Footwear market predicted to reach close to three million dollars by 2025

By

Rebecca Taras

Published
Jul 6, 2017

While retail news continues to be more negative than positive, a recent report from Transparency Market Research indicates that the CAGR (compound annual growth rate) for the global footwear market is predicted to rise three percent for the forecast period between 2017 and 2015—the global footwear market space holds an impressive 72.1 percent of the marketplace as of 2016.

In terms of monetary growth, TMR, a next-generation provider of syndicated research, customized research and consulting services regionally and around the globe, predicts revenue will increase from $215,709 million (the status in 2016) to $278,860 million by 2025. The leading company from a global standpoint continues to be Nike (thanks to new product launches such as NikeLab x Johanna F. Schneider Collection and Nike Free Trainer 5.0), followed closely by Adidas A.G., Puma S.E., New Balance Inc., and Asics Corp. “Expansion of product portfolio to penetrate new markets is the key to growth in the footwear market,” says TMR’s lead analyst.

While this is a global report, it’s important to address the fact that the U.S. remains dominant in terms of both athletic and non-athletic footwear sales, thus contributing a substantial revenue to the market as a whole. The report hypothesizes that this is because there is a growing interest in athleticism in the States, as well as the demand for more comfortable footwear.

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Increased sports activity aside, the increasing desire to be fashion-conscious also contributes to the demand for non-athletic footwear which in turn creates a breeding ground for diversity in an effort to drive impulse purchases among consumers.

If there’s any factor that could possibly slow down the growth of the global footwear market, it’s the rising availability of imposter footwear produced by local manufacturers. The report indicates this is because these counterfeit goods adversely affect the success rate of the original designers, thus slowing down the economy of a country due to unpaid taxes and the need for stronger intellectual property rights.