The Athletic Footwear Industry

Olivia Friesen
May 1, 2023

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Table of Contents
Industry Summary...................................................................................................................4
Covid-19 Effects.......................................................................................................................4
Recent Trends.........................................................................................................................5
Healthy Lifestyle...............................................................................................................................5
Popular Demographics............................................................................................................5
Age..................................................................................................................................................5
Gender.............................................................................................................................................6
Top Competitors......................................................................................................................6
Nike.................................................................................................................................................6
Adidas..............................................................................................................................................7
Celebrity Endorsements...........................................................................................................7
References..............................................................................................................................8

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Table of Figures
Figure 1 Athletic Shoe Revenue from 2018-2028.........................................................................4
Figure 2 Americans Who Bought Sportswear in the Last 24 Months in 2021, By Generation..5
Figure 3 Global Athletic Footwear Market Shares by End User, 2021 (%)................................6

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This report of the athletic footwear industry will help clients get a more concreate understanding
of the industry. The following is discussed below: industry summary, covid-19 effects, recent
trends, popular demographics, and top competitors.

Industry Summary
The athletic footwear industry is popular among many and continues to grow. The athletic
footwear industry focuses on shoes designed for sports purposes- soccer, tennis, basketball, etc.
(Athletic Footwear Report, 2023). According to Athletic Footwear Market Size (2022,2023) in
2021, 127.3 billion Dollars was the value of the entire global industry. From 2022 to 2023, the
industry will continue to rise at a rate of 4.9% CAGR (compound annual growth rate) (Athletic
Footwear Marketing Size 2022-2023). Taking a narrower look at the industry, P. Smith of
Athleticwear in the U.S.- statistics and facts states, “In the United States, the athletic footwear
industry generated approximately 14.5 billion U.S. dollars of revenue in 2022. According to the
Consumer Market Outlook, revenue in this market is set to increase to approximately 17 billion
U.S. dollars in 2028” (Smith, 2023). The industry has worked hard to have the second largest
growing revenue from 2022 to 2027, according to Athletic Footwear Market Size (Athletic
Footwear Market Size 2022-2023). The athletic footwear industry continues to grow in billions
globally and in the United States.

Figure 1, Athletic Shoe Revenue from 2018-2028

YEAR REVENUE IN
BILLIONS (USD)
2018 $14.06
2019 $14.72
2020 $13.03
2021 $13.34
2022 $14.48
2023 $14.90
2024 $15.37
2025 $15.82
2026 $16.26
2027 $16.69
2028 $17.23
(Activewear in the U.S.- statistics and facts, 2022)

Covid-19 Effects
Covid-19 events influenced the athletic footwear industry. According to the graph above,
Athletic Shoe Revenue from 2018-2028, in the year 2020 (when Covid-19 hit), revenue went
down by almost a billion dollars but luckily continued to rise in 2021 (Activewear in the U.S.-
statistics and facts). Brands like Nike, Jordan, Adidas, and Skechers all had sales decline in the
teens while Converse sales declined by 30% and Fila by nearly half (Athletic Footwear Market
Size, 2022-2023). Plus, due to lockdown, these brands struggled with spring sports cancellations
as they relied on their purchases (Athletic Footwear Market Size). The effects of Covid-19 hit the
athletic footwear industry hard.

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Recent Trends
Healthy Lifestyle
Health trends in the media continue to influence the athletic footwear industry. According to
Athletic Footwear Market Size “people have started realizing that sports and fitness activities can
help ensure good health and reduce the risk of chronic disorders such as depression,
cardiovascular diseases, and diabetes” (Athletic Footwear Market Size, 2022-2023). Also, there
has been an increase in the number of consumers who have realized the importance of correct
shoes for doing athletic activities to prevent muscle and leg injuries, plus knee hip and back pain.
This realization results in a sharp increase of correct athletic footwear demand according to the
Athletic Footwear Market Size (Athletic Footwear Marketing Size, 2022-2023). Due to the
impact of recent health trends and new information on correct shoe styles, the athletic footwear
industry continues to become more popular.

Popular Demographics
Age
In the year 2021, the top consumers of sportswear were millennials/ Gen Y (1990-1994) in the
United States according to the graph below,

Figure 2, Americans Who Bought Sportswear in the Last 24 Months in 2021, By

Generation

(Activewear Market in the U.S., 2022)

This graph shows that the top consumers of sportwear in 2021 were Millennials/ Gen Y in the
U.S. compared to all other ages.

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Gender
Globally, in 2021, men dominated the top sales of shoes in the athletic footwear industry
according to the pie chart below,

Figure 3, Global Athletic Footwear Market Shares by End User, 2021 (%)

55%

(Athletic Footwear Market Size, 2022-2023)

As shown, among men, women, and children, the top buyer of athletic shoes is men globally in
2021.

Top Competitors
Nike
Among many companies in the industry, one of the top competitors of athletic footwear is Nike.
According to Nike Marketing Strategy (2015), “Nike is currently the world’s largest marketer
and retailer of athletic footwear, apparel and accessories” (Nike Marketing Strategy, 2015).
Within the first year of distribution, the company made 2 million dollars. At the end of year 2,
their sales revenue had already quadrupled. Today, Nike has 73,000 employees and their athletic
shoe stores industry is their largest market share, making up 18.1% of total industry revenue in
the U.S. which is now $747.9 million Dollars (Athletic and Sports Good Manufacturing, 2023).
Finally, since 2019, Nikes market share annual growth has gone up 1% each year and their
industry revenue has gone up 9.7% from the same year (Athletic Sports Good Manufacturing,
2023). Nike is the one of the top competitors in the entire athletic footwear industry.

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Adidas
Just like Nike, Adidas is one of the top competitors of the athletic footwear industry. According
to Adidas- statistics and facts (2022), the company is 4th largest apparel brand in the world
(Adidas-statistics and facts, 2022). Within the company, they currently have 61,000 employees
and have scored a 79/100 in customer satisfaction. Finally, in 2022, Adidas’ net sales grew by
6% compared to prior years, especially 2020 (Adidas- statistics and facts, 2022). The company
Adidas made a name for itself being one of the top athletic footwear competitors in the world.

Celebrity Endorsements
Endorsing a celebrity is a popular technique among many brands in the athletic footwear
industry. According to The Effect of Celebrity Endorsement (2018), in 2003, Michael Jordan
promoted shoes for the brand Nike and created the famous name “Air Jordan” (The Effect of
Celebrity Endorsement, 2018). It also states that “The celebrities play an important role in the
advertising for creating and enhancing brand image and equity in order to differentiate their
products from competitive companies” (The Effect of Celebrity Endorsement, 2018) Around
2014, Nike spent around 6 billion Dollars on celebrity endorsements for their brand (The Effect
of Celebrity Endorsement, 2018). Different brands use celebrity endorsements to promote their
products to consumers.

Conclusion
This report covers the athletic footwear industry’s summary, covid-19 effects, recent trends,
popular demographics, top competitors, and celebrity endorsement. This information will help
customers get a better understanding of the industry.

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References
Activewear market in the U.S. (2022). Statistica Industry Report 87891-1. Retrieved by Statistica
database.

Adidas. (2022). Statistica Industry Report 12982-1. Retrieved by Statistica database.

Akin, M (April 2023). Stastica Industry Report 48863. Athletic Footwear Report 2023. 1-33.
Retrieved from Stastica database.

Athletic Footwear Market Size Report, 2022-2023. Grand View Research Report 4-68039-913-8
Retrieved from Grand View Research database.

Flynn, P. (May 2015). Nike marketing strategies: a company to imitate. Honors College Thesis,
1-21. Retrieved from Scholars Archive database.

Govdysh, A. (January 2023). IBISWorld Industry Report 33992A. Athletic & Sporting Goods
Manufacturing in the U.S. Retrieved from IBISWorld database.

Jeon, Y. (December 2018). The effect of athletic celebrity endorsement on attitude toward brand
and purchase intention. Thesis, Dissertation and Capstones, 1-68. Retrieved from
Marshall Digital Scholar database.