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?
Bitcoins are not disappearing if someone doesnt use anymore his wallet or he forgot the private key from it.
Those bitcoins are still going to be in circulations but they are just not going to be used. They will remain in the wallet for an infinite time. Think if you create a wallet and keep your bitcoins for 50 years without using it. You think they will disappear? No, you can still use it after 50 years if you can acces your wallet