According to a new study from global research and advisory company Technavio, the global footwear market size is estimated to grow by $113.6 billion from 2024–2028. The market is set to expand at a compound annual growth rate (CGAR) of 4.73% during this time period.
What’s driving the uptick? The study credits product premiumization, with an increasing demand for customized footwear. Elements curtailing profits, however, include rising labor costs and fluctuating raw material prices. The study factored in key players including Adidas, ASICS, Dolce and Gabbana, Ecco, Geox, New Balance, Nike, Under Armor, Wolverine Worldwide, and more.
Customization, especially in North American and Europe, is a boon for the industry. Think personalization options ranging from design and color to customized text. The study cites Nike’s Nike By You segment as an example. Sneakers and sandals continue to be in-demand categories, and many consumers are seeking out sustainable options. As people continue to work from home, athletic footwear and versatility continues to reign supreme.
Another bright spot? The children’s footwear market is experiencing significant growth, as parents prioritize active lifestyles for their kids and focus on foot health. While the market is ripe for newness, the landscape is increasingly competitive. Key players, Technavio says, are investing heavily in branding and celebrity endorsements to capture market share.
Despite reporting strong growth, the industry is facing its fair share of challenges. On the high end of the market, vendors including Prada, Tapestry, and D&G are facing fluctuating material prices as well as increased labor costs for their production facilities in China, India, Indonesia, Bangladesh, and Vietnam. And across price points, e-commerce competition and cheaper imports pose threats to established brands.
Not surprisingly, consumers seek out durability, comfort, and fashionability. To stay competitive, companies should focus on innovation, quality, and pricing strategies.
