ATHLETIC FOOTWEAR MARKET ANALYSIS

Athletic Footwear MarketSize and Trends

The athletic footwear Market size is valued at US$ 132.6 Bn in 2024 and is expected to reach US$ 170.9 Bn by 2031, growing at a compound annual growth rate (CAGR) of 3.7%  from 2024 to 2031.

Growing enthusiasm and awareness regarding the health benefits of sports and fitness activities, the flourishing retail e-commerce sector worldwide, and the rising levels of disposable income of consumers are estimated to be the key trends driving the market growth. Youngsters are getting keen on adopting a healthy lifestyle and are thus  participating actively in sports and other related activities. At the same time, people have started realizing that sports and fitness activities can help ensure good health and thereby reduce the risk of chronic disorders such as depression, cardiovascular diseases, and diabetes.

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.

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.

Global Athletic Footwear Market Trends:

Expansion of e-commerce due to the growing trend of digitalization around the globe: The expansion of e-commerce due to growing digitalization is having a profound impact on the global athletic footwear market. As more consumers spend increasing time online and use digital platforms for shopping, athletic footwear brands are pivoting towards robust direct-to-consumer strategies. They are establishing strong digital presences through company-owned websites and mobile apps to capitalize on the booming e-commerce opportunity.

Nike, Inc., headquartered near Beaverton, Oregon, is a leading American athletic footwear and apparel corporation. Founded on January 25, 1964. and other leading athletic footwear companies have heavily invested in upgrading their digital infrastructure and fulfilment capabilities. They are optimizing their website user experience through personalized recommendations, improved search functionality, and seamless payment options. Many brands are also launching exclusive product drops and limited edition sneaker collections only available online. This is driving more customer engagement on digital platforms. The use of social media influencers for online campaigns is further fuelling the discovery of new products. The rise of online shopping has made the athletic footwear market highly competitive with the entry of digital-native brands like Allbirds. Allbirds is a footwear and apparel company that emphasizes sustainability and the use of natural materials in its products. The company was founded in 2015 and gained prominence with its iconic wool sneaker.  Customers have access to a wider variety and better deals on footwear from all over the world sitting behind a phone or computer. Companies are collecting deeper consumer data insights from their digital ecosystems that help match product design and innovation more precisely to customer preferences in different geographical regions and demographics over time.

For example, in France, during the fourth quarter of 2020, e-commerce sales for sneakers grew over 60% as compared to the 2019. according to government data. Adidas launched a dedicated e-shop in the country which saw over 40% of sneaker buyer’s transition online. Nike's sneaker volumes from its French website grew by almost 35% in the same period. In the U.S. during 2021-2022, online sales accounted for 25-30% of total athletic footwear sales, according to data provided by  the U.S. Department of Commerce as compared to under 20% pre-pandemic.

An increasing number of women participating in sport: An increasing number of women participating in sports are one of the current trends in the athletic footwear market. The government of various countries is encouraging women to participate in sports in order to promote overall health and fitness. This is again anticipated to spur the market growth of the athletic footwear. Moreover, growing awareness regarding the sports adventure activities such as hiking, running, trekking, and aerobics among women is further projected to foster the market growth of global athletic footwear.

Overall, long-term prospects for global athletic footwear market  remain positive. While North America and Europe continue dominating due to higher discretionary expenditure and brand awareness and future growth opportunities that lie in developing economies. Asian nations like China and India offer exponentially growing middle-class with higher disposable incomes which can offset risks from other mature markets. Companies may gain through new product innovations, sponsored athletes and strategic partnerships with retailers and ecommerce platforms. While macroeconomic uncertainties persist, the market is expected to grow steadily by catering to evolving consumer preferences through advanced product offerings.