Business Environment Profiles - United States
Published: 15 July 2025
Total recreation expenditure
637 $ billion
7.4 %
Total recreation expenditure represents consumer spending on recreational goods and services, including sports equipment, entertainment, hobbies, and leisure activities. This metric is measured in billions of chained 2017 dollars, which adjusts for inflation to provide a real measure of recreational spending growth over time. The data captures both goods and services expenditures across all recreational categories. Data is sourced from the Bureau of Economic Analysis.
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Total recreation expenditure reached $622.17 billion in 2024, representing a 2.9% increase from the previous year. This solid growth reflects consumers' continued prioritization of leisure and experiential spending as pandemic restrictions fully lifted and travel patterns normalized. The strong labor market and wage growth have supported discretionary spending capacity, allowing households to allocate more resources toward recreational activities. However, elevated housing costs and inflation in other essential categories have created some constraints on recreational spending growth, particularly among lower-income households.
Total recreation expenditure has experienced dramatic volatility over the past five years through 2024, primarily driven by the pandemic's unprecedented impact on leisure activities. The most significant disruption occurred in 2020, when recreational spending plummeted 22.3% to $446.34 billion - the largest single-year decline in the history. This collapse reflected widespread lockdowns, travel restrictions, venue closures and event cancellations that eliminated many traditional recreational activities.
The pandemic fundamentally altered recreational consumption patterns, with a sharp shift from services-based activities like dining, entertainment venues and travel toward goods-based recreation such as home fitness equipment, outdoor gear, and gaming. Many consumers redirected spending toward home improvement projects, streaming services and at-home entertainment systems as substitutes for traditional out-of-home activities.
The recovery began in 2021 with a robust 17.3% increase to $523.78 billion, though this remained well below pre-pandemic levels. This initial recovery was driven by pent-up demand, fiscal stimulus payments and the gradual reopening of recreational venues. The 2022 performance showed continued strong growth of 9.6% to $573.82 billion, followed by a healthy 5.4% increase in 2023 to $604.67 billion, demonstrating sustained recovery momentum.
Throughout this period, the composition of recreational spending has evolved. Digital entertainment platforms gained permanent market share, while traditional venues like movie theaters and live entertainment faced lasting structural changes. Outdoor recreation experienced substantial growth as consumers sought safer, socially distanced activities. The integration of technology into recreational activities accelerated, with virtual reality, streaming services, and mobile gaming becoming more prominent components of household entertainment budgets.
Total recreation expenditure is forecast to reach $637.39 billion in 2025, representing a 2.4% in...
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