The global footwear market is expected to grow at a rapid pace in the coming years. However, estimates of the actual size of the market and forecasts of its growth rate vary greatly from one market research firm to another. Shoe Intelligence analyzes various surveys published in recent weeks. [Global footwear market to enjoy sustained growth in the coming years – shoeintelligence.com]
Forecasts range from a compound annual growth rate (CAGR) of just below 3 percent to slightly above 9 percent over the next years, representing an average of about 5.4 percent.
Because of the number of moving parts, including inflation, economic and consumption growth, currency rates, etc., making long-term forecasts is arduous. According to data released by World Footwear in its World Footwear 2022 Yearbook, global footwear production increased by 8.6 percent in 2021, exceeding 22 billion pairs. The average export price per pair of footwear increased by more than 6 percent last year to $11.07, the highest level ever.
In its Business Conditions Survey for the first semester of 2022, World Footwear estimated that global footwear consumption would grow 5.9 percent in volume this year. Meanwhile, prices are expected to be significantly impacted by higher costs and could rise by about 8.4 percent in the second half of 2022, according to the survey.
In a report released by ResearchAndMarkets.com, the global footwear market was estimated at $196.591 billion in 2020 and is expected to reach $360.620 billion by 2027, registering a compound annual growth rate (CAGR) of 9.05 percent.
This growth over the next five years is underpinned by the increase in the global population. ”Furthermore, the growing awareness regarding the use of shoes in underdeveloped countries and the growing purchasing power of the people working across these economies are also driving the market growth during the next five years,” it said in a statement.
Growth will also be stimulated by market players which are developing and adjusting designs and comfort of the footwear. Companies are also widening their channels, and online sales are one of the major factors supplementing the global footwear market growth in the forecast period, the research firm pointed out.
However, the wide availability of counterfeit products at low prices and government restrictions regarding leather usage can restrain the market, the report noted.
Sports shoes are a significant contributor to growth
Sports is one of the main engines of growth, driven by the booming fitness trend among Millennials. The trend has underpinned the demand for lightweight and highly comfortable athletic footwear in both developed and developing economies around the globe.
”Also, the growing involvement of elderly people in minor outdoor activities such as jogging, cycling, and walking, among others, has also amplified the demand for athletic footwear during the next five years. Major market players are also investing heavily in the market in the form of R&D investments, partnerships, and mergers with an aim to gain a competitive edge over other players and expand their market share,” ResearchAndMarkets.com said.
One of the key trends to follow to increase the athletic footwear market is to use recycled materials, which can reduce the carbon footprint, the report highlighted.
The athletic footwear market is also poised to be lifted by the growing number of sports events held globally, it added. The market research firm estimates that the global market will post a CAGR of 4.76 percent between 2021 and 2027.
According to a report by ReportLinker, a company that uses artificial intelligence to deliver market data and forecasts, the global footwear market is expected to grow from $349.0 billion in 2020 to $427.4 billion by 2027, representing a CAGR of 2.9 percent. The casual segement is projected to record a 3.0 percent CAGR and reach $213.7 billion in 2027. The athletic segment is forecast to post a CAGR of 2.9 percent over the period.
In the outdoor/rugged segment, CAGR is estimated at 3.6 percent and driven by the U.S., Canada, Japan, China and Europe. Those markets accounted for a combined market size of $13.9 billion in 2020 and will reach $17 billion in 2027, ReportLinker estimates.
As previously reported, Grand View Research, Inc. forecast that the global footwear market is will reach $543.9 billion by 2030, thanks to a CAGR of 4.3 percent between 2022 and 2030.
Among other reports that were released recently was Market Research Future’s survey on formal shoes, that forecast that the global market will reach $12.389 billion in 2030 thanks to a CAGR of 11.82 percent. The key market drivers for the segment are increasing disposal income and the globalization of businesses in developing nations.
