Brazil’s footwear production expected to grow 1.6% in 2023

With the prospect of ending 2022 with a 3% growth (to 843.8 million pairs), the Brazilian Association of Footwear Industries (Abicalçados) projects a more timid increase for 2023: 1.6% (to 857.3 million pairs).

The slower growth rate is explained by the international economic slowdown, global inflation, primarily caused by the war in Eastern Europe, and China’s gradual return to the international market, resulting in a 5.7% drop in footwear exports from Brazil over the next year.

Abicalçados’ chief executive, Haroldo Ferreira, points out that the domestic market should have more weight in the sector’s performance throughout 2023. “It will be an inversion. In 2022, we had a peak in footwear exports, which will likely change in 2023. Still, exports should remain 15.3% above 2019. The domestic market, which accounts for around 85% of our sales, should be more relevant to performance,” assesses the executive.

Impact of exports

According to the Abicalçados chairperson, 2022 will be remembered as a year of recovery for the footwear sector following the losses caused by the Covid-19 pandemic. More recent data from the industry association show that footwear exports totaled 129.2 million pairs and US$ 1.2 billion between January and November, representing increases of 16.7% and 49%, respectively, over the same period in 2021.

“The coefficient of exports – international sales over the total manufactured was around 17% throughout 2022. For next year, we should have an adjustment to 15% in this index,” he projects. According to the IBGE (Brazil’s demographics and statistics institute), domestic sales grew by 4% between January and October compared to the same period in 2021.

Projections for 2023

Footwear production: +1.6%

Footwear exports: -5.7%

Export coefficient: 15%

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