India’s footwear industry to grow at a CAGR of around 13% until FY28: report

India’s footwear industry could expand at a compound annual growth rate of approximately 13% until the 2028 financial year as consumer preferences shift and technology evolves, according to a report by market research business 1Lattice.

“The footwear industry stands at a crucial point, influenced by shifting consumer preferences, rapid technological advancements, growing sustainability demands, and the emergence of the resale market,” said 1Lattice’s senior director Ashish Dhir, ET Retail reported. “The industry is poised for significant growth with CAGR of ~13% and will reach Rs 191,000 crore by FY28. Going forward, there lies a tremendous potential for significant growth and expansion for both new players and existing brands.”
 
The Indian footwear market at the end of the 2024 financial year was valued at approximately Rs 123,500 crore, according to 1Lattice. One major growth driver last fiscal was a move towards premiumisation. This shift is expected to continue with the rise of disposable income and the middle class as well as increasing urbanisation. 

The premium footwear market’s share of the total footwear market was at 47% in the 2021 financial year. 1Lattice expects this to increase to 49% in the 2025 financial year which began in April, the Economic Times reported. Many brands are responding to the premiumisation of the market by launching upmarket product lines.