Footwear Market

Market Overview

The global footwear market size was valued at USD 389.23 billion in 2022. It is estimated to reach USD 568.54 billion by 2031, growing at a CAGR of 4.31% during the forecast period (2023–2031). The growing footwear sales facilitated by e-commerce due to surging internet penetration worldwide are the major factors driving this market's growth. Moreover, the rising number of people engaged in sports and fitness activities fuels the demand for comfortable and stylish footwear.

Footwear refers to apparel worn on the feet that typically provides protection against environmental hazards such as wear from rough terrain, stability on slick surfaces, and temperature. It provides protection and support for the feet while walking or engaging in other activities. It consists of footwear such as shoes, boots, sandals, and slippers made from various materials, including wood, canvas, leather, jute, plastics, and rubber.

Footwear also serves as a fashion statement and expresses individual style. It is designed for specific athletic and non-athletic activities like running, hiking, and working. It is commercially available in various shapes, sizes, and hues and can be personalized with text, logos, and prints. It decomposes easily in the environment and does not contribute to landfill waste or pollute water sources.

Market Dynamics

Global Footwear Market Drivers

Growing E-Commerce Retail Market

E-commerce retail channels play an important role in the distribution of footwear, as a substantial portion of market revenue is generated via these channels. In the coming years, e-commerce retail sales are projected to increase significantly due to rising consumer spending, a larger population, and greater internet accessibility. The growth of the online retail industry is further aided by the advent of mobile shopping apps and the availability of safe and practical payment channels.

Over the last few years, e-commerce has grown significantly and rapidly, owing to the increasing internet penetration in various economies, mainly in European countries. The emergence of non-banking participants in the payment industry has contributed to this expansion. Numerous consumers in developing and developed nations favor online marketplaces to purchase goods, prompting retailers worldwide to enter the online retail market. These tendencies will positively impact the footwear market during the forecast period.

Rising Instances of Sports Activities 

The increasing number of females participating in sports drives the demand for footwear, mainly shoes. Several organizers offer discounts on membership to first-time female participants. For instance, The Loon Mountain Race offered discounts to first-time female participants, and the Barr Trail Mountain Race made it a point to award equal prize money to men and women. Likewise, the growing popularity of events such as Ultra-Trail du Mont-Blanc (UTMB) also encourages more people to participate in sports. UTMB has witnessed a 68% increase in applications in the last three years.

According to a global study by Ipsos with the World Economic Forum in 2021, the five most frequently practiced team sports and activities across the 29 markets in a normal week are fitness (20%), running (19%), cycling (13%), soccer (10%), and swimming (9%). Almost six in ten citizens across the 29 markets say they would like to play more sports than they currently do. This increased interest in sports will drive athletic footwear sales over the forecast period.

Global Footwear Market Restraint

Presence of Counterfeit Products

The presence of counterfeit products is hampering the footwear market growth. According to the Better Business Bureau (BBB), in 2017, footwear products were one of the top three categories of counterfeit goods seized by customs in the U.S. Similarly, according to the World Trademark Review, about 73% of Brazilian consumers bought counterfeit products in 2018. The United States Government Accountability Office reported that China and Hong Kong are the countries of origin for 88% of all counterfeit items sold in the USA. The availability of counterfeit goods will likely hinder the footwear industry's growth over the forecast period.

Global Footwear Market Opportunities

Demand for Sustainable Footwear

Sustainability is becoming important by the day, especially for nature-loving trail runners. The increasing number of ethical consumers is boosting the demand for sustainable products, including sustainable footwear. Similarly, the rising trend of vegan sports shoes creates significant growth opportunities for manufacturers. Brands such as Brooks, Astral, Merrell, Newton, and ASICS are capitalizing on the growing trend of vegan sports shoes among consumers.

Companies are also increasingly focusing on shoes manufactured from recyclable materials to encourage sustainability. Players are collaborating with various associations to capitalize on the growing trend of sustainable products. For instance, in May 2021, Adidas and Allbirds unveiled the FUTURECRAFT.FOOTPRINT, is a pair of running shoes with a carbon footprint of less than 3 kg of carbon dioxide equivalent emissions (CO2e) per pair. The shoe was part of the partnership's 12-month goal to reimagine manufacturing and supply chain processes to create a product with a near-zero carbon footprint. Such developments in sustainable footwear are creating opportunities for market growth.

Regional Analysis

Based on region, the global footwear market is bifurcated into North America, Europe, Asia Pacific, Central and South America, and the Middle East and Africa.

Asia Pacific Dominates the Global Market

Asia-Pacific is the most significant global footwear market shareholder and is anticipated to exhibit a CAGR of 5.01% during the forecast period. The footwear industry is labor-intensive and is affected by various factors like land resources, labor costs, environmental protection, material supply, and sales markets. As a result, footwear manufacturers, major consumer markets, wholesalers, and retailers globally are shifting their focus to lower-cost countries to maximize profits, constantly moving global shoemaking bases. In Asia-Pacific, Japan, Taiwan, India, and China are lucrative footwear markets. Consumers' rising discretionary income and improved living conditions are key factors accelerating product demand in these nations. In addition, the rising participation of women in sports will likely drive the women's segment. According to the Sasakawa Sports Foundation (SSF), 72.4% of the population in Japan participated in or played a sport at least once a year. Out of this, 75.9% of the men had participated in sports at least once a year, whereas 69.1% of the women had participated in a sport at least once a year. This is anticipated to boost the demand for footwear in the region.

Europe is estimated to exhibit a CAGR of 4.4% over the forecast period. A growth in the disposable income of consumers in nations like the U.K., Germany, and France, as well as the expansion of e-commerce, social media, and advertising sectors in Europe, will expedite the growth of the footwear market. The availability of trendy and fashionable footwear in developed countries such as Germany and the U.K., coupled with rising consumer spending, is also anticipated to fuel market growth. In addition, niche companies and startups are catering to millennial consumers by launching innovative products, as these consumers are more inclined toward sustainability and ethical consumerism. For instance, Eco-Vegan Shoes offers a variety of non-athletic footwear styles, such as ankle boots, heels, flats, and sneakers, all certified by different eco-friendly organizations. Such launches are expected to boost the regional market expansion.

North America is estimated to grow at a considerable pace. Consumers' growing demand for stylish and comfortable footwear is driving market growth. A high concentration of footwear manufacturers in the U.S. and the rest of North America is a key factor driving the market. Big players such as Nike, VF Corporation, Under Armour, New Balance, and Skechers USA, Inc. are headquartered in the U.S., where product innovations and research and development are incorporated, and new products are launched yearly. For instance, in November 2019, Nike announced the introduction of a full sports footwear collection in December 2019, which would include the latest Nike Joyride CC3 Setter and an apparel collection in collaboration with Givenchy creative director Matthew Williams. Such initiatives are anticipated to spur the demand for footwear over the forecast period. The increasing popularity of sports like football, basketball, and various snow sports is anticipated to generate significant growth opportunities for the athletic footwear segment during the forecast period.

In Central and South America, government initiatives aimed at obesity prevention and control have increased individuals' participation in physical activities. Moreover, the 2014 FIFA World Cup and the 2016 Rio Olympics have positively influenced sports participation, fueling the footwear market growth, particularly sports and athletic footwear. Similarly, sustainable footwear brands such as Insecta have been witnessing high receptibility among consumers in recent years, which is expected to offer strong growth opportunities in the future. Brazil is also one of the major footwear manufacturing countries in the industry, with an established factory setup and skilled labor. This presents a lucrative opportunity for new manufacturers entering the footwear market.

Segmental Analysis

The global footwear market is segmented by type and end-user.

Based on type, the global footwear market is divided into athletic and non-athletic footwear. 

The non-athletic footwear segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 3.9% throughout the forecast period. The non-athletic category consists of flats, mules, sandals, heels, sneakers, and boots, which can be worn on different occasions. Due to the increasing consumer preference for eco-friendly sneakers and footwear, many niches, major market players, and designers worldwide have contributed to this broad footwear category. For instance, Theory's Spring 2019 collection was the brand's debut in sustainable footwear. It includes footwear such as high heel sandals wherein the heels are made of Nappa leather. The leather is sourced from a tannery committed to producing zero environmental waste and non-toxic products by 2020.

Additionally, several niche companies and startups focus solely on manufacturing sustainable products and highlight the associated benefits of sustainable footwear. For instance, Nothing New, a sneaker startup founded in 2019, aims to create awareness and provide sustainable sneakers. Nothing New sneakers are made from 100% post-consumer recycled plastic, and other parts like insoles, laces, and outsoles are made from recycled rubber, fishing nets, cork, and cotton.

Athletic shoes are worn by individuals who engage in outdoor activities like running, walking, gym workouts, and sports like basketball, volleyball, cricket, hockey, and golf. In addition to providing comfort, flexibility, and traction on outdoor surfaces such as roads and trails, athletic shoes provide the user with torsional stability, superior cushioning, and enhanced protection. Professional athletes' demand for comfortable, lightweight, and fashionable shoes for use on wet, soft, and uneven terrain is driving the expansion of the athletic market. Individuals' rising participation and preference for daily physical activities such as running, the gym, and cycling is the primary factor driving the global expansion of athletic shoes. Moreover, the growing athleisure trend and the emergence of custom product manufacturing are expected to boost the demand for athletic shoes in the coming years.

Based on the end-user, the global market is segmented into men, women, and children. 

The men's segment owns the highest footwear market share and is estimated to exhibit a CAGR of 3.9% during the forecast period. The inclination of men toward outdoor activities has been boosting the demand for men's footwear. Sports like golf, cricket, hockey, and hiking have always been popular among men. Hence, product launches catering to specific sports categories will help boost the men's footwear market growth. For instance, Lakefront, a footwear company, launched its first line of golf shoes for men in 2019 called Terra-1. It offers shoes made from recycled cork, nylon, organic cotton, organic leather, and recycled plastic bottles.

In addition, multifunctional products remain relevant for the men's footwear market. Brands should focus on footwear that merges active and leisurewear attributes. The desire to reconnect with the outdoors continues to influence footwear ranges. Therefore, manufacturers are incorporating performance or outdoors-inspired features and retaining a fashion-driven aesthetic that works well for city pursuits.

Several companies wholly dedicate their product lines to women, such as Rothy's, Nisolo, and ABLE. These provide a wide range of products like sandals, wedges, boots, heels, loafers, slip-ons, and sneakers. Women in developed countries, such as the U.S., tend to spend on sustainability because of the growing awareness of eco-friendly products and the rising number of women in the workforce. According to the 2019 Bureau of Labor Statistics report, women held 50.04 percent of American jobs, up from 51.55 percent in 2020. Manufacturers' product launches, collaborations, expansion into new markets, and sustainable footwear innovations have been driving the women's segment. For example, the footwear company Veja debuted on the Indian market with the V-10 sneaker series for women in collaboration with the multi-brand store Bhaane.

Recent Developments

• October 2023- The Swiss footwear brand On partnered with the Spanish fashion house Loewe for additional stylish collaboration. The new Cloudtilt footwear is marketed as a "lifestyle shoe" that combines the Swiss engineering of On with the luxury design of the fashion brand.
• October 2023- Skechers collaborated with Spanish artist Ricardo Cavolo for the second installment of its Visual Artist Series, announced in a press release. The collaboration debuted a footwear capsule for women that features the illustrator's glowing heart and eye imagery on a curated selection of styles and comfort-enhancing technologies.