The global footwear market is set to rake in more than half a billion dollars by 2027, a new market research report shows, boosted by advances in sustainability and changing consumer behaviors.
Eco-friendly raw materials and the rise of health and wellness in consumer shopping behaviors will be the primary drivers of a $530.36 billion global footwear market, according to Allied Market Research’s latest global opportunity analysis and industry forecast report.
As more consumers look to indoor and outdoor exercise, athletic footwear is expected to increase at a compound annual growth rate (CAGR) of 6.3 percent—besting the overall industry, which is slated to grow at a CAGR of 5.5 percent.
Non-athletic footwear retained its top spot in terms of market share in 2019 and still accounts for three-fifths of the global footwear market.
Allied Market Research said the category will continue to do so into 2027.
“This is due to rise in fashion consciousness, changing tastes of women and surge in working professionals,” the research company said.
The largest channel in footwear distribution, specialty stores, held more than two-fifths of the footwear market in 2019 and is also expected to continue its dominance into the latter half of the decade. Allied Market Research suggested these retailers owed their success to their strategy of maintaining high shelf visibility across their product categories.
Nevertheless, digital sales will grab up more and more of the pie, growing at a CAGR of 8.3 percent as consumers turn to their smartphones to shop and developing companies increase the availability of online portals. Consumers will also continue to be attracted by online-exclusive offers and discounts, Allied Market Research said.
More and more, brands have turned their attention to the Asia-Pacific region and the report estimates they will continue to offer consumers there a variety of innovative footwear products.
The increase in urbanization and the growth of the middle class in the Asia-Pacific will also help grow the region’s market share, which was already more than two-fifths of the global footwear market in 2027.
Latin America, the Middle and Africa will grow at the highest rate (6.7 percent CAGR) under high urbanization in Africa and increasing demand for trend-conscious footwear.
Among the companies best suited to capitalize on the growth of the total market, Allied Market Research singled out Adidas, Nike, Puma, Under Armour and Skechers as players who could grab the most market share through 2027.
Geox S.p.A, VF Corp., Crocs, Ecco Sko A/S and Wolverine World Wide Inc. are also set to grow with the global footwear market through the next decade.