The global footwear industry
The global footwear industry is a large and fragmented market, highlights Germany‘s Birkenstock Holding Limited.
According to Euromonitor, this industry is estimated to generate approximately 340 billion euros in retail sales in 2022.
In addition, the top five brands account for 20% of the global footwear market.
On average, Birkenstock expects the global footwear market to grow at a year-on-year annual rate of 5.1% over the next five years, reaching around EUR 440 billion in sales in 2027.
Birkenstock is a Vettelschoß-based footwear manufacturer that produces sandals and flip-flops.
In fiscal 2022, the company generated revenues of €1.2423 billion, and sold approximately 30 million units.
Based on its current market penetration of less than 1%, Birkenstock believes there is ample white space to continue to grow the Birkenstock brand.
So the company expects to capture market share worldwide, especially in Asia-Pacific, which is expected to be one of the fastest growing regions in the world with a Compound Annual Growth Rate of 5.9% between 2022 and 2027 and where the company has a low presence.
Global footwear industry
Although Birkenstock competes with only one company across the entire spectrum of its portfolio, competition is based primarily on brand awareness, product functionality, quality and durability, design and comfort, and marketing and distribution.
The footwear industry is subject to cyclical variations, consolidation, contraction and closures, as well as fashion trends, rapid changes in consumer preferences, the effects of weather, general economic conditions and other factors affecting consumer demand.
