The global footwear market will grow by 30% in 5 years. And more, the segment will reach a value of 530 billion USD by 2027, showing a CAGR (compounded annual growth rate) of over 5.5%. The deciding driver will be “the healthier lifestyle” of a higher number of people, according to a recent report by Stockapps.com. Yet, deep uncertainty caused by the pandemic will still carry weight in the future of the segment. The question that must be posed is: what type of shoe will drive this growth? The answer has never been so banal…
The global footwear market will grow
Current estimates indicate that the footwear industry is now worth 365.5 billion USD, and that it will grow by 30% before 2025, thus brining the value to increase by 111 billion USD. Data and evaluations shown by Stockapps.com, a new investment consulting firm in the UK, state the same as the data in the research by ResearchAndMarkets.com. Athletic footwear will be the type that most will drive growth, with a CAGR of 6.6%. “The increased awareness over the importance of a healthy lifestyle – writes Stockapps -, is seen as an important contribution to the increase of demand”.
The pandemic unknown
Clearly though, it’s become evident that the pandemic’s evolution will be the determining factor to understand the impact suffered by the global footwear market, and to evaluate the different market scenarios. For example, whether the Tokyo 2021 Olympics will take place, will be partially responsible for the performance of sport footwear. According to a survey published by World Footwear, this year’s sales could be 22.5% lower than the previous (due to Covid-19). To put it in other terms: 5.1 billion less pairs.
From 2010 to 2019
Production levels will also likely come to halt in 2020. Based on the data published by World Footwear Yearbook, global footwear production grew by 21.2% from 2010 to 2019, averaging a 2.2% growth rate. The segent slowed in 2019, when the increment was of just 0.6%, but still reaching the record level of 24.3 billion pairs manufactured. What year’s production level will we return to after 2020? And what will the entity of the recovery be in 2021?
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