Hat and Headgear Market Overview in Portugal

After three years of growth, the Portuguese hat and headgear market decreased by -% to $ in 2019. The market value increased at an average annual rate of +% from 2007 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2018 when the market value increased by % year-to-year. As a result, consumption attained the peak level of $, and then dropped slightly in the following year.

In value terms, hat and headgear production shrank to $ in 2019 estimated in export prices. In general, production continues to indicate a abrupt contraction. The pace of growth appeared the most rapid in 2008 when the production volume increased by % y-o-y. Hat and headgear production peaked at $ in 2011; however, from 2012 to 2019, production failed to regain the momentum.

In 2019, consumption of hats and other headgear increased by % to units, rising for the third consecutive year after two years of decline. In general, the total consumption indicated a tangible increase from 2007 to 2019: its volume increased at an average annual rate of +% over the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, consumption increased by +% against 2016 indices. The pace of growth appeared the most rapid in 2018 when the consumption volume increased by % year-to-year. Hat and headgear consumption peaked in 2019 and is likely to see gradual growth in the near future.

The value of the hat and headgear market in Portugal shrank modestly to $ in 2019, with a decrease of -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +% from 2007 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2018 when the market value increased by % year-to-year. As a result, consumption reached the peak level of $, and then reduced slightly in the following year.

The hat and headgear market is expected to start a downward consumption trend over the next decade. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -% for the eleven-year period from 2019 to , which is projected to depress the market volume to units by the end of .

Driven by a growing demand, the share of imports in total supply in Portugal increased significantly over the last twelve years (from % to %).

Portugal remains a net importer of hat and headgear; in physical and value terms, imports consistently exceeded exports from 2007 to 2019. In 2019, there was a significant trade deficit of units, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.