Footwear has well and truly come a long way from being considered a mere commodity. The sheer variety in terms of colors, materials, and types have truly transformed the global footwear market in the last few years. Today, men, women, and even children seek out footwear that is chic, comfortable, stylish, and most importantly, aligns perfectly with their tastes and sensibilities. Footwear is now seen as an ‘extension of self’ and also helps define its wearer, for better or for worse. Thus, the future of the footwear market is extremely bright indeed.
The global footwear market is on track to record a modest CAGR of 4.5% that should see it touch a value of US$ 450 billion by the end of 2022.
The leather segment accounts for a revenue share of just under a fifth in the footwear market by product type. Even though the price of leather footwear can be a major impediment in the footwear market, the segment is anticipated to be worth more than US$ 85 billion by the end of the forecast period. Even though APEJ has the largest regional contribution, Europe should grow at a much higher CAGR because the continent has a heritage in leather footwear and a number of companies with decades of expertise have their base of operations there.
Natural rubber is estimated to be more popular than synthetic rubber in the footwear market as it has a revenue share of more than a fifth in the footwear market. Latin America is likely to record a robust CAGR of 5% in the natural rubber segment and companies are advised to target their natural rubber derived footwear to customers in this emerging region. In the case of synthetic rubber, Europe and APEJ represent a much more lucrative opportunity as they have the largest contribution in this segment of the footwear market by a considerable margin.
The economy segment is approx. 2/5th of the footwear market by price-based segment and is projected to retain this position. The economy segment is worth almost US$ 190 billion by the end of 2022, making it a segment large enough for both existing as well as potential entrants in the footwear market. APEJ is predicted to be the largest opportunity in the economy segment because this region has consumers that are more price-sensitive than either Europe or North America. However, this certainly not mean that Europe can be completely ignored as it is the second-largest market for economy footwear and should even grow with a higher CAGR than APEJ.
The premium segment in the footwear market is the smallest in terms of revenue share as it caters to a niche audience. However, there is a strong possibility that it could become more prominent in the days ahead as rapid economic growth, particularly in APEJ will increase the per capita disposable income of consumers, spurring them to purchase premium products such as luxury footwear. The premium segment may be worth a little over US$ 70 billion in 2022 and companies actively involved in the footwear market should make their long-term business strategies accordingly.
Online retail is the biggest buzzword of the 21st century and this has begun to impact the footwear market as well. Even though the revenue share of online is still comparatively low, it can be safely assumed that it will become very important in the days ahead as Internet connectivity improves and impulse footwear purchases become as easy as clicking a button or tapping a touchscreen. The APEJ online footwear market is valued at just under US$ 28 billion in 2022.
The report has tracked developments of key players in the global footwear market, which include Adidas, Nike, PUMA, Crocs, Under Armor, ALDO group, Deichmann SE and ASICS Corporation.