Home to one of Europe’s leading footwear production clusters, Portugal is sought after above all for its leather shoes, which in 2023 accounted for 71% of its exports. The sector not only aims to go further by diversifying the destination of its production but also intends to multiply its growth options. To this end, it has invested in technological development to strengthen its presence in segments such as technical and professional footwear.

Industry looks to technical and professional footwear for growth

With its sights set on these segments, the industry aims to double exports of technical footwear to reach 100 million euros by 2030.

Reinaldo Teixeira, president of the Footwear Technology Center, stressed in a statement issued by APICCAPS that “Portugal already has all the conditions to establish itself as a benchmark in the development of technical footwear,” adding: “We have the knowledge, the installed capacity, and we are prepared to expand our offer, even in the military segment.”

The military segment is, in fact, one of the sector’s big bets in the field of professional footwear. Luís Onofre, president of the Portuguese Association of Footwear, Components, Leather Goods and Their Substitutes (APICCAPS), believes that the expected increase in investment in defense, considering the current world scenario, represents “an opportunity” for the sector.

“Portugal has a long tradition of supplying the main European security and military forces,” he recalled, adding that the “reinforcement of NATO countries’ defense budgets could be an opportunity” for the Portuguese industry.

Sector invests 50 million euros with FAIST project

As this is a more demanding segment in technical terms and in terms of certifications, in order to consolidate and expand its horizons in this type of footwear, the Portuguese cluster has invested in initiatives that cover the industry as a whole.

The FAIST (Acronym for Agile, Intelligent, Technologically Sustainable Factory) mobilizing project was born precisely with the aim of developing cutting-edge technology capable of providing companies with the best technical solutions to respond to the market. As part of the PRR (Recovery and Resilience Program), it brings together 44 partners and brings with it an investment of 50 million euros to enrich the sector “with innovative technologies, processes, and sustainable materials, increasing its ability to respond to market demands and continuing to make the Portuguese footwear and leather goods industry the most modern in the world.”

Led by the company Carité and technically coordinated by the CTCP (Footwear Technology Center of Portugal), the consortium involved in the FAIST project brings together 14 footwear and leather goods companies, nine component companies, 15 technology-based companies, and six associative entities from the scientific and technological interface, which have come together to invest in the “development of robotic and automated production processes, production management and control software, in parallel with the development and production of new types of ecological and sustainable products.” In more precise terms, the consortium has committed to developing 34 pieces of equipment, 20 software solutions, five integrated production lines, more than 15 innovative footwear products and components, and three pilot experimentation and demonstration units.

With companies such as Carité and AMF committed to developing technical and professional footwear, particularly using new automated production solutions, or Fernando Ferro developing and producing automation lines to equip the major players in the sector, Portuguese footwear has taken consistent steps to assert itself beyond the boundaries of classic models made from leather.

Florbela Silva, FAIST’s coordinator, believes that the project “is repositioning the Portuguese footwear industry internationally”: “Re-industrialization and the use of high productivity processes are allowing companies to manufacture faster and at competitive prices, managing to enter the large distribution chains, particularly in the more technical segments.”

An industry with an international outlook

In 2024, the Portuguese footwear cluster (which includes footwear, components, and leather goods companies) generated 2.2 billion euros, with footwear accounting for 77% of exports, leather goods (bags and accessories such as belts) for 19% and components for 4%.

Exporting 90% of its production to over 170 countries, almost 80% of the sector’s output is destined for the European Union, with Germany leading the way (23%), followed by France (19%) and the Netherlands (12%).

The efforts to diversify Portuguese footwear have also involved diversifying the countries of destination. Currently, the United States is the largest market for Portuguese footwear outside Europe, accounting for 5.2% of the cluster’s exports, which have also invested in Asian and Latin American markets to reduce dependence on Europe and multiply growth opportunities.