Bangladesh’s leather and footwear industry has solidified its position as the country’s second-largest export sector after RMG, contributing over USD 1 billion in exports and employing 200,000+ people. Recognized as a top priority in Bangladesh’s investment strategy (BIDA’s Category A for leather and B for footwear), the sector benefits from fiscal incentives, dedicated industrial zones, and robust backward linkages.
Leather exports reached USD 119 million, while leather footwear surged over 100% from FY20 to FY24, with the U.S. commanding a 32% market share. The non-leather footwear segment has also emerged as a high-growth area, expanding by 120% over the last decade and drawing attention from global brands like Fila, H&M, and Decathlon.
However, challenges persist. Limited LWG-certified tanneries, weak CETP management, compliance gaps, raw material quality issues, and skill shortages hinder sector competitiveness. In response, the government and industry are focusing on environmental upgrades, E-traceability, and investment branding to meet global sustainability demands.
Future prospects are strong. With strategic policy support, improved logistics, traceability tech, and increasing certification adoption, Bangladesh is well-positioned to grow its leather export earnings to USD 10–12 billion by 2030, capturing greater global market share and reinforcing its status as a competitive manufacturing hub for both leather and non-leather footwear.
