NEW YORK, Dec. 16, 2022 (GLOBE NEWSWIRE) -- IndexBox has just released its annual report on the global footwear market. Check out some of the most interesting takeaways from their report below.
Footwear Market Outlook
The global footwear size was valued at USD 163.2 billion in 2022 and is expected to reach USD 220 billion by 2030, growing at a CAGR of 3.8% over the forecast period (2022-2030).
The athletic footwear segment is the largest within the global footwear market and is expected to generate revenue of more than $100 billion by 2025. The segment is driven by the growing popularity of fitness and sports activities as well as the increasing disposable income levels in developing countries.
The women's footwear segment is anticipated to witness growth over the forecast period due to the rising demand for stylish and comfortable shoes that can be worn for both formal and casual occasions. In addition, the growing number of working women globally is another key factor driving the growth of this segment.
The global footwear market is growing at a moderate pace due to economic slowdown in developed markets such as Europe and North America. Emerging markets such as Asia Pacific and Latin America are expected to drive future growth in the global footwear market.
Footwear Industry
Nike, Adidas, and Puma are the key players in the footwear industry. Nike accounted for 31.6% of the global athletic footwear market in 2019. The company's success can be attributed to its effective marketing strategy and partnerships with celebrities and athletes. Adidas held a 21.7% share of the global athletic footwear market in 2019. The company has been focused on expanding its product portfolio and presence in emerging markets such as China and India. Puma holds a 6% share of the global athletic footwear market. The company has been investing in marketing and product innovation to drive growth.
The industry is characterized by intense competition and low profitability. Players compete on the basis of price, product quality, design, branding, and distribution. Price competition is particularly intense in the lower-priced segments of the market. Players have to continuously invest in product innovation and marketing to stay ahead of the competition.
The footwear industry is capital-intensive, with high fixed costs and low marginal costs. The cost of setting up a manufacturing facility is high, as is the cost of research and development. Marketing expenses are also high. As a result, new entrants find it difficult to enter the market and existing players find it hard to expand their operations.
Footwear companies are expected to benefit from favorable demographics, including a growing population of young adults and an increase in per capita income levels. In addition, the explosion of online retailing is making it easier for consumers to purchase shoes from around the world.
Footwear Market Segmentation
The footwear market is broadly segmented by product type, into athletic and non-athletic footwear. Athletic footwear is sub-segmented by end-use into running, training & cross training, basketball, football, golf, and others. Non-athletic footwear includes dress shoes, casual shoes, slippers & clogs, boots, and others.
On the basis of application, the global footwear market has been classified into men's footwear, women's footwear, kids' footwear, and unisex footwear. Men's footwear is expected to hold a significant share in terms of revenue due to their higher disposable incomes as compared to women. However, women's footwear is expected to grow at a higher CAGR during the forecast period due to their increasing participation in sports activities and changing fashion.
Footwear Sales Channels
There are several ways that manufacturers can sell their products, and the most common method is through a sales channel. The three most common types of footwear sales channels are retailers, wholesalers, and direct-to-consumer (DTC).
1. Retailers: These are businesses that buy products from manufacturers and resell them to consumers. They can be brick-and-mortar stores or online retailers. Some examples of footwear retailers include Shoe Carnival, DSW, and Zappos.
2. Wholesalers: These are businesses that buy products from manufacturers and sell them to other businesses, such as retailers. They typically sell in large quantities at a discounted price. One example of a footwear wholesaler is Eastbay.
3. Direct-to-consumer (DTC): This is when manufacturers sell their products directly to consumers, without going through a middleman such as a retailer or a wholesaler. One example of a DTC footwear company is Nike+.
Footwear Market Opportunities
The footwear market is expected to grow significantly in the coming years. There are numerous opportunities for companies operating in the footwear market to capitalize on this growth. Increasing disposable incomes and a growing middle-class population are two major factors driving the demand for footwear. Additionally, the rising trend of fashion and self-expression is also boosting the demand for stylish and fashionable footwear.
To tap into these opportunities, companies need to focus on offering products that meet the changing needs and preferences of consumers. They also need to invest in marketing and promotional activities to create awareness about their products and build a strong brand presence.
Footwear Market Challenges
The footwear market has been under significant pressure in recent years as a result of changing consumer preferences and a challenging economic environment. In order to remain competitive, footwear companies must be aware of the following challenges:
1. Changing Consumer Preferences: Consumers are increasingly moving away from traditional footwear styles and towards more casual and comfortable options. This shift has been driven by factors such as the rise of athleisure wear and the popularity of sneakers. As a result, footwear companies must adapt their product offerings to meet the changing needs of consumers.
2. Challenging Economic Environment: The global economy has been through a period of volatility in recent years, which has put pressure on household budgets. This has led consumers to become more price-conscious, which presents a challenge for footwear companies that need to maintain high margins in order to be profitable.
3. Increasing Competition: The footwear market is becoming increasingly crowded as new players enter the space. These companies are often able to offer cheaper products due to their lower overhead costs. This puts pressure on established brands to either lower their prices or differentiate their products in order to remain competitive.
4. Labor costs in China, the largest producer of shoes, are rising as workers demand higher wages. Additionally, environmental regulations are becoming stricter, forcing manufacturers to find ways to reduce their impact on the planet. Despite these challenges, the global footwear market is expected to continue growing at a healthy rate.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
Nike Inc., Adidas AG, Puma SE, Asics Corporation, Skechers USA Inc., New Balance Athletics Inc., Under Armour Inc., VF Corporation, Crocs Inc., Wolverine World Wide Inc, K Swiss Global Brands LLC
Sources
World - Footwear - Market Analysis, Forecast, Size, Trends and Insights
EU - Footwear - Market Analysis, Forecast, Size, Trends and Insights
Asia - Footwear - Market Analysis, Forecast, Size, Trends and Insights
U.S. - Footwear - Market Analysis, Forecast, Size, Trends and Insights
