Why are jet-ski makers seeing a downward economic decline?
Jet-ski (personal watercraft or PWC) manufacturers—primarily Yamaha (WaveRunners), BRP (Sea-Doo), and Kawasaki—are experiencing softness and outright declines in U.S. sales right now (as of early 2026), though the drop has been less severe than for larger boats overall. This is part of a broader post-pandemic correction in the recreational marine industry.
Current Data on the Decline
- 2025 full-year performance: Total new powerboat retail unit sales (which include PWCs) fell an estimated 8–10% to roughly 215,000–225,000 units, according to the National Marine Manufacturers Association (NMMA). PWCs were actually one of the more resilient entry-level segments in 2025 overall, helping drive volume alongside aluminum fishing boats and smaller trailerable craft (these three categories made up >90% of retail activity). Some reports even described PWCs as “selling like hotcakes” relative to larger boats.
- Late 2025 and early 2026: The weakness sharpened. In November 2025, PWC sales dropped 23.64% year-over-year (worse than the overall marine market’s 12.36% decline). Preliminary January 2026 data showed PWCs down ~26% (339 fewer units).
Longer-term market forecasts remain positive (projected global CAGR of 5–7% through the mid-2030s), but the near-term picture is one of cooling demand after the massive COVID-era boom.
Main Reasons for the Downward Trend Right Now
The decline stems from classic economic pressures on discretionary big-ticket purchases (a new jet-ski typically costs $10,000–$20,000+). Here are the key drivers, based on NMMA reports, industry analysts, and dealer feedback:
- High interest rates and financing costs
Elevated borrowing rates have made expensive recreational items much less affordable. Many buyers finance PWCs, so monthly payments rose sharply. This has created a “wait-and-see” mindset among consumers. The effect hits discretionary categories like PWCs, motorcycles, and side-by-sides hardest. - Mixed/uncertain economic conditions and cautious consumer spending
Persistent inflation worries, softening labor-market signals, and broader economic uncertainty in 2025–2026 have reduced impulse buys. Households are prioritizing essentials over leisure toys, even if PWCs are cheaper and more accessible than full boats. NMMA describes this as a “wait-and-see mindset” that carried over from 2025 into 2026. - Post-COVID normalization + inventory and used-market saturation
The pandemic created a huge demand surge (2020–2023), leading manufacturers and dealers to ramp up production. Once supply caught up, the market became flooded with both new and lightly used units. Dealers are now offering heavy discounts on new models, but buyers are still hesitant or shopping used instead. Many owners are also keeping their reliable modern skis longer (newer models last longer and require less maintenance). - Shift to even more affordable or shared options
Consumers are “trading down” within the marine space—opting for smaller, cheaper PWCs or alternatives like boat clubs, rentals, and entry-level models rather than premium or multiple units. This helps volume in the cheapest segments but squeezes overall manufacturer revenue and margins.
In short, it’s not that people suddenly dislike jet-skis—the fun factor is still there. It’s a classic economic pullback on discretionary spending after years of record highs. Manufacturers have adjusted inventories and are optimistic that easing rates and tax refunds could stabilize or slightly lift 2026 sales, but the first few months of the year have been weak.
The industry is cyclical, and this correction mirrors what happened in other powersports categories.