The Global Footwear Market Anticipated to Generate a Revenue of $536,889.2 Million, Growing at a CAGR of 5.2% from 2021 to 2028 - Research DiveDownload Sample Reports Overview
The global footwear market is estimated to be valued at $536,889.2 million by 2028, surging from $360,090.9 million in 2020 at a noteworthy CAGR of 5.2%.
Impact Analysis of COVID-19 on the Footwear Market
The global market for footwear is estimated to experience a negative impact amid the COVID-19 pandemic. The growth of the market is declining amid the pandemic due to complete lockdown situations that has led to the closure of hypermarkets/supermarkets, specialty stores, and others. Also, the footwear manufacturing plants were completely shut down that resulted in supply chain disruptions, order cancellations, ban of export, import of products from various countries, and non-availability of raw materials. In addition, several regulations were laid down on the delivery of non-essential goods in certain areas and countries to combat the spread of COVID-19 virus that led decline in the market demand. Due to lockdown situations people were not able to participate in outdoor sports such as basketball, soccer, and others. Also, gyms & fitness centers were closed due to which the demand for athletic footwear declined. Also, many sport events such as 2021 Summer Olympics which was supposed to be held in Tokyo, Euro 2021 Championships were postponed which has led to negative impact on the demand for global footwear market due to decline in demand for athletic footwear that has wide applications across sports activities as athletic footwear improves performance, comfort, and prevents injuries.
Certain key vendors operating in footwear market have taken various initiatives to increase their consumer base amid COVID-19 crisis. For instance, the manufacturers shifted to e-commerce platforms for selling their products. In addition, on August 26, 2021, Bata India Ltd., that already has 1500 stores in India, planned to open 100 new outlets in 2021 in tier-II and tier-III cities consisting of semi-urban and rural population. This move has led to business expansion across rural areas where economic performance could be better compared to urban areas that were completely shut due to the COVID-19 virus. The pandemic led to the launch of ‘Atmanirbhar Bharat’ and ‘Vocal for Local’ also known as ‘Make in India’ initiative launched for the government of India. The pandemic has created opportunities to explore supply chain, and manufacturing facilities in India as many countries have withdrawn their manufacturing unit from China. As stated in Entrepreneur, an American magazine on October 23, 2020, pandemic has boosted the ‘Make in India’ mission especially for the footwear industry and country has geared up to takeover China in terms of production and export of footwear to other countries. These initiatives are estimated to create lucrative investment opportunities during the forecast period.
Global Footwear Market Analysis
The enormous growth of the global footwear market is mainly attributed to changing lifestyles and increase in health awareness among people. The changing lifestyle habits has led to increase in demand for trendy and fancy footwears that comes at an affordable price. Also, the growth in working population that has to adhere to formal dressing code across various countries has led to increase in demand for formal shoes, heels, sandals, and others. The growing health consciousness among people to stay healthy and prevent chronic disorders has led to increase in demand for athletic footwear. The increase in obesity and sedentary lifestyle has urged people to perform regular exercise and to participate in various indoor & outdoor sports such as basketball, soccer, badminton, running, and others. All these activities have increased the demand for footwear that offers comfortability, trendy look, and has high durability. Along with athletic footwear, formal shoes, stylish sneakers, flip flops, boost, sandals, and casual shoes are attracting large customers including men, women, and children. All these aspects are estimated to drive the market for footwear and fuel the growth of the market.
The availability of counterfeit products that imitate and steal the designs of popular brands such as Nike, Puma, and others in developing economies where customers are price sensitive is estimated to obstruct the market growth during the forecast period. The online distribution channel is the major platform for the sale of counterfeit footwears that is anticipated to restrain the market growth.
The product innovations and technological advancements towards the development of comfortable, durable, and sustainable product are estimated to create huge opportunities for the global footwear market in the future. For instance, Nothing New, the sneaker startup brand founded in 2020, develops new sneakers by using only the recycled products such as recycled plastic, fishing nets, recycled cotton, cork, rubber, and others. In addition, in 2015, Adidas, the leading footwear manufacturer has collaborated with Parley, which is an environmental organization, to develop sneaker that is made using yarn produced from recycled ocean plastic and deep-sea gill nets. Such initiatives by the footwear manufacturers are estimated to drive the market demand and generate huge growth opportunities during the analysis timeframe.
Global Footwear Market, Segmentation
The global footwear market is segmented based on type, material, end user, distribution channel, and region.
The type segment is further classified into athletic and non-athletic. Among these, the athletic footwear sub-segment is anticipated to acquire dominant market share and surpass $249,266.8 million by 2028, with an increase from $157,257.9 million in 2020. The growth is majorly attributed to increase in sports, indoor & outdoor games, and other physical activities performed by people of all age groups. Athletic shoes offer various benefits such as superior cushioning, breathability, durability, slip resistance, motion control, and others. Thus, increase in chronic diseases such as obesity, cardiovascular disorders, diabetes, and others, due to lack of physical activity, increasing in health-conscious population, and rising focus on gym and health clubs are predicted to create a positive impact on the athletic sub-segment of the footwear industry throughout the forecast period.
The material segment is further divided into leather and non-leather. The non-leather sub-segment is anticipated to have a dominating share in the global market and register a revenue of $294,835.4 million during the analysis timeframe. The huge growth in non-leather sub-segment is attributed to increase in number of people engaging in physical activities, sports, and high demand for fashionable footwear products such as flip flops, sandals, heels, and others.
The end user segment is further divided into men, women, and children. The women sub-segment is anticipated to acquire dominant market share and fastest growth in the global market registering a revenue of $234,784.1 million during the forecast period. The high demand for footwear by women is attributed to availability of variety of footwears such as heels, formal shoes, slippers, flip flops, sandals, ankle boots, wedges, ballet pumps, and others. Also, affordable pricing options are available in women footwears due to availability of local as well as international brands.
The distribution channel segment is further classified into hypermarket/supermarket, specialty stores, brand outlets, online sales channel, and others. Among these, the specialty stores channel is anticipated to have the dominant market share and surpass $215,156.5 million by 2028, with an increase from $157,183.8 million in 2020. The growth is majorly attributed to availability of various consumer goods under a single roof. In addition, the specialty stores focus on selling particular brands thereby delivering excellent customer service and expert guidance regarding the products to the customers. The footwear manufacturers are targeting the specialty stores to increase their shelf visibility and to attract customers by offering good discounts.
The footwear market for the Asia-Pacific region is projected to witness rapid growth. This region generated a revenue of $149,761.8 million in 2020 and is further projected to reach up to $239,506.3 million by 2028. The growth in disposable income, increase in people’s interest towards sports and fashion is driving the market growth. Further, various footwear manufacturing units are present in China. In addition, the Indian Government is promoting ‘Make in India’ mission that focuses on promoting the goods made and manufactured in India. Also, top footwear production units are present in Kanpur, Ranipet, Ambur, Agra, Vaniyambadi cities of India. These aspects are anticipated to boost the footwear market growth in the Asia-Pacific region.
Players in the Global Footwear Market
Some of the leading global footwear market players are Adidas AG, Nike, Inc., PUMA SE, Skechers USA, Inc., Under Armour, Inc, VF Corporation, Geox S.p.A, CROCS, Inc., Ecco Sko A/S, Wolverine World Wide, Inc.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Footwear Market
- Bargaining Power of Suppliers: The companies involved in footwear business are moderate in number. These companies are working on product launch, technological innovations for the development of sustainable, durable, and comfortable product at an affordable price. Further, the volatile demands in supplier pricing may impact company profitability.
Thus, the bargaining power of the suppliers is moderate.
- Bargaining Power of Buyers: Buyers have high bargaining power, primarily because of the large number of manufacturers, competitive pricing offered by suppliers, and wide range of available products. The buyers have more choice in selecting the right footwear.
Hence, the bargaining power of buyers is high.
- Threat of New Entrants: Startups entering this market are making advancements in the footwear products such as development of sustainable footwear that has minimum environmental impact and technological innovations.
As a result, the threat of the new entrants is moderate.
- Threat of Substitutes: The availability of various low-cost footwear products in developing economies are offering various alternative products to the customers at an affordable price.
As a result, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: The ventures operating in the global footwear market are focusing on strategies such as acquisitions, product innovations, capacity expansion, and product launch at competitive prices to hold their position in the market. There is high demand for trendy and comfortable footwear.
Therefore, competitive rivalry in the market is high.