12 Apr global athletic footwear analysis
The global athletic footwear market was valued at $74.7 billion in 2011 and is forecast to grow at a CAGR of 1.8% to reach $84.4 billion in 2018, according to a report by Transparency Market Research. Growth is expected to be driven by factors such rising population, increasing disposable incomes, rising health awareness and launch of innovative footwear designs and technology.
By 2018, Asia Pacific is expected to account for the largest share (41.6%) of the global footwear market followed by Europe and North America. Higher demand from Asia Pacific due to its huge population and growing GDP is the key catalyst for future growth in the global athletic footwear market.
Quick Facts on Athletic Footwear from this article:
- The global athletic footwear market was valued at $74.7 billion in 2011 and is forecast to grow at a CAGR of 1.8% during 2011-2018, according to Transparency Market Research.
- Nike, Adidas Group (which includes Reebok), Puma and Asics are positioned as the key players in the global athletic footwear market.
- Nike’s footwear sales saw an impressive CAGR of 14.2% during fiscal 2010-2012, which was followed by Adidas with a CAGR of 13.3% in its footwear sales during the same period.
- North America and Europe account for 44% and 24% of Nike’s footwear sales respectively. Nike is posting strong growth in these regions on account of its strong brand image and innovative product portfolio.
- Emerging markets and Greater China account for 18% and 11% of Nike’s footwear sales. While Chinese sales have weakened recently, we expect sales in China to return to growth over the long run as the company is actively taking steps to improve its position in China.
- Rising competition from local players and counterfeit products are some of the factors that present risks to Nike’s market share growth.