Footwear Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Footwear Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global footwear market is projected to witness a CAGR of 3.62% during the forecast period (2022-2027).

The COVID-19 pandemic has adversely affected several industries, including the footwear market, across the globe. Business priorities have switched to liquidation strategies and inventory management while assessing post-pandemic consumer habit alterations, with consumption at a standstill and inventories piling up in warehouses. Given the combined effect of outlet closures, and frugality resulting from the rapidly deteriorating economic situation, the discretionary character of footwear made it one of the most seriously hit businesses by the pandemic. Moreover, a decline in consumer demand for athletic footwear was noted by brands like Adidas, Nike, and Puma, among others, as consumers reduced or delayed discretionary spending in response to the impacts of COVID-19, owing to a rise in unemployment rates and diminished consumer confidence.

The rising demand for fashionable, trendy, yet comfortable footwear across age groups is a key factor driving the global footwear industry. The rise in the growth of sports-focused footwear, such as football, cricket, basketball, and golf, coupled with exponential investment by governments and global organizations to promote sports leagues and participation, has been a key driver for the market. Asian countries, such as China and India, are the major exporters of leather footwear across developed countries.

Athleisure has become more pervasive, as it has influenced the athletic footwear choice among millennial parents. Due to this factor, they are dressing their kids in athletic apparel and footwear. This is driving the sales of overall footwear across the world.

Growing enthusiasm and awareness regarding the health benefits of sports and fitness activities, the flourishing retail e-commerce sector worldwide, and rising levels of disposable income of consumers are the key factors facilitating segment growth. Rising health concerns because of a sedentary lifestyle and the resultant problems caused by it are benefitting athletic footwear demand. This influences people to actively take part in both indoor and outdoor physical activities. Major global sporting events held periodically, like the Olympics, Commonwealth Games, Asian Games, Cricket World Cup, Super Bowl, and FIFA World Cup, also boost the demand from both the athletes. The footwear market has seen a steep rise in the demand for athletic footwear emerging from lifestyle users, owing to the growing health consciousness.

China and India alone account for nearly one-third of the global population and this ensures that the Asia-Pacific is the largest footwear market in the world. Both countries are likely to maintain their lead as combined they comprise almost 40% of the entire global footwear market. This can be attributed to several factors, like rapid urbanization and a preference to adopt a western lifestyle and/or brands, especially in the middle class and rich society. North America is the second-largest global footwear market with a particular skew toward athletic and sports shoes. The region is also home to many multi-national sports equipment companies that are often at the forefront of innovation. It can be reasonably predicted that they will lead the world in developing new footwear, which fulfils both the penchant for design and also a preference for superior quality.

The global athletic footwear market is highly competitive with major market share held by prominent players, such as Puma SE, Nike Inc., Asics Corporation, Fila Group and Adidas AG, among others, attributable to their higher market penetration, reflecting strong industry grip through its brands, products, partnerships, and advertising. These progressive brands have laid their hand on every possible strategy to cater to the footwear market’s demand, which includes employing aggressive digital campaigns, offering a wide range of innovative and customizable products including sustainable footwear, unique, and gender-neutral designs that cater to the preferences of all age groups, including athletic shoes specifically designed for kids, and brand collaborations.

• The market estimate (ME) sheet in Excel format
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