Brazilian footwear industry grows 64.8% year-to-date

The Brazilian Footwear Industry Association (Abicalçados) indicates that, between January and July, footwear exports totaled 86.87 million pairs, which generated US$ 763.4 million in earnings, both in volume (+ 31.8%) and revenue (+ 64.8%) compared to the same period last year.

In July alone, 12 million pairs were shipped in exchange for US$ 111.84 million, up 35.3% in pairs and 50.8% in revenue compared to the same month in 2021.

See below the track record of Brazilian footwear exports from January 2021 to June 2022. The chart below was designed with data collected by Datamar’s business intelligence team on the DataLiner platform.

Exports of Footwear from Brazil | Jan 2021 – Jun 2022 | TEUs

Source: DataLiner (click here to request a demo)

The executive president of Abicalçados, Haroldo Ferreira, highlights that other markets in Latin America have been decisive in the growth dynamics of the Brazilian footwear industry.

“Brazil has benefited, in the scenario of increasing international sea freight, from its logistical proximity with the countries that have switched from Asia to Brazil,” says the executive, noting that, between January and July, exports to Latin American countries increased by 76.3% in value and 39.3% in volume compared to the same period the previous year, thus exceeding the general average.

“These countries accounted for 44% of Brazil’s exports in the first seven months of the year. Seven of the top ten destinations are in Latin America,” adds Ferreira.

Destinations

The leading destination for Brazilian footwear abroad continues to be the United States. Between January and July, exports to the region totaled 13 million pairs, which generated US$ 208.3 million, an increase of 67.3% in volume and 90.7% in revenue compared to last year. Considering July alone, 1 million pairs were shipped to the United States for US$ 26.5 million, a 25% drop in volume and a 24.9% increase in revenue compared to month seven of 2021.

Despite the Central Bank of Argentina (BCRA) resolution published on June 27th, changing the conditions of access to foreign currencies used for import payments only after 180 days, the neighboring country remains the second destination for Brazilian footwear abroad.

Between January and July, 10.2 million pairs were shipped, generating US$ 109.8 million, up in volume (+66.8%) and revenue (+91%) from 2021. In July, shipments to Argentina totaled 2 million pairs for US$ 19.13 million, an increase of 94.2% in volume and 105% in revenue compared to July last year.

“These numbers most likely refer to deals that had already been closed before the resolution was enacted. Let’s wait for the next few months to get an exact idea of the measure’s effect. What is certain is that Brazilian footwear is in great demand in that demand,” explains Ferreira.

The third-largest destination for Brazilian footwear in the first seven months of 2022 was France. In the period, 4.87 million were shipped to the European country, generating US$ 40.9 million, up both in volume (+21.4%) and revenue (+19.6%) compared to the same period last year. However, in July, exports to France totaled 276,400 pairs, for which US$ 4 million were paid, a decline of 57.7% in volume and 34.3% in revenue compared to the same month in 2021.

Imports

Between January and July, more than 17 million pairs were imported into Brazil, for which US$ 204.23 million was paid, representing a 26.4% rise in volume and a 9.8% increase in income over the same time last year.

The main origins of the footwear imported by Brazil are still Asian countries: Vietnam (4.5 million pairs and US$ 94.27 million, down 13.3% and 10.3%, respectively, compared to the same period last year), Indonesia ( 1.74 million pairs and US$ 35.4 million, up 5.7% and 16.3%, respectively) and China 8.33 million pairs and US$ 30.37 million, up 63% and 49.4%, respectively).

In terms of footwear – uppers, heels, soles, insoles, etc. – imports in the seven months totaled US$ 7.66 million, 1.6% more than in the same period last year. The main origins continue to be Paraguay, China, and Vietnam.

Sharing is caring!