Footwear Industry Overview
The global footwear market is a multi-billion U.S. dollar industry. A part of the clothing and apparel industry, the footwear market is comprised of shoes, sneakers, luxury footwear, athletic footwear, and sporting shoes, as well as other related goods. Footwear products are commonly made of leather, textile, and a range of synthetic materials..
The global footwear market size was valued at $365.5 billion in 2020, and is estimated to reach $530.3 billion by 2027 with a CAGR of 5.5% from 2020 to 2027..
Footwear are made up of different materials such as leather, plastic, rubber, and fabric. Among these, leather is one of the most prominent materials used for fabricating footwear. Major players, such as Nike, use eco-friendly raw materials, including recycled car tires, recycled carpet padding, organic cotton and vegetable-dyed leathers for producing footwear.
Footwear Market Trends
It has been found that companies in the footwear market:are collaborating with chemical companies to innovate in material chemistries to include sustainable production materials. The idea of global innovation centers is grabbing the attention of brands that are bringing footwear professionals, manufacturers, and designers under one roof to co-create new generation footwear. Innovation centers are giving rise to immersive environments that help brands to drive footwear transformations..
Apart from the big names in the athletic shoe category such as, Nike, Adidas, and Puma, startups in the footwear market are leveraging value-grab opportunities. This is evident since the market is expected to surpass an astonishing revenue of US$ 1.7 Tn by 2030. The trend of Internet first footwear brands is a fast-growing phenomenon in the footwear market. Startups such as the U.S.-based Allbirds, New York-based Koio, and Tamara Mellon are gaining increased popularity. Several private label brands are scaling business opportunities through social media and eCommerce sales. The trend of vegan shoes and bags is catering to the niche requirements of buyers.
The trend of fast fashion has brought manufacturers in the footwear market under the scrutiny of regulatory authorities to lower their environmental footprint. Many individuals are becoming conscious of sustainable and renewable materials used in footwear. Several billion pairs of sneakers are made every year and several million of them end up in landfills. Hence, startups in the footwear market, such as Nothing New, are designing sneakers only made from recycled materials including post-consumer recycled plastic, rubber, fishing net, and cotton to lower the environmental footprint. As such, the global footwear market is anticipated to surpass the production of ~44,620 million units by the end of 2030.
African Footwear Market
For a long time, African leather has remained unappreciated, by the consumer despite a shift in consumer consciousness and pressure for greater transparency in every aspect of the fashion business. EU laws stipulate that the country of origin of finished goods is the country where the final production process occurs. This has enabled luxury fashion houses that source raw leather from Africa, and even begin the production process there, to tag their products as, for example, Made in Italy. This practice has helped European manufacturers to avoid using a Made in Africa tag, a process that has kept Made in Africa leather goods under the radar and struggling to build an image for quality and excellence, in Africa itself as much as abroad.
Although today’s biggest textile-producing countries, are China and India, “made in Africa” is gaining traction. Many brands are moving their production from Asian to African countries, with Ethiopia positioning itself as a leader in developing a textile industry in East Africa.
The demand for African designs, textiles, and garments,is increasing within and beyond the continent. Currently, in sub-Saharan Africa, the combined apparel and footwear market is estimated at USD 31 billion. The textile industry in Africa is estimated to grow at a CAGR (Compound Annual Growth Rate) of ~5% over the forecast period of 2019–2024..
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