Market Challenges And Opportunities

Global Athletic Footwear Market Drivers:

Surging influence of sport activities among individuals: The rise of health consciousness and growing aspiration for active lifestyles among people across the globe has provided a major boost to the global athletic footwear market in 2023. With increasing awareness about risks of sedentary routines and emphasis on physical fitness even amongst young population, participation in various sports and recreational activities has witnessed a meteoric rise. This growing influence of sports culture is a key driver that is expanding the customer base for athletic shoes.

More people are regularly engaging in running, yoga, tennis, football, cricket and other sports for leisure and exercise. Athletic shoes have become a wardrobe essential for maintaining an active routine. The booming popularity of casual forms of sports like walking, hiking, and cycling that can be easily incorporated into daily schedules has also augmented the demand. Furthermore, the rise of athleisure wear and growing acceptance of combining sports apparel with everyday casuals is normalizing the sports lifestyle. This is benefitting the industry by accentuating athletic footwear as a fashionable lifestyle product rather than just performance equipment. Increasing use of sports-inspired designs and technological features in casual shoes is also attracting a wider audience.

Favourable global trends of growing health awareness, fitness boom and expanding youth population will continue fuelling the demand. According to The United Nations Department of Economic and Social Affairs, specifically the Population Division, produces the dataset World Urbanization Prospects on a regular basis. The 2018 Revision of World Urbanization Prospects provides estimates and projections of the size of the urban and rural populations of the world and their major urban agglomerations. The United Nations Department of Economic and Social Affairs, over 60% of the population in majority of nations worldwide is expected to reside in urban cities by 2050. This urbanization and busy lifestyles will further drive the need for convenient sports and exercises that can be easily done by using athletic shoes. At the same time, high-performance attributes and innovative designs leveraging new materials will allow the footwear to accommodate more types of sports. The rising participation of women and elderly population in recreational fitness will open new segments of customers. These current and emerging customer behaviours’ bode well for continual growth in sales and volumes for companies in the global athletic footwear industry during the forecast period.

Rising number of retail outlets across the globe: Increasing number of retail outlets across the world is significantly contributing to the growth of the global athletic footwear market. With more shops and stores that are being established to cater to the burgeoning demand of sports and fitness footwear, consumers have wider availability and easy access to a diverse range of products from numerous brands at their local level itself. This growing retail distribution network is allowing brands to market and promote their products aggressively while also enabling buyers to compare, explore, and purchase their preferred shoes in a convenient manner.

The unexpected COVID-19 pandemic has remarkably transitioned buying patterns as people increasingly prefer remote digital shopping over crowded physical stores. Therefore, well-known manufacturers are aggressively allocating more funds to create an influential omni channel shopping experience. They are optimizing their websites, launching mobile apps, and aligning with third-party tailors to serve customers remotely. This digital transformation of the sector will surely boost sales volumes and allow the worldwide athletic footwear industry to sustain steady growth even in the near future. Thus, the constant addition of innovative retail infrastructure globally will remain a key growth driver for this expanding market.

Global Athletic Footwear Market Opportunities:

Emerging markets with growing middle class population: Emerging markets with rapidly growing middle class populations present significant opportunities for expansion in the global athletic footwear market. Countries such as India, Brazil, Indonesia, and others in Southeast Asia are experiencing substantial increases in disposable incomes and spending power among mainstream consumers. As physical fitness and participation in sports activities rise among urban youth in these regions, the demand for high-quality performance footwear is booming.

Lifestyle changes along with greater awareness about health and wellness have made athletic shoes a mainstream fashion item rather than just a necessity for serious athletes. Affordable yet aspirational domestic and international brands are able to tap into this phenomenon. In 2021, according to a study by the United Nations, the number of people living in extreme poverty in developing countries fell by 0.70 % from 1990 to 2019, indicating permanent increases in consumer purchasing habits across essential and non-essential expenditure categories. As economies continue to develop and cities evolve with modern amenities, active transportation, and recreational activities will grow significantly. Public initiatives will also support industry growth. For example, the central government of India announced investments of US$25 Bn through 2025 for urban development and transit projects to promote walkability and cycling. If targeted correctly through suitable product designs, pricing, and distribution; footwear companies stand to benefit tremendously from these emerging middle class populations, thereby seeking comfortable yet fashionable options for increasingly mobile lifestyles.

Overall, with rising disposable incomes, evolutions in urban infrastructure, and emphasis on health-driven activities, emerging markets present a major long-term opportunity for athletic footwear brands to tap into enthusiastic new customer segments and shape active wear consumption habits. Strategic partnerships with local distribution networks will be critical to capitalize on this massive untapped potential and steer the industry onto a trajectory of sustainable global expansion.

Partnership with sports leagues and events: Partnerships with global sports leagues and events present a tremendous opportunity for growth in the global athletic footwear market. Collaborating with iconic sporting properties allows shoe brands to deeply connect with passionate fanbases around the world. These fans willingly spend money to represent their favourite teams through officially licensed apparel and merchandise. By lending their brand associations to elite athletes who compete on the world's biggest stages, shoe companies are able to spread powerful messages of performance, innovation and achievement. An example of the impact such partnerships can have is evident from Federation International de Football Association recent revenue figures for the 2018 and 2022 men's World Cup tournaments. According to FIFA's publicly disclosed financial reports, revenue from commercial agreements like jersey sponsorships and licensed merchandise climbed significantly from US$1.93 Bn US$ earned at the 2014 Brazil World Cup to US$5.36 Bn US$ generated off the 2018 Russia event. A sizable portion of these commercial revenues are derived from footwear companies paying high sums for promotional opportunities during globally watched competitions with billions of television viewers. The growing popularity of new professional leagues popping up across Asia and the Middle East point to untapped markets hungry for iconic international brands. By forming official partnerships with these emerging leagues and working to grow the games themselves, athletic footwear brands have a unique chance to introduce their products to the millions of youth who are willing to start playing sports seriously. If executed successfully, such cross-promotional relationships will serve as a driver of long-term participation and loyalty, thereby ensuring the continued expansion of the global footwear market for decades to come.