Trade

Brazilian footwear exports slow down

Nov 17, 2022 Brazil

The country's footwear exports decelerated for the second consecutive time in October, mainly due to the slowdown in the world's economy. Results for the first 10 months are still positive

Data prepared by the Brazilian Footwear Industries Association (Abicalçados) shows that 11.23 million pairs of shoes were shipped abroad in October, generating a revenue of 114 million US dollars. These figures indicate a decline of 12.7% in volume and an increase of 21.4% in value, as compared to the same month of last year. The fall in value follows the one recorded in September (by 6%), which points to a slowdown in the international market.

"According to the IMF, more than one-third of the global economy will contract this year or next year, while the three largest economies – the United States, the European Union and China - will continue to decelerate. Certainly, it will impact the footwear sector", commented the Executive President of Abicalçados, Haroldo Ferreira, highlighting the performances in the US and Argentina, Brazil’s two main destination markets. Exports to the US were down by 44% in October, while exports to Argentina fell by 36% in the same month.

Still, the balance for the year-to-date remains positive. Between January and October, footwear manufacturers shipped 119 million pairs of shoes, worth 1.1 billion US dollars, which reflects an increase of 20.2% in volume and 55% in value, on a comparable basis to the same period of 2021. Moreover, the sector registered a 35% and 25% growth in value and volume, respectively, as compared to pre-pandemic levels (2019).

Main Destinations

In the first ten months of the year, Brazil shipped 16.24 million pairs of shoes to the US, generating 296 million US dollars, remaining at the lead of the country's main destinations. These figures show an increase of 38.2% in volume and 66.6% in value, on a comparable basis to the same period of the prior year.

The second main destination for yellow and green footwear was Argentina. Between January and October, the neighbouring country imported 14.34 million pairs, worth 157.64 million US dollars, up by 33.3% and 70.6% in volume and value, respectively, as compared to the same period of last year.

Next, came France. As of October, the European country purchased 5.54 million pairs of shoes, at the value of 54 million US dollars, which reflects a drop of 10.2% in volume and a 7.3% rise in value, on a comparable basis to the first ten months of 2021.

Brazilian Footwear Industry

According to the World Footwear 2022 Yearbook (more information available here), Brazil ranks 5^th among footwear producers worldwide. After a complicated period in 2020, the footwear industry recovered in 2021 fuelled by exports that have benefited from increased demand in the USA due to the tariffs imposed on Chinese footwear. The Brazilian home market is still depressed, however, and imports were the lowest in a decade.

Image Credits: worldfinance.com

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