Thinking of Buying an Adventure & Outdoor Sports Business in Australia? Here Are 3 Vital Questions to Ask
Australia’s adventure and outdoor sports sector has experienced a dynamic decade, shaped by shifts in leisure habits, health awareness, and online retail trends. The Hiking and Outdoor Equipment Stores industry—which serves as a key indicator for this segment—generates $2.3 billion in annual revenue, employing over 9,000 people across 1,178 businesses. Profit margins sit at approximately 6.8%, supported by a growing appetite for outdoor pursuits and wellness-focused lifestyles.
Following a strong pandemic-era surge in hiking and camping demand, the sector is now adjusting to post-pandemic realities, including cost-of-living pressures, increased digital entertainment competition, and evolving consumer preferences. Revenue is forecast to grow modestly by 1.3% annually through 2030, reaching nearly $2.4 billion.
1. How Stable and Profitable Is the Business Model?
Why It Matters:
Adventure and outdoor sports businesses often rely on discretionary spending, which fluctuates with consumer sentiment and household income. Understanding the business’s revenue diversity, stock management, and adaptability to online retail trends is vital for sustained profitability.
What to Check:
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Revenue performance – Compare margins against the industry average of 6.8% and examine whether revenue depends on seasonal tourism, sporting events, or retail equipment sales.
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Inventory and supply management – High-quality equipment and apparel face less competition from external retailers, helping protect margins.
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Digital presence – Online sales continue to expand as consumers seek convenience and price comparisons. Businesses without a strong e-commerce channel risk losing market share.
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Cost control – Evaluate rent, staffing, and purchasing costs, which account for a significant share of revenue. Larger operators benefit from supply chain efficiency and omni-channel integration.
2. How Strong Is the Market Position and Competitive Edge?
Why It Matters:
The market is dominated by a handful of large players—Super Retail Group (BCF, Macpac), KMD Brands (Kathmandu, Rip Curl), and Spotlight Group (Anaconda)—which together hold more than 55% of total market share. New entrants or independent operators must find ways to differentiate through niche experiences or regional targeting.
What to Check:
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Customer experience – Experiential elements like product testing zones, guided tours, or adventure workshops attract repeat visitors and build loyalty.
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Brand partnerships – Ties with leading gear manufacturers or outdoor lifestyle influencers enhance credibility and reach.
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Location advantage – States like New South Wales, Victoria, and Queensland dominate due to population density and tourism activity.
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Product mix – Businesses that blend retail with guided adventure services or rental options tend to show more resilient income streams.
3. Is the Business Aligned with Long-Term Industry Trends?
Why It Matters:
Adventure and outdoor sports businesses are increasingly shaped by technology, sustainability, and consumer health consciousness. Companies that adapt to eco-friendly practices and integrate tech-driven convenience stand to gain.
What to Check:
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Sustainability – Demand for ethically produced, durable, and recyclable equipment is growing. Brands like Kathmandu and Macpac are leading the charge with circular design initiatives.
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Technological integration – Retailers are investing in POS systems, online booking platforms, and digital engagement tools to improve service and inventory accuracy.
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Health and lifestyle trends – Australians’ commitment to wellness supports consistent interest in outdoor recreation, though time-poor consumers may favour shorter, more accessible experiences.
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Economic resilience – The industry’s growth depends on discretionary income, meaning inflationary pressures and rising interest rates can temporarily reduce demand.
Ready to Invest in a Thriving Adventure & Outdoor Sports Business?
Australia’s love for outdoor adventure remains strong, supported by a healthy lifestyle culture, domestic tourism, and rising sustainability awareness.
Investors who focus on differentiation, omni-channel retailing, and strong supplier relationships will find opportunity in this evolving and resilient market.
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