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Brazilian footwear industry sees decreasing exports in May

Jun, 15, 2023 Posted by Gabriel Malheiros

Week 202323

According to information from the Brazilian Association of the Footwear Industry (Abicalçados), footwear exports dropped in volume and revenue compared to May 2022. A total of 8.53 million pairs were shipped abroad, generating $98.2 million in revenue. This represents a decrease of 18.7% in volume and 5.6% in revenue.

For the first five months of the year, the total exports amounted to 57.29 million pairs, with a revenue of $538.4 million. While the volume experienced a decline of 10.8% compared to the same period last year, the revenue remained stable.

See below Brazil’s exports of footwear in the first four months of the year from 2019 to 2023. The data is from DataLiner.

Brazil’s Jan-Apr footwear exports | 2019 -2023 | TEU

Source: DataLiner (click here to request a demo)

Haroldo Ferreira, the chief executive of Abicalçados, anticipated these results, attributing them to several factors, including the decreasing dollar-real exchange rate that pushes the prices of Brazilian shows up in the international market, coupled with a slow-burn economic scenario internationally and increased Chinese competition.

“In the past two months, Chinese footwear exports have surged by over 20%. When the world’s largest player, which exported 2.8 billion pairs until April, reclaims its position, it’s expected that other producing countries will lose market share,” evaluates the executive. The devaluation of the dollar has also been a thorn in the side of the Brazilian footwear industry, as it has led to an increase in the average price of exported pairs. “Furthermore, we are experiencing a slowdown in the international economy, particularly in the United States and European countries, which are key footwear buyers,” he added.

Destinations

Argentina remained the top destination for Brazilian footwear exports in the first five months of the year. During this period, 6.58 million pairs were imported by Brazil’s Spanish-speaking neighbor, generating US$ 106.6 million in revenue. Although there was a slight decrease of 3.6% in volume, the revenue increased significantly by 43% compared to the same period last year.

The United States ranked as the second major destination for Brazilian footwear exports. However, there was a notable decline in both volume and revenue. The North American market imported 4.56 million pairs, paying US$ 92 million, representing a decrease of 54.7% in volume and 37% in revenue compared to the same period in 2022.

On the other hand, France also experienced a decline in imports of Brazilian footwear and ranked third in the destination list. France imported 1.63 million pairs between January and May, amounting to US$ 25.7 million. This signifies a considerable drop of 60% in volume and 12.5% in revenue compared to the same period last year.

Producing states

Rio Grande do Sul was the state in Brazil that send the most footwear abroad. From January to May, factories in the country’s southernmost state shipped 15.86 million pairs, generating revenue of US$ 235.26 million. Although there was a decline of 12.7% in volume and 4.4% in revenue compared to the same period last year, it remained the country’s largest exporter.

Ceará followed as the second-largest exploring state during this period. It exported 18 million pairs, earning US$ 129 million, representing an 8.2% decrease in volume but a 6.7% increase in revenue compared to 2022.

São Paulo ranked third with 3.8 million pairs exported, amounting to US$ 52 million. This signifies drops of 8.1% in volume and 2.7% in revenue. Bahia showed positive growth, shipping 1.93 million pairs valued at US$ 37.97 million, marking increases of 2.6% and 41.3%, respectively.

Against the flow

On the other hand, footwear imports continued to rise. From January to May, Brazil imported 14.78 million pairs for US$ 188.4 million, demonstrating a 3.9% increase in volume and a significant 23.7% increase in spending compared to the same period in 2022. The main origin countries for imports are all in Asia, with Vietnam leading the way (3.9 million pairs, US$ 89.4 million, up 21.7% and 30.1% respectively), followed by Indonesia (1.74 million pairs, US$ 35.97 million, up 25.7% and 28%), and China (7.4 million pairs, US$ 24.3 million, down 5% and 1.1%).

Regarding footwear parts, such as uppers, soles, heels, and insoles, imports reached US$ 11.44 million, a 15.6% increase compared to 2022. China, Paraguay, and Vietnam were the primary source countries for these imports.

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