(Lead image by Sean Go)
A new report from Business of Fashion reveals that the sneaker market is headed for a downturn as the growth of global sneaker sales fell in 2022. In 2021, sneakers experienced a high-growth phase with sales spiking 19.5%, but it seems now that the hype is over.
Despite the downturn, global sneaker sales totaled $152.4 billion USD in 2022, according to Euromonitor. This number reflects a 2.7% increase in sales from the year before, but also displays a striking slowdown compared to the 19.5% spike in 2021.
Moving forward, Business of Fashion and Euromonitor International predict that the sneaker industry will grow slowly at an annual average rate of 3.6% until 2027.
The sneaker industry is in a sort of transitional stage as new and niche footwear brands like On, Salomon, Merrell, and more are beginning to get their footing in the market. Surely, the industry’s shift to inviting guest creative directors like Salehe Bembury and Joe Freshgoods is sure to have an effect on the market as well, especially being that the dominant sneaker giants have heavily relied on brand loyalty over the years.
Additionally, sneakers, as we know them to be now, may be falling out of fashion as the rise of mules, loafers, and other slip-on continue to gain popularity. Of course, brands will adapt to the market changes, which we’ve already seen with silhouettes like the Nike Calm Slide and the New Balance 2002R Mule — but the shift still puts OGs like Crocs at an advantage, especially when they’re inviting sneaker phenoms like Jeff Staple to collaborate, or contemporary streetwear brands like Braindead opt to revive similar archival silhouettes like the Oakley Flesh.
Nike and adidas will most likely continue to see growth, but both of these major players are still facing challenges with shipping and inventory issues, and are even seeing setbacks in big markets like China, as sales decline due to the local market turning their interest to Chinese brands like Anta and Li-Ning.
In 2023, the sneaker market has a number of challenging macroeconomic conditions to face as a recession is on the rise. However, sneakers have proved to push through past recessions, with sales spiking during limited fiscal periods.
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