Bangladesh’s leather industry is the nation’s second-largest export earner, holding a 3% global market share and meeting nearly 10% of worldwide leather demand. The government designates it a priority sector. In 2024, exports reached $1.5 billion, growing 45% year-on-year, with targets of $5 billion in five years and $10 billion by 2035.
From July 2024 to May 2025, total leather exports rose to $1.06 billion (12.55% increase). This growth is primarily footwear-driven: leather footwear surged 28.96% to $620.17 million, and non-leather footwear rose 30.25% to $494.28 million. In contrast, leather goods declined by 3.39% to $317.87 million, and finished leather fell by 7.82% to $119.78 million. This highlights footwear’s strong performance while other segments struggle.
The dysfunctional Central Effluent Treatment Plant (CETP) at Savar is a critical bottleneck, hindering Leather Working Group (LWG) certification. This compliance gap costs an estimated $500 million annually in potential export revenue. Other challenges include poor raw hide management, technological gaps, and new international regulations like REACH and the EU Deforestation Regulation (EUDR).
Opportunities lie in shifting to higher-value finished products, adopting eco-friendly tanning, improving waste management, and exploring plant-based leather alternatives. Increased foreign investment, workforce skill enhancement, and digital transformation are crucial for realizing Bangladesh’s full potential.