A Detailed Analysis of the Luxury Footwear Market Based on the Growing Influence of Fashion Trends, Rising Brand Consciousness Among Consumers, and Expanding Luxury Retail Channels
Report ID: PMRREP33975
Number of Pages: 174
Format: PPT*, PDF, EXCEL
Industry: Consumer Goods
Published Date: February-2024
The global luxury footwear market is forecast to expand at a CAGR of 6.7% and thereby increase from a value of US$27.5 Bn in 2023, to US$43.4 Bn by the end of 2030.
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Attributes |
Key Insights |
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Luxury Footwear Market Size (2023E) |
US$27.5 Bn |
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Projected Market Value (2030F) |
US$43.4 Bn |
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Global Market Growth Rate (CAGR 2023 to 2030) |
6.7% |
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Historical Market Growth Rate (CAGR 2018 to 2022) |
6.2% |
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Luxury footwear, recognized as a symbol of affluence, is predominantly associated with the affluent demographic, serving as a means for end consumers to showcase their social status and enhance their self-esteem. The global demand for luxury footwear is expected to witness a surge due to an increasing preference for superior quality and meticulous craftsmanship. Factors such as heightened demand for product attributes like high quality, enhanced aesthetic appeal, durability, and reasonable pricing are anticipated to drive market penetration.
The growth of the global luxury footwear market is further propelled by the rapid pace of urbanization, the expanding influence of social media, and the continual evolution of the fashion sector. The market experiences positive traction as luxury handcrafted footwear brands gain popularity as status symbols, consequently contributing to increased sales within the luxury footwear segment.
Leading businesses are actively diversifying their product portfolios by introducing a wide array of new products to expand their customer base. To achieve this, strategic alliances and partnerships are being formed with other manufacturers to offer personalized, formal luxury footwear available in a range of materials, designs, colors, and size options. Additionally, the heightened awareness of environmental considerations is prompting manufacturers to adopt sustainable materials, fostering the creation of eco-friendly and durable luxury footwear. These advancements, coupled with aggressive promotional efforts, are expected to drive market growth in the coming years.
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The market is experiencing growth driven by an expanding population of millionaires globally, particularly within the millennial demographic. According to a CNBC LLC report from 2019, the US alone had 618,000 millennial millionaires, with nearly 93% possessing a net wealth ranging from US$1 Mn to US$2.5 Mn. This surge in millennial affluence has led to an increased demand for luxury footwear characterized by superior qualities such as premium materials, durability, uniqueness, and comfort, thereby propelling market growth. The rising inclination of millennials toward luxury footwear is fuelled by their desire for status symbols and their penchant for showcasing international brands like Louis Vuitton, Gucci, Chanel, Burberry, and Prada. This consumer preference is contributing significantly to the growing demand for luxury footwear.
Major brands are adopting strategic approaches to cater to diverse consumer classes, including HENRYs (High-Earners-Not-Rich-Yet), who are digitally savvy and known for their substantial spending habits. Manufacturers are introducing inclusive, individualized, and self-expressive products to appeal to this demographic, thereby driving further market growth. For example, luxury footwear company Modello Domani specializes in handcrafted premium footwear and offers complete customization, including monograms and designs for men, women, and children, tailored to suit individual styles and sizes.
Fluctuations in Pricing
Luxury footwear, distinguished by premium pricing in contrast to mass-market counterparts, is anticipated to encounter limitations in market size. The elevated price points associated with luxury footwear may present challenges as a considerable portion of consumers may perceive them as unaffordable or may be hesitant to allocate a significant portion of their budget to a single pair of shoes. Economic instability or fluctuations in pricing are projected to influence consumer spending on luxury footwear. In periods of economic uncertainty, consumers tend to prioritize essential purchases over luxury items, leading to a potential decline in demand for high-end footwear.
Increasing Spending on Luxury Items to Propose Great Promise
The luxury footwear market is poised for growth as consumers exhibit an increased inclination towards spending on designer and branded products. The term luxury footwear pertains to clothing or accessories that are commonly favored by affluent individuals. A US-based company, SaveMyCent, specializing in online coupon codes, estimates a significant expenditure of US$64.8 Bn by US customers on luxury goods in 2020.
China, and Japan followed with consumer spending reaching US$51.8 Bn and US$21.2 Bn, respectively. Notably, the Americas contributed to 28% of the total global luxury spending in 2020. This escalating trend in expenditure on luxury goods is expected to create favorable growth opportunities for the luxury footwear market throughout the forecast period.
Increasing Number of Counterfeit Products
The market faces a growth impediment due to the proliferation of counterfeit products by local manufacturers mimicking popular brands. Despite the existence of stringent guidelines aimed at curbing product counterfeiting, there is a need for enhanced effectiveness, both on a global and regional scale. The rising prevalence of counterfeit goods poses a significant challenge to the market's growth trajectory.
The global luxury footwear market encompasses a diverse range of products, primarily categorized by their fastening mechanisms and the type of leather utilized in the shoe's outer, lining, and sole. Market growth is propelled by ongoing product launches, customer-centric innovations in the footwear sector, as well as advancements in shoe performance and durability. Increased disposable income, coupled with the evolving preferences of both millennials and baby boomers towards innovative styles and premium shoe brands, further contributes to the expanding global luxury footwear market. Additionally, the growing demand for stylish and comfortable footwear is a key driver of market growth.
Supply-side Dynamics
Several factors, including the increasing global middle class and their rising disposable incomes, all contribute to the dynamic and rapid expansion of the global luxury footwear market. Louis Vuitton Malletier SAS, Chanel Limited, Burberry Group PLC, Silvano Lattanzi, and Prada S.p.A. are market leaders in the manufacturing sector. The countries of Germany, Japan, China, France, and the US are significant producers of various goods. In the luxury footwear market of China, the pivotal role of social media and digital innovation is evident in trend setting and customer engagement.
Emerging local designers and brands are gaining popularity in the Chinese fashionable shoe market by seamlessly blending contemporary design with cultural influences. In the exclusive footwear market of the US, e-commerce plays a vital role, offering customers a convenient platform to explore and purchase premium shoe brands. Several corporations are allocating resources towards expanding their capacity to satisfy the increasing need for Luxury Footwear. It is anticipated that these expansions will substantially alter the dynamics of the market, resulting in heightened competition, reduced prices, and an influx of innovative products.
Which is the Bestselling Product Type Category?
Formal Shoes Continue to Record the Most Extensive Sales Owing to Unwavering Demand from Corporate and Fashion Industries
The increasing significance of luxury footwear as an expression of professional image, notably within corporate and fashion industries, is anticipated to continue driving product demand. The heightened demand in this segment has prompted manufacturers to provide customization options. For example, Girotti SRL, an Italy-based luxury shoe company, allows for personalized modifications in formal shoes, encompassing premium leather selection, design variations, color choices, and sizing, among other options.
Which of the End Users will be Dominant Through 2030?
Women Lead the Way in Buying Luxury Footwear
The global market has experienced growth propelled by the heightened expenditure on designer and branded luxury footwear, particularly among millennials and the working-class demographic. The women's segment is anticipated to sustain its leading position throughout the forecast period, driven by the rising number of women in the workforce.
Data from the European Union reveals that, in 2021, approximately 67.7% of women were employed across the EU's 28 countries, including France, Germany, Greece, Hungary, Ireland, and Italy. Additionally, the proliferation of fashion events organized by companies serves as a catalyst, influencing women to invest in luxury products. A case in point is the launch of Gucci X Adidas' gazelle sneakers at Milan Fashion Week in February 2022.
Which is the Largest Distribution Channel?
Offline Stores Remain the Most Prominent Sales Channel for Luxury Footwear
Brick-and-mortar establishments, including boutique shops, and independent luxury footwear stores, enjoy popularity among consumers. These retail outlets demonstrate agility in aligning with prevailing fashion trends within the luxury products market and often present exclusive deals, thereby fostering sales growth. Additionally, multi-brand luxury footwear stores stand out as prominent distribution channels, providing customers with a diverse selection of brands for informed purchasing decisions.
North America Remains the Prime Market on the Back of the Largest High-net-worth Population
The North American luxury footwear market is propelled by a substantial population of affluent individuals with elevated disposable income. The increasing presence of high-net-worth individuals (HNWIs) has generated heightened demand for luxury products, including footwear. The considerable rise in disposable income among consumers in the region stands out as a major market driver. In the US, specifically, the abundance of disposable income significantly contributes to the robust sales of luxury footwear.
According to the Bureau of Economic Analysis (BEA), the disposable personal income in the US reached US$16 Bn in 2021. Notably, the year 2022 witnessed an unprecedented surge in consumer spending on footwear in the United States, expanding by 25% to achieve a record high. This surge was paralleled by a similar increase in footwear imports, as reported by the US Bureau of Economic Analysis. Moreover, North America retains its status as a key destination for luxury tourism, rendering it a distinctive market for luxury retail within the region.
Europe Benefits from the Growing Influence of Casual and Streetwear on High-end Fashion
The surge in product demand is driven by a concentrated group of buyers in developed countries, such as Germany, France, Italy, and the UK, who exhibit a preference for luxury footwear characterized by unique features and brand value. Additionally, the growing influence of casual and streetwear on high-end fashion has contributed to the increased acceptance of luxury sneakers in Europe. This shift is reflected in the contemporary trend of pairing sneakers with tailored suits. Prominent luxury brands like Kering, Prada, and Balenciaga are capitalizing on this trend by introducing striking and high-priced designs in the sneaker segment, positioning themselves in direct competition with major sportswear players like Asics, Nike, Puma, New Balance, and Adidas.
Prominent organizations, including Louis Vuitton Malletier SAS, and Chanel Limited. are at the vanguard of this sector, providing inventive solutions by capitalizing on their technological prowess and vast experience in the luxury footwear industry. Progressive luxury shoe brands have employed diverse strategies, including robust digital marketing campaigns, to address the growing demand for high-end footwear. They offer an extensive range of innovative and customizable luxury footwear products, encompassing gender-neutral options, sustainable footwear, and distinctive designs that resonate with customers.
To distinguish themselves in this highly competitive market, these businesses strive to differentiate their products. They achieve this by providing unique features, bespoke designs, premium materials, and an unparalleled level of craftsmanship that sets their luxury footwear apart from competitors.
New Product Launch
In August 2022, Chanel Ltd. introduced two distinct sneaker styles as part of its Fall/Winter 2022/2023 Pre-Collection, featuring two variations in autumnal color palettes for each style.
Market Impact: The debut of two new sneaker styles by Chanel Ltd. in August 2022 as part of its Fall/Winter 2022/2023 Pre-Collection is expected to have a positive impact on the Luxury Footwear Market. As a leading and influential luxury brand, Chanel holds significant sway over consumer trends and preferences. The introduction of these sneaker styles is in harmony with the ongoing trend among luxury fashion brands to diversify their product offerings by including casual and sporty footwear. This strategic move by Chanel not only addresses the evolving tastes of consumers but also augments the brand's versatility, making it more inclusive and appealing to a broader audience.
In August 2022, Louis Vuitton Malletier SAS introduced sustainable sneakers crafted by Virgil Abloh, an esteemed American fashion designer and entrepreneur. This release represents a novel iteration of the LV trainer, constructed from 90% recycled and organic materials, aligning with a commitment to eco-friendly practices and materials in the luxury fashion industry.
Market Impact: The introduction of sustainable sneakers by Louis Vuitton Malletier SAS in August 2022, a creation by the esteemed fashion designer Virgil Abloh, is positioned to have a positive impact on the Luxury Footwear Market. This strategic initiative reflects the growing consumer demand for environmentally conscious and sustainable offerings within the luxury sector. Louis Vuitton's launch of a new iteration of the LV trainer, crafted from 90% recycled and organic materials, not only aligns with prevailing global sustainability trends but also establishes a significant precedent for adopting eco-friendly practices within the luxury footwear industry. The brand's commitment to environmental consciousness is expected to resonate with a specific segment of consumers prioritizing sustainability, thereby expanding the brand's appeal and potentially attracting a new customer base.
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Details |
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Forecast Period |
2023 to 2030 |
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Historical Data Available for |
2018 to 2022 |
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Market Analysis |
US$ Million for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
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The market is anticipated to grow at a CAGR of 6.7% during the projected period.
The luxury footwear market was valued at US$27.5 Bn in 2023.
The US held the largest market share in 2023.
Some of the prominent players in the market include Louis Vuitton Malletier SAS, Chanel Limited, Burberry Group PLC, Silvano Lattanzi, and Prada S.p.A.
The formal shoes segment is expected to grow at the fastest CAGR during the forecast period.
