Increase in footwear exports recorded
**Current Expectations and Challenges for the Portuguese Footwear Industry**
The Portuguese footwear industry is gearing up for a year of innovation and growth, with a focus on sustainability and the introduction of new eco-friendly materials. According to the Portuguese Association of Footwear, Components, Leather Goods, and Substitutes Manufacturers (APICCAPS), the sector is seeing the emergence of 24 types of bio-leathers, 26 types of bio-fibres, and 33 new products, a shift that could boost its appeal to environmentally-conscious consumers and strengthen its position in the global market.
The positive economic outlook is also supporting the industry, with the International Monetary Fund (IMF) predicting a 2% growth in Portugal's GDP for 2025. This growth could fuel domestic demand and investment in the footwear sector.
However, the industry is not without its challenges. The global footwear manufacturing industry is experiencing volatile raw material costs, which can impact production costs and profitability. This volatility could affect the competitiveness of Portuguese footwear manufacturers.
The industry's growth is also influenced by external market conditions, such as the performance of key export markets within the EU, which are crucial for Portuguese exports. APICCAPS has expressed concern about the lack of dynamic performance in the main European markets.
The success of the Portuguese footwear industry will depend on its ability to innovate and adapt to changing consumer preferences and technological advancements. The adoption of sustainable materials is a step in this direction but requires continued investment and innovation to remain competitive.
Despite these challenges, companies in the Portuguese footwear industry are optimistic about the coming months. Luís Onofre, the president of APICCAPS, stated that the sector continues to live in a time of great uncertainty but expects it to consolidate its record in the coming months, despite the tough external context.
In January 2025, the footwear sector's sales abroad maintained a positive trend, with 7 million pairs of footwear exported, worth 161 million euros, representing a growth of 8.2% compared to the same month of the previous year.
Companies are investing in strengthening production capacity or in the internationalization process, according to APICCAPS. However, concerns about the shortage of qualified labor have decreased, falling from 13% to 12%. Conversely, the price and supply of raw materials has seen a slight increase in concerns, rising from 34% to 35%.
APICCAPS also highlighted concerns about difficulties related to labor legislation, with references to these difficulties increasing compared to the end of 2024. The association called for political stability and a government capable of making economic growth a national goal.
In addition, the association leader emphasized the need for the State to place all financial instruments at the service of companies, such as the RRP or Portugal 2030, to relaunch export activity. According to APICCAPS, the number of companies that believe the first quarter of this year will be better than the same period in 2024 is higher than those that believe the opposite.
The sector faces another significant challenge in the form of tax legislation, with 18% of companies expecting to face difficulties related to this area, compared to only 13% in the previous quarter. This increase is a cause for "particular concern" for APICCAPS.
It is important to note that the Portuguese footwear industry exports more than 90% of its production, making it a crucial player in the global footwear market. With its focus on sustainability, innovation, and a positive economic outlook, the industry is well-positioned to meet the challenges ahead and continue its growth trajectory.
The Portuguese footwear industry's focus on sustainability and eco-friendly materials could attract finance from environmentally-conscious investors, thereby bolstering its financial status in the business sector. The optimistic economic outlook, with the IMF predicting a 2% growth in Portugal's GDP for 2025, could further stimulate business within the footwear industry.
