Footwear industry: exports of chemicals and components total USD 163 million

Data from the industry association Assintecal indicates that in May, about US$ 23 million in materials were shipped, down 66% from the same month in 2022. In the first five months of this year, exports of components and chemicals used in the footwear industry generated US$ 163 million, representing an 11% decrease compared to last year. In turn, compared to before the pandemic (2019), the sector kept a positive growth rate of 8%.

Luiz Ribas Júnior, Assintecal’s International Market manager, comments that this data reflects a “market adjustment” process as production resumes in China and freight costs normalize, which had previously favored Brazilian exports, particularly to Latin American markets. He evaluates, “The above-average figures from 2022 resulted from an international market situation that no longer exists. The appropriate comparison juxtaposes current numbers with before the pandemic; in this case, we maintain a positive growth rate.”

Shipments are expected to recover throughout the second half of the year, possibly reaching a higher level compared to 2022. In the previous year, sector exports reached US$ 421.2 million, a 12% increase compared to 2021 and an 18% increase compared to 2019.

Destinations

During the first five months of 2023, the primary international destination for Brazil’s exports of chemicals and footwear components was China, with shipments esteemed at around US$ 28 million (a 42% decrease compared to the same period in 2022). Argentina ranked second with US$ 21.27 million (a 101% decrease), followed by Portugal with US$ 14.18 million (a 74% decrease), and Colombia with US$ 3.88 million (a 21% increase). Ribas Júnior comments, “Latin America, despite importing less from Brazil, is still a market captivated by the Brazilian industry during the pandemic. Seven of our top ten destinations are in Latin America.”

States

The largest exporter of components and chemical products for leather and footwear in Brazil is Rio Grande do Sul. In the first five months of 2023, Rio Grande do Sul factories exported the equivalent of US$ 92.24 million, a 10% decrease compared to the same period in 2022. São Paulo ranked second in 2023 with US$ 25.18 million (a 13% increase compared to 2022), followed by Santa Catarina with US$ 3.43 million (a 90% decrease).

Materials

This industry’s most exported material is leather-focused chemicals, generating US$ 93.94 million in the first five months of the year, a 13% increase compared to the same period last year. Uppers ranked second with US$ 28.2 million (a 71% decrease), followed by shoe chemicals/adhesives with US$ 23.77 million (an 11% increase), synthetic laminates with US$ 8.6 million (a 1% increase), soles with US$ 2.48 million (a 38% decrease), and insoles with US$ 887.78 thousand (a 118% decrease).

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