The global footwear market continues to pick up the pace with new healthier lifestyles being associated with the need for more variety in the athletic shoe sector. According to data presented by Stockapps, the global footwear market is to rise by 30% in the next 5 years with an increase of $111B. The industry is also forecasted to reach over $500B by 2027.
Footwear industry growing at a CAGR of 5.5% from 2020-2027
The global footwear market size was valued at $365.5 billion in 2020, and is estimated to reach $530.3 billion by 2027 with a CAGR of 5.5% from 2020 to 2027. Footwear is used for covering and protecting the foot from ground textures, temperatures, and from gravel roads. Footwear are made up of different materials such as leather, plastic, rubber, and fabric. Among these, leather is one of the prominent materials used for fabricating footwear. Major players, such as Nike, use eco-friendly raw materials, including recycled car tires, recycled carpet padding, organic cotton, and vegetable-dyed leathers for producing footwear.
The global footwear market is segmented into type, material, end user, distribution channel, and region. By type, the market is categorized into athletic and nonathletic. Depending on material, it is bifurcated into leather and non-leather. On the basis of distribution channel, it is classified into hypermarket/supermarket, specialty stores, brand outlets, online sales channels, and others. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, Japan, India, Australia & New Zealand, ASEAN and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
On the basis of type, the nonathletic segment led in terms of footwear market share in 2019, and is expected to retain its dominance during the forecast period. This is attributed to rise innumber of working professionals, which, in turn, has propelled the overall demand for formal shoes and casual shoes. Furthermore, rise in fashion consciousness among women has boosted the demand for nonathletic footwear. The non–athletic footwear market segment is dominated by the presence of a wide range of footwear encompassing sandals, heels, and wedges.
By material, the non-leather segment led the market, in terms of value, in 2019. Artificial and synthetic leather footwear are most often used as formal shoes by men, women, and children. Moreover, increase in use of artificial and synthetic in making sports shoes, slippers, casual shoes, sandals, sneakers, flip flops, and rubber clogs is driving the growth of non-leather segment.
Depending on end user, the women segment led in terms of market share in 2019, and is expected to retain its dominance during the forecast period. This is attributed to increase in number of working women worldwide that fuels the demand for trendy and stylish footwear, which can be used for formal as well as casual occasions. Moreover, increase in disposable income is allowing individuals to spend more on luxury goods, thereby driving the growth of the women footwear segment.
By distribution channel, the specialty stores segment led the market, in terms ofvalue, in 2019, owing to increase in urbanization, rise in working class population, and competitive pricing, which boost the popularity of specialty stores in developed and developing region.
Healthier Lifestyle Leading To Increase In Demand
Increasing awareness on the importance of living a healthy lifestyle is seen as a major contributor that is driving the increased demand. As consumers begin to seek more active lifestyles whether indoors or outdoors, demand for footwear increased as has the variety in supply.
The athletic footwear department is projected to see the fastest growth at a CAGR of 6.6% for the forecast period. A separate report also indicates that in 2020, the sneaker market which falls under the athletic footwear sector was worth over $75B and is forecasted to rise to nearly $98B by 2024.