Brazilian Footwear Trade Balance Plummets 23% Amidst Export Challenges

As a result of hard-to-complete footwear exports and an increased inflow of imports into Brazil, the footwear industry trade balance shrank by 23% over the past year. Data compiled by the industry lobby Abicalçados indicates that, last year, exports amounted to 118.34 million pairs, or USD 1.16 billion, a decline of 16.6% in volume and 10.8% in revenue compared to 2022.

The figures observed in December alone were even more significant. The data shows that, compared to the same month in 2022, exports amounted to 7.45 million pairs – USD 73.44 million – down 41.5% and 33.3%, respectively.

Haroldo Ferreira, the executive president of Abicalçados, commented that the downward trend was expected, especially given the slowdown in the economies of the United States and Europe, with high-interest rates and record inflation. “The United States, the main international destination for Brazilian footwear, dragged the numbers even lower. The drop for that market was three times larger proportionally than the overall decline in exports,” assesses Ferreira. In addition to the global economic slowdown, the executive mentioned revamped Chinese production, which increased international competition.

Over the year, imports of footwear grew larger. Between January and December, 28.36 million pairs entered Brazil for USD 442.73 million, an increase in both the number of pairs (+9.8%) and revenue (+20.6%) compared to 2022. The main origins continue to be Asian countries. Vietnam, Indonesia, and China alone accounted for over 80% of the footwear entering Brazil.

Vietnam was the year’s top source of supply with 9.5 million pairs and USD 213 million in imports—rises of 15.6% and 21.4%, respectively, over 2022). China (9.46 million pairs and USD 47.9 million, declines of 8.9% and 2.9%) and Indonesia (4.5 million pairs and USD 87.5 million, increases of 45.8% and 42.2%) rounds up the list.

The chart below displays Brazilian exports of footwear measured in TEUs juxtaposed with imports between Jan 2019 and Nov 2023. The data is from DataLiner.

Brazilian Footwear Exports and Imports  | Jan 2019 – Nov 2023 | TEU

Source: DataLiner (click here to request a demo)

Destinations

The United States, the primary destination for Brazilian footwear throughout 2023, contributed to the decline in exports. Between January and December last year, 10.64 million pairs and USD 227 million were shipped there, down 40.4% in volume and 32% in revenue from 2022.

Despite internal difficulties, especially regarding limited international reserves, Argentina was the second destination for Brazilian footwear last year. During the period, 14 million pairs and USD 223.8 million were shipped there, a decrease of 11.8% in volume and an increase of 24.8% in revenue compared to 2022.

Closing the podium of top destinations in 2023 was France. In the year, 2.84 million pairs were shipped to the Old Continent country for USD 58.8 million, a decline of 53.5% and 10%, respectively, compared to 2022.

Abicalçado’s full data report may be accessed here.

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