Indonesia Outdoor Equipment Market Outlook to 2030

Indonesia Outdoor Equipment Market Overview

• The Indonesia outdoor equipment market was valued at USD 337 million, driven by increasing interest in outdoor activities such as camping, hiking, and fishing. This growth is attributed to rising disposable incomes, an expanding middle class, and a surge in domestic tourism. Furthermore, the government's push for eco-tourism and adventure sports has fueled demand for outdoor equipment.

• The market is dominated by key urban centers such as Jakarta, Bali, and Bandung, which serve as tourism hubs and recreational destinations. These regions have experienced heightened demand due to their proximity to popular outdoor activity sites. For example, Bali, known for its scenic beauty and adventure tourism, has a strong customer base for water sports and hiking gear.
• The Indonesian government, through its Ministry of Tourism, has been actively promoting adventure and eco-tourism in regions such as Bali, Sumatra, and Kalimantan. In 2024, the Ministry of Tourism is targeting over 7.5 million adventure-seeking tourists. This promotion is expected to increase the demand for outdoor equipment like hiking gear, safety equipment, and camping gear, benefiting the market as more tourists engage in adventure-based activities.

Indonesia Outdoor Equipment Market Segmentation

By Product Type: The market is segmented by product type into camping equipment, hiking gear, fishing equipment, hunting gear, and others. Currently, camping equipment dominates the market due to the increasing popularity of eco-friendly and adventure tourism, with both locals and international tourists seeking immersive outdoor experiences. Established brands in this segment have capitalized on this trend by offering a diverse range of products, including tents, backpacks, and portable cooking equipment, catering to both novice and seasoned campers.

By Distribution Channel: The market is further segmented by distribution channels into online and offline channels, including specialty stores, supermarkets, and hypermarkets. The online segment has been gaining prominence, especially post-pandemic, as more consumers prefer to purchase equipment through e-commerce platforms for convenience. This shift is driven by easy access to product comparisons, home delivery, and discount offerings.

Indonesia Outdoor Equipment Market Competitive Landscape

The market in Indonesia is competitive, with several domestic and international players vying for market share. Decathlon, a major international brand, has seen widespread adoption due to its affordable pricing and wide product range.

Indonesia Outdoor Equipment Market Analysis

Market Growth Drivers

• Increasing Popularity of Outdoor Sports: Outdoor sports like hiking, mountain biking, and water sports are gaining popularity among the youth population in Indonesia, fueled by local sports events and awareness campaigns. By 2024, Indonesia's sports and recreation market is expected to have substantial growth due to increasing local sports events. This has resulted in a spike in the demand for durable outdoor sports equipment.
• Government's Focus on Infrastructure Development: The Indonesian government has heavily invested in infrastructure projects, especially in remote areas and national parks, enhancing accessibility to outdoor adventure spots. In 2024, the government has allocated over IDR 400 trillion for infrastructure, facilitating tourism, and improving transportation networks to various outdoor locations.
• Growing Middle-Class and Outdoor Enthusiasts: Indonesia's expanding middle-class population, with an increasing interest in healthier lifestyles and outdoor activities, is driving the growth of the outdoor equipment market. Around 40 million Indonesians are expected to join the middle class by 2025, creating a solid customer base for outdoor gear.

Market Challenges

• Limited Domestic Manufacturing Capacity: The majority of outdoor equipment in Indonesia is imported, resulting in high costs and limited availability. The weak domestic manufacturing capacity forces retailers to rely heavily on imports, making it difficult to meet the growing demand in 2024. This leads to supply chain issues, which also result in fluctuating prices of outdoor gear and challenges in maintaining stock levels in rural and urban markets.
• High Competition from International Brands: International outdoor equipment brands dominate the Indonesian market due to their established reputation and variety of product offerings. By 2024, brands like The North Face, Columbia, and others are expected to continue holding a large share of the market, leaving little room for local brands to compete.

Indonesia Outdoor Equipment Market Future Outlook

Over the next five years, the Indonesia outdoor equipment industry is expected to witness growth, driven by rising consumer interest in adventure sports, government support for eco-tourism, and the increasing trend toward sustainable products.

Future Market Opportunities

• Increased Demand for Sustainable Outdoor Gear: In the next five years, the demand for sustainable and eco-friendly outdoor equipment is expected to rise. With the government's increasing focus on environmental protection and sustainability, companies will need to produce eco-conscious products to meet market regulations. By 2029, it is projected that 60% of outdoor gear sold in Indonesia will be made from biodegradable or recycled materials.
• Growth of Smart Outdoor Equipment: By 2029, outdoor equipment integrated with technology, such as GPS-enabled backpacks, smart tents with temperature regulation, and solar-powered cooking equipment, will gain popularity. The increased emphasis on safety during outdoor activities will drive demand for such technologically advanced gear, which can improve user experience and ensure safety in remote locations.