July 19, 2024
Footwear Sole Material Market

The Footwear Sole Material Market is Estimated To Witness High Growth Owing To Rising Demand for Lightweight Sole Materials

The Footwear Sole Material Market is estimated to be valued at US$ 22.89 Mn in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Footwear sole materials provide support, cushioning, traction and durability to shoes. Main materials used in soles are rubber, polyurethane, polyvinyl chloride and thermoplastic rubber. Rubber soles offer flexibility, traction and comfort. Polyurethane soles are lightweight and provide cushioning. Thermoplastic rubber soles offer abrasion resistance and flexibility. Due to growing outdoor and sports activities, demand for lightweight and durable shoe soles is rising.

Market key trends:
Footwear manufacturers are increasingly focusing on development of lightweight and environment friendly shoe sole materials. Rising demand for shoes in sports and outdoor activities has accelerated research and development of lightweight and high performance shoe sole materials. Some key players are developing plant based bio-polyurethane materials and recycled Thermoplastic polyurethane to reduce environmental footprint of shoe manufacturing. Nike has introduced Flyleather, a vegetable-tanned leather made from plastic waste to manufacture uppers and flyknit material made of recycled polyester fibers and yarns for soles and upper construction. Adidas has launched Parley range of shoes made using ocean plastic and recycled polyester from discarded fishing nets. Such initiatives are expected to drive growth of sustainable and recycled Footwear Sole Material Market Growth over the forecast period.

Porter’s Analysis

Threat of new entrants: Low capital requirement and established distribution channel have lowered the threat of new entrants. However, strong brand loyalty and economies of scale of existing players pose significant barriers.

Bargaining power of buyers: Large footwear brands have significant bargaining power over sole material manufacturers due to lower switching costs. Buyers can negotiate on price and demand better quality and services.

Bargaining power of suppliers: A few major players dominate the sole material production. This gives them power to influence prices. However, footwear brands can source from alternate suppliers to negotiate on supply terms.

Threat of new substitutes: Substitute materials like thermoplastics and bio-based materials pose threat. However, established customer preference for EVA and PU soles has reduced impact of substitutes.

Competitive rivalry: Intense competition among key players has led to pricing pressures and innovative product developments. Strong brands and focus on niche segments have allowed players to maintain margins.

SWOT Analysis

Strength: Strong distribution networks, diversified product portfolio and economies of scale of top players. Innovation is a core strength addressing changing customer needs.

Weakness: Rising raw material prices and potential supply chain disruptions can squeeze margins. Lack of brand loyalty for component suppliers.

Opportunity: Growing footwear industry favors sole material demand. Thermoplastic shoe market and bio-based soles present new avenues. Asian and African markets offer high growth potential.

Threats: Stringent regulations on waste disposal and usage of hazardous chemicals pose challenges. Shift to vegan footwear threatens leather-based materials.

Key Takeaways

The global footwear sole material market is expected to witness high growth, exhibiting CAGR of 4.2% over the forecast period, due to increasing health and adventure sports activities. North America dominated the market in 2023, accounting for over 30% share owing to presence of major footwear brands and consumers’ high expenditure power in the US and Canada.

Regional analysis: Asia Pacific is projected to be the fastest growing market for footwear sole materials between 2023 – 2030. Countries like China, India and Vietnam are major manufacturers and consumers. Proximity to raw material sources and lower production costs drive shifting of footwear production to the region.

Key players: Key players operating in the footwear sole material market are Nike Inc., Adidas AG, Bata Limited, Puma SE, Columbia Sportswear Company, The Dow Chemical Company, Huntsman Corporation, and BASF SE. Nike dominates the running shoe segment while Adidas and Puma cater to diverse product categories. Smaller players cater to niche segments through innovation.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it