The footwear market tends to grow nearly 1.5x between 2021 and 2031, reaching nearly US$ 640 Bn in 2031 with a 10-year compound annual growth rate (CAGR) of 4% as per Fact.MR report. Demand across North America accounts for nearly 36% share, boosted by the presence of prominent shoe manufacturer brands like Adidas, Under Armour, Skechers, ASICS Corporation in the region.
Based on product type, athletic footwear was valued at US$ 83 Bn in 2022 and is expected to register the fastest CAGR of 4.4% from 2021 to 2026. Growing awareness about health and fitness is resulting in a swelling demand for athletic footwear. Furthermore, intensifying popularity of global sporting events, such as The Commonwealth Games, Olympics, and FIFA, boosted the product demand.
What elements influence the demand for footwear?
The global retail sales of footwear are being driven by rising smartphone penetration, e-commerce, and mobile internet access. On e-commerce sites, customers may also compare various brands and items. The footwear industry is also using the impact of celebrity and influencer culture to appeal to various customer demographics.
With an estimated market share of more than 1/4, fashionable footwear is expected to make substantial progress worldwide. The interest that consumers and designers have in aesthetics greatly helps with this. resulting in an increase in demand across age groups for trendy, comfortable, and fashionable footwear.
“Increasing popularity of specialized and designer footwear will drive the demand for footwear industry,” says a Fact.MR analyst.
The increased demand for sustainable footwear is a trend that is gaining traction in the global market. According to the U.S. Department of the Interior, around 20 billion pairs of footwear are created annually, and approximately 300 million end up in landfills, with a majority of them containing non-biodegradable materials. There has been a growth in the use of sustainable materials and sustainable footwear brands, that have built sustainability into their brands from their inception. For instance, Nike with Nike Grind experimented with breaking down footwear into pellets, turning them into material for flooring instead of new footwear.
The footwear industry is labor-intensive and is affected by various factors such as land resources, labor costs, material supply, environmental protection, and sales markets. Consequently, in the pursuit of profit maximization, major consumer markets, footwear manufacturers, wholesalers, and retailers worldwide are shifting their focus to lower-cost countries, leading to the constant movement of global shoemaking bases. Japan, Taiwan, India, and China are lucrative markets for footwear.
The footwear industry is also taking advantage of influencer and celebrity culture to attract various consumer segments. Current trends indicate that fashionable footwear is primed for growth due to consumer demand for aesthetically appealing, comfortable, and trendy designer footwear. Online channels and the ecommerce industry provide incredible growth opportunities for key market players. Digital marketing campaigns on social media platforms and new shopping models such as subscription models are making headway and providing new opportunities for the footwear market.
Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions.
- NIKE, Inc. entered into a definitive agreement to acquire Converse, Inc. The total price paid for 100 % of the equity shares was approximately US$305 Mn plus the assumption of certain working capital liabilities at the time of the transaction’s consummation.
- Likewise, Adidas-Salomon AG and Reebok International Ltd. signed an agreement under which adidas-Salomon AG would acquire all of the outstanding shares of Reebok for U.S. $59.00 per share in cash.
Key Companies Profiled
- Nike Inc.
- Adidas AG
- PUMA SE
- Sketchers U.S.A. Inc.
- Under Armor Inc.
- Wolverine Worldwide Inc.
- Crocs Inc.
- ASICS Corporation