The national production of articles for home has evolved in the first half of 2024, signaling a robust resumption in the sector. According to data from IEMI (Market Intelligence, released in partnership with ABCasa (Brazilian Association of Household Articles, Decoration, Gifts, Household Utilities, Parties, Flowers and Textiles), the cumulative production of articles for home grew 5.3%, exceeding the average of the national manufacturing industry.
This positive trend is more prominent when we observe the growth in terms of revenue, which reached about 6.4% in the same period. These numbers are stimulating and indicate a promising scenario for Brazilian production, mainly driven by the increase in sales.
In retail, home goods also showed a significant advance.The segment registered an increase of 4.5% to 5% in the first half of 2024, exceeding the national average. This growth is relevant, especially considering the modest performance observed on Mother's Day, one of the most important dates for the sector.
According to Anderson Passos, executive director of ABCasa, the market recovery occurred due to several factors, including the consumption of Brazilian families. Despite the severe impact of high inflation, there are signs of resumption in 2024. “The normalization of the consumption capacity of Brazilian families is a positive sign for the home goods market, especially in the context of a second half traditionally stronger in terms of sales”, says the executive.
Based on the positive performance of the first half, the projections for the remainder of 2024 are quite optimistic. The national production of home goods is expected to grow between 4.5% and 5% by the end of the year. This improvement will be driven by events such as Black Friday, the entry of the 13th salary and the desire of families to renovate the house for the holidays.
“For retail of home goods, consumption is expected to increase between 3.5% and 4% in 2024 compared to the previous year.This scenario is favored by the reduction of inflation, lower household debt and the gradual recovery of post-pandemic purchasing power. The improvement in general economic conditions contributes to a more favorable environment for consumption”, points out Steps.
ABCASA FAIR SURVEY: MARKET SENTIMENT
An online survey of visitors to ABCasa Fair in August 2024 reveals that 35,71% of respondents expect an improvement in the Brazilian economy in the next half, while 34% believe that the situation will remain stable.In relation to sales expectations, 42,34% predict a modest increase and 33% expect an evolution in sales in the coming months.
The main economic challenges mentioned by respondents include increased costs (26%), reduced demand (23%), competition (20%) and lack of innovation (9%). When asked about the factors that can contribute to the maturation of their business, 39% pointed to innovation, 24% increased demand, 19% cost reduction and 17% market expansion.
GOVERNMENT ASSESSMENT AND SUGGESTED MEASURES
Regarding the government's performance in economic management, 11% of the interviewees evaluated as positive, 28% as neutral and 38% as negative. Among the measures suggested to improve the economic scenario, we highlight the reduction of taxes (31,35%), incentive to innovation (15%), support to small companies (27%), improvement in infrastructure (9%) and stimulus to consumption (14%).
The data presented by IEMI and the perceptions of ABCasa Fair participants offer a comprehensive and optimistic view for the home goods sector in Brazil, with expectations of sustained progress in both production and consumption throughout 2024.
