Market Overview

The domestic shoes and footwear retail market for FY2024 was estimated at 1,236.7 billion yen by retail amount, 100.8% of the size of the previous fiscal year. Strong demand for sports shoes and sneaker-style footwear for both men and women, expanding inbound consumption, and higher average selling prices driven by yen depreciation all contributed to market growth. However, this growth is tempered by long-term shifts: consumers are moving away from leather shoes and pumps as business attire becomes more casual, and demand for children's shoes is shrinking due to the declining child population. Even so, the shoes and footwear retail market is expected to continue expanding steadily, supported by consumers’ preference for functional, comfortable footwear that bolsters sales of sports shoes.
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By item category, sports shoes (including sneakers) represented 58.0% of total sales, serving as the primary growth engine. In men's and women's footwear, models with sneaker-like designs and functionality continued to gain traction. In children's footwear, high-performance models based on the concept of ashi-iku (foot health education) maintained stable demand, though the market faces structural contraction tied to the falling birthrate. Meanwhile, manufacturers' efforts to combine comfort with fashionable design are further enhancing market competitiveness.

Noteworthy Topics

Functional and Comfortable Hands-Free (Slip-On) Shoes Gaining Traction

In the FY2024 shoes and footwear market, hands-free (slip-on) shoes drew significant attention. They appealed to a wide spectrum of consumers, including commuters, parents with young children, and seniors. This momentum reflects not only diversifying lifestyles and a growing emphasis on comfort but also rising demand from nursing care and medical settings. What began as a trend is now evolving into a category that embodies the fusion of convenience, design, and functionality.

Future Outlook

The domestic shoes and footwear retail market size for FY2025 is projected to reach 1,247.8 billion yen, 100.9% on YoY. The market continues to be affected by the weak yen and rising raw material and logistics costs, prompting companies to raise product prices. This has particularly dampened demand for children's shoes and low-priced daily items, as higher prices discourage shopping and increase consumer price sensitivity.

On the other hand, demand for high-value-added products that combine functionality, comfort, and design remains solid. Sports brands, athleisure-style items, and sneaker-like shoes for both men and women are expected to drive market growth. These categories appeal to a wide age range, supported by rising health consciousness and the broader adoption of business-casual attire.
Even amid concerns over price hikes and consumers’ tendency to curb spending, the market can still be stimulated by enhancing products that emphasize functionality and value, strengthening digital customer engagement, and advancing sustainable initiatives.

Research Outline