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Brazilian footwear: trade balance falls by 30% up to August

Sep 13, 2024 Brazil
Brazilian footwear: trade balance falls by 30% up to August
Brazilian footwear exports continue to fall, while imports continue to rise, leading to a 30% drop in the sector’s trade balance. Low international consumption and competing Asian players are behind the decline, says Abicalçados
According to the latest data from the Brazilian Footwear Industry Association (Abicalçados), between January and August, footwear exports fell by 22.4% in volume (63.87 million pairs) and by 20.4% in value (654.78 million US dollars), as compared to January-August last year. On the contrary, during the same period, footwear imports increased by 12.1% in volume (23.94 million pairs) and declined by 5.1% in value (300.44 US dollars), as compared to the same period in 2023.

This increase in imports and the fall in exports resulted in a 30% drop in the sector’s trade balance, the association points out. 

On the one hand, “in August, we had a sharp drop in the volume of exports to Argentina (-30.8%), which is our second main destination abroad and which has dragged down Brazilian footwear exports”, said Haroldo Ferreira, Executive President of Abicalçados.  On the other hand, “We are experiencing a period of low international consumption. And this lower consumption is being absorbed by Asian producers, especially China, which has returned to the market quite aggressively after the strict policy to contain COVID-19”, he explains.

In fact, Asian countries account for around 90% of the footwear imported into Brazil, with China, Vietnam and Indonesia leading the way. However, Cambodia (fifth main source) and Myanmar (seventh main source) are also on Abicalçados’ radar, as imports from these countries grew by 82.1% and 168.7% in volume and by 62.6% and 156% in value, respectively, on a comparable basis to the same period of 2023.

Main Destinations

The US remains the main destination for Brazilian footwear. Between January and August, the country purchased 6.95 million pairs, worth 147.62 million US dollars, down by 5.3% in volume and 8.3% in value, as compared to the first eight months of last year.

For Argentina, the second most important destination, Brazil shipped 6.8 million pairs worth 128.7 million US dollars, a decrease of 36.7% in volume and 23.4% in value compared to the same period last year. 

Paraguay comes next: the neighbouring country purchased 5.47 million pairs of yellow and green shoes, worth 28.2 million US dollars, down by 19.2% in volume and 12.8% in value, as compared to the same period of last year.

Brazilian Footwear Industry

According to the World Footwear 2024 Yearbook (more information available HERE), Brazil has one of the world’s largest footwear industries and its substantial domestic market is predominantly supplied by local production. In 2023, Brazilian footwear exports declined significantly from the previous year’s record levels, largely due to reduced consumption in the US. Meanwhile, imports into the Brazilian market continued to rise.


Image Credits: Samuel Costa Melo on Unsplash



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