Brazil footwear exports until September outnumber 2021 exports

The footwear industry in Brazil is surfing an upward trend in shoe exports. Data from the industry association Abicalçados indicate that, between January and September of this year, Brazil exported  107.9 million pairs, generating US$ 990.35 million, up 25% in volume and 60% in revenue from the same period last year.

The value earned from footwear exports to date exceeds the income earned in the entire year of 2021 in Brazil, when exports generated USD 900 million. In September alone, 10.33 million pairs were shipped for US$ 109.45 million, down in volume (-6%) and up in revenue (+42%) compared to the corresponding month of last year.

The executive president of Abicalçados, Haroldo Ferreira, comments that the industry’s exports have largely recovered from the Covid-19 pandemic. “Compared to the same nine-month period in 2019 (the pre-pandemic period), we have grown by more than 35% (in revenue). We also increased the average price of each shipped pair from US$ 7 to US$ 10.60, which shows that we are exporting products with higher added value. It is a good moment for Brazilian exports.”

See below the track record of Brazilian footwear exports. The data is from DataLiner.

Brazilian Footwear Exports | Jan 2019 – Aug 2022 | TEUs

Source: DataLiner (click here to request a demo)

According to the executive, increasing shipments to neighboring countries, trying to avert the high freight costs from Asia, has a positive impact. “This is a moment when most countries are looking for geographically closer suppliers. As the main show manufacturer outside Asia, Brazil has been attracting these markets,” comments Ferreira, noting that eight of the top ten destinations for Brazilian footwear are in the Americas.

Between January and September, the United States was the number one destination for Brazilian footwear exports. In the nine-month period, the US received 15.3 million pairs, generating US$ 270.78 million for Brazil, outperforming the same period last year in both volumes (+51.7%) and revenue (+77%).

Brazil’s second-largest importer was Argentina, despite the extension – until December – of the decision of the Central Bank of Argentina (BCRA) to release payments for imported goods only after 180 days.

“We had problems with Argentina before, and we have always maintained a relevant presence in that market nonetheless. The Argentine market is a captive market for Brazilian footwear,” Ferreira says. Between January and September, Brazil’s neighbors imported 13.35 million Brazilian pairs for a total of US$ 145.3 million, outperforming the corresponding period in both volumes (+44.8%) and revenue (+80.3%).

The third-largest destination for Brazilian footwear abroad was France. Between January and September, 5.3 million pairs were shipped there, generating US$ 48.85 million, indicating stability in volume and a 14.6% increase in revenue compared to the same period last year.

Imports

In September, 1.86 million pairs entered Brazil, generating US$ 37.17 million in cash outflow, increments of 50% and 65% from the same month last year. The primary source of imports in the month was Vietnam, which shipped 975,450 pairs to Brazil for US$ 19.84 million, superior results both in volume (+69.3%) and in revenue (+110%) compared to September 2021. Then came Indonesia (2.3 million pairs and US$ 5.74 million, up 12.5% and 3.6%) and China (172,500 pairs and US$ 3 .46 million, down 4.5% and 5.3%).

In the nine-month period, imports totaled 20.28 million pairs and US$ 271.43 million, up in volume (+23%) and revenue (+15.6%) compared to last year. Vietnam sent the most pairs of shoes to Brazil, 6 million, for US$ 126 million, down 10.2% and 4.4%, respectively, compared to the same period in 2021.

Indonesia was the second-largest source of imports, shipping 2.3 million pairs for US$ 46 million, up 12% and 23.3% from the same period last year. China ranks third in shoe sales to Brazil, with 8.77 million pairs and US$ 38.6 million, up 53.3% and 46%, respectively, from 2021.

In terms of footwear components (uppers, insoles, soles, heels, etc.), imports totaled US$ 21.9 million in the nine months, 13% more than in the same period last year. The main origins were China, Vietnam, and Paraguay.

Sharing is caring!