Brazilian Footwear Exports Decline Amidst Sluggish International Demand

Data released by the Brazilian Association of Footwear Industries (Abicalçados) reveals a downturn in the industry during the first half of the year. With a decrease of 13.6% in volume and 3.8% in revenue compared to the same period last year, footwear shipments reached 64.74 million pairs, generating a revenue of US$ 626.5 million. In June alone, footwear exports experienced a significant drop of 30.3% in volume and 22% in revenue, with 7.4 million pairs exported, amounting to US$ 88.12 million.

Haroldo Ferreira, the chief executive of Abicalçados, expressed concern over the decline in shipments, despite surpassing pre-pandemic levels seen in 2019. Ferreira comments, “In those six months, we had numbers 13% lower in volume and 30% lower in revenue than the 2023 records. The fact is that the pandemic deregulated the market, and now we are going through an adjustment phase. Last year was extraordinary in all its numbers, and it is natural to experience a drop due to such a high comparison basis. But the decline is occurring more rapidly than we anticipated.”

Ferreira highlights that the negative indices cannot be solely attributed to the comparison basis. He states, “There is a slowdown in the international economy, primarily in the United States, our main destination for footwear. Clearly, this has an impact on the industry.”

See below the pace of Brazilian footwear exports in containers between Jan 2019 and May 2023, according to the DataLiner maritime intelligence service.

Footwear exports | Jan 2019 – May 2023 | TEU

Source: DataLiner (click here to request a demo)

During the first semester, Argentina emerged as the leading destination for Brazilian footwear exports. Despite a 4.3% decrease in volume, 7.84 million pairs were shipped to Argentina, resulting in revenue of US$ 128 million, representing a significant 41% increase compared to last year.

However, the United States, grappling with a fragile economy and high inventories, reduced its imports of Brazilian footwear in 2023. Shipments to the United States declined by 38.5% in volume and 55.5% in revenue, with 5.32 million pairs exported, generating US$ 111.77 million during the first half of the year, compared to the same period in 2022.

France ranked as the third international destination for Brazilian footwear in the first half of the year. Importing 1.78 million yellow-green pairs, France experienced a substantial decline of 61.2% in volume and 16.6% in revenue, amounting to US$ 30.7 million, compared to last year.

Fonte: Abicalçados

Sharing is caring!