How US$4.50 Chinese shoes are putting pressure on Brazil’s footwear industry

Some pairs of shoes imported from China arrived in Brazil in 2025 at an average price of just US$4.50.

While it may look like just another foreign trade statistic, the figure helps explain why Brazil’s footwear industry ended the year producing less, employing fewer people and losing ground in both the domestic and export markets.

As domestic manufacturers faced high interest rates, weaker consumption and stronger international competition, imports rose 20.6% to 43.2 million pairs, the highest volume in a decade.

Hence, the year was challenging for a sector that has traditionally been strong in Brazilian industry. Even as footwear prices rose by about 4% in 2025, domestic production fell 1.9% to 847.5 million pairs.

The data are part of the 11th edition of the Footwear Industry Report — Brazil 2026, released by Abicalçados.

According to Haroldo Ferreira, the association’s executive president, 2025 brought significant challenges for the footwear industry. The first half was supported by economic activity and exports, while the second half of the year brought weaker consumption, higher household debt and a more adverse international environment.

The pressure came mainly from Asia. China, Vietnam and Indonesia accounted for 78.5% of the pairs imported by Brazil in 2025. In value terms, Vietnam, Indonesia and Italy concentrated 82.5% of foreign purchases.

The trend is not new, but it has gained momentum in recent years. Imports have grown steadily since 2021.

Datamar data shows that Brazil imported 2,479 TEUs of footwear in the first four months of the year. The chart below shows the monthly volumes:

Footwear Imports | Jan 2023 – Apr 2026 | TEUs

Source: DataLiner (click here to request a demo)

The price gap helps explain that advance. Chinese shoes entered Brazil at an average price of US$4.50 per pair, a level that is difficult for Brazilian industry to match, especially in the most price-sensitive segments.

In addition to traditional Asian exporters, new competitors are beginning to gain ground. Imports from Paraguay rose 76.1% in 2025. Shipments from the Philippines increased 122.6% in value, while Ecuador posted a 52.5% rise in volume.

The increase in imports came as demand weakened. Apparent footwear consumption in Brazil fell 1.9% in 2025 to 786.7 million pairs.

In a smaller market, competition for space became more intense. Domestic production declined to 847.5 million pairs, and capacity utilization fell to 73%, the lowest level in three years. In practice, one in every four machines in Brazilian factories was idle.

Retail sales of fabrics, clothing and footwear rose only 1.3% in volume during the year, below the performance of retail as a whole. With households more indebted and income growing more slowly, some consumers prioritized durable goods and cut spending on clothing and footwear.

The slowdown also affected employment. The footwear industry ended 2025 with 271,400 formal jobs, down 1.1% from the previous year, equivalent to about 3,000 jobs lost.

Rio Grande do Sul, the sector’s main export hub, recorded the sharpest decline, at 5.7%. States more focused on the domestic market performed better. Bahia and Paraná posted 7.1% growth in employment, while Paraíba advanced 3.3%.

The Northeast now accounts for 50.5% of Brazil’s footwear production by number of pairs.

Conditions also deteriorated in the export market. In 2025, the United States raised tariffs on Brazilian products, affecting the footwear sector.

According to Abicalçados, the measure led to a drop of about one-third in monthly exports to the U.S. market in just four months.

The United States remained the main destination for Brazilian footwear by revenue, with US$211.7 million in purchases, but the result was 2.1% below 2024.

Overall, exports ended the year at US$958 million, down 1.8%.

Ferreira said exports would have performed worse without the growth recorded in the first half of 2025.

The outlook for 2026 remains uncertain. In Abicalçados’ most pessimistic scenario, domestic production could fall 1.2%. In its most optimistic scenario, it would rise by only 1.4%.

Exports are expected to remain under pressure from U.S. tariffs, Argentina’s slowdown and higher global logistics costs.

For an industry that generates about R$40 billion a year and employs more than 271,000 people, the challenge goes beyond returning to growth. The question now is how much space Brazilian manufacturers will be able to preserve in a market increasingly contested by foreign competitors.

Source: Exame

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