The Indian footwear industry has demonstrated robust growth, with projections indicating a compound annual growth rate (CAGR) of approximately 15% over the next few years. Several key factors drive this expansion:
Market Size and Growth: The Indian footwear market was valued at ₹960 billion in FY2020, with organized players contributing about 30%. This segment is expected to grow at a CAGR of 15% over the next five years, reaching approximately ₹1,380–1,450 billion by FY2025.
Export Performance: Exports, which constitute about 20% of sector revenue, are anticipated to grow by 12% in the current fiscal year, a slowdown from the previous year’s 25% growth. This change is attributed to reduced demand from Europe and the U.S., which account for three-fourths of India’s footwear exports.
Domestic Revenue: Domestic revenue is projected to rise by 10%, primarily driven by higher selling prices. This increase is due to a shift in the product mix towards higher-priced segments, such as fashion, women’s, and athleisure categories, which are expected to grow at over 15% annually.
Consumer Trends: There is a growing demand for fashionable and comfortable footwear, particularly among the younger demographic. This trend contributes to the expansion of the premium segment, which is expected to grow at a CAGR of 10–11% from FY2020 to FY2025. The Indian footwear industry is poised for significant growth, driven by increasing consumer demand, strategic investments, and a shift towards higher-value product segments.
