The COVID-19 has had a huge impact on the sneakers market, causing supply chain disruptions, closing retail stores, and cutting down revenues. Although all major sports brands managed to recover and boost their sales online, this year’s revenues are still expected to remain below pre-COVID-19 levels.
According to data presented by Buy Shares, the revenues of the global sneakers market are set to reach $66.3bn in 2021, compared to $69.6bn in 2019. However, the entire industry is forecast to grow by 30% in the next four years and hit $102.8bn value by 2025.
A Two-Year Recovery after the COVID-19 Hit
Sports brands and sneakers producers have never had a year like 2020. Before the COVID-19, global sneakers sales had been growing steadily, with revenues doubling between 2012 and 2019. However, in the first half of 2020, sales crushed to the deepest levels in years, as global demand significantly dropped amid the lockdowns. Sneakers were selling at lower prices, while marketplaces looked to drive customer engagement on social media.
As a result, global sneaker sales revenues dropped by almost 10% YoY to $63.2bn in 2020, revealed the Statista data.
After a challenging 2020, the sporting goods giants Nike, Adidas, and Puma all managed to recover, with their sales growing strongly in the first half of 2021. The return of major sports events also allowed them to showcase their brands to billions of consumers, who turned back to their stores in all parts of the world.
In the fiscal year ended May 2021, Nike (NKE) reported $44.5bn in revenue, a 19% increase YoY, driven by growth across NIKE Direct and wholesale and double-digit growth in the footwear and apparel sector.
Its largest competitor, Adidas, also saw significant growth in all market segments, with sales in China jumping 156% in the three months of 2021. As a result, the revenues of the German sportswear company jumped by 27% YoY to €5.27bn in Q1 2021, with its net income reaching €502 million, up from €26 million in Q1 2020.
Although all major sneakers producers witnessed significant growth across different market segments in 2021, the revenues of the unified market are still forecast to remain $3.2bn below pre-COVID-19 levels.
However, the year 2022 is set to witness a significant recovery, with revenues rising by nearly 25% YoY to $82.4bn on a global level. Moreover, the increasing trend is set to continue in the following years, with the figure rising by $20bn by 2025.
The United States to Generate 30% of Total Revenues, Chinese Market to Shrunk by 10% in 2021
Analyzed by geography, the United States represents the world’s largest sneakers market expected to generate $20.1bn or 30% of total revenues in 2021. Statistics show the US market is forecast to grow by 6% YoY and reach almost pre-pandemic levels. By 2025, the US sneakers sales revenues are set to jump to $28.9bn.
However, as the second-largest sneakers market globally, China is expected to witness its revenues drop by 9.3% YoY to $12.4bn in 2021. In the next four years, this figure is set to jump to $23.2bn.
The United Kingdom is expected to witness the most significant growth among the top three markets, with revenues growing by 12.4% to $3.7bn this year. Japan and Germany follow with $3bn and $2.5bn in revenue, respectively.