If some people has lots of bitcoin in their offline wallets and they die or lose memory.
Then those coins will be out of circulation right? Or is there any way to recover them?
You are right, there would be no circulation on that one.Recovering those coins is not possible which we can consider that those coins are lost forever or stationary this is why if we do have bitcoin incase we die we should secure out and grant them into your loved ones once you passed out.