Global footwear production & exports plunge in 2023

Global footwear production experienced a significant decline in 2023, falling by 6 per cent to 22.4 billion pairs, marking the lowest level in a decade, excluding the pandemic years of 2020 and 2021, according to the World Footwear Yearbook, published by the Portuguese footwear association APICCAPS. The industry remains heavily concentrated in Asia, which accounts for 87.1 per cent of global production, slightly down from 87.4 per cent the previous year. Europe fared slightly better, with a 5 per cent decline compared to Asia's 7 per cent drop.

China continues to dominate the global footwear market, producing 12.3 billion pairs in 2023 and capturing 55 per cent of the global market share. India has also increased its share, now accounting for 11.6 per cent of global production, as per the report.

The report attributes the drop in global production to a contraction in consumption in major markets. The US saw a decline of 749 million pairs, China 398 million pairs, and the European Union (EU) 399 million pairs, collectively losing almost 1.5 billion pairs.

In Europe, Portugal's footwear industry showed resilience, with a production drop of 3.6 per cent to 81 million pairs, outperforming Italy, which saw an 8.6 per cent decline to 148 million pairs. Over the past decade, Italian production has fallen by 26.7 per cent, while Portuguese production has increased by 8 per cent.

Global footwear exports in 2023 amounted to 14 billion pairs, valued at $168 billion, marking annual decreases of 9.1 per cent in volume and 6.1 per cent in value. Despite these challenges, Asian countries have strengthened their dominance in global trade, with their collective share rising to 84.6 per cent from 83.9 per cent in 2022. Europe's share contracted slightly to 12.8 per cent.

China remains the largest exporter, accounting for 63.8 per cent of total exports, up from 61.3 per cent in 2022. Vietnam holds the second position at 9.5 per cent, followed by Indonesia at 3.2 per cent. Together, these three countries account for over three-quarters of global footwear exports. The average export price per pair rose to $12 in 2023, an increase of 3.2 per cent from the previous year, with Italy leading in this category, followed by Portugal.

In 2023, Asia's footwear consumption accounted for more than half (54.7 per cent) of the global total, an increase from the previous year. Europe and North America followed, with shares of 13.9 per cent and 13.4 per cent, respectively. China remains the largest consumer, though its global share has declined to 17.1 per cent. The US saw a significant drop in consumption, losing its second-place position to India. The EU, as a region, consumed 1.948 billion pairs in 2023, making it the third-largest market.

Fibre2Fashion News Desk (DP)