US Footwear Industry Breaks Record, Hits Over $100 Billion in Spending for 2021 (2024)
Shoshy Ciment
·3 min read
The American footwear industry just had its best year yet.
The industry broke annual records at over $100 billion reached in total spending, according to data from the Footwear Distributers and Retailers of America (FDRA). Consumer spending on footwear jumped 20.5% in December compared to December of last year. Overall, footwear sales in December pushed full-year footwear spending to hit a 29.8% gain in 2021.
“The resiliency of the American footwear industry cannot be overstated,” said FDRA president and CEO Matt Priest. “Despite major supply chain disruptions, higher tariffs and Covid, our companies blew past previous record sales and surpassed $100 billion in consumer demand for the first time ever. That is nearly $17 billion more than the previous record in 2019. It is an unbelievable triumph that speaks to how innovative, dynamic, hardworking and creative footwear professionals are across the U.S. Congratulations to our amazing members for literally the best year in history. We look forward to helping companies continue to boost their business, and we hope 2022 brings sustained lasting growth.”
Generally, consumer spending dropped 0.6%, or by $95.2 billion, in December compared to November 2021 according to Friday data from the Commerce Department. When adjusted for inflation, spending fell 1%.
The drop in December overall spending comes after consecutive months of spending growth in November, October and September. (In November, personal household spending rose a modest 0.6% compared to October). It also suggests that many people completed their holiday shopping earlier than usual in November this year, amid concerns from the Omicron variant and supply chain problems.
Spending on goods in December decreased 3.1% while spending services increased 0.1%.
December’s retail sales were also down 1.9% compared to November 2021, also likely a result of more people completing their holiday shopping earlier in the season to avoid stock-outs from supply chain issues. However, compared to 2020, December retail sales were up $626.8 billion, marking an increase of 16.9% from December 2020.
Overall, total sales throughout 2021 were up 19.3% from 2020. Sales between October 2021 and December 2021 were up 17.1% compared to the same period in 2020.
Meanwhile, the price index, a sign of inflation, grew 5.8% in December compared to a year ago, and 0.4% from November, the Commerce Department said.
According to the Bureau of Labor Statistics’ monthly report, inflation prices in December rose by 7% compared to a year ago. This number was up from the 6.8% growth in November and represented the highest inflation rate since the 12-month period ending in June 1982.
Despite the slowdown in spending, the unemployment rate in December was down 0.3 percentage points month over month to 3.9%, with 6.3 million people unemployed in December. While unemployment levels are still above pre-pandemic levels, December marked a month of slight improvement.
Average hourly wages for the month also increased 19 cents to $31.31. In the last year, average hourly wages have increased by 4.7%.
The North America footwear market size was estimated at USD 97.00 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 3.5% from 2024 to 2030. The increasing demand for stylish and comfortable footwear among consumers is fueling the market.
The global "Footwear Market" report indicates a |Consistent Growth of 2024| pattern in recent times, which is anticipated to maintain a upward trend until 2032. A prominent trend in the Footwear market is the increasing demand for products that are environmentally sustainable and eco-friendly.
A staggering 99% of all shoes sold in the United States are imported, totaling 2.7 billion pairs in 2022—a record-breaking figure. China leads as the top footwear importer, sending 1.6 billion pairs to the U.S., followed by Vietnam, Indonesia, Cambodia, and India.
How big is the footwear market? The global footwear market size was valued at USD 389.23 billion in 2022. It is estimated to reach USD 568.54 billion by 2031, growing at a CAGR of 4.31% during the forecast period (2023–2031).
For years now, Nike has held the largest share of the U.S. footwear market by far, and in 2022, the company accounted for a turnover of about 46.7 billion U.S. dollars.
1. Nike Incorporation. Nike Incorporation is a multinational corporation that designs, develops, and markets athletic footwear, apparel, and accessories.
In 2023, the revenue generated in the shoe market in India amounts to US$24.86bn. It is expected that the market will grow annually by 4.84% (CAGR 2023–2028). The leather footwear segment is the largest segment in the market, with a market volume of US$17.28 billion in 2023.
Revenue in the Footwear Market is projected to reach US$128.10bn in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.24%, resulting in a projected market volume of US$190.30bn by 2029. With a projected market volume of US$41,050.00m in 2024, most revenue is generated in the United States.
Oh, and the caged sandal is perfect for those days when you just want a lil bit more coverage. The beloved mule is back—an easy and chic shoe option to throw on when running out. Last but definitely not least, expect strappy sandals and flip-flops—summer classics that are back with modern and updated touches.
In 2022, the footwear industry in the US boasted a market worth $85.8 billion and has seen a growth of roughly 10.1% since 2021. The revenue share of the non-athletic segment (65.7%) also trumped the athletic segment (34.3%) by 47.8% in 2022. The US shoe market in 2021 generated around $78 billion in revenue.
China was the world's leading consumer of footwear, with around 3.93 billion pairs of shoes bought in 2022. It is of little surprise that China tops the list of footwear consumers as it had the highest number of inhabitants on the planet as of 2021.
The average MSRP price of a shoe in 2021 is $124 while the average available lowest price is $94. Based on the category of shoe you are looking to buy, the average lowest price can range from $57 dollars to as high as $451. Designer shoes are 181% more expensive than the average shoe price.
The average person spends around $161 per month on clothes – women spend nearly 76% more than men do on clothing in a year. The average family of four spends around $1800 per year on clothes, with $388 of this on shoes.
Now, let's take a look at how that translates to monthly spending. The largest portion of consumers (29%) spend less than $50 each month on shoes.27% spend between $51 and $100. Roughly how much money do you spend MONTHLY on FOOTWEAR?
Introduction: My name is Geoffrey Lueilwitz, I am a zealous, encouraging, sparkling, enchanting, graceful, faithful, nice person who loves writing and wants to share my knowledge and understanding with you.
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