Brazil footwear exports slow down in October

After eight months of persistent year-on-year increases compared to 2021, footwear exports from Brazil saw another drop in terms of shipped pairs. Data by the Brazilian industry association of footwear industries Abicalçados indicate that, in October, 11.23 million pairs were sent abroad, generating US$ 114 million, a drop of 12.7% in volume and an increase of 21.4 % in revenue compared to the same month last year.

In September, the number of pairs exported had already fallen by 6%, which points to a slowdown in the international market. From January to October year-to-date, the balance ended in surplus. Footwear manufacturers shipped 119 million pairs in exchange for USD 1.1 billion, increasing in volume (+20.2%) and revenue (+55%) compared to the same period last year. The sector saw a growth of 35% and 24% in value and volume compared to the pre-pandemic year.

See below the track record of Brazilian footwear (HS codes 6400 – 6406) exported from January 2021 to September 2022, according to Datamar’s business intelligence database DataLiner.

Brazilian footwear exports | Jan 2021 – Sep 2022 | TEUs

Source: DataLiner (click here to request a demo)

The executive president of Abicalçados, Haroldo Ferreira, explains that the setback in volume seen in the last two months reflects the slowdown in the world economy. “According to the IMF, more than a third of the global economy will contract either this year or the next, while the three biggest economies – the United States, the European Union, and China – will continue to slow down. We will certainly experience an impact on the footwear sector,” he comments.

According to the official, in October, the United States imported 44% fewer Brazilian shoes compared to the same month in 2021. Another factor that explains the drop in shipments is the decreased demand in Argentina, the second main destination for Brazilian footwear abroad. In crisis and high inflation, the neighboring country reduced imports by 36% in October compared to the same month last year.

Destinations

Between January and October, the United States was the main destination for Brazilian footwear abroad, with 16.24 million pairs shipped and USD 296 million, up 38.2% and 66.6% in volume and revenue compared to the same period last year.

Argentina was the second most important export destination for Brazilian footwear. Between January and October, 14.34 million pairs were exported, generating US$ 157.64 million, an increase in both volumes (+33.2%) and revenue (+70.6%) over the same period in 2021.

France ranked third on the list of Brazilian footwear importers. In the first ten months of the year, the French imported 5.54 million pairs for US$ 54 million, down 10.2% in volume and up 7.3% in revenue compared to last year.

Rising imports 

While footwear exports are fixed in a slowdown trend, imports are on the rise. Spurred by purchases from Asian countries – Vietnam, Indonesia, and China – which account for almost 85% of the total footwear imported by Brazil, imports totaled 1.63 million pairs for USD 33 million, an increase of 54% in volume and 95.3% in revenue compared to October 2021.

Vietnam, the primary source of imported footwear, exported 80% more to Brazil in October than the previous year, while Indonesia exported 83% more and China 34% more.

In the first ten months of the year, footwear imports totaled 22 million pairs, for which US$ 304.4 million was paid, representing increases in both volumes (+25%) and revenue (+21%) over the same period last year.

In this period, Vietnam attained the role of Brazil’s main supplier (6.7 million pairs and US$ 141.84 million, a 5.3% drop in volume, and a 3% increase in revenue compared to the same period in 2021).

Indonesia (2.57 million pairs and US$ 52 million, up 17% and 25.3%, respectively) and China (9.2 million pairs and US$ $43.4 million, increments of 52.2% and 48.4%, respectively) come in sequence.

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