The national production of household items recorded growth in the first half of 2024, signaling a robust recovery in the sector. According to data from IEMI – Market Intelligence, disclosed in partnership with ABCasa (Brazilian Association of Home Articles, Decoration, Presents, Household Utilities, Parties, Flowers and Textile, the accumulated production of home articles grew 5,3%, surpassing the national manufacturing industry average
This positive trend becomes more prominent when we observe the growth in terms of revenue, that reached about 6,4% in the same period. These numbers are encouraging and indicate a promising scenario for Brazilian production, driven mainly by the increase in sales
In retail, home articles also showed a significant improvement. The segment recorded an increase of 4,5% to 5% in the first half of 2024, surpassing 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
For Anderson Passos, executive director of ABCasa, the recovery of the market occurred due to various factors, among them the consumption of Brazilian families. Despite the severe impact of high inflation, there are signs of recovery 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 traditionally stronger second semester in terms of sales, affirms the executive
Based on the positive performance of the first half of the year, the projections for the remainder of 2024 are quite optimistic. It is expected that national production of household items will grow by 4,5% and 5% until 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 year-end celebrations
For the retail of home goods, the expectation is for an increase in consumption of 3,5% and 4% in 2024 compared to the previous year. This scenario is favored by the reduction of inflation, lower indebtedness of families and the gradual recovery of purchasing power post-pandemic. The improvement in general economic conditions contributes to a more favorable environment for consumption, steps
ABCASA FAIR SURVEY: MARKET SENTIMENT
An online survey conducted with visitors of the 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 that the situation will remain stable. Regarding sales expectations, 42,34% expect a modest increase and 33% anticipate an evolution in sales in the coming months
The main economic challenges mentioned by the interviewees include the increase in costs (26%), demand reduction (23%), competition (20%) and lack of innovation (9%). When asked about the factors that can contribute to the maturation of their businesses, 39% pointed out innovation, 24% increase in demand, 19% cost reduction and 17% market expansion
GOVERNMENT EVALUATION AND SUGGESTED MEASURES
On 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 reduction of taxes (31,35%), incentive for innovation (15%), support for small businesses (27%), improvement in infrastructure (9%) and stimulus to consumption (14%)
The data presented by IEMI and the perceptions of the participants at the ABCasa Fair provide a comprehensive and optimistic view for the home goods sector in Brazil, with expectations of sustained growth in both production and consumption throughout 2024
