The global footwear industry could attain a value of $1.7 trillion by the end of 2030, according to a report released by Transparency Market Research.
The market intelligence company predicted the footwear market will expand at a compound annual growth rate (CAGR) of about 8 percent over the next decade. The firm highlighted sports shoes in particular, saying the inclination toward fitness could “bring immense growth prospects for the footwear market.” Sustainability, too, could play a crucial role as many footwear manufacturers turn to using recycled materials to meet consumer demand, it said.
Transparency Market Research also highlighted technological innovations, such as Nike’s self-lacing Adapt technology. Advancements like this, it said, “add extra stars of growth to the footwear market.” Strategic collaborations between international and local players could also boost gains, it added.
The firm’s findings support the trends NPD Group has seen in the United States. Matt Powell, vice president and senior industry adviser, sports at NPD Group, said earlier this month that he sees “clear opportunities for sports retail as we emerge from the pandemic.” Performance running, hiking and, to a lesser extent, trail running can all be expected to outperform the overall market, he said.
Earnings results from major running brands this year anecdotally support this forecast. In the second quarter of the 2021 fiscal year, Deckers Brands said its running-focused Hoka One One brand experienced an 83.2 percent jump in net sales. Meanwhile, Asics North America reported year-over-year performance running footwear growth in the mid-teens in the third quarter. Thanks to gains in new runners, Brooks Running posted a 49 percent year-over-year jump in global revenue in Q3.
In April, Allied Market Research released its own forecast for the global footwear market. It too identified eco-friendly raw materials and the rise of health and wellness in consumer shopping behaviors as the primary drivers in the years ahead, mirroring Transparency Market Research’s findings. It, however, predicted a smaller CAGR of 5.5 percent through 2027.