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The handicrafts market size is forecast to increase by USD 723.6 billion at a CAGR of 13.1% between 2023 and 2028. The handicraft market is witnessing significant growth, driven by the need for low capital investments and the emergence of online retail and e-commerce channels. This trend is particularly prominent in the production of embroidered goods, Zari goods, imitation jewelry, Attars, and Agarbattis. Female artisans and total artisans in handicraft clusters, such as those in Surat, are capitalizing on this growth by supplying souvenirs and local artisanal products to both domestic and international markets. However, the market faces challenges, including a lack of product awareness and competition from mass-produced, low-cost imports. To overcome these challenges, stakeholders in the handicraft sector must focus on promoting the unique cultural value and authenticity of handmade goods. This can be achieved through targeted marketing campaigns, collaborations with retailers and e-commerce platforms, and investments in product innovation and design.
The handicraft market is a vibrant and diverse sector, encompassing a range of traditional and contemporary handmade goods. Key product categories include pottery, glassware, and ceramics. These art forms require intricate construction techniques, resulting in unique and aesthetically pleasing items. Handicraft clusters, such as those in Surat, India, are hubs for female artisans specializing in attars, agarbattis, and other fragrant offerings. The total number of artisans engaged in this sector is significant, with many operating from their homes or small manufacturing units. E-commerce platforms have played a crucial role in expanding the reach of these handmade goods, allowing consumers from around the world to access them with ease.
Moreover, price fluctuations in raw materials and labor costs can impact the market, necessitating adaptability and innovation from artisans. Souvenirs, particularly pottery and ceramics, remain popular choices for tourists seeking authentic mementos of their travels. The continued demand for these handmade goods underscores their enduring appeal and the importance of preserving traditional craftsmanship.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The metal art ware and jewelry segment is estimated to witness significant growth during the forecast period. The market encompasses a diverse range of unique accessories and craft items, including traditional textiles, jewelry, and metal art ware. Metal art ware, in particular, holds an established position in the global market and significantly contributes to employment. This segment comprises decorative items such as wall decor, statues, sculptures, metal furniture, utensils, traditional weapons, frames, decorative holders, lighting products, religious artifacts, and musical instruments. Primarily manufactured using metal and alloy-based raw materials like iron, brass, copper, gold, silver, and stainless steel, these products offer eco-friendly and socially responsible choices. Major producers of metal art ware and jewelry include China, India, Thailand, and Vietnam.
Moreover, eco-friendly production methods, resource conservation, and minimal negative impact are essential considerations in the industry. Raw material prices, particularly for wood and precious metals, influence the market dynamics.
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The metal art ware and jewelry segment was valued at USD 193.50 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 28% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is witnessing significant growth due to the increasing demand for unique accessories and craft items made from traditional textiles, jewelry, and eco-friendly materials. North America is a leading revenue-generating region in this market, with the US and Canada being the largest contributors. The region's growth can be attributed to favorable government policies for importing handicrafts, a growing appreciation for socially responsible choices, and the increasing popularity of eco-friendly production methods that minimize negative impact on the environment. The US, in particular, is a significant importer of handicrafts due to its duty-free import policies under the Generalized System of Preference (GSP), which benefits certain beneficiary countries.
Also, the demand for handicrafts is also driven by the growing travel and tourism industry, which supports local production and sales of these items. Eco-friendly production methods, such as resource conservation and the use of raw materials at minimal prices, are becoming increasingly important in the handicrafts industry to mitigate environmental degradation.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The need for low capital investments is the key driver of the market. The market encompasses a wide range of businesses, from small-scale artisan units to medium-scale industries. The initial investment in this sector is generally low due to the labor-intensive nature of the business. Pottery, glassware, paper products, and home décor are among the popular handicraft categories.
Moreover, manufacturers may include cottage industries, private manufacturing units, or medium-scale industries. The primary investment goes towards acquiring land and machinery, although the need for machinery is minimal due to the handmade nature of these products. Renters may opt for shared spaces to reduce initial costs. Customized wooden artworks and handmade wall hangings are creative projects that can be produced in these settings, catering to individual tastes.
The emergence of online retail and e-commerce channels is the upcoming trend in the market. Handicraft manufacturers have witnessed a significant rise in sales through online channels, particularly in developing countries. This trend is driven by the convenience and accessibility offered by e-commerce platforms. Pottery, glassware, paper products, and other handicrafts are increasingly being sold online, providing renters and home décor enthusiasts with a wide range of options to create a comfortable environment that caters to their individual tastes. Handmade wall hangings and customized wooden artworks are popular choices for those seeking unique and creative projects. Manufacturers are leveraging online sales to offer competitive pricing and detailed product specifications, enabling customers to make informed decisions.
Also, the growing penetration of the Internet and smartphones worldwide has led to a shift in consumer preferences towards online shopping. Third-party e-commerce platforms are being utilized by handicraft manufacturers to expand their reach and cater to a global audience. Overall, the online handicraft market offers numerous benefits, including convenience, ease of payment, discounts, and the ability to compare various handcrafted products.
The lack of handicraft product awareness is a key challenge affecting the market growth. Handicraft manufacturers face the challenge of effectively disseminating information about their unique and culturally significant products, such as pottery, glassware, paper products, and customized wooden artworks, which are often created using intricate processes and unique materials. These handmade items, including handicrafts for home décor and creative projects like handmade wall hangings, are cherished for their individual tastes and comfortable environment they add to spaces. However, potential buyers may not fully understand the value and cost involved in producing these items, leading to negotiations on prices and lower profit margins for manufacturers. Despite the complexity and expense of producing these handicrafts, their cultural and artistic significance continues to attract renters and collectors worldwide.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Asian Handicrafts Pvt. Ltd. - The key offerings of the company include handmade Christmas decoration items which is used by consumers to gift someone. The company generates revenue through the sales of gifts, home decor, Christmas decorative items, ornaments, fashion jewelry, and accessories.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The handicraft market encompasses a wide range of products including pottery, glassware, paper products, woodworks, metal artworks, and more. Handicraft manufacturers produce various craft items such as handmade wall hangings, customized wooden artworks, unique accessories, traditional textiles, jewelry, and eco-friendly items. Consumers seek handicrafts to add a comfortable environment that reflects their individual tastes and creative projects. Handicrafts have gained popularity in home décor due to their unique appeal and ability to offer socially responsible choices with minimal negative impact on the environment. Eco-friendly production methods, resource conservation, and the use of raw materials like wood, metal, and glass are essential for handicraft manufacturers to maintain profit margins.
Thus, price sensitivity among consumers drives the demand for affordable alternatives, leading independent retailers and specialty stores to offer a variety of handicrafts, including imitation jewelry, handmade carpets, and embroidered goods. Renowned artisans and indigenous communities contribute significantly to the handicraft industry, with high-value addition ratios and high export potential. Handicraft clusters in cities like Surat are known for their unique offerings, including souvenirs from local artisans. E-commerce platforms have also emerged as significant players in the handicraft market, with price fluctuations impacting the sales of various handicrafts like ceramics, art items, and wood wares. Handmade woollen shawls, embroidered & crocheted goods, hand-printed textiles & scarves, agarbatties & attars, zari & zari goods, miscellaneous handicrafts, and zari woods are some of the popular handicraft categories. The handicraft market continues to evolve, offering consumers a diverse range of choices while supporting artisans and minimizing environmental degradation.
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Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.1% |
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Market growth 2024-2028 |
USD 723.6 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.33 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 28% |
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Key countries |
US, UK, Germany, China, and United Arab Emirates |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Asian Handicrafts Pvt. Ltd., Craft India Overseas, Crossroads Foundation, Divya Exports, Earthy workshop and Co Pty Ltd. and Akkaara, Fakih Group of Companies, HimalayanMart.com, Kathmandu Handicrafts Pvt. Ltd., Native Crafts and Arts, Nepal Craft Shop Pvt. Ltd., NGOC DONG HA NAM, Orient Handicraft Ltd., OSM HANDICRAFT, RTCrafts Enterprise, S.Sundaravadivel and Co., Sana Hastakala, Ten Thousand Villages, Thar Handicrafts Gallery Pvt. Ltd., The Handicrafts and Handloom Exports Corp. of India Ltd., and Zhejiang Hengtai Crafts Manufacturing Co. Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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