Brazilian footwear to reach double-digit drop, assessess industry lobby

Brazil’s footwear exports are expected to end 2024 with a significant drop, possibly reaching double-digit declines. This assessment comes from Haroldo Ferreira, president of the Brazilian Footwear Industry Association (Abicalçados), as he discussed shipment figures from January to July: 56.2 million pairs were exported, generating $570.25 million—a decrease of 23% in volume and 21.6% in revenue compared to the same period last year.

According to Ferreira, there is hope that the decline in exports may ease in the second half of the year. However, he warns that the sector’s shipments are still likely to close the year with double-digit negative figures. “In 2024, in addition to sluggish global consumer demand, we are facing additional challenges in our two main export markets. There has been an influx of Asian footwear in the United States, which is gaining market share at the expense of our products. Meanwhile, in Argentina, a domestic economic crisis is directly impacting our performance. At the start of the year, we hoped for quicker economic recovery, but that hasn’t materialized,” Ferreira explained.

The United States remains the largest market for Brazilian footwear, with 5.97 million pairs imported between January and July, amounting to $125.96 million. However, both the volume (-5.4%) and revenue (-7.5%) have decreased compared to the same period last year.

In Argentina, where the economy is struggling and consumer demand is down, imports have also declined. In the first seven months of 2024, Argentina imported 5.84 million pairs of footwear, valued at $112.17 million—a decline of 37.6% in volume and 24.9% in revenue compared to the same period in 2023.

Paraguay has overtaken France as the third-largest destination for Brazilian footwear exports, importing 4.85 million pairs worth $24.7 million in the first seven months of 2024. These results represent declines of 16% in volume and 8.9% in revenue compared to the same period last year.

Take a look at the chart below to compare footwear exports in containers in the first six months of the year from 2021 to 2024. The information was derived from DataLiner, a Datamar-powered maritime intelligence service.

Footwear Exports | Jan-Jun 2021 x Jan-Jun 2024 | TEUs

Source: DataLiner (click here to request a demo)

Top Footwear Exporters in Brazil

Brazil’s biggest footwear exporter is still Rio Grande do Sul. The state shipped 17.93 million pairs from January to July, bringing in $278.65 million. Comparing that to the same period in 2023, there has been a drop in revenue of 15% and a decrease in volume of 16.3%.

Ceará ranks as the second-largest footwear exporter in the country. In the first seven months of the year, the state exported 17.54 million pairs, generating $119 million—a decline of 21.7% in volume and 29.2% in revenue compared to the same period last year.

São Paulo is the third-largest exporter of footwear in Brazil. From January to July, the state shipped 3.34 million pairs, generating $51.43 million—down 29% in volume and 23% in revenue compared to the corresponding period in 2023.

Source: Exclusivo.com

Click here to view the original news reporting: https://exclusivo.com.br/negocios/exportacoes-de-calcados-do-brasil-devem-fechar-2024-em-queda/

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