One of the world’s leading leather producers and exporters, Brazil, has showcased its strength as an industry market leader. The country also boasts the largest commercial cattle herd in the world. However, in recent years, the leather market has grown stagnant and is witnessing various issues. One of them is that many businesses are solely focusing on the export of wet blue. This situation has impacted several productive business chains and chemical industries that focus on the leather segment.
Furthermore, due to more time and attention being spent towards health and combatting the coronavirus, the Brazilian leather market is taking a major hit. It has already witnessed drastic changes to its routine, dynamics, and overall growth.
Another segment that has been most affected due to the COVID pandemic is the footwear industry. There have been drastic cuts in the labor force and the market could witness a 29% fall as the year progresses. According to the latest market research, a staggering 28.4 thousand jobs in the footwear industry have been lost so far.
Amid the pandemic, few segments such as the meat export industry and the beam house operations are fortunately running smoothly. However, the tanneries that contribute to the subsequent beam house processes are practically paralyzed. The pandemic has also affected Brazil’s economic situation and the death rate seems to increase by the day. The country is also noticing a growth in insolvency issues accompanied by market uncertainties. However, for the market to stabilize, the pandemic needs to be dealt with first. Realizing this veracity, Brazil, like other countries is trying its best to take care of the health of its citizens and ride the COVID wave in stride.