Transparency as a Competitive Edge in the U.S.

Article

27 February, 2025

The U.S. market for sports and outdoor products is the largest in the world, presenting unique opportunities for Nordic brands. With a strong tradition of innovation, quality, and sustainability, these companies are well-positioned to succeed. Key trends such as increased demand for sustainable products, the rise of the premium segment, and the importance of storytelling align with Nordic strengths. Moreover, evolving documentation requirements in various U.S. states highlight the benefits of a Digital Product Passport (DPP), ensuring seamless market access and compliance.

A Market That Values Sustainability

American consumers are becoming increasingly focused on sustainability, particularly in the outdoor and active lifestyle sectors. Surveys indicate that 68% of U.S. millennials prefer environmentally friendly brands (PDI Technologies, 2023). Nordic companies, known for their commitment to environmental responsibility, can leverage this trend by emphasizing material transparency, sustainable production, and long product lifespans.

Additionally, regulatory initiatives in the U.S. are pushing businesses toward circular services and transparency. Many Nordic brands already have well-developed repair, recycling, and take-back programs, making their expansion into the U.S. market not just an opportunity but a strategic advantage.

Transparency and the Growing Premium Segment

American consumers are increasingly willing to pay a premium for high-quality, sustainable products. The growing outdoor market, valued at over $50 billion in 2024, is expected to expand by 5-6% annually (Innovasjon Norge, 2025). Nordic brands, with their reputation for durable, functional, and stylish designs, can thrive in this segment by positioning themselves as premium, ethical, and transparent alternatives.

Transparency plays a crucial role in justifying price points. When brands provide clear information on materials, labor conditions, and environmental impact, they build trust and credibility with consumers. By integrating Digital Product Passports (DPPs), companies can further reinforce their commitment to transparency, allowing consumers to make informed purchasing decisions while ensuring compliance with emerging regulations.

Trends That Align with Nordic Strengths

The U.S. outdoor market is evolving, with trends like glamping, micro-adventures, and athleisure gaining traction. Consumers seek products that merge functionality with aesthetics—an area where Nordic brands excel. Lightweight, versatile, and high-performance materials are in high demand, and expertise in technical apparel and gear makes the brands natural contenders in this space.

Moreover, the U.S. second-hand market has grown by 11% to $43 billion, driven by consumer preference for sustainable shopping (ThredUp, 2024). Nordic brands that emphasize product longevity and circular business models can benefit from this shift, offering repair services and resale opportunities.

The Role of Digital Product Passports in Market Access

Navigating the U.S. regulatory landscape can be complex, as sustainability and transparency requirements vary from state to state. States like California, New York, and Massachusetts have stringent environmental and labor regulations, making transparency a necessity rather than an option. For instance, California's Proposition 65 and Transparency in Supply Chains Act demand detailed disclosures on materials and labor practices, while New York's Climate Leadership and Community Protection Act sets ambitious carbon reduction targets that brands must track and report.

Similarly, Massachusetts, Washington, and Oregon have laws focused on clean energy and emissions reductions, requiring companies to document their environmental impact. Other states, such as Vermont, New Jersey, Minnesota, Connecticut, and Hawaii, emphasize fair labor practices and sustainable procurement, ensuring that businesses meet high ethical and environmental standards. A Digital Product Passport simplifies compliance with these varied regulations, enabling brands to seamlessly demonstrate their sustainability credentials and facilitate interstate commerce.

A DPP can also serve as a competitive advantage. It reassures consumers about the ethical and environmental credentials of a product while simplifying compliance with different state regulations. Nordic brands investing in digital transparency will not only ensure smoother market entry but also differentiate themselves from competitors.

Storytelling: A Key to Success

Nordic brands have a unique advantage in storytelling. Deeply rooted in outdoor traditions, environmental stewardship, and innovative craftsmanship, these brands can connect emotionally with American consumers. Storytelling reinforces transparency—not just in materials and production but in values and purpose. By showcasing their heritage, commitment to sustainability, and real-world product applications, Nordic brands can create compelling narratives that build trust and loyalty.

Conclusion

The U.S. market offers Nordic brands an unparalleled opportunity for growth, particularly in the outdoor and premium segments. Transparency—both in sustainability efforts and pricing—will be a key differentiator. By leveraging material and product transparency, aligning with sustainability trends, embracing digital product passports, and telling authentic brand stories, Nordic companies can successfully carve out their place in the world's largest outdoor market.