Handicrafts Market Size, Share & Trends Analysis Report By Product Category (Woodwork, Potteryware), By Distribution Channel (Mass Retailers, Online Stores), By Region, And Segment Forecasts, 2023 - 2030

Handicrafts Market Size & Trends

The global handicrafts market size was estimated at USD 678.24 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.7% from 2023 to 2030. The market is experiencing a surge in growth due to the rising popularity of travel, enabling consumers to discover traditional crafts from various countries and regions. In addition, the growing construction of both commercial and residential properties is fueling a trend in home renovation, where distinctive and artistic handicrafts are sought after, leading to a continued demand for handicraft products over the forecast period.

The COVID-19 pandemic posed significant challenges for the handcraft industry's commercial expansion, particularly at local levels. The global handicraft sector was negatively impacted by disruptions in the raw material supply chain that resulted in a reduction in production capacity for makers of handicrafts. Furthermore, the demand for handmade goods significantly decreased in 2020 as a result of several lockdowns, travel restrictions, and economic uncertainty. The increasing popularity of tourism plays a significant role in driving the demand for craft items. Tourists frequently look for distinctive, locally-made products to remember their travel experiences. As a result, handmade items like traditional textiles, jewelry, ceramics, and other cultural products are highly favored by tourists. Consequently, the demand for genuine, locally crafted souvenirs is expected to propel market growth in the coming years.

Moreover, technological progress has emerged as a vital survival strategy for virtually every industry, especially during these unprecedented times, and the handicraft sector is no exception. Technological innovations facilitating cross-border communication have undeniably provided substantial advantages to the handicraft industry. With a product to offer, reaching a global customer base is now a realistic possibility. E-commerce platforms have streamlined access to consumer goods, promoting inclusivity by enabling artisans from around the world to showcase their products on these digital marketplaces. Furthermore, social media platforms are also contributing to the global promotion of handicraft products. This is propelling the market growth over the forecast period.

The federal governments of several countries are putting a lot of effort into developing the sector so that it can realize its full potential. The market is expanding as a result of numerous initiatives and programs put in place to help their artisans get past the challenges they face. For instance, the Indian government recently began a program to support craftspeople. Ambedkar Hastshilp Vikas Yojana and Dastkar Sashaktikaran Yojana are two initiatives that attempt to build the infrastructure needed for the handicraft sector. These programs linked different craftsmen to self-help organizations and diverse societies, which helped them produce goods in large quantities and make wise financial judgments. In addition, it aids artisans in obtaining the basic supplies they need for their creations.

Price fluctuations in raw materials, including wood, metal, glass, and others, have a direct impact on the production costs of handmade items. Elevated raw material prices consequently lead to increased production expenses for both artisans and businesses. This factor is anticipated to impede the growth of the worldwide market. In addition, the growing demand for sustainable handicraft products is predicted to drive market expansion over the forecast period.

Distribution Channel Insights

The mass retailers segment held a majority market share of about 40% in 2022. Many consumers enjoy the experience of shopping through mass retailers, especially during the holiday season, as it can be a fun and festive activity. Furthermore, an increasing number of mass retailers offer sustainable handicrafts to cater to the growing consumer demand for eco-friendly products. By stocking and promoting sustainable options, they demonstrate their commitment to corporate social responsibility and sustainability, enhancing their brand reputation among environmentally conscious consumers.

The online channel segment is anticipated to register the fastest CAGR of about 6.0% over the forecast period. The pandemic accelerated the shift towards online sales for the market, as consumers looked for safe and convenient ways to shop and stay entertained from home. In addition, retail outlets have ventured into e-commerce ventures to broaden their customer reach and geographical footprint, potentially fueling the segment's expansion in the projected period.

Product Category Insights

The woodwork segment dominated the market in 2022 with the largest revenue share of around 27% due to its aesthetic appeal and durability, factors that strongly attract consumers to invest in wooden handicrafts. These items frequently show a timeless and rustic charm, contributing to the creation of visually captivating surroundings and enhancing the ambiance of any space. This, in turn, is projected to propel the growth of this particular segment in the future.

The glassware segment is anticipated to register the fastest CAGR of about 7.4% over the forecast period. Shifts in consumer lifestyles and preferences are anticipated to serve as a catalyst for the expansion of the worldwide handicrafts glassware market over the forecast period. Furthermore, advancements in handicrafts production technologies are poised to present lucrative growth prospects for the glassware market in the coming years.

Regional Insights

Asia Pacific dominated the market in 2022 with the largest revenue share of around 35%. The rise in the production of handmade and crafted items in nations like India, China, Bangladesh, and others, coupled with the presence of renowned artisans and manufacturers of handmade products in these regions, is expected to offer significant growth for the market over the forecast period.

The Middle East & Africa region is expected to witness the second fastest CAGR of 5.1% from 2023 to 2030. The Middle East & Africa market has experienced a substantial impact from swift urbanization in nations like Brazil, the UAE, and South Africa, among others. Turkey, Morocco, and Iran are renowned for their handwoven textile offerings, including carpets, rugs, embroidered sheets, and other textile products distinguished by their distinctive designs and craftsmanship. This is expected to further drive the growth of the regional market.

Key Companies & Market Share Insights

The market for handicrafts is increasingly competitive with the presence of both large- and small-scale manufacturers. Prominent players have been adopting strategies such as mergers & acquisitions, partnerships, product launches, innovation, and promotions to stay competitive in the markets.

• In June 2023, Amazing Home, a brand under Amazon, introduced a selection of home décor and furniture items. This is aimed at providing consumers with appealing solutions for enhancing the aesthetic of their homes.

• In April 2022, Reliance Retail, an Indian-based company, introduced a fresh retail concept named Swadesh. This platform will specialize in the sale of handmade textiles, handicrafts, agricultural goods, and various other products directly sourced from artisans.

Handicrafts Market Report Scope

Global Handicrafts Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global handicrafts market based on product category, distribution channel, and region.

• Product Category Outlook (Revenue, USD Billion, 2017 - 2030)

  • Apparel & Accessories

  • Woodwork

  • Glassware

  • Potteryware

  • Art Metalware

  • Kitchen & Tableware

  • Sculpture

  • Fragrance & Incense Sticks

  • Others

• Distribution Channel Outlook (Revenue, USD Billion, 2017 - 2030)

  • Mass Retailers

  • Independent Retailers

  • Specialty Stores

  • Online Stores

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Indonesia

    • South Korea

  • Central & South America (CSA)

    • Brazil

  • Middle East & Africa (MEA)

    • South Africa