Here in NZ, my perception is that scuba is declining big time and freediving-style spearfishing is growing quite a bit. I am one of the few people I know who do both and I can say that the main reason I have done less scuba diving is cost. I have also had trouble finding good dive buddies in the past.
A quick look around our retail shops shows that an entry-level scuba kit with 1 tank and OW cert will set you back $2700 from our cheapest shop. Then each 2 dive day will need an additional $5 for a fill and $15 for a tank hire as a minimum. Add to this yearly servicing @ $150 and a 2 tank dive every other weekend without boat costs. With those conditions, your first year of scuba diving will be $3,370 if you shore dive, not including vehicle costs.
Compare that to spearfishing. A basic complete package including a freediving course is $1,369, and many people don't do the course which brings the total to $819. With very little skill most people will be bringing home a feed with this, and the quality of fish shot will increase with time. Because beginners tend to stick to 20ft or shallower dives, shore diving is a great way to learn skills and stay safe. With those conditions your first year of spearfishing every other weekend will be a max of $1,369.
I have no desire to shore dive with SCUBA as it is too shallow to be worth it in most places here. Less than 30ft deep I find scuba to be more of a hinderance vs freediving. Because of this and a limited amount of funds, I did spearfishing for years until I could afford scuba, and then only really got into it once I found some good dive buddies and joined the local dive club. I'm not a huge fan of my LDS either, they are too busy trying to scare me into buying stuff to try and get my enthusiasm going.
I now do roughly 50/50 spearfishing and scuba. I reckon here that many of the people who would have done scuba are now going into free-dive spearfishing. It's perceived as more of a manly thing and part of our hunting/outdoors culture. Scuba is becoming more of a niche for vacationing professionals.