding up from the actual number published by BEA. It may be more reasonable to use the $1,257,641 million number BEA published for the Gross Output by Activity table, or an even more reasonable $1.258 trillion, but we have to admit $1.3 trillion! is a far sexier figure.

For lobbying efforts – federal, state and local – the $1.3 trillion! figure makes total sense as it aims big and looks big and its source from BEA gives is instant credibility. But should we ignore the realities behind the number?

And what is inside the $1,257,641,000,000 number published by BEA can in itself be a source of confusion.

Value-Added / GDP by Industry
Turns out, there is another number that BEA uses to define the size of the outdoor recreation economy and uses this particular number for most other measurements. Why?

In its infinite wisdom, the agency defines the Gross Output figure as “the total value of sales or receipts, including intermediate inputs, which often results in double-counting.” Meanwhile, another figure called Value-Added, or GDP by industry, is defined as an industry’s gross output minus intermediate inputs (purchased goods/services), representing its “true contribution to GDP.”

The BEA Value-Added number for the outdoor recreation economy was $696,658,000,000 in 2024, or $696.7 billion for those in the back of the room that can’t see the zeros.

Turns out, the $1.3 trillion figure we have been using (or $1.2 trillion in 2023) is not equal to 2.4 percent of the U.S. gross domestic product (GDP) as has been published, because it is not measured as part of GDP. The $696.7 billion Value-Added figure is calculated by BEA as 2.4 percent of national GDP in 2024, not the $1.3 trillion figure. It is important to remember that the Value-Added number is actually defined by BEA as “GDP by industry.”

“Gross output counts intermediate products multiple times, while value-added eliminates this, making it a better measure of economic contribution,” BEA wrote in its report.

Inflation-Adjusted or Real GDP
The annual report also uses a third measurement for industry contribution, but it is not used much in the BEA report: the Inflation-Adjusted, or “Real” GDP for the outdoor recreation economy. Real GDP increased 2.7 percent year-over-year in 2024, compared with a 2.8 percent increase for the overall U.S. economy, reflecting a deceleration from the 5.3 percent increase in outdoor recreation in 2023.

BEA stated that “real gross output for the outdoor recreation economy increased 2.0 percent. Outdoor recreation compensation increased 5.2 percent, and employment increased 1.1 percent” year-over-year.

Yes, the Real GDP of the outdoor recreation economy in 2024 grew at roughly HALF the rate year-over-year than it did in 2023 — and that sounds more like what the outdoor retail industry has been feeling over the last two years, at least directionally.

Change in Outdoor Recreation, Compared with the U.S. Economy, 2024

The BEA said that outdoor recreation employment increased in 36 states and the District of Columbia in 2024. The percent change in outdoor recreation employment ranged from 4.3 percent in North Dakota to −4.0 percent in Hawaii, which may not be unreasonable given the loss of recreation space and poor media coverage after the fires on Maui and the 2023 Kilauea volcano eruption.

The Outdoor Activity Reality
The BEA report measures so-called outdoor recreation activities across three general categories, including some in the human-powered side of the business will not embrace. Others are clearly not what many of us would consider “outdoor recreation” just because it is done outside.

Conventional Outdoor Recreation. This segment includes much of what the OIA, ORR, NMMA, NSSF, ASA, Ducks Unlimited, and PeopleForBikes folks would embrace as it includes activities such as bicycling, boating, hiking, and hunting.

In 2024, Conventional Outdoor Recreation accounted for just 29.5 percent of U.S. outdoor recreation value added, compared with 30.0 percent in 2023. That is not 29.5 percent of $1.3 trillion – it is 29.5 percent of the $696.7 billion Value-Added figure. So start felling better about your company’s contribution to the effort. If you are a consultant or a 1099 sales rep or agency, start feeling even better as your value goes right into Value-Added where W-2 salaries are in compensation, a Real GDP component.

Other Outdoor Recreation includes activities such as gardening and outdoor concerts. We will guess most in the industry enjoy both, but do not see it as part of an outdoor recreation industry job that contributes to the economy.

Other Outdoor Recreation accounted for 19.0 percent of value added in 2024, compared with 18.8 percent in 2023.

Supporting Outdoor Recreation includes activities such as construction, travel and tourism, local trips, and government expenditures. Most people in the broader ORR world of the outdoor industry would likely see travel and tourism to outdoor adventure locations as a fair segment to measure, and there is no indication how tourism is defined by destinations. Still, BEA did calculate guided tours and outfitted travel at $26.1 billion in 2024, including guided trips by air, land and sea.

Supporting Outdoor Recreation activities accounted for the remaining 51.5 percent of value added in 2024, compared with 51.2 percent in 2023. Growth in supporting activities was said to be led by travel and tourism, reflecting growth in spending on transportation, hotels, and restaurants.

Value-Added Conventional Outdoor Recreation by Activity
This is where the numbers lose people that spend their life and career embracing human-powered pursuits and activities. The two largest segments of the Conventional Outdoor Recreation segment are dominated by powered vehicle sales and service, although the fishing ($8.75 bn), canoeing ($129 mm), and kayaking ($360 mm) sub-segments in the largest overall Boating/Fishing segment can also be assessed as human-powered pursuits. The fishing numbers exclude boating figures.

Boating/Fishing was the largest Conventional Outdoor Recreation activity for the nation at $38.4 billion in current dollar value-added and was the largest conventional activity in 34 states. The states with the largest contributions were Florida ($4.4 billion), California ($3.3 billion), and Texas ($3.0 billion) in 2024.

RVing was the second-largest Conventional Outdoor Recreation activity for the nation at $27.5 billion in current dollar value added and was the largest conventional activity in nine states. The states with the largest contributions were Indiana ($5.2 billion), Texas ($2.7 billion), and California ($2.1 billion) in 2024.

Hunting/Shooting/Trapping was the third-largest Conventional Outdoor Recreation activity for the nation at $16.5 billion in current-dollar value added and was the largest conventional activity in Arizona and Wyoming. The states with the largest contributions were Texas ($2.0 billion), Florida ($974.6 million), and California ($817.5 million) in 2024.

Snow activities for the nation was $7.6 billion in current-dollar value added and was the largest conventional activity in four states (Colorado, New Hampshire, Utah, and Vermont). The states with the largest contributions were Colorado ($1.6 billion), California ($730.5 million), and Utah ($598.2 million) in 2024.

Climbing, Hiking, and Tent Camping was calculated by BEA at $7.75 billion in 2024.

Bicycling was calculated at $3.67 billion for the year.

Outdoor Recreation by Industry Segment
The Outdoor Recreation by Industry Segment data show the contributions of each segment to the outdoor recreation economy, including their impact on value added, gross output, employment, and compensation.

Arts, Entertainment, Recreation, Accommodation, and Food Services industry group was the largest contributor to U.S. outdoor recreation economy current-dollar value added in 2024, accounting for $174.4 billion, or 25.0 percent.

At the state level, Arts, Entertainment, Recreation, Accommodation, and Food Services was the largest contributor to outdoor recreation economy value added in 23 states and the District of Columbia. The states with the largest contributions were California ($24.1 billion), Florida ($22.7 billion), and New York ($11.8 billion).

Retail trade was the second-largest industry group for the nation, at $169.1 billion, or 24.3 percent of value added, and was the largest industry group in 24 states. The states with the largest contributions were California ($19.3 billion), Texas ($14.4 billion), and Florida ($13.4 billion).

Annual Updates
BEA estimates for 2020 to 2023 were updated as a part of the latest report. At the national level, gross output, value added, employment, and compensation now incorporate the results of the 2025 annual update of the National Economic Accounts, which include the National Income and Product Accounts and the Industry Economic Accounts, and newly available and revised source data. The state statistics now reflect these updated national data as well as the 2025 annual update of the Regional Economic Accounts and newly available and revised regional source data.

Additional information, methodology and definitions can be found here.

 Image courtesy Pelagic