National production of household articles showed growth in the first half of 2024, signaling a strong recovery in the sector. According to data from IEMI – Market Intelligence, released in partnership with ABCasa (Brazilian Association of Home Goods, Decoration, Gifts, Household Utilities, Parties, Flowers, and Textiles), the accumulated production of home articles grew by 5.3%, surpassing the average of the national manufacturing industry.
This positive trend gains more prominence when we observe the growth in revenue, which reached approximately 6.4% in the same period. These numbers are encouraging and indicate a promising scenario for Brazilian production, mainly driven by increased sales.
In retail, home articles also showed a significant increase. The segment recorded an increase of 4.5% to 5% in the first half of 2024, surpassing the national average. This growth is significant, especially considering the modest performance observed on Mother's Day, one of the most important dates for the sector.
For 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 recovery in 2024. "The normalization of Brazilian families' consumption capacity is a positive sign for the home goods market, especially in the context of a traditionally stronger second half in terms of sales," says the executive.
Based on the positive performance in the first semester, projections for the rest of 2024 are quite optimistic. The national production of household articles 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 arrival of the 13th salary, and families' desire to renovate their homes for the holiday season.
“For the home goods retail sector, consumption is expected to increase by between 3.5% and 4% in 2024 compared to the previous year. This scenario is favored by the reduction in inflation, lower household debt and the gradual recovery of purchasing power after the pandemic. The improvement in general economic conditions contributes to a more favorable environment for consumption,” Passos points out.
ABCASA FAIR SURVEY: MARKET SENTIMENT
An online survey conducted with visitors of ABCasa Fair in August 2024 reveals that 35.71% of respondents expect an improvement in the Brazilian economy in the next semester, while 34% believe the situation will remain stable. Regarding sales expectations, 42.34% foresee a modest increase and 33% expect growth in sales in the coming months.
The main economic challenges mentioned by the interviewees include rising costs (26%), reduced demand (23%), competition (20%), and lack of innovation (9%). When asked about the factors that can contribute to the maturity of their businesses, 39% pointed to innovation, 24% to increased demand, 19% to cost reduction, and 17% to market expansion.
GOVERNMENT EVALUATION AND SUGGESTED MEASURES
Regarding the government's role in economic management, 11% of respondents rated it as positive, 28% as neutral, and 38% as negative. Among the suggested measures to improve the economic scenario, the following stand out: tax reduction (31.35%), encouragement of innovation (15%), support for small businesses (27%), infrastructure improvement (9%), and stimulation of consumption (14%).
The data presented by IEMI and the perceptions of ABCasa Fair participants offer a comprehensive and optimistic vision for the home goods sector in Brazil, with expectations of sustained growth in both production and consumption throughout 2024.
