Trade

Brazilian footwear exports on downward trajectory

Jul 25, 2023 Brazil

In the first half of 2023, Brazilian footwear exports declined by 13.6% in volume and 3.8% in value year-over-year due to a global economic slowdown. Performance in the US market has suffered the most

Data by the Brazilian Footwear Industries Association (Abicalçados) shows that from January to June, the country shipped 64.74 million pairs of shoes abroad, generating 626.5 million US dollars. These figures reflect a decrease of 13.6% in volume and 3.8% in value, on a comparable basis to the same period of 2022. In June alone, Brazil exported 7.4 million pairs of shoes, worth 88.12 million US dollars, down by 30.3% and 22%, as compared to the same month last year.

The Association's Executive President Haroldo Ferreira has expressed his concern over this drop, even though exports remain above pre-pandemic levels. “The fact is that the pandemic deregulated the market and now we are going through an adjustment. Last year was extraordinary in all its numbers, so it's natural that there is a drop due to this high comparison base. But the fall is being more accelerated than we imagined”, he acknowledged.

On the other hand, Ferreira emphasised that the basis of comparison is not the only “culprit” for the negative indices. “There is a slowdown in the international economy, especially in the United States, our main destination for footwear. Of course, this causes an impact on the sector”, he added.

Main Destination Markets

In the semester of the current year, Argentina took the lead among Brazil's main destination markets. In this period, 7.84 million pairs of yellow and green shoes were shipped, generating 128 million US dollars, down by 4.3% in volume but up by 41% in value, on a comparable basis to the same months of 2022.

Now second in this ranking, the US, “with a weakened economy and high inventories” purchased 5.32 million pairs of Brazilian shoes, worth 111.17 million US dollars, during the first six months of 2023. This reflects a decrease of 38.5% in volume and 55.5% in value, on a comparable basis to a similar period in the previous year.

Next, came France. From January through June, The European country imported 1.78 million pairs of shoes for 30.7 million US dollars, down by 61.2% in volume and 16.6% in value over the same months of 2022.

Brazilian Footwear Industry

According to the World Footwear 2022 Yearbook (more information available HERE), Brazil ranks 5^th among footwear producers worldwide. Its footwear exports benefited in 2021 from increased demand in the US due to tariffs imposed on Chinese footwear, but the domestic market remained depressed.

Image Credits: Joao Tzanno on Unsplash

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