In this article, we look at the largest handicraft exporting country in the world. To see the full free list, you can head over to the 13 Largest Handicraft Exporting Countries in the World.
According to a recent report, the global handicraft market size was valued at over $1 trillion in 2023. Asia-Pacific dominates the market holding 36.3% of the overall share, followed by North America with an increasing import volume of handicrafts from Asian countries. The industry is forecast to reach $2.39 trillion in size by 2032 at a CAGR of 10.11%, driven by the rising trend of home décor and international travel recovering back to pre-pandemic levels.
Homeowners are increasingly investing in personalizing and improving their living spaces. A report by the Harvard Joint Center for Housing Studies states that American households had spent over $150 billion since 2019 on rejuvenating their homes. Moreover, the rise of the Do-It-Yourself (DIY) culture in the United States has also gained popularity, resulting in many individuals taking it upon themselves to personalize their homes. On the other hand, the increase in international travel has led to a spike in demand for handicrafts. Tourists often seek locally-made artifacts, souvenirs, and products to take back from the countries they are visiting.
Handicraft Market in the United States
The handicraft market size in the United States reached $294 billion in 2023 and is expected to go past the $600 billion mark in 2032, as interest in diverse traditions, craftsmanship, and cultural appreciation grows. Etsy, Inc. (NASDAQ:ETSY) is one of the leading players in the American market. The e-commerce firm sells handmade, vintage, and crafts items such as craft supplies, jewelry, artwork, bags, clothes, decor items, and more. The company conducts craft fairs, allowing sellers to set up storefronts at the cost of a specified fee per item.
As of 2024, Etsy, Inc. (NASDAQ:ETSY) has over 96 million active buyers, 9 million sellers, and more than 100 million items available for sale. In 2023, the company posted a gross merchandise sale (GMS) of $13.2 billion, while its revenue of $2.7 billion was 7% higher compared to last year. During the first quarter of 2024, Etsy, Inc. (NASDAQ:ETSY) narrowly missed Wall Street’s GMS and earnings expectations, due to lower demand for handcrafted goods on its marketplace and increased competition from smaller rival platforms such as Temu. Its EPS was recorded at 48 cents, against forecasts of 49 cents.
Despite the dip, investors remain confident about the company’s long-term potential. ClearBridge Mid Cap Strategy stated the following regarding Etsy, Inc. (NASDAQ:ETSY) in its first quarter 2024 investor letter:
Online marketplace Etsy, Inc. (NASDAQ:ETSY) also saw weaker performance as consumer preferences for goods lagged market expectations. However, we think there is substantial opportunity for the company to reaccelerate growth and increase margins as it extracts greater economic rents from its two-sided marketplace for artisanal goods due to commanding market share, lack of direct competition and support from new activist investors.
Another major player in the handicrafts market is Amazon.com, Inc. (NASDAQ:AMZN), the leading online retailer in the United States, with more than 2.5 billion visitors every month. In 2015, the company launched Amazon Handmade for businesses specializing in handcrafted products. Amazon.com, Inc. (NASDAQ:AMZN) does not publicize financials about the platform, but on its 5th anniversary in 2020, it announced that more than 100 makers on Amazon Handmade had crossed annual sales worth $1 million.
The company also stated that during this period, the number of active Amazon Handmade makers had increased by 750%, while its worldwide selection rose by 2000%. One of the benefits that sellers experience on Amazon Handmade is the massive potential reach considering that Amazon is one of the most visited websites in the US. Moreover, Amazon.com, Inc. (NASDAQ:AMZN) does not charge any listing fees either, and you only pay if you make a sale.
Andrea Meling/Shutterstock.com
Methodology
The largest handicraft exporting countries in the world are ranked in ascending order of their export trade volume. Data has been sourced from multiple independent sources for each country and we have considered figures for the latest year for which export volume numbers were available for each country.
The largest handicraft exporting country in the world is China.
1. China
Export Volume: $5 billion +
While there is a scarcity of information on the export volume of Chinese handicrafts, there is consensus among most industry experts that it is the largest handicraft exporting country in the world, with an estimated trade volume of more than $5 billion. These handicrafts are mainly exported by Beijing to the United States, Japan, South Korea, India, and Europe. Handmade rugs, silk embroidery, lamps, bracelets, jewelry, woodware, glass mirrors, and table and kitchen accessories, are among the country’s top handicraft exports. Chinese crafts are also popular among tourists who visit the country, with an estimated $500 million worth of handicrafts sold annually to tourists who wish to take souvenirs back home from their journey.
To learn about other major handicraft exporting countries, you can check out our detailed report: 13 Largest Handicraft Exporting Countries in the World.
At Insider Monkey, we delve into a variety of topics, ranging from handicraft exports to other business aspects in the industry; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
Disclosure: None. This article is originally published on Insider Monkey.
