Portugal’s footwear industry grows quicker than in Italy

Portugal’s footwear industry grows quicker than in Italy - Portugal Business News

Portugal news - Portugal’s footwear industry grows quicker than in Italy due to low exports prices coupled with quality, as shown in the chart below comparing the average price of footwear exports from Italy and Portugal in euros from 2013 to 2022.

Luxury footwear in Portugal is attracting global brands since export prices are less than half the cost of Italian footwear. While the average price of footwear exports in Italy is 66.6 euros, the average price in Portugal is 27.7 euros, that is 38.9 euros lower compared to footwear prices in Italy.

Chart comparing the average price of footwear exports from Italy and Portugal in euros from 2013 to 2022:

The Portuguese footwear industry manufactured 81 million pairs of shoes in 2023 and, while footwear production in Portugal fell by 3.6% in 2023, it fell by 8.6% in Italy and by 6% globally.

Portugal’s footwear industry is more resilient compared to Italy and globally. Over the last decade, footwear production in Italy has fallen by 26.7%, while production in Portugal increased by 8% between 2013 and 2023, according to APICCAPS.

According to a study of the Portuguese footwear industry by EY Parthenon entitled “The footwear industry’s path towards luxury”, commissioned by APICCAPS, Portugal has lower production costs compared to Italy, since the average gross salary in the sector is around 1,004 euros. However, Portugal’s footwear industry is investing to increase productivity with a strategic plan until the end of the decade that includes investments estimated at 600 million euros. These include investments in areas such as automation, digitalization, sustainability, internationalization and employee qualifications, that will better position Portugal in the luxury footwear segment.

While almost nine out of ten pairs of shoes are manufactured in Asia, with China accounting for 55% of global footwear exports, exports from Asia registered a 7% decline in 2023 while exports from Europe only fell by 5%. This indicates signs of nearshoring in Europe and global footwear brands are now turning to Portugal’s footwear industry due to low prices coupled with high quality and service.

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