Top Trends in the Overland Industry
We’ve been following the overland market for years, and it’s amazing how this category has blossomed into its own niche industry and continues to grow and evolve. We recently partnered with Overland Expo for their largest event, Expo West, in Flagstaff, Arizona. Here are some of the top trends we saw as part of the event’s programming and what we observed at the show.
1.) Trend: Hunting and Tactical Market Integration
Explanation: Overlanding has always been a crossroads of other industries, such as outdoor and automotive. We are seeing an uptick in hunt and tactical products, adding to the overland space. We attribute this to shared attributes and values by both demographics, including self-sufficiency, gear interest and economic buying power.
2.) Trend: Overland Demo Becoming More “Casual”
Explanation: New, more casual participants are changing the product mix and impacting what would be considered part of the “overland” market, essentially widening and diversifying products. Traditionally, the overland market’s product offerings were more narrow, but we continue to see what might once have been considered on the periphery included in the category. Examples include boots, insulated mugs, more apparel, and less functional camping gear.
3.) Trend: Younger Consumers Influencing the Overall Overland Market
Explanation: In addition to the previous trend of more casual overlanders, we also see an influx of younger consumers becoming a target demographic. This impacts the overall overland category because it has historically been categorized as an older demographic with a higher income. This younger group may not have as much disposable income as they are not high earners at this stage of their lives. That said, they represent a high opportunity for growth as they build their lifestyle and purchase products that help them to do so.
4.) Trend: Slower Growth on Large Ticket Items
Explanation: Perhaps related to the second and third trends, we see consumer spending shying away from large ticket items. Fears of inflation could also bolster this. Consumers are spending, but the growth favors less expensive products. In addition to attributing this to overland’s changing demographic and economic uncertainty, we should also consider the product lifecycle of large ticket items and the growing sophistication and importance of product design and resiliency. The overland market values quality and efficiency in gear, and development on these items, such as racks, grills, campers and rooftop tents, has evolved to a higher level, slowing the turnaround to replace those items.
6.) Trend: Acquisitions and Private Equity Interest
Explanation: As the overland market grows and attracts new audiences, we see larger corporations and players looking to enter the niche market. Whether it’s an aftermarket vehicle accessory or an outdoor product that can be applied to overland, the manufacturing landscape looks much different in the past five years. We have seen numerous large-scale acquisitions taking place for such a niche industry, and in many cases, private equity is interested in emerging brands.
5.) Trend: Ongoing Recovery from COVID Era Projections
Explanation: The overland market has seen continued and consistent growth over the past 10 years. However, there was an additional spike in that growth during COVID. Many companies adjusted their order and revenue projections to account for increased growth, expecting that influx of new consumers to continue. While the overland market is still steady, that growth was not a sustainable trajectory for the market, and supply chain projections are still cooling. We expect the market to stay at the more long-term consistent growth it has historically shown.