Brazilian shoe manufacturers claim rebound as domestic sales, exports heat up

The intense domestic market recovery and the ongoing expansion of export numbers have encouraged the Brazilian shoe manufacturers to adopt a more optimistic stance. The Abicalçados industry association raised its growth estimate from 1.8% to 2.7% (on average 2.3%) to 2.1% to 3.8% (on average 3%).

The executive president of Abicalçados, Haroldo Ferreira, explains that the growth was revised based on the latest production data disclosed by IBGE, which indicated a 9% expansion in July compared to the same month of 2021.

Please find below the track record of footwear exports, in container shipments, from Brazil from January 2022 to July 2022. The chart below was plotted considering Mercosur’s NCM codes HS 6400 to HS 6406.

Brazilian Footwear Exports | Jan 2019 – Jul 2022 | TEUs

Source: DataLiner (click here to request a demo)

Year to date, from January to July, Brazilian shoe manufacturers grew 3% in terms of output compared to the same period in 2021. Also, according to Ferreira, in the second half of the year, the estimate is for a growth of more than 18% from the first half of the year.

The increase in the production of pairs of shoes projected by Abicalçados means more than 31 million pairs compared to 2021, totaling a production of 823.2 million to 837 million pairs.

Domestic retail recorded an increase of 17.2% in the volume of shoes sold in the first half, compared to the same period last year. The domestic market accounts for around 80% of the footwear industry’s total sales.

Between January and July, exports totaled 86.87 million pairs, generating US$ 763.4 million, an increase in both volume (31.8%) and income (64.8%) over the same period last year. According to Abicalçados, sector exports will increase from 21.6% to 28.4% in 2022 (from 150.4 million to 158.8 million pairs).

Source: Valor Econômico

To read the full original article, please go to: https://valor.globo.com/empresas/noticia/2022/09/05/abicalcados-industria-eleva-projecao-com-retomada-do-mercado-interno-e-exportacoes.ghtml

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