Brazil apparel sector faces pressure from surging imports

The Brazilian apparel and footwear sector is facing significant pressure from rising imports and changing tax regulations. According to data from IEMI, while domestic consumption of clothing grew by 9.8% between 2021 and 2025, national production fell by 1.9%. During this same period, imports surged by 105%, rising from US$ 1.14 billion to US$ 2.35 billion.

This shift has impacted market share, with the proportion of imported goods in Brazilian consumption increasing from 12.9% in 2021 to 22.2% in 2025.

Compounding these challenges, the Trade Entrepreneur Confidence Index (Icec), released by the CNC, reported a 1.3% decline in sector confidence in September. The clothing and footwear sub-index saw a sharper 4% drop. This pessimism is largely attributed to the end of certain tax protections for low-value international shipments, allowing foreign products under US$ 50 to benefit from federal tax exemptions, which local retailers argue undermines domestic competitiveness.