Numbers of Global Handicraft Market

Issue#3, a two-part newsletter series covering all the possible dimensions of the handicraft industry market share.

What we have read before:

• Introduction to Topic

• Handicraft Industry Market Size and Growth

• Numbers of Present and The Next Big Thing 

  1. By Regional Outlook

  2. By End User

  3. By Price Range

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Flow of this Article : 

• Numbers of Present and The Next Big Thing 

  4. By Distribution Channel Outlook

  5. By Key Global Players

  6. By Product Category Outlook

• Numbers of Future

• Conclusion

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This is a round 2 for understanding the various market share handicraft industry captures. In the previous Issue#2 I tried to comprehend the Market Share on the Basis of Regional Outlook, Price Range and End User which should have given you an outlook on the geographical impact and consumer based impact.

Moving forward, let’s dive in to the 2nd part of this Article, which includes my personal fav topic of Distribution Channel and Brainstorming the Numbers of the Future. I hope you have a great and informative need!

Market Share By Distribution Channel Outlook

While exploring the dynamics of the handicraft industry's distribution channels, it unveils fascinating consumer behavior and market trends. The distribution channel for an industry like Handicrafts would be challenged. The customer journey for handicraft business is quite different from any other retail chain, why ?

1. Due to the scope of personalized products.

2. Due to lack of standardized cataloging. Products made with a certain fabric might not look 100% the same design for every fabric used, it would vary. 

3. Possibility of bulk orders, which are personalized. 

4. Speciality orders, for eg. leather ware products might be procured and made on special orders from luxury segment customers

5. Shipping and handling handmade and often fragile handicrafts require specialized care and packaging

6. Need for extreme customer interaction as it can build trust and loyalty, crucial for handicrafts where storytelling and artisanal backgrounds play a significant role.

Approximate division of all the Distribution Channels

However, to limit the scope and conclude the study of this market share on the basis of distribution channel. I would like to divide this segment primarily into Offline and Online for only the products which can be also produced in manufacturing units or batch lines. For example, wooden beds, crafted tables, handmade paper, jute bags etc.

Offline

Lately, the mass retailers segment captured a significant 40% market share, drawing in shoppers with its bustling holiday season allure. I realized that for many, browsing through these stores isn't just about shopping : it's a festive experience, a chance to discover unique, personalized and handcrafted treasures. What's more, with sustainability increasingly in the spotlight, mass retailers are stepping up by offering eco-friendly handicrafts right at the stores. With the look and feel of the product, consumers are more drawn towards picking an eco-friendly item over mass produced or low quality harmful plastics.

Online

Meanwhile, the online channel, although currently slow, is predicted for a rapid growth, projected to achieve a robust CAGR of 6.0% in the coming years. The pandemic undeniably accelerated this shift, pushing more consumers towards the convenience and safety of online shopping. Handicrafts business owners, recognizing this trend, have swiftly expanded their digital footprint, making handmade products accessible to a global audience. This strategic pivot not only boosts sales potential but also amplifies the reach of artisans, democratizing access to their creations worldwide.

As we navigate these evolving distribution landscapes, it's clear that each channel plays a pivotal role in shaping the future of the handicraft market and there’s a lot of room for growth with the advent of consumer technology.

Next Big Thing : Adoption of a Specialized E-commerce Marketplace for Handicrafts Products

In the realm of e-commerce marketplaces there are two aspects - the business owner and the artisans themselves, addressing the unique needs of both business owners and artisans in the handicraft industry represents a significant opportunity. 

The market gap : Current marketplaces overlook the specialized requirements that the handicraft business process requires, such as bulk order customization, logistics for fragile bulky orders, and cultural adaptations necessary for deals across the globe. For Artisans, challenges like language barriers and the digital handicap among artisans highlights the need for a tailored enablement program alongside marketplace listing. For Business owners, traditionally inclined towards B2B models like trade fairs, platforms will require to support them in transitioning to digital platforms and effectively marketing their distinctive offerings with handmade products in a competitive landscape dominated by cheaper mass-produced alternatives.

The solution lies in developing a specialized e-commerce platform designed specifically for handicrafts. Such a platform would serve as a comprehensive resource, offering customizable tools for artisans to showcase their craftsmanship, overcome logistical barriers, and establish their brands globally. By integrating educational resources, localized support, and targeted marketing services, this platform can empower artisans and business owners alike, fostering a vibrant ecosystem where handmade products can thrive and compete effectively in the digital marketplace.

Market Share by Key Global Players

Now let’s move on to further understand the handicraft industry, as discussed in the previous Issue#2 of this article, Asia Pacific emerges as the powerhouse, steeped in centuries-old artisan traditions that lend richness to its diverse array of handmade treasures. Following closely, Europe occupies a prominent position, showcasing its own legacy of craftsmanship that spans from artisanal workshops to high-end boutiques. Meanwhile, North America shines as the emerging star, witnessing a rapid ascent fueled by a burgeoning appreciation for bespoke, handcrafted goods that imbue homes with distinctive charm.

I strongly feel the driving forces behind this industry's growth are manifold: the pervasive influence of digital platforms and social media amplifies artisans' reach, while a growing consumer appetite for luxury and growth post pandemic. Moreover, there's a palpable fascination with traditional skills and the stories behind each artisan's craft making each product unique and personalized, enhancing the appeal of handmade goods in markets like North America, where home decor enthusiasts seek one-of-a-kind pieces that tell a story and are not replicable like mass products.

So what is Key Global Player Material for Handicrafts Industry?

> Leading players in this dynamic arena are embracing the digital age, leveraging e-commerce to expand their customer base worldwide. They're not just selling products; they're curating experiences, offering authentic products, and championing eco-friendly practices to resonate with conscientious consumers. 

Countries like India, Australia, China, Germany, and the United States stand out as pivotal players, each contributing uniquely to the evolving landscape. India, in particular, shines brightly with its 'Make in India' initiative, bolstering its status as a hub for enduring handicrafts that blend tradition with innovation.

Some of the key players in the market include: 

1. Asian Handicrafts (India)

2. Fakih Group of Companies (UAE)

3. Laizhou Zhonghe Arts & Crafts Co. Ltd. (China)

4. Ten Thousand Villages (U.S.)

5. Minhou Minxing Weaving Co. Ltd. (China)

6. The India Craft House (India)

7. Creative Expressions (U.K.)

8. PT Harmoni Jaya Kreasi (Indonesia)

9. Gangga Sukta (Indonesia)

10. PT Fuzen Decor Bali (Indonesia).

Next Big Thing : Too tough to name names in this regard, however based on my analysis I can see clear reasons for the next big key player to grow multifold. 

1. Embracing Digital Transformation:  Digitization is poised to revolutionize interactions between artisans and global consumers. Key players are increasingly investing in digital platforms, leveraging augmented reality (AR), virtual showrooms, and personalized shopping features to enhance online experiences. This shift not only expands reach and competitiveness but also underscores the importance of dedicated marketplaces designed to empower artisans. 

2. Early adoption for Marketplace : e-commerce platforms dedicated to handicraft is in demand, now more than ever before, the one that caters to the unique business processes of handmade product like personalisation, fabric selection etc. providing robust support and enablement for artisans while promoting ethical standards and sustainable practices, thus shaping a more connected and vibrant global handicraft market.

Market Share By Product Category Outlook

What’s in the wood?

Well, if you try to picturize the word ‘Handicraft’ in your mind. I am sure it won’t be without a classic wooden piece or utensil or maybe just a pen. And this totally reflects in the numbers.

In 2022, the woodwork segment emerged as the frontrunner in the handicraft market, commanding a substantial 27% of total revenue. This dominance can be attributed to the enduring allure of wooden handicrafts, prized for their timeless aesthetic and robust durability. From intricately carved furniture to rustic kitchenware and musical instruments, woodware enriches spaces with its natural textures and versatile design. Its ability to blend seamlessly into diverse interior styles ensures lasting appeal, making it a preferred choice for consumers seeking both functionality and artistry. As consumer preferences continue to favor sustainable and aesthetically pleasing products, the woodwork segment is surely set for continued growth, promising a flourishing market landscape in the years ahead.

Meanwhile, the glassware segment shows promise with an anticipated compound annual growth rate (CAGR) of 7.4% over the forecast period. This growth is driven by evolving consumer lifestyles and technological advancements in handicraft production. Glassware artisans are innovating with contemporary designs that cater to modern tastes, expanding their market presence in decorative items, tableware, and lighting solutions. The appeal of glassware is further heightened by its ability to create elegant and distinctive accents in home decor, appealing to a global audience seeking both functionality and aesthetic finesse. As these trends converge, the glassware segment stands to capture significant market share, illustrating a dynamic shift towards artisanal craftsmanship in a competitive global marketplace.

Next Big Thing: Textiles emerging as the next big trend in Product Category market share.

Ethically sourced and sustainably produced textiles, including handwoven garments, tapestries, and upholstery, are gaining prominence. These products not only showcase cultural richness and artisanal craftsmanship but also resonate deeply with consumers seeking sustainable and unique pieces for their homes and wardrobes. As consumer preferences continue to prioritize authenticity and environmental responsibility, textiles are expected to carve out a significant niche in the handicraft industry, contributing to its vibrant and diverse market landscape

Numbers of Future

Well this is the most hypothetical region of this two-part article I have drafted! However this is the most exciting section for me. Why ? Because I get a white canvas to paint here and I would like to do it with optimism and growth mindset.

As we now know, Handicraft sales are expected to hit US$ 1,050.53 billion by 2034, at a CAGR of 10.5% over the forecast period. Here are some potential Market Drivers and Predicted Numbers basis my research:

1. Country Wise Growth

The future market share for handicrafts in the retail industry shows strong growth potential, particularly in India, Australia, and China. In India, with its rich cultural heritage and significant government support, stands out as a profitable hub in the global market. E-commerce platforms have greatly expanded the international reach of Indian handicrafts in the last decade. In Australia, the demand for handmade treasures is rising, driven by a blend of modern designs and indigenous art, supported by popular craft fairs and artisanal markets. China is also experiencing a renaissance in traditional crafts, aided by e-commerce platforms and government initiatives aimed at preserving cultural heritage and promoting sustainability. Together, these factors highlight the robust growth potential for handicrafts in these regions, with India leading, followed by Australia and China.

2. E-commerce and Digital Platforms:

The growth of online marketplaces has significantly expanded the reach of artisans, allowing them to access global markets and connect directly with consumers. Social media platforms also play a crucial role in promoting handicrafts

3. Growth in Demand for Sustainable Products

The Sustainability Trend: A Nielsen survey found that 73% of global consumers say they would definitely or probably change their consumption habits to reduce their impact on the environment. Market Impact: This trend is driving demand for sustainable handicrafts, which are often made from natural, recycled, or upcycled materials.

And our Consumer Preferences: A 2020 survey by IBM and the National Retail Federation found that nearly 70% of consumers in North America consider sustainability when making a purchase and are willing to pay a premium of about 35% more for sustainable products. For eg: The use of eco-friendly materials such as bamboo, reclaimed wood, and natural fibers is becoming more prevalent in handicrafts, leading to an increase in market share for eco-friendly products.

4. Rising Fair Trade Practices

The growth in Fair Trade products are set to rise in upcoming years. In 2018, global sales of Fair Trade certified products reached €9.8 billion, up 8% from the previous year. Handicrafts Segment: Fair Trade-certified handicrafts are gaining traction, particularly in markets like North America and Europe, where consumers are willing to pay a premium for ethically sourced products.

5. Growing community impact - Artisan Welfare Programs

Impact on Communities: Companies that invest in the welfare of artisans, such as providing fair wages, safe working conditions, and access to healthcare, are contributing to sustainable community development.

Consumer Awareness: According to the Cone Communications CSR Study, 87% of consumers said they would purchase a product because a company advocated for an issue they cared about. Which also proves with brands like Ten Thousand Villages and NOVICA, which emphasize fair wages and ethical treatment of artisans, have seen growing consumer support and market presence.

With rising consumer awareness and demand for eco-friendly coupled with the community impact discussed above, artisans and business owners that adopt these practices are well-positioned for growth.

All in all, the market trends indicate a strong future for sustainable handicrafts, supported by consumer preferences, fair trade practices, eco-friendly production, ethical sourcing, sustainable packaging, and environmental certifications. This shift towards sustainability not only benefits the environment and society but also drives market differentiation and growth.

Conclusion

Through this two-part article, I journeyed through the various nuances of the global handicraft industry, and one thing became abundantly clear: this isn't just about numbers and market trends-it's about preserving culture, empowering artisans, and shaping a future where sustainability meets creativity! Researching and diving deep into drafting content for this long article, I am now more passionate about this industry than ever before!

It's a story of resilience, where handcrafted goods not only adorn our homes but carry narratives of generations past, cherished in today's fast-paced world. The numbers speak volumes: a market poised to reach USD 1,050.53 billion by 2034, driven by a compound annual growth rate of 10.5%. From the bustling markets of Asia Pacific to the artisan workshops in Europe, and the emerging landscapes of North America, the handicraft industry is a beacon of tradition woven with innovation.

E-commerce has revolutionized accessibility, bridging continents and cultures with the click of a button. It's not just about buying products; it's about connecting with the stories behind each handmade treasure. Platforms dedicated to artisans are emerging, providing tailored support and amplifying their voices on a global stage.

The rise of sustainable practices isn't just a trend; it's a movement towards ethical consumption. Consumers worldwide are increasingly mindful of the impact of their purchases, driving demand for eco-friendly materials and fair trade practices. Handicrafts are at the forefront, offering not just products but pathways to support communities and preserve cultural heritage.

As I conclude this longgggg lastinggggg I want to leave you all with a thought.

Imagine every item you purchase not just as a product, but as a purpose—a compilation of tradition, sustainability, and quality. In a world where the click of a button can connect us to the quality of artisanal products across the globe, let us choose to celebrate and sustain these timeless narratives. Let your next purchase be a testament to the artistry that binds us all, a small but significant step towards a future where every handcrafted treasure is a bridge to a richer, more connected world.

Here's to crafting tomorrow's heritage—one stitch, one carving, one masterpiece at a time!!