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The footwear market is estimated to grow by USD 133.09 billion at a CAGR of 5.69% between 2022 and 2027. The growth of the market depends on several factors, including design and material innovations leading to product premiumization, rising demand for exclusive designer collections, and high influence of celebrity endorsements.
It also includes an in-depth market analysis and report of drivers, trends, and challenges. Furthermore, the market research report includes historic market data from 2017 to 2021.
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The design and material innovations leading to product premiumization are notably driving the sports market growth, although factors such as rising labor costs and fluctuating raw material prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Market Driver
Design and material innovations leading to product premiumization are the key factors driving the global market growth. Market vendors are constantly innovating and introducing new patterns and designs due to market competition and evolving customer demand because of continuous changes in the fashion industry. Customers seek these items especially leather footwear, for formal wear and casual footwear, such as sports or canvas shoes. Therefore, the vendors regularly expand their brand and product lines.
The demand for premium leather footwear, which is designed and decorated with hard metals such as gold and silver and studded with precious stones such as diamonds, is high. Therefore, vendors are introducing that is designed and decorated with gold and silver. Most items that are made of metal and precious stones are usually customized according to the customer's requirements. Hence, the use of metal and precious stones and items personalization leads to product premiumization. Thus, with increasing demand for personalized products, the sports market will witness high growth during the forecast period.
Major Market Trend
The increasing demand for customized options will fuel the global market growth. The customization of these goods is an emerging trend among target customers. Customization is available for various types of footwear. The customization of premium includes the use of hard metals, such as gold and silver, and precious stones, such as diamonds. In the last five years, the popularity of customized items has increased in developed regions such as North America and Europe. Emerging economies, such as China and India, are also experiencing a growing demand for customized premium goods, including premium footwear.
In the premium footwear segment, the leading vendors offer customized products that have an aesthetic appeal. The extent of personalization can vary in terms of the design, logo, color, and buckles to embroidery or adding names. For instance, Nike, one of the key vendors, offers customized shoes under its 'Nike By You' segment. This allows customers to customize their shoes in terms of the color of the shoe, the design of the shoe sole, and the printing of custom text. The introduction of customization globally complements market growth analysis through new purchases. Thus, the customization is expected to increase the revenues of manufacturers during the market forecast period.
Significant Market Challenge
The rising labor costs and fluctuating raw material prices are major challenges to global market growth. Several international vendors, such as Prada, Tapestry, and D&G, have their production facilities or original equipment manufacturer (OEMs) partners in Asian countries, such as China, India, Indonesia, Bangladesh, and Vietnam. This is due to the availability of low-cost manufacturing and the low cost of operations in these countries. However, in the last decade, the cost of labor in these countries has also risen rapidly, which has increased the cost of production. Evolving and dynamic economic conditions have also adversely affected the cost of labor in countries from which the vendors import their supplies.
Fluctuations in raw material costs are another challenge for vendors. The process of manufacturing includes the procurement and use of several raw materials according to the type. The cost of these materials is also dependent on transportation costs. Transportation costs include the supply of raw materials to factories, the supply of intermediary goods to production sites, the transportation of end items to warehouses, and the delivery of finished goods to end users. Such fluctuations in the prices of raw materials and increasing labor costs may restrain the growth of the sports market during the forecast period.
Key Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various market research and growth strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Dolce and Gabbana Srl - The company offers products such as marabou sandals. Also, the company offers footwear, clothing, accessories, beauty products for men, women, and children, and food and beverages.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the non-athletic footwear segment will be significant during the forecast period. The non-athletic footwear segment is the largest product segment in the global market. This segment includes the casual, fashion, and formal/work categories. The key factors driving the demand for non-athletic products include the growing consumer fashion consciousness and the rising adoption of trendy shoes in the men and children segments. In addition, the demand for private-label product brands is increasing due to the availability of top-quality products at low prices. Furthermore, non-athletic products witnesses high demand as many customers prefer to buy multiple pairs of non-athletic products to be worn on different occasions and for various purposes. Although this trend is observed among all age groups, it is comparatively high among Generation Z and Millennials. The availability of comfortable and trendy non-athletic products is expected to augment the growth of this segment during the forecast period.
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The non-athletic footwear segment showed a gradual increase in market share from USD 246.12 billion in 2017 and continued to grow by 2021. The demand for premium non-athletic products is also growing at a rapid pace across the globe. The growth in the demand for premium non-athletic products is mainly attributed to the rising disposable income of the population across the globe. High disposable incomes of consumers are raising their spending power, empowering them to spend more on premium fashion products. Such factors will increase segment growth during the forecast period.
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APAC is projected to contribute 36% by 2027. Technavio’s analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period.
The market in APAC is expected to grow at the fastest rate during the forecast period, mainly due to the rising disposable incomes of people, the increasing preference for premium products, and the growing health consciousness among people (leading to the high demand for athletes footwear, especially training shoes).
The main revenue contributors to the market in APAC are China, India, and Japan. China is the most prominent market in the region due to the increased spending by Chinese consumers on fashion products such as footwear. China and India are two of the most populous countries in the world and represented 36.32% of the global population in 2016. Also, most products, especially daily-use and lifestyle shoes, are easily affordable by the mass population in these countries. Furthermore, China and India are two of the fastest-growing economies in the world, which means that the disposable incomes of people are increasing in these countries. Owing to these factors, the market in APAC is expected to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides market trends and analysis and growth opportunities from 2017 to 2027. The market has been segmented by type, product, distribution channel, and region.
The Market is heavily influenced by e-commerce and advertising strategies employed by various footwear brands. Consumer preferences for comfortable footwear and fashion footwear drive the demand for sustainable footwear to address lifestyle-related health issues and reduce the use of non-biodegradable materials. This labor-intensive industry relies on efficient material supply and land resources while emphasizing environmental protection through sustainable practices.
In addition, the market is diverse, with sales markets spanning developed countries and less developed countries, often sourcing from lower-cost countries. The World Footwear Yearbook 2021 provides insights into industry trends, including the growing demand in the athletic segment for athletic shoes suitable for outdoor activities, focusing on flexibility, traction, torsional stability, cushioning, and protection. The non-athletic segment includes flats, heels, mules, sneakers, and boots, with a rising interest in eco-friendly sneakers to reduce water usage and plastic usage. The market also features niche market players and designers catering to the men's segment and women's segment through various styles and functionalities. High-end e-commerce sites like Veja Footwear Company offer innovative products like the V-10 sneaker series, reflecting the market's commitment to sustainability and design innovation.
Footwear Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.69% |
Market growth 2023-2027 |
USD 133.09 billion |
Market structure |
Fragmented |
YoY growth (%) |
4.73 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, UK, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adidas AG, ASICS Corp., Brooks Sports Inc., Burberry Group Plc, Dolce and Gabbana Srl, ECCO USA Inc., FILA Holdings Corp., GEOX Spa, Hermes International SA, Kering SA, Li Ning Co. Ltd., LVMH Moet Hennessy Louis Vuitton SE, New Balance Athletics Inc, Nike Inc., PUMA SE, Skechers USA Inc., Under Armour Inc., VALENTINO Spa, VF Corp., and Wolverine World Wide Inc. |
Market dynamics |
Parent market analysis, Market forecasting, market growth and forecasting, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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