Handicrafts Market by Product, Distribution Channel, and Geography - Forecast and Analysis 2023-2027

Handicrafts Market Forecast 2023-2027

The handicrafts market size is forecast to increase by USD 407.15 billion at a CAGR of 8.87% between 2022 and 2027. The market is driven by various factors that influence its expansion and sustainability. With an increasing emphasis on low capital investments, artisans and craftsmen find opportunities to thrive in the market. Moreover, the growth of travel and tourism fosters greater exposure and demand for authentic handicraft products worldwide. Additionally, government support and funding initiatives provide essential backing for artisans, facilitating market growth and preserving cultural heritage. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Handicrafts Market During the Forecast Period?

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The market is experiencing significant growth driven by rising demand for artisanal products across various segments. Mass retailers are increasingly incorporating handicraft items into their offerings to meet consumer demand, particularly in the woodwork segment and for traditional products like Agarbattis. Female artisans play a crucial role in this market, contributing to the overall growth and diversity of handicraft products. With an increasing number of artisans involved in the production process, the market continues to expand, offering a wide range of unique and culturally significant items to consumers worldwide.

Market Segmentation

This market analysis, report extensively covers market segmentation by product (metal art ware and jewelry, woodware, textile products, and pottery and others), distribution channel (offline and online), and geography (North America, Europe, APAC, Middle East and Africa, and South America). The market encompasses various product categories, including pottery, glassware, paper products, wooden products, and metal & silver products. Handmade traditional crafts continue to drive market growth, with applications in construction, home décor, and individual tastes. Consumers seek comfortable environments and creative projects, leading to demand for handmade wall hangings, customized wooden artworks, and unique accessories. Traditional textiles, jewelry, ceramic products, and cultural products are also popular. Sustainable handmade products, such as eco-friendly and socially responsible choices, are increasingly preferred to minimize negative impact on the environment. Handicraft manufacturers face challenges like raw material prices, especially for wood and metal, and must adopt eco-friendly production methods for resource conservation. Price-sensitive consumers seek affordable alternatives, making profit margins a concern. Overall, the market offers diverse opportunities for artisans and renters in various sectors.

By Product

The market share growth by the metal art ware and jewelry segment will be significant during the forecast period. The term metal art ware refers to decorative handicraft items made of metal, such as wall decor, statues, sculptures, metal furniture, utensils, traditional weapons, frames, decorative holders, lighting products (such as portable lamps), religious artifacts, and musical instruments. These metal art objects are primarily made out of raw materials that are based on metals and alloys, like iron, brass, copper, gold, silver, and stainless steel. The segment also includes jewelry items like replica jewelry and jewelry created with gems and stones.

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The metal art ware and jewelry segment was valued at USD 176.17 billion in 2017 and continued to grow by 2021. Artisans now have direct access to the markets of importers due to developments in market verticalization (retailers purchasing directly from exporters in developing countries) and horizontalization (involvement of retailers and brands from sectors such as stationary, fashion, and furniture). The growing popularity of metal art ware is also being aided by innovations in the field, particularly in tableware, lighting, and decorative items. Additionally, there is a growing market for metal-based handicrafts in the colors black and rust, which give the items a retro feel. There is also a growing market for metal-based outdoor handicrafts like furniture and swings, particularly in European nations like France and Germany. Hence, such factors are expected to continue to drive revenue growth in the segment during the forecast period.

Which are the Key Regions for the Handicrafts Market?

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North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The North American handicrafts market, led by the US and Canada, experiences robust revenue growth due to favorable import policies and increasing demand for handmade items. Key product categories include hand-printed textiles and scarves, embroidered and crocheted goods, zari and zari woods, art items, shawls, miscellaneous handicrafts, and wood wares. The US, as a major importer, offers duty-free treatment through the Generalized System of Preference for handicrafts from certain countries. Handmade woollen goods, crocheted items, and hand-printed textiles are popular imports. Agarbatties and attars, along with handmade carpets and shawls, are significant exports from handicraft export destinations. Zari goods and art items are also notable handicraft categories.

Additionally, the expansion of travel and tourism has helped local handicraft production see a significant increase in revenue. Since tourists from all over the world are eager to buy locally made handicraft products, the travel and tourism industries in the US are experiencing significant growth opportunities. Tourists typically have a high demand for Native American handicraft products. Furthermore, the existence of supportive laws like The Indian Arts and Crafts Act of 1990, which guarantees the authenticity of indigenous or Native American arts and crafts, aids in maintaining the surveillance of counterfeit handicraft products in the US. Hence, such factors will fuel the regional market growth during the forecast period.

Market Dynamics and Customer Landscape

In the contemporary market, handicrafts continue to hold a significant place, particularly in the realm of unique and personalized gifts. The production of handicrafts is a craft, typically involving skills like pottery, glasswork, woodwork, and metalwork. These products are often handmade, making each piece a one-of-a-kind creation. The handicrafts market is a global one, with producers and sellers hailing from various regions, including India, Morocco, and Guatemala. Handicrafts are often associated with traditional art forms, adding an element of cultural authenticity to the products. Producers and sellers employ various marketing strategies to reach consumers. These include craft fairs, online marketplaces, and social media platforms.

The market is witnessing robust growth fueled by increasing demand for unique and aesthetic handmade products. With the rise of e-commerce platforms, artisans from rural areas and small towns are gaining access to wider markets, contributing to market expansion. Traditional crafts like pottery, glassware, and wooden products continue to be in high demand alongside emerging segments like metal & silver products and paper goods. Government initiatives like Ambedkar Hastshilp Vikas Yojana and Dastkar Sashaktikaran Yojana are further bolstering the sector. However, challenges such as price fluctuations and raw material supply chain issues persist, highlighting the need for sustainable solutions to sustain growth. Our researchers analyzed the data with 2022 as the base year and 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

The need for low-capital investments is notably driving the market growth. The market encompasses various product categories, including pottery, glassware, paper products, wooden products, metal & silver products, and handmade traditional crafts. The market growth is driven by the increasing demand for unique home décor items and a comfortable environment that caters to individual tastes and creative projects. Handicraft manufacturers range from small-scale industries to medium-scale enterprises. Initial investments are primarily allocated to land leases/ownership and machinery, as handicraft production is labor-intensive and less dependent on complex machinery.

Key product segments include handmade wall hangings, customized wooden artworks, unique accessories, craft items, traditional textiles, jewelry, ceramic products, cultural products, sustainable handmade products, and eco-friendly items. Consumers, particularly those who value socially responsible and eco-friendly choices, are increasingly seeking affordable alternatives to mass-produced items. Handicraft manufacturers face challenges such as environmental degradation and the need for minimal negative impact. To address these concerns, eco-friendly production methods and resource conservation are being adopted. Raw material prices for wood, metal, and glass can impact profit margins, making it essential for manufacturers to explore sustainable sourcing and efficient production processes. 

Significant Market Trends

Increasing demand for social and environmental sustainability of handicraft products is an emerging trend in the market growth. The market encompasses a variety of products, including pottery, glassware, paper products, wooden items, metal and silver works, and handmade traditional crafts. Governments worldwide are promoting this sector through initiatives like subsidies, tax benefits, and funding schemes. These efforts help artisans revive traditional arts and tackle challenges such as poor exposure, limited access to funds, and outdated institutional frameworks. Handicrafts are increasingly popular for home décor, construction projects, and individual creative projects. Consumers seek unique accessories, handmade wall hangings, and customized wooden artworks.

Sustainable and eco-friendly handmade products, such as ceramic items, cultural textiles, jewelry, and glassware, are gaining popularity due to socially responsible and environmentally conscious choices. Handicraft manufacturers face challenges like raw material prices, minimal negative impact on the environment, and profit margins. Woodworks and metal artworks are popular categories, with artisans employing eco-friendly production methods and resource conservation techniques. Price-sensitive consumers look for affordable alternatives, making it essential for handicraft businesses to offer competitive pricing while maintaining quality.

Major Market Challenge

The lack of managerial capabilities is a major challenge impeding market growth. The market has experienced significant growth due to the surge in international tourist arrivals, reaching approximately 1.5 billion in 2019, according to the UNWTO. This trend is particularly noticeable in developing countries, where it fosters economic development and employment opportunities for local artisans. Handcrafted items, including pottery, glassware, paper products, wooden products, metal & silver products, and handmade traditional crafts, are popular purchases among tourists as cultural souvenirs or gift items. These unique creations offer insights into local cultures and traditions, making them essential components of home décor and comfortable environments.

Consumers increasingly seek individual tastes and creative projects, leading to demand for handmade wall hangings, customized wooden artworks, unique accessories, and traditional textiles. Sustainable and eco-friendly handmade products, such as jewelry, ceramic products, and cultural items, are socially responsible choices that minimize negative impact on the environment. Handicraft manufacturers face challenges like raw material prices, especially for wood, metal, and glass, but offer profit margins that attract renters and price-sensitive consumers. Eco-friendly production methods and resource conservation are essential for long-term success in the handicraft market growth.

Customer Landscape

The handicrafts industry analysis 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 Handicrafts Market Customer Landscape

Who are the Major Handicrafts Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Asian Handicrafts Pvt. Ltd. - The company generates revenue through the sales of gifts, home decor, Christmas decorative items, ornaments, fashion jewelry, and accessories. The key offerings of the company include handmade Christmas decoration items which is used by consumers to gift someone.

The handicrafts market analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Craft India Overseas
• Crossroads Foundation
• Divya Exports
• Earthy workshop and Co Pty Ltd. and Akkaara
• Fakih Group of Companies
• HimalayanMart.com
• Kathmandu Handicrafts Pvt. Ltd.
• Native Crafts and Arts
• Nepal Craft Shop Pvt. Ltd.
• NGOC DONG HA NAM
• Orient Handicraft Ltd.
• OSM HANDICRAFT
• RTCrafts Enterprise
• S.Sundaravadivel and Co.
• Sana Hastakala

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak. 

Market Analyst Overview

In the thriving handicraft industry, producs such as pottery, glassware, and textiles continue to captivate consumers worldwide. The production of these handicrafts involves a great deal of craftsmanship and skill, making each piece unique and valuable. The market for handicrafts is vast and diverse, with various regions specializing in specific types of handicrafts. For instance, handmade ceramics and pottery are popular in countries like India and China, while glassware is a hallmark of the Czech Republic and Italy. Moreover, the handicraft sector is not only a significant contributor to the economy but also provides employment opportunities for artisans and craftspeople. In recent times, the use of social media and e-commerce platforms has facilitated the global reach of handicrafts, enabling artisans to showcase and sell their creations to a wider audience. Craft fairs and exhibitions are also popular platforms for promoting and selling handicrafts, providing an opportunity for consumers to interact with the artisans and learn about the traditional techniques used in creating these unique pieces. Overall, the market is a vibrant and dynamic industry, offering consumers a diverse range of high-quality, unique, and culturally rich products.

The market is experiencing significant growth, fueled by the rising demand for unique and aesthetic handicrafts. Consumers are increasingly drawn to the charm and authenticity of handmade goods, leading to an expansion in the market. Initiatives like Ambedkar Hastshilp Vikas Yojana and Dastkar Sashaktikaran Yojana have further contributed to the development of handicraft clusters, particularly in regions like Surat. However, challenges such as price fluctuations and raw material supply chain issues persist. Despite this, the woodwork and glassware segments are witnessing growth, alongside the imitation jewellery sector. With manufacturing units spread across rural and small towns, the market continues to thrive, attracting attention even from mass retailers seeking to capitalize on its appeal. The demand for handicraft products remains strong, particularly in the mass retailers segment, supported by a diverse pool of female artisans contributing to the total artisans' count.

Segment Overview

The analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook 
  • Metal art ware and jewelry
  • Woodware
  • Textile products
  • Pottery and others

• Distribution Channel Outlook 
  • Offline
  • Online

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Handicrafts Market Scope
Report Coverage	Details
Page number	160
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.87%
Market growth 2023-2027	USD 407.15 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	10.65
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 31%
Key countries	US, United Arab Emirates, China, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Asian Handicrafts Pvt. Ltd., Craft India Overseas, Crossroads Foundation, Divya Exports, Earthy workshop and Co Pty Ltd. and Akkaara, Fakih Group of Companies, HimalayanMart.com, Kathmandu Handicrafts Pvt. Ltd., Native Crafts and Arts, Nepal Craft Shop Pvt. Ltd., NGOC DONG HA NAM, Orient Handicraft Ltd., OSM HANDICRAFT, RTCrafts Enterprise, S.Sundaravadivel and Co., Sana Hastakala, Ten Thousand Villages, Thar Handicrafts Gallery Pvt. Ltd., The Handicrafts and Handloom Exports Corp. of India Ltd., and Zhejiang Hengtai Crafts Manufacturing Co. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, 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 market 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of handicrafts market companies

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