Footwear exports total more than USD 900 million; still declining

Data from the Brazilian Association of Footwear Industries (Abicalçados) reveals that from January to September, the country exported 90.63 million pairs of shoes, generating $907.17 million. These results show a decrease in both volume (16%) and value (8.4%) compared to the same period last year. In September alone, the country exported 8.36 million pairs and $84 million, marking declines of 19% and 23.2%, respectively, compared to September 2022. However, when compared to pre-pandemic years, the sector continues to show growth, up 6.1% in volume and 23.7% in value.

Haroldo Ferreira, the Executive President of Abicalçados, notes that the decline in footwear exports was anticipated by the sector. Factors contributing to this decline include macroeconomic challenges and the strong performance of the previous year, particularly due to the strong return of China to the market. Ferreira predicts that the decline will taper off in the coming months, with Abicalçados estimating a 9% drop in shipments by year-end.

Argentina has surpassed the United States as the leading destination for Brazilian shoe exports, importing 11.8 million pairs worth $185.36 million from January to September—an 11.7% decrease in volume but a 27.6% increase in revenue compared to 2022. Despite its economic challenges, Argentina remains a crucial market for Brazilian footwear.

The United States, grappling with an inflation crisis, has reduced its consumption of Brazilian footwear, causing Brazil to lose market share to Asian competitors. Shipments to the United States from January to September totaled 7.9 million pairs, earning $174 million—a 48.4% drop in volume and a 35.7% decrease in revenue compared to the same period in 2022. France ranked third among the destinations for Brazilian footwear, with 2.23 million pairs exported for $42 million, reflecting a 57.8% drop in volume and a 14% decrease in revenue compared to the same period last year.

See below the Brazilian exports and imports of footwear (hs code 64) from Jan 2019 and Aug 2023. The data is from DataLiner.

Footwear exports & imports in Brazil | Jan 2019 – Aug 2023 | TEU

Source: DataLiner (click here to request a demo)

Imports on the rise

In contrast to exports, shoe imports in Brazil are on the rise, with 23 million pairs imported, totaling $348 million from January to September—an increase of 13.4% in volume and 28.2% in revenue compared to the same period in 2022. Asian countries continue to dominate as the main sources of shoe imports, accounting for over 85% of the total entering Brazil. During this period, Vietnam shipped 7.64 million pairs to Brazil, earning $170.44 million—an increase of 26.8% in volume and 35.2% in revenue compared to 2022. Indonesia followed, exporting 3.27 million pairs worth $65.6 million, reflecting a 43% increase in volume and a 42.6% increase in revenue. China, with 8.45 million pairs valued at $39.17 million, experienced a 3.7% decrease in volume but a 1.5% increase in revenue.

According to Ferreira, the surge in imports is exacerbated by the issue of tax exemptions for cross-border e-commerce platforms for products valued at up to $50. These factors collectively pose a challenging and unfair competition for the Brazilian footwear industry.

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