Global Handicrafts Market Report and Forecast 2024-2032

Global Handicrafts Market Size

The global handicrafts market stood at a value of USD 787.85 billion in 2023. The handicrafts market is projected to witness a CAGR of 11.8% over the forecast period of 2024-2032. It is expected to reach USD 2,149.93 billion by 2032.

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Handicrafts Market Trends

The demand for personalised products that depict certain uniqueness is on the rise among consumers. Handicrafts provide an ideal option for customisation in terms of design, materials, and finishes. The rising interest in products that represent cultural heritage and ethnic diversity has further led to a higher demand for traditional handicrafts from various regions.

Additionally, as people become more conscious of the environmental and social impact of mass-produced goods, they are turning to handmade products that are often made with sustainable materials and ethical practices.

Recent Developments

Srinagar, a city based in India, was given the title of 'World Craft City' by the World Crafts Council in June 2024.  This title can boost the local economy and also promote the rich cultural heritage of Srinagar on a global scale. It is also expected to attract more tourists and artisans to the region, creating opportunities for skill development and economic growth. Additionally, it will help in preserving traditional crafts and techniques that have been passed down through generations in Srinagar.

Handicrafts Market Share

On the basis of the product types, the woodware segment accounted for the largest market in the total global market in 2020 as they are usually used in the manufacturing of kitchenware, decorative materials, and toys, among others. Based on the distribution channel, the mass retailer segment dominated the handicrafts market in 2020. Since mass retailer distributes a wide variety of handicraft products at an affordable price, they are, thus, expected to retain their dominance in the forecast period and boost the handicrafts market value. On the basis of end use, the market is bifurcated into residential and commercial. The residential segment accounted for the largest end-use segment, owing to the rising demand for fashion accessories, home accessories, and jewellery, among others.

Handicrafts Market Growth

Handicrafts are the handmade products, which are prepared using simple tools instead of machines and require considerable hand-eye coordination, along with intense concentration. They artistically represent the culture and tradition of the country or a region. Each handcrafted product is unique and exhibits distinct qualities and is perceived as a symbol of status for consumers as it reflects the essence of vibrant art and culture, which drives the growth of the global handicrafts market. Additionally, handicrafts require low capital investments, offer employment opportunities to artisans, and act as a prominent medium for foreign exchange revenue. Owing to the aforementioned factors, handicraft products play a vital role in the overall growth of an economy and are expected to uplift the demand for handcrafted products in the coming years.

Handicrafts Industry Statistics in India

Union Textiles Ministry in India announced in December 2023 that around Rs 1000 crore is expected to be invested in the handloom and handicraft sector in the next four to five years to promote the rich cultural heritage, create growth opportunities for the artisans and boost handicrafts market share in India.

Industry Outlook

Rising E-Commerce Sales and Popularity of Indian Handicrafts Globally

As per the market analysis of handicrafts industry, retail e-commerce sales worldwide have experienced significant growth from 2019 to 2025. In 2019, e-commerce sales were USD 3.351 trillion, accounting for 13.8% of total retail sales, with a growth rate of 20.5%. By 2020, driven partly by the COVID-19 pandemic, sales surged to USD 4.213 trillion, representing 17.8% of total retail sales and a growth rate of 25.7%. This trend continued in 2021, with e-commerce sales reaching USD 4.921 trillion, making up 19.6% of total retail sales, although the growth rate slowed to 16.8%.

As per the handicrafts industry analysis, from 2022 to 2025, e-commerce sales are projected to increase steadily, from USD 5.545 trillion in 2022 (21.0% of total retail sales) to USD 7.385 trillion by 2025 (24.5% of total retail sales). However, the annual growth rate is expected to decelerate, dropping to 12.7% in 2022 and further to 9.0% by 2025. Despite the slowing growth rate, the consistent increase in the share of e-commerce in total retail sales underscores the ongoing shift towards online shopping. As more consumers turn to online shopping for convenience and variety, artisans and handicraft businesses can leverage e-commerce platforms to reach a broader audience. The growth of e-commerce can facilitate direct-to-consumer sales, reducing reliance on intermediaries and allowing artisans to retain a larger share of profits, which contributes to the handicrafts industry revenue.

According to the Export Promotion Council for Handicrafts (EPCH), in 2022-23, the United States was the largest importer of India's handicrafts, accounting for 37% of exports by India. The United Arab Emirates and the United Kingdom each held a 6% share, followed by Germany (5%), the Netherlands (4%), France (4%), and Australia (2%). The remaining 36% was distributed among other countries. There is a strong demand for Indian handicrafts in Western markets, particularly the United States, which leads significantly and fuels growth of the handicrafts industry. Artisans and exporters should focus on these key markets to enhance their visibility and sales, leveraging the appreciation for unique and culturally rich handcrafted goods.

What Factors are Driving the Growth of the Global Market?

• As per the handicraft industry statistics, the global market benefits from the rich cultural diversity of products from various regions, each offering unique and distinctive crafts.

• High levels of craftsmanship and traditional skills passed down through generations ensure high-quality and unique products.

• Increasing global consumer demand for handmade, unique, and personalized products drives the market.

• Handicrafts often use eco-friendly materials and sustainable production methods, appealing to environmentally conscious consumers, which will positively impact the handicrafts market demand forecast.

• Various governments and NGOs support the handicrafts sector through funding, training programs, and market access initiatives.

What Challenges are Impacting the Global Market?

• Lack of standardisation can lead to inconsistent product quality, which can affect customer satisfaction and market reputation.

• Handicraft production is often labour-intensive and time-consuming, making it difficult to scale up to meet large orders.

• One of the crucial handicraft market restraints is that many artisans operate in remote areas with limited access to larger markets, affecting their ability to sell products on a global scale.

• Artisans often rely on middlemen for market access, which can reduce their profit margins.

• The market can be vulnerable to economic downturns, as consumers may cut back on discretionary spending.

• Lack of proper intellectual property protection can lead to the imitation and mass production of traditional designs by foreign manufacturers.

What are the Opportunities in the Global Market?

• The expansion of e-commerce platforms provides artisans with direct access to global markets and contributes to the handicrafts demand growth.

• Integrating handicraft sales with the tourism industry can boost demand, as tourists often seek unique souvenirs.

• Offering customised and personalised products can attract niche markets and cater to specific customer preferences.

• Collaborations with designers, fashion houses, and global brands can help elevate the profile of handicrafts and reach new audiences.

• Growing awareness and demand for sustainable and eco-friendly products create opportunities for the handicrafts market to expand.

Competitive Factors in the Global Handicrafts Industry

• The level of skill and craftsmanship directly impacts product quality and handicrafts demand.

• The use of premium, sustainable materials enhances the appeal and durability of handicrafts.

• Products that reflect authentic cultural heritage and traditional techniques have a competitive edge. 

• Marketing that includes the story behind the craft, the artisans, and the cultural significance of the product can create a deeper connection with consumers.

• Competitive pricing that reflects the quality and uniqueness of the product is crucial. 

• Effective distribution networks, including physical stores, online platforms, and participation in international trade fairs, expand market reach.

• Introducing new designs, functionalities, and product lines that cater to modern consumer preferences while maintaining traditional elements.

• Utilising social media, influencers, and online advertising to reach and engage with a broader audience fuels growth of the handicrafts market.

• Partnering with designers, brands, and retailers to co-create products or gain entry into new markets.

Key Players in the Global Market and Their Strategic Initiatives

Asian Handicrafts Pvt. Ltd.

• Expanding its product lines to include more contemporary designs while maintaining traditional craftsmanship.

• Increasing the use of eco-friendly materials and sustainable practices to appeal to environmentally conscious consumers fuels handicrafts market opportunities.

Noah’s Ark International Exports

• Supporting over 100 artisan groups, providing training and development to improve skills and product quality.

• Committing to fair trade principles and ensuring ethical sourcing of materials.

• Continuously developing new product lines to meet changing consumer preferences and trends.

Matr Boomie

• Working closely with artisans to blend traditional skills with contemporary design can aid in increasing handicrafts market revenue.

• Focusing on sustainable production methods and using eco-friendly materials.

• Offering training and capacity-building programs to artisans to enhance their skills and economic independence.

• Leveraging partnerships with major retailers and an extensive online presence to reach a global audience.

The Citizenry

• Establishing direct relationships with artisan groups to ensure fair wages and ethical practices can fuel demand of handicrafts market.

• Committing to the use of sustainable and locally sourced materials.

• Using storytelling to connect consumers with the artisans and the cultural significance of the products.

Novica

• Utilizing an online marketplace to provide artisans with access to a global customer base is a key trend in handicrafts market.

• Offering resources and training to artisans to help them improve their business skills and product offerings.

• Providing transparency in sourcing and pricing to ensure consumers understand the value and origin of their purchases.

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Handicrafts Industry Segmentation

The handicrafts market is broadly categorised on the basis of product into:

• Woodware

• Artmetal Ware

• Handprinted Textiles and Scarves

• Embroidered and Crocheted Goods

• Zari and Zari Goods

• Imitation Jewellery

• Sculptures

• Pottery and Glassware

• Attars and Agarbattis

• Others

On the bases of end user, the global market is bifurcated into:

• Residential

• Commercial

Based on the distribution channel, the market is segmented into:

• Mass Retailers

• Departmental Stores

• Independent Retailers

• Online Stores

• Others

The EMR report looks into the regional markets in the global market like North America, the Asia Pacific, Europe, Latin America, and the Middle East and Africa.

Handicrafts Market Analysis

With the emergence of online retail and various e-commerce channels, the accessibility to handcrafted products has become more convenient for consumers, which, in turn, has provided a thrust to the sales of handcrafted goods across the globe. As per the handicrafts market dynamics and trends, the transition from ethnic to contemporary designs, coupled with the strong demand from offices, homes, hospitals, and hotels are increasing the demand for handcrafted products. The growing travel and tourism industry has also provided vast opportunities to local artisans as well as handicraft manufacturers to produce commoditised products and sell them to tourists who are willing to spend significantly on craft items. Moreover, handicrafts require low energy, unlike machine-made products, which involve the utilisation of electricity. Furthermore, the handicrafts business is also an important source of huge exports and potential foreign exchange; thus, they are likely to boost the global handicraft market in the near future.

Competitive Landscape

The report presents a detailed analysis of the following key players in the global handicrafts market, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• Asian Handicrafts Pvt. Ltd.

• Native Crafts and Arts, Inc.

• Fakih Group of Companies

• Gangamani Fashions (Art & Crafts)

• HN Handicrafts

• S. N. Handicrafts

• Unique Handicrafts Ltd

• Vietnam Handicraft Co., Ltd

• Haswani Handicrafts

• Sushil Craft

• Others

The comprehensive report looks into the macro and micro aspects of the industry. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.

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Handicrafts Market Regional Insights

The Asia Pacific region accounts for a substantial market share due to the presence of well-known artisans and manufacturers of handmade products in countries such as India, China, and Bangladesh, among others. Furthermore, due to the low capital investments, the market size of handicrafts is growing, particularly in developing regions such as India and China.

Key Highlights of the Report

Handicrafts Market Report Snapshots

Handicrafts Market Size

Handicrafts Market Growth

Handicrafts Market Trends

Handicrafts Market Share

Handicrafts Companies

Handicrafts Market Regional Analysis