SAZUN BLOG
April 28, 2022

Industry Insight Outdoor

The market profited from the covid-19 pandemic. This caused higher valuations resulting in a decreased M&A activity. Future market outlook looks promising with an expected CAGR of +10%.“

 

 

Emanuel Müller
Managing Partner

 

Market Insights
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Sports & Outdoor Market

Global Market Development
in billion USD 20210-2025.

 

Users
Worldwide number of users in the Sports & Outdoor market

  • The global market in the Sports & Outdoor segment is expected to reach $99.86 billion in 2025, showing an annual growth rate of 10%. Most revenue will be generated in the United States ($29.54) and in China ($28.28) by 2025.

  • In the Sports & Outdoor sector, the number of users is expected to steadily grow to 1,516.7 million by 2025, compared to 919.6 million users in 2021. The average revenue per user (ARPU) is expected to amount to $65.84 in 2025.

Sources: Outdoor Industry Association, Statista

The Outdoor Active & Outdoor Consumer at a Glance

Latest Trends

Sustainability has become increasingly important in the outdoor industry in recent years. Statista’s global consumer survey showed that 22% of the consumers would stop buying a product or brand due to sustainability issues. Top 3 sustainability criteria in purchase are durability, environmentally friendly materials and environmentally friendly packaging.

Outdoor activities are increasingly going digital driven by advances in technology. Approximately 78% of outdoor activities usually use technical devices during their activities, in most cases a smartphone. It satisfies the consumers’ desire to stay connected and share their experiences. Apps are increasingly important and used in 53% of outdoor activities to keep track of activities and record performance data.

Covid-19 impacted the industry drastically and had an impact on the people’s mobility and lifestyle. Throughout the pandemic outdoor recreation activities increased significantly resulting in record high sales number for companies operating in the outdoor sector and not being solely dependent on retail sales. However, research from the Outdoor Industry Association indicates that about one-quarter of new participants say that they don’t want to continue their new outdoor activities – a number that may grow sharply as consumers return to pre-pandemic habits.

Sources: Statista, Deloitte, Outdoor Industry Association, ISPO.com

Valuation Trends and Developments 

EV/SALES(Last 12 Months)

EV/EBITDA(Last 12 Months)

  • EV/Sales shows a constant increase from March 2020 until May 2021, due to the high demand for outdoor products. However, a decreasing trend is now visible which might result in pre-coronavirus levels (ltm median: 1.9 vs. ntm median: 1.4).

  • EV/EBITDA was trading at above industry average multiples and current trend shows a decrease and stabilization in the upcoming months (ltm median: 15.6 vs. ntm median: 9.04).

Source: Sazun Equity Research

Key Performance Indicators

Source: Sazun Equity Research

Peer Group Analysis

Source: Sazun Equity Research

Selected Latest Deals (LTM)

Sources: Mergermarket, Sazun Equity Research

Want to know more?
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If you would like to learn more about the valuations and deals of your industry, the transaction mentioned above, or generally our way of working, we would certainly be happy to demonstrate our m&a PLUS® principle in a confidential meeting. Of course, we also offer detailed overviews of the vending machines business, bakeries, and travel platforms, where we have strong credentials.
Just get in touch and we will share our experience on how to grow businesses with long-lasting partnerships.

With passion for M&A,
Your SAZUN Team