Handicrafts are handmade goods demonstrating the culture, ethics, and customs of a country or any region. They play a vital part in the financial advancement as they are a fundamental medium for foreign exchange income. They are also observed as a representation of status considering their individuality, superiority, and the utilization of natural components such as sheet metal, stones, natural fibers, woods, beads, paper, wrought iron, textiles, and ceramics.
Business Research Insights cited that the global handicrafts market size was US$ 511080 million in the year 2022, and is projected to reach a revised size of US$ 847730 million by 2028, at a CAGR of 8.8% during the forecast period.
A progressive change toward contemporary designs in confluence with the intensifying demand for handicrafts for hospitals, offices, and hotels signifies one of the prime aspects fueling the growth of the market. Further, their obtainability has become more appropriate for consumers on account of the surging internet penetration and the propagation of e-commerce channels. Apart from this, the thrusting travel and tourism industry is offering beneficial growth prospects to local artisans and craftsperson for manufacturing commoditized products and selling them to travelers who are capable of spending considerably on souvenirs and additional craft commodities.
COVID-19 Impacts on the Handmade Craft Industry
Since the COVID-19 lockdown, majority of the artists have lost their working opportunities. Only 15 out of 40 looms were reported operational. Due to a stockpile of inventory, they are experiencing an adverse revenue crunch. Since the lockdown, production has halted totally. Moreover, major unsold inventory has stacked up. There were no sales reported either via the means of exhibitive events or by orders. They have no funds to reinvest. The artisans lack food for daily consumption as well as savings to satisfy their medical expenditures.
Below mentioned are the 6 pioneering players operating in the market.
- Asian Handicrafts Pvt. Ltd. (India)
Founded in 1976, Asian Handicrafts Pvt. Ltd. is a design navigated manufacturer export house. It is involved in the sector of producing and exporting Indian crafts such as Christmas decorations & ornaments, gift items, and home décor.
- Fakih (Switzerland)
Fakih Group of Companies is the most dominating handicraft manufacturer and retailer across the globe. It is the world’s biggest eco-friendly product producers & dealers, Asia’s biggest small scale & cottage industry developers, and global women craft developers.
- Handicrafts and Handlooms Export Corp. (HHEC) (India)
HHEC is the Government of India Ministry of Textile company that has an unusual series of Indian handiworks, Indian decorative arts, Indian handlooms, Indian antiques, Indian gifts, leather decorative, leather decorative items, gems and jewelry, and wrought iron crafts.
- Minhou Minxing Weaving Co. Ltd. (China)
Minhou Minxing Weaving Co. Ltd. produces furniture goods. The company chiefly manufactures and trades home-based furniture and accessories. Minhou Minxing Weaving sells its goods and items across the globe.
- NGOC Dong Ha Nam Co., Ltd. (Vietnam)
Ngoc Dong Ha Nam Co., Ltd. has been a dominating manufacturer and vendor for Vietnam handiworks and home-based furnishings from 1988.
- Oriental Handicraft (India)
Oriental Handicraft is located in Bhubaneshwar and is among the pioneering businesses in embroidery job works. It is famously recognized for its handmade item dealers, applique embroidery job works, and much more.
Opportunities in the Market
As Indian culture is diversified and rich in tradition, the artisans and companies operating are focused on preserving the age-old culture and simultaneously launching attractive products in the global market. Various technological innovations have been introduced for artisans across the world such as amalgamation of e-commerce services with sales of their handmade products.
Challenges in the Market
Owing to the factor that artisans create craft masterpieces by investing huge amount of time and patience, these products are expensive. Moreover, the negative pointer pertaining to the market is that the artists are undereducated, lack capital amount, have weak exposure to advanced technologies, and so on.
Recreational Tours to Help the Market Grow
The artisans work individually as well as under contracts or are provided employment by exporters or small enterprises. Owing to lower primary investment and inexpensive labor, the handicrafts industry is thriving in developing nations such as India. Besides this, the rising travel and tourism industry has offered expansive prospects to local artisans to manufacture commoditized items and sell them to travelers and visitors who are eager to make extra spending on gifts and souvenirs. The growing travel and tourism is also motivating the growth of the global market. The tourists on leisure tours are constantly on a hunt to gather souvenirs and specialty handmade items from the areas they visit. This has also resulted in the progression of a huge unorganized market particularly in the emerging nations.