New Engen Report Identifies Key Trends and Winning Strategies for Active Lifestyle Brands in 2025 and Beyond

Rising costs, shifting shopping habits, and intensifying competition have reshaped the active lifestyle market in 2025, but opportunities remain for brands that adapt. New Engen’s 2025 Benchmark Report for Active Lifestyle Brands explores the headwinds facing active lifestyle brands, from fragile consumer sentiment to slowing ecommerce growth. It highlights how strategic, values-led marketing is unlocking sustainable growth, strengthening brand equity, and building lasting loyalty.

Macro Trends & Consumer Spending

Consumers are tightening their budgets, forcing brands to reassess their pricing, positioning, and messaging. While 50% of U.S. adults plan to cut back on discretionary spending amid rising tariffs, they’re also rewarding brands that demonstrate transparency and trust.

Key insights:

• Tariff pressures drive selectivity:
  • Apparel and footwear are among the first categories where consumers are cutting back.
• Ecommerce growth is slowing:
  • The rate is projected at just 5% in 2025, down from 7.9%, with apparel hit hardest by rising costs and softer demand.
• Mobile-first shopping dominates:
  • Over 70% of incremental ecommerce growth through 2029 will come from mobile, fueled by Gen Z and Millennials who increasingly make purchase decisions based on social influence and values alignment.

2025 Market Snapshot

Using data from 100 leading and challenger brands, including Lululemon, On Running, Cotopaxi, Nike, and REI, New Engen analyzed traffic, media spend, and audience engagement to reveal how brands are competing in a tightening market.

Key insights:

• Dominant market control:
  • Just five brands command 40% of total traffic share across the active lifestyle space.
• High market difficulty:
  • Brands face elevated costs, saturated categories, and heavy consolidation, making differentiation critical.
• Media investment trends:
  • Most active lifestyle brands dedicate 80%+ of digital budgets to Meta platforms, while YouTube emerges as a key growth channel for those diversifying spend.

Trends Driving the Outdoor Space in 2025

Consumers are redefining what “active” means, prioritizing connection, self-expression, and sustainable practices.

Key insights:

• Community is currency:
  • Brands like Lululemon, Gymshark, and On Running are building ecosystems of belonging—activating run crews, pop-up events, and in-store experiences to deepen loyalty.
• Athleisure as identity:
  • Gen Z is reshaping the aesthetic, favoring looser, gender-fluid styles and prioritizing self-expression over performance.
• Sustainability meets loyalty:
  • Initiatives like Patagonia’s Worn Wear and Girlfriend Collective’s ReGirlfriend programs prove that circular sustainability models are a competitive advantage.

Opportunities for Active Lifestyle Brands

Outdoor participation is at an all-time high, with 181.1M Americans participating in the outdoors last year. Brands can seize this momentum by expanding beyond niche markets.

Key insights:

• Casual participants are fueling growth:
  • Hiking leads with 63M participants, but consumers increasingly seek gear that blends style, function, and everyday wearability.
• De-niching product lines:
  • Challenger brands are evolving beyond single-activity positioning, introducing versatile products like trail runners, performance tees, hydration gear, and lightweight layers to broaden appeal.

How Real Brands Are Winning Right Now

The report highlights success stories from New Engen clients demonstrating how strategic investments in media, measurement, and audience-first approaches are unlocking growth:

• A leading $1B+ activewear brand shifted from last-click attribution to a balanced awareness-and-demand strategy, driving a 58% decrease in customer acquisition costs.
• Cotopaxi used marketing mix modeling and incrementality testing to reallocate budgets into higher-performing channels, improving marketing efficiency by 20%.

Growth Strategies for 2025 & Beyond

In an increasingly competitive market, brands must rethink growth strategies to stay visible and relevant.

Key insights:

• Optimize for AI-driven discovery:
  • As clickless search and affiliate-driven visibility rise, brands must create AI-friendly content to remain competitive.
• Harness micro-influencers:
  • Authentic, community-based influence delivers stronger engagement than traditional celebrity partnerships.
• Measure every dollar:
  • Incrementality testing and ROI modeling ensure marketing budgets are optimized for growth.
• Balance promotions with long-term brand equity:
  • Discounts can’t come at the expense of storytelling and audience connection.

To download the full report, please click HERE.