Footwear Industry Stats

Part
01
of two
Part
01

Footwear Market Size

The approximate global footwear market size is $246,300 million or $246.30 billion. The segment Athletic Footwear accounted for 15% of the footwear revenue in 2018. The worldwide revenue of US$61 billion in 2018 is expected to increase to US$89 billion by 2023. The global non-athletic footwear market size would be ($246.30 billion - US$61 billion) = $185.3 billion The luxury footwear market size for 2018 would be $27,767.68 million or $27.77 billion, while the global market size for outdoor footwear market for 2018 would be $5.94 billion. The total global footwear market is 67.4% of $246.30 billion which is approximately $166 billion.

GLOBAL MARKET SIZE OF THE FOOTWEAR INDUSTRY

  • MarketWatch states that the global footwear market industry is valued at US$290,200 million in 2018 and is expected to reach US$357,300 million by the end of 2025, growing at a CAGR of 3.0% during 2019-2025.
  • According to Reuters, the global footwear market is valued at US$202,400 million in 2018 and is expected to reach US$269,000 million by the end of 2025, growing at a CAGR of 3.6% during 2019-2025.
  • Upon taking an average of the above two data, the approximate global footwear market size would be =($290,200 million + $202,400 million) / 2 = $246,300 million or $246.30 billion.

BREAKDOWN OF THE FOOTWEAR INDUSTRY

Sneakers/Athletic Footwear market size

  • The segment Athletic Footwear accounted for 15% of the footwear revenue in 2018. The worldwide revenue of US$61 billion in 2018 is expected to increase to US$89 billion by 2023.

Non Athletic footwear market size:

  • Non-athletic footwear includes luxury footwear, fashion footwear, and outdoor footwear.
  • The global non-athletic footwear market size would be = ($246.30 billion - US$61 billion) = $185.3 billion

Outdoor Footwear

  • According to the Outdoor Industry Association, "outdoor footwear grew over 14% year-on-year to over $990 million for the first five-months of 2011."
  • Therefore, for 2011, we have calculated the global outdoor footwear market size to be approximately ($990 million / 5 months) x 12 months = `$2,376 million or 2.38 billion.
  • If the growth remains unchanged from 2011 to 2018 (14% year-on-year), the global market size for outdoor footwear market for 2018 would be $5.94 billion.
The calculation is mentioned below:
  • For 2012 the market would be = (14% of $2.38 billion) + $2.38 billion = $2.71 billion
  • For 2013 the market would be = (14% of $2.71 billion) + $2.71 billion = $3.09 billion
  • For 2014 the market would be = (14% of $3.09 billion) + $3.09 billion = $3.52 billion
  • For 2015 the market would be = (14% of $3.52 billion) + $3.52 billion = $4.01 billion
  • For 2016 the market would be = (14% of $4.01 billion) + $4.01 billion = $4.57 billion
  • For 2017 the market would be = (14% of $4.57 billion) + $4.57 billion = $5.21 billion
  • For 2018 the market would be = (14% of $5.21 billion) + $5.21 billion = $5.94 billion

Luxury Footwear

  • Revenue in the Luxury Footwear segment amounts to US$32,288M in 2019. The market is expected to grow annually by 2.9% (CAGR 2019-2023).
  • Year-on-year growth of the market is 5%.
  • In global comparison, most revenue is generated in United States (US$7,122M in 2019).
  • In relation to total population figures, per person revenues of US$4.38 are generated in 2019.
From the above, we can calculate the global market size for luxury footwear market for 2018 to be (2019's market size - 14% of the 2019's market size) = $32,288m - (14% of $32,288m) = $32,288million - $4,520.32 million = $27,767.68 million or $27.77 billion.

Therefore, the luxury footwear market size for 2018 would be $27,767.68 million or $27.77 billion

Fashion Footwear

  • Fashion footwear’s strongest performance in recent years dollar sales peaked at over $60 billion.
  • Revenue in the footwear market amounts to US$91,187M in 2019. The market is expected to grow annually by 2.3% (CAGR 2019-2023).
  • Year-on-year growth = 2.4%.
So, the US market size for footwear industry for 2018 would be $91,187m - (2.4% of $91,187m) = $91,187 million - $2,188.49 million = $88998.5 million or $89 billion approximately.

Percentage share of the US fashion footwear in the total US footwear market = ($60 billion / $89 billion) x 100 = 67.4%

Assuming that the same percentage share applied to the global market as well, we can calculate the estimated market size for global fashion footwear market to be 67.4% of the total global footwear market = 67.4% of $246.30 billion = $166 billion approximately.

Lifestyle Footwear

After an extensive search, we were not able to find or calculate the lifestyle market size of the global market.

Other Helpful Findings:

  • The classification of Footwear includes Daily Use, Business, Sports and Other Type. In 2017 sales of daily use is about 43%, and the proportion is in decreasing trend from 2013 to 2017. Sports footwear is the fast growth type.
  • The most proportion of Footwear is used for Women’s Footwear, and the proportion in 2017 is about 48%.
  • Asia-Pacific is the largest consumption place, with a consumption market share of nearly 30% in 2017.
  • Following Asia-Pacific, Europe is the second largest consumption place with the consumption market share of 27%.
  • The segment Leather Footwear accounted for 39% of the Footwear revenue in 2018.
  • The worldwide revenue of US$162 billion in 2018 is expected to increase to US$178 billion by 2023.
  • Footwear is the second most important fashion segment within the retail business just behind apparel.

Research Strategy:

Although we found the global market size of the footwear industry, we were unable to find any precompiled statistics in relation to the breakdown of market by segment listed in the research including Fashion Footwear, Luxury Footwear,
Outdoor Footwear, Lifestyle Footwear, and Sneakers/Athletic Footwear. After searching through various market research reports and articles, we were able to find that the footwear market is segmented into Athletic and non-athletic footwear. We were also able to find the global market size of the athletic footwear market. Through our research we have learned that all other segments listed above (except athletic footwear) fall under the category of non-athletic footwear.

During our research, we came across many market research reports containing the footwear market data including the segments we required the data for, but the data was behind paywalls so we were unable to access the data and searched instead for the public data.

Next, we found a report from Market Research.com containing the 2011 data for the outdoor footwear which we used to calculate the market for 2018 as no other recent data was available publicly.

Statista report provided the market size for luxury footwear market.

Later, while searching through below mentioned sources, we were unable to find lifestyle and fashion footwear market. A search for older data was also not successful which would have helped us triangulating the figure.

We then decided to choose the alternative route and searched for the US data and were able to find that the fashion footwear market was $60 billion in the US. Using the total footwear market data for the US, we have calculated the percentage share of the fashion footwear in the total footwear market. In absence of any other relevant info we assumed that the same percentage will also be applicable for global market and then calculated the global fashion footwear market size.

After thorough research, we were unable to find the market size either global or US to calculate the rough figure for the lifestyle footwear market. A search for past year's data was also not successful. We even tried to see if the other segments' data can be added and then subtracted from the total market size data., but this approach would have provided wrong data as the listed segments are not the only segments into which the market is divided. The footwear industry is very broad and has several segments hence this was not a right approach to follow.

Therefore, after an extensive search, we were unable to find or calculate the lifestyle market size of the global market.


Some sources we used include:
  • Market research reports: Reuters, Global NewsWire, Alied Market Research, IBIS World, Market Research.com, Euromonitor International, and others.
  • Statistical database: Statista
  • Paywalled source: One paywalled source was found containing relevant info. published by Global NewsWire.
  • Media articles, news articles, blogs: Footwear news, ISPO.com, Fashion United, Bleckmann, Sourcing Journal, and others.
Please note that in order to provide a comprehensive brief, we have also used some sources beyond two years in our research.

Part
02
of two
Part
02

Footwear Industry Trends

Some trends that are currently shaping the global footwear industry include innovation beyond comfort, taking a stand for sustainability, partnerships, and the lifestyle sneaker trend.


TRENDS CURRENTLY SHAPING THE FOOTWEAR INDUSTRY

INNOVATION BEYOND COMFORT

  • Consumers are becoming less concerned about comfort and more about function.
  • Consumers are choosing shoes that serve more than one purpose and benefit their personal habits.
  • To meet this demand, brands have begun producing an increasing amount of “multi-purpose” shoes.
  • Nike and Sketchers appear to be driving this trend as they produce footwear designed with multiple purposes such as the Nike+ and the Sketcher Shape-Ups.

TAKING A STAND FOR SUSTAINABILITY

  • Less than one percent of all footwear in the United States is produced with the use of responsible, eco-friendly materials.
  • Millennials are showing an increasing interest in more eco-conscious companies and brands.
  • This is leading companies and brands in the footwear industry to rethink packaging and the use of alternative materials in the production of their product.
  • In addition to packaging and using alternative materials, this trend is also shifting the brand's attention to making adjustments in the production of their product, including ways to recycle instead of discard waste.
  • While brands are steadily paying more and more attention to this trend, a footwear company in Georgia, Third Oak, is the leading driver of this footwear trend.
  • Third Oak is the only brand using a “closed-loop” recycling process.

PARTNERSHIPS

  • In addition to consumers showing an increased interest in both functionality and sustainability, they still remain “fashion-conscious” and have been reacting well to the increasing number of brands offering “sponsored” footwear.
  • Brands are beginning to partner up with celebrities outside of the sports industry, such as musicians, actors, and even television shows.
  • Consumers driving this trend have shifted their attention from the designer of the footwear produced by major brands, to celebrity endorsements.
  • Keds' partnership with Taylor Swift, in addition to the various artist's brands such as TOMS and retailers such as Payless and Target, have partnered with in designing some of their shoes. These are some of the most notable examples of who is driving this trend.

THE LIFESTYLE SNEAKER TREND

  • Between 2016 and 2018, lifestyle sneakers kept in-stock through mass and value retailers rose 46% in the United Kingdom and 42% in the United States. This is in comparison to the 9.7% rise in the UK and a 4.5% rise in the US, in total footwear mass and value retailers kept in-stock during the same two years.
  • Millennials are the consumers driving this trend, as they continue to lead “on-the-go” lifestyles.
  • In conjunction with this trend, seasonal footwear is becoming less of a demand and is being replaced with consumer expectations of comfort, functionality, and versatility in their footwear.
  • This is leading brands to obtain more social and eco-conscious attitudes to meet this demand.

Research Strategy:

To identify trends that are currently shaping the global footwear industry, research began by seeking out information from databases most well-known for containing market reports and industry insights. Sites such as Euromonitor International and PR Newswire were utilized as well as databases most commonly known for containing information specific to the footwear industry like those hosted by sites such as Footwear News. The information provided by these databases proved invaluable and provided research with four trends currently happening in the footwear industry. In addition, these trends also address each market segment of the footwear industry. These segments include fashion, luxury, outdoor, lifestyle, and sneaker/athletic footwear. Upon the discovery of all the information, research was concluded by identifying trends that are currently happening in the footwear industry as innovation beyond comfort, taking a stand for sustainability, partnerships, and the lifestyle sneaker trend.

Sources
Sources