Brazilian Footwear Exports Face Challenges Amid Global Economic Slowdown

Data compiled by the Brazilian Association of Footwear Industries (Abicalçados) reveals that footwear exports in October reached 11.8 million pairs, generating $100 million in revenue. This marks a 5.2% increase in pairs sold but a 12.3% decrease in revenue compared to the same month last year. In the first ten months of 2023, exports amounted to 102.45 million pairs and $1 billion in revenue, showing declines in both volume (-14%) and revenue (-8.8%) compared to the same period in 2022. Despite the drop in shipments, the sector maintains positive results compared to pre-pandemic levels (6.2% in volume and 23% in revenue).

Haroldo Ferreira, Executive President of Abicalçados, highlights that these numbers reflect a global economic slowdown. “In October, the IMF reduced the global economic growth for 2024 by 0.1%. The world is growing below the historical average of the last three years,” he comments.

He adds that, in addition to the slowdown in major economies such as the United States and European countries, which are grappling with high interest rates and inflation, there is increased competition from China in the footwear market. In September alone, China exported 746.4 million pairs of footwear, a 3% increase from the same month the previous year. China’s total footwear exports for the year reached 6.8 billion pairs.

“Naturally, China’s increased presence in the international arena has repercussions for Brazilian shipments,” notes Ferreira. On the other hand, total footwear imports by the United States, the world’s largest footwear importer, declined by 30.5% in the accumulated period from January to September 2023 compared to the same period last year.

The chart below was developed with data from DataLiner, Datamar’s maritime intelligence service. It shows footwear imports into Brazil from January 2020 to September 2023.

Footwear Imports | Brazil | Jan 2020 – Sep 2023 | TEU

Source: DataLiner (click here to request a demo)

Destinations

As the primary destination for Brazilian footwear exports from January to October, Argentina imported 12.9 million pairs worth $202.9 million. This represents a 10% decrease in volume and a 28.7% increase in revenue compared to last year.

The United States was the second-largest destination, receiving 8.62 million pairs, generating $191.2 million, marking declines in both volume (-35.4%) and revenue (-47%) compared to 2022. “Our exports to the United States are declining more than the global average, while China is gaining more space in that country,” evaluates Ferreira.

The third major destination for Brazilian footwear in 2023 was France, with 2.5 million pairs imported for $49 million. This reflects a 55% decrease in volume and a 9.2% decrease in revenue compared to the same period last year.

Origins

Between January and October, Rio Grande do Sul state remained the leading footwear exporter in Brazil. During this period, 30.46 million pairs were shipped from the country’s southernmost state, generating $466.88 million. This represents a 16.7% decrease in volume and a 10.3% decrease in revenue compared to the same interval in 2022.

The second-largest origin of footwear exports was Ceará, which exported 31.25 million pairs for $226.84 million, marking decreases of 10.2% in volume and 0.4% in revenue compared to the same period last year. São Paulo ranked third among export origins.

In the first ten months of the year, 6.65 million pairs were exported from São Paulo factories, generating $94.36 million, with decreases of 26.2% in volume and 20% in revenue compared to the corresponding period in 2022.

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