Dewan Mashuq Uz Zaman
Apparel industry has close relation with the footwear market. Many global apparel brands do market footwear products also. Bangladesh leather and footwear sector has been growing slowly even though it failed to capture the global market as per its potentials.
The global footwear market size was estimated at US$ 438.62 billion in 2023 and is anticipated to grow at a CAGR of 4.3% from 2024 to 2030. Rising disposable incomes, particularly in emerging economies, have increased spending on new fashionable footwear. Moreover, numerous brands are launching limited-edition shoes and premium and luxury footwear for consumers aiming to live aspirational lifestyles. According to the World Footwear Yearbook 2023, released by World Footwear, footwear consumption reached 20.6 billion pairs in 2022, an increase of 8.42% compared to 2021. Consumers prioritize comfort and functionality, leading to a surge in demand for athletic shoes, sneakers, and casual footwear. The growing popularity of online shopping platforms and social media marketing have made it easier for consumers to access a wider variety of shoe options and brands, further boosting sales.
The ever increasing health and wellness awareness drives the demand for specialized footwear like orthopedic and sports shoes. Technological advancements, such as the use of 3D printing and advanced materials, are creating new opportunities for innovation and customization in product design. Advanced materials, such as durable and lightweight composites, breathable fabrics, and eco-friendly bio-based materials, further push the boundaries of footgear innovation. For instance, Nike launched a new recyclable shoe, the Nike ISPA Link Axis, which uses several interlocking components, fewer materials than conventional shoes, and zero glue. The shoe uses a 100% polyester Flyknit upper that is seamlessly engineered over the outsole and boasts 100% recycled TPU tooling made from repurposed airbag material. Growing awareness of the importance of foot health has led to increased specialized shoes that provide arch support, cushioning, and breathability.
Forecasts indicate that the global footwear market is projected to grow by US$ 103.6 billion at a compound annual growth rate (CAGR) of 4.2% from 2025 to 2029. This expansion is propelled by innovations in design and materials, shifting consumer preferences, and increasing demand for both athletic and fashion footwear. Nonetheless, the industry encounters challenges including escalating labour expenses and fluctuating raw material costs, all of which affect profitability.
The footwear market is characterized by a high degree of innovation, driven by technological advancements and changing consumer preferences. Manufacturers continuously introduce new materials, designs, and technologies to meet evolving demands for comfort, style, and functionality. This innovation fuels market growth and fosters competition among brands. The market also experiences significant levels of M&A (merger and acquisitions) activities as companies seek to expand their market share, gain access to new technologies, or consolidate their position in the industry. M&A can create larger, more powerful players, influencing market dynamics and competitive landscapes.
Key Trends Shaping the Footwear Industry
- Rise of Athletic and Performance Footwear:
Athletic footwear is in high demand because to the increased popularity of outdoor activities such as jogging, walking, gym workouts, and sports such as basketball, volleyball, and golf. Customers prioritize comfort, performance, and durability, prompting businesses to improve their offers with better cushioning, flexibility, and traction.
- Customization:
Personalized footwear is gaining popularity, especially in the premium segment. Customers want distinctive designs, so businesses provide customization options in color, material, embroidery, and even embellishments such as gold, silver, and diamonds. This tendency is most noticeable in developed countries like as North America and Europe, but it is also spreading to emerging economies like China and India.
- Commerce and Digital Expansion:
With the growing popularity of online shopping, firms are investing extensively in e-commerce platforms and digital marketing techniques. Consumers today appreciate the convenience of buying from anywhere, resulting in increased sales through online channels. Footwear firms are using AI-powered analytics and tailored advertising to improve client engagement.
- Sustainability and Environmentally Friendly Innovations:
Sustainability is gaining popularity, with firms changing to eco-friendly materials and manufacturing techniques. Non-biodegradable plastics are being replaced with recycled and plant-based alternatives, while water and land resources are being conserved. Sustainable footwear, such as eco-friendly sneakers, is becoming increasingly popular as ecologically conscious customers drive demand.
Market Challenges
- Rising Labor Costs:
Many manufacturers manufacture in China, India, Indonesia, Bangladesh, and Vietnam, where labor costs have skyrocketed over the last decade, raising production costs.
- Raw Material Price Volatility:
Variations in material costs, such as leather, rubber, and synthetic replacements, pose hazards to manufacturers seeking to maintain competitive pricing.
- Sustainability Costs:
While eco-friendly activities are popular, switching to sustainable materials and processes frequently requires significant initial investment and supply chain changes.
Footwear Market Segment Analysis
By Distribution Channel
- E-commerce
- Specialty Stores
- Super markets – Hyper markets
- Convenience Stores
- Others
• E-Commerce
• Specialty-Store
• Supermarkets-Hypermarkets
• Convenience Store
• Others
Based on Distribution Channel, E-Commerce is expected to have the largest share of the footwear market in the coming years. E-commerce is the main distribution channel in the footwear market, offering convenience and a wide range of options for both buyers and retailers. Online shopping has revolutionized how people buy shoes, allowing them to explore styles and sizes from the comfort of their homes. E-commerce platforms provide detailed product descriptions, customer reviews, and high-quality images to help shoppers make informed decisions. The rise of mobile shopping and smartphones has further boosted online shoe sales, with mobile applications providing a seamless shopping experience. Retailers benefit from accessing a global customer base, reducing costs, and utilizing data analysis for personalized marketing strategies.
By Type
- Loafers
- Shoes
- Sandal/ Flip-Flops
- Ballerinas
- Boots
- Wedges
- Athletics
- Healthcare Shoes and Others
Loafers
• Shoes
• Sandal/Flip-Flops
• Ballerinas
• Boots
• Wedges
• Athletics
• Healthcare Shoes and Oth
• Loafers
• Shoes
• Sandal/Flip-Flops
• Ballerinas
• Boots
• Wedges
• Athletics
• Healthcare Shoes and Others
By Material
- Plastic
- Leather
- Rubber
- Textile and Others
• Plastic
• Leather
• Rubber
• Textile and Others
By End-User
- Men
- Women
- Children
• Men
• Women
• Children
Future Outlook
When it comes to improving the comfort, durability, and performance of footwear, advancements in material technology are very necessary. Companies are investing in lightweight, high-performance, and environmentally friendly materials to improve both sports and non-athletic footwear. In response to the growing significance of sustainability, renowned companies are adopting environmentally friendly production methods in order to reduce their impact on the environment. These methods include the substitution of conventional plastics with biodegradable and recycled materials, as well as the conservation of water and land resources.
In addition, the digital revolution in the footwear industry is progressing, with businesses utilizing targeted advertising, e-commerce platforms, and analytics driven by artificial intelligence in order to strengthen their online presence. Businesses are increasing their investments in digital marketing strategies and personalized recommendations in order to boost customer engagement as the number of individuals shopping online continues to rise. E-commerce has become a vital channel for future expansion as a result of its rapid expansion, which has made it possible for smaller and more specialized firms to compete on a global scale via the internet.
It is expected that developing countries will play a significant part in the fuelling of future growth as consumer demand turns toward sustainability, comfort, and customisation. It is possible for brands to sustain a competitive advantage in this volatile market if they are able to respond to these changes while simultaneously overcoming cost restrictions.
