The backpack market - Brazil

The global backpack market is growing and displays positive expectations. This growth is mainly driven by the high demand in China and the Asia-Pacific region, while the American market, on the other hand, is progressively weakening. The average price of backpacks in Brazil have gone up by 10% between the end of 2017 and the beginning of 2019, pushed in particular by the devaluation of the real in comparison with the dollar. According to the Brazilian Association of Manufacturers and Importers of School and Office Items (Abfiae), the rise in prices (which is more than twice the inflation rate on the same period) is due to the increasing cost of raw materials used in the products. In case of backpacks, almost 100% of the products are imported, which actually pushes towards a contraction of the demand. [BandNews FM] However, the backpack market is traditionally known to display an organic growth every year, especially thanks to students having to carry school materials and adults to carry work and/or gym equipment. In addition, some players (e.g. Samsonite) have been betting on the recovery of the Brazilian economy, planning substantial investments in the country. [EXAME] Finally, Licensing is a growing trend that is expected to drive the category’s growth.