The athletic footwear market is estimated to be valued at US$ 85,047 Mn in 2023 and is expected to exhibit a CAGR of 1.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Athletic footwear refers to lightweight, comfortable shoes used for sports and physical exercise purposes. It provides essential features like breathability, flexibility, traction, and cushioning to suit the needs of different athletic activities and sports. Growing health concerns and increasing participation in sports and fitness activities have been driving the demand for athletic footwear across the globe.
Market key trends:
One of the key trends enabling the growth of the athletic footwear market is growing participation in sports and fitness activities. With rising health awareness, people are increasingly engaging in sports, exercise, and fitness activities. Further, growing urbanization, busier lifestyles, and increasing stress levels have boosted participation in sports and recreational activities. As per a survey by IHRSA, health club membership has increased from 57.3 million in 2013 to nearly 62.6 million in 2019 in the U.S. alone. This rising engagement in sports and athletics has augmented the demand for specialized athletic shoes that provide comfort, support, and safety during rigorous physical activities.
Porter's Analysis
- Threat of new entrants: The athletic footwear market requires significant investments in RD, manufacturing infrastructure and brand building. This poses high entry barriers for new players.
- Bargaining power of buyers: Buyers have high bargaining power due to the availability of numerous domestic and international brands offering variety of products at different price points.
- Bargaining power of suppliers: A few key raw material suppliers for shoes leads to suppliers having moderate bargaining power over companies.
- Threat of new substitutes: Substitutes like generic sportswear pose low threat as branded athletic footwears offer brand image and performance.
- Competitive rivalry: Intense competition exists between major brands to gain market share.
SWOT Analysis
- Strength: Established brands with global presence and recognizable product lines. Research for improved performance, style and comfort.
- Weakness: High RD and marketing costs impact margins. Dependence on few suppliers increases supply chain risks.
- Opportunity: Expand into developing regions with rising incomes and health awareness. Growing demand for specialty athletic footwear.
- Threats: Trade conflicts can increase costs. Shift to low-cost substitutes during recessionary periods.
Key Takeaways
The global athletic footwear market is expected to witness high growth, exhibiting CAGR of 1.8% over the forecast period, due to increasing health awareness and popularity of sports and fitness activities. The athletic footwear market size for 2023 is US$ 85,047 Mn.
North America dominates the global athletic footwear market currently. However, Asia Pacific is projected to be the fastest growing region during the forecast period, led by countries like China, India and other Southeast Asian countries. Rising incomes and health consciousness are driving the demand for athletic footwear in the region.
Key players operating in the athletic footwear market are Nike, Inc., Adidas Group, Crocs, Inc., Wolverine World Wide, Inc., Skechers U.S.A., Inc., Under Armour, Inc., Puma AG, Geox SpA, K- Swiss, New Balance. Major players are focusing on developing innovative products and expanding into developing markets through strategic partnerships and mergers and acquisitions to gain market share.
