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Peru: leather and footwear production has not yet reached pre-pandemic levels

Oct 6, 2023 Peru

In 2020, the Peruvian leather and footwear production fell by around 30% and, despite some recovery in the following years, has not yet reached pre-pandemic levels

The forecasts of the sector for this year indicate that the leather and footwear industry will end 2023 without having reached the level of production it had in 2019. Although in 2021 and 2022 it achieved a rebound of 18.3%, it is still far from returning to full normality.

According to the Institute of Economic and Social Studies of the National Society of Industries (SNI), climatic phenomena, the increase in imported products and labour shortage are impacting negatively the industry, so the sector should end the year with single-digit growth.

“The leather and footwear sector has not managed to recover in 2019, but it is a sector that, unlike many others, has been recovering, despite international competition and considering that this industry has always had unfair competition from imported products. Currently, there are up to two anti-dumping proceedings. The problem of smuggling and counterfeit products also persists”, explained Antonio Castillo, manager of the Institute.

According to the World Footwear 2023 Yearbook (more information available HERE), the Peruvian market relies heavily on imported footwear, particularly from Asian countries. In 2022, footwear imports reached a total value of 635 million dollars, while exports remain limited in scope.

Source: cueroamerica.info

Image Credits: bergerpaints.com

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