Updated: April 9th, 2025

The Global Economy of Sneakers: Where They’re Made and Where They’re Sold

Introduction

Every year, over 24 billion pairs of shoes are produced globally—more than 60 million every single day.
Although most of these sneakers are manufactured in Asia, they are designed, marketed, and sold in nearly every corner of the world.

Major brands like Nike, Adidas, and New Balance drive a global system that not only fuels fashion trends and consumer spending but also influences international trade policies, including debates surrounding import tariffs.

In this article, we explore where sneakers are made and where they are sold, while delving into the impressive volumes—and corresponding dollar values—that traverse international borders.
We also shine a spotlight on New Balance’s domestic production in the USA, examining its impact on sales volumes and pricing premiums.

Part 1: Where Sneakers Are Made

The Big Three Manufacturing Hubs

The sneaker industry relies on several key countries that offer low labor costs, robust manufacturing infrastructure, and favorable trade conditions. Notably:

Vietnam: Produces about 50% of Nike’s shoes and 38% of Adidas’ footwear.
(BBC on Global Supply Chains)
Indonesia: Supplies around 27% of Nike’s and 32% of Adidas’ output.
China: Continues to play a major role, handling roughly 18% of Nike’s and 14% of Adidas’ sneakers.

Brand-by-Brand Breakdown

Nike: Operates primarily with third-party contractors in these regions and does not own its own factories.
Adidas: Utilizes a similar outsourcing model; even its experimental high-tech “Speedfactories” in Germany and the U.S. were phased out in 2020.
(Adidas Corporate News)
New Balance: Differentiates itself by producing approximately 4 million pairs per year in the United States for its domestic market, while also manufacturing in the U.K. for European sales.
(New Balance – Made in USA)
Puma and ASICS: Rely predominantly on Asian factories, with ASICS operating more than 90 factories across China and Vietnam.

The Economics of Offshoring

Manufacturing sneakers in developed economies such as the U.S. or Europe is typically three to five times more expensive due to higher labor wages, stricter environmental standards, and more rigorous supply chain regulations.
This cost differential drives production to low-cost regions, while high-value sales occur in developed markets.

Part 2: Where Sneakers Are Sold

Regional Revenue and Volume Translated into Pairs

Sneaker sales figures are staggering. Below are estimated revenue figures for leading brands, translated into estimated volumes of shoes (assuming an average selling price of about US$100 per pair):

Nike (FY 2024 Revenue: US$51.4B):
- North America: US$21.4B (~214 million pairs)
- EMEA: US$13.4B (~134 million pairs)
- Greater China: US$8.3B (~83 million pairs)
Adidas (FY 2024 Revenue: ~US$25.8B):
- Europe: US$8.2B (~82 million pairs)
- North America: US$6.4B (~64 million pairs)
- Asia-Pacific: US$6.8B (~68 million pairs)
New Balance (2024 Revenue: US$7.8B overall):
- North America: ~US$2.7B (~27 million pairs)
- Additional sales in regions such as Western Europe and North Asia.

Part 3: The Case of New Balance: Domestic Production and Its Impact

New Balance is unique among major sneaker brands because it maintains a significant level of domestic production. Approximately 4 million pairs are produced annually in the United States, which caters specifically to the domestic market.

This is how NB describes their Made in USA program on their own website: “New Balance Made in USA footwear contains a domestic value of 70% or more. Made in USA makes up a limited portion of New Balance’s US sales. With over 75 years of authentic American craftsmanship, New Balance Made in USA is designed without compromise.”

When we consider that New Balance’s North American sales are estimated to be around 27 million pairs, domestically produced shoes account for roughly 15% of their overall U.S. volume.

This “Made in USA” segment is notable not only for its production volume but also for the premium pricing it commands. Sneakers manufactured in the U.S. typically carry a price tag that is three to five times higher than comparable models produced overseas, reflecting the higher costs associated with local labor and production standards.

Part 4: Global Trade Flows: Shoes Crossing Borders and Dollar Translations

The Journey Across Borders

Sneakers rarely remain confined to one country; their components and finished products traverse international borders as part of a sophisticated global supply chain.

Shipping and Logistics:
Sneakers are predominantly shipped by sea. For example, many shipments from Asia to Western markets are valued in the millions.
Translating this into volume—using our average of US$100 per pair—a shipment valued at US$10 million equals roughly 100,000 pairs.
Import Tariffs and Trade Costs:
When sneakers cross into regions with high import tariffs (such as the U.S.), these additional costs increase the final retail price.
Essentially, tariff costs can add an expense equivalent to tens of thousands of extra pairs over large shipments.

For more on trade dynamics, see the International Trade Administration – Footwear Industry Insights.

Part 5: A Closer Look at Sneaker Cost: From Materials to Transport

The retail price of an average sneaker—around US$100—is the result of a layered cost structure that includes:

Raw Materials: Approximately 30% of the cost is dedicated to raw materials. This includes the textiles or leather used for uppers, rubber or synthetic compounds for soles, and cushioning materials.
Manufacturing and Labor: Another 20–25% is attributed to labor costs associated with assembly, quality control, and efficient production, typically lower in Asia compared to developed markets.
Logistics and Transportation: Roughly 10–15% accounts for shipping, customs clearance, handling fees, and import duties—especially significant in markets with high tariffs.
Overhead, Marketing, and Retail Markup: The remaining 30–35% covers factory overhead, marketing efforts, and retail markups that uphold brand value.

This breakdown, inspired by analyses such as those on
SoleReview, Fast Company, and The Guardian, illustrates how a network of factors—from global sourcing to consumer branding—merges to define the final consumer price.

Conclusion

Sneakers are far more than just a fashion accessory—they are a vivid example of global trade in action. By examining where sneakers are made and sold, and by converting billions of dollars in revenue into tangible volumes of pairs sold, we gain critical insights into the sophisticated supply chains driving the industry.

The interplay between low-cost manufacturing in Asia and high-value sales in developed markets underscores the impact of international trade policies, including import tariffs and logistics expenses.
Moreover, New Balance’s production of approximately 4 million “Made in USA” pairs—roughly 15% of its North American sales, yet commanding a premium price—demonstrates how domestic production plays a unique role in the global sneaker economy.

As trade policies and consumer demands evolve, the sneaker industry remains a compelling case study of globalization and economic innovation.