Quite often, discussions surrounding the footwear industry focus primarily on the production aspect of the market. However, to secure a greater market share in the global footwear industry, the producers can tap into the larger consumer base with a comprehensive understanding of the diverse and ever-evolving consumer base across various continents. Tapping into the growing consumer base is essential for the footwear industry to sustain and thrive in the competitive global market. With the footwear industry valued at USD 438.62 billion in 2023 and projected to grow at a CAGR of 4.3% from 2024 to 2030 [1], aligning production strategies with consumer demand will be crucial for sustained growth and market expansion.

Figure 1: Distribution of Footwear Consumption by Continent in 2023 [2]

The global footwear consumption map reveals that Asia leads with a commanding 54.7% share of global consumption, an increase from 53.2% in 2022, driven by its vast population and rapid economic growth. These distribution trends underscore the shifting dynamics of global economic power toward Asia, the resilience of established markets in developed regions, and the significant untapped potential within emerging economies.

Footwear Consumption Surge in Non-Traditional Markets

The demographic dividend has been playing a major role in emerging economies with a growing consumption rate of footwear globally. For instance, China has a vast population base, leading to a larger consumer market for footwear.

Table 1: Top 10 Footwear Consumers by Quantity (2023) [2]

Similarly, countries like China with a purchasing power parity (PPP) of 125% of the world’s average and Japan with 260% of the world's average [3] have experienced significant economic growth, leading to increased disposable incomes. This rise in income reflects enhanced purchasing power, enabling consumers to allocate more spending toward footwear, thereby driving higher consumption rates compared to certain traditional European markets, including Italy, Germany, Belgium, France, and the Netherlands, among others.

Among the emerging economies, Bangladesh also ranks among the top ten consumers of footwear. The country’s expanding middle-class demographic mirrors the substantial demand for footwear observed in its peer economies, further underscoring the growth potential within this sector.

A Win-Win Situation for International Buyers to Tap into Bangladesh’s Expanding Production Base

As the 9th largest global consumer of footwear, Bangladesh presents a lucrative opportunity for brands to tap into a growing customer base with increasing purchasing power. To cater to this rising demand, the country has made substantial investments in its footwear industry, fostering the expansion of key home-grown players including Bay Footwear Ltd., Akij Footwear, and Apex Footwear, among others. Apex also stands out as one of the largest shoe manufacturers in South Asia, contributing approximately 15% of Bangladesh’s total leather footwear exports in 2022.

This steady expansion has propelled the industry to reach a market value of USD 2 billion, supported by an annual production capacity of 378 million pairs of shoes. With domestic demand ranging between 200 and 250 million pairs annually, Bangladesh maintains a strong export surplus, supplying between 128 and 178 million pairs to global markets. [4]

Beyond production capabilities, Bangladesh’s robust backward and forward linkages further enhance its position as a reliable manufacturing partner, attracting global giants, such as ABC Mart, Walmart, Kate Spade, K-Mart, Michael Kors, Marks & Spencer, and Steve Madden, and sourcing footwear and leather goods from the country.

Figure 1: Top Brands to Import Footwear from Bangladesh

While the rising demand for footwear has bolstered the export of these global brands, it also presents an opportunity for them to establish manufacturing hubs within this emerging economy. With a rapidly expanding consumer base and an increasingly business-friendly regulatory environment, Bangladesh has secured its position among the top ten global footwear producers.[5] By strengthening its role as both a key manufacturing and export hub, the country is steadily solidifying its place as a rising powerhouse in the global footwear industry.

Author

The article was authored by Sadia Karim, Business Analyst at LightCastle Partners. For further clarifications, please contact here: [email protected]

References:

1. Grand View Research. (2023). Footwear market size, share & trends analysis report by type (athletic, non-athletic), by end-user (men, women, children), by region, and segment forecasts, 2024 - 2030.

2. World Footwear Yearbook, 2024

3. World Bank, 2023

4. Invest Bangladesh. Leather and Footwear

5. World Footwear (2024). Leather footwear drives positive performance of Bangladesh’s leather industry