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Bangladesh is an emerging economic country in South Asia with a high population density in the world. The readymade garments industry of Bangladesh commonly known as the RMG sector is the top ambassador of Bangladesh as a country in the global market. Bangladesh has a long great history of undertaking leather processing business. The leather sector is a source of exports, employment, and economic growth as well as beneficial for our whole society. Leather sector is the second-largest export sector of Bangladesh after ready-made garments. Bangladeshi leather is extensively known around the world for its high quality and covered exports account for a mere 0.6% of the global leather. The leather industry that includes both the leather processing industry and the shoe and leather goods manufacturers is going through the preliminary level of the boom. 56% of the leather is sourced from cows, 30% from goats and the remaining from buffalo. Companies that source leather from Bangladesh include Nike, Puma, CK, H&M, Hugo Boss, Armani, Timberland and many more, only 15%-18% of total leather supplies are required to meet domestic demands, almost 76% of tanneries are export-orientated and exported products include shoes, bags, wallets, belts and finished leather.
The most promising markets for Bangladeshi leather, leather goods, and footwear products to Germany, Italy, France, Netherlands, Spain, Russia, Brazil, Japan, China, UK, Singapore, Poland, the US, Canada, and Taiwan, etc. The composition of leather and leather goods from Bangladesh underwent a structural change. Whereas in 2008, 62% of all export earnings by the leather sector came from finished leather, by 2014, this proportion came down to 39%. The growth of the footwear industry has increased from 20% of total sectorial export earnings in 2003 to 43% in 2015. From FY2013-14 up to FY2016-17 the leather sector engaged an approximate optimistic average annual growth rate of 11%. However, in the fiscal year, 2017-18 leather sectors suffered a huge drop of 12.03%, which was in an upward trend with a growth rate of 6.29% in FY2016-17. Since all the tanneries are yet to become fully operational at the estate, there is a crisis of finished leather as well.
According to Export Promotion Bureau (EPB) data, however, Bangladesh earned $1.23 billion from the leather sector in the FY 2016-17, accounting for 3.54% of the country’s total merchandise exports where the sector's export target for this fiscal year was $1.38 billion. In FY2017-18 (July-June), the overall export target from the leather industry was 1380 million USD, which is achieved by 294.49 million USD with an overall export performance of 1085.51 million USD. Bangladesh meets the demand for about 10% of the world’s total leather market. Leather Industry was developed in Bangladesh on a large-scale mainly in the 1970s as one of the largest industries of Bangladesh. The government considers ‘leather goods and footwear’ as one of the main growth generators for the country. Bangladesh leather industry makes leather-based products such as garments, shoes, belts, bags, and jackets, suitcases, wallets, and some fancy items. These products are sold both in the domestic and foreign markets.
Leather footwear is the fastest growing segment of the leather industry. Bangladesh meets the demand for about 10% of the world’s total leather market. Exports trend of Bangladesh leather industry According to the Leather Goods and Footwear Manufacturers’ and Exporters’ Association of Bangladesh (LFMEAB), the domestic demand of leather footwear and goods was worth about Tk 160 billion but 40 percent of the demands are met by importing goods from abroad. The leather industry, country’s second largest export-earning industry, is observing a continuous decline in export earnings. According to the data of Export Promotion Bureau (EPB), export earnings from the leather and leather products declined by 16.11% to US$434 million in the five months of the fiscal year 2018-19, which was US$518 million in the same period last year. In fiscal 2017-18, according to data from the EPB, export of leather, leather goods, and footwear were USD 1.08 billion. In 2016-17, Bangladesh exported leather and leather goods worth $1.23 billion, compared with $1.16 billion in the previous fiscal year. Export earnings from the leather & leather products declined by 16.11% in the five months of the current fiscal year. Therefore, it shows that the sector is not having a strong and remarkable growth.
Bangladesh is an emerging economic country in South Asia with a high population density in the world. The readymade garments industry of Bangladesh commonly known as the RMG sector is the top ambassador of Bangladesh as a country in the global market. Bangladesh has a long great history of undertaking leather processing business. The leather sector is a source of exports, employment, and economic growth as well as beneficial for our whole society. Leather sector is the second-largest export sector of Bangladesh after ready-made garments. Bangladeshi leather is extensively known around the world for its high quality and covered exports account for a mere 0.6% of the global leather. The leather industry that includes both the leather processing industry and the shoe and leather goods manufacturers is going through the preliminary level of the boom. 56% of the leather is sourced from cows, 30% from goats and the remaining from buffalo. Companies that source leather from Bangladesh include Nike, Puma, CK, H&M, Hugo Boss, Armani, Timberland and many more, only 15%-18% of total leather supplies are required to meet domestic demands, almost 76% of tanneries are export-orientated and exported products include shoes, bags, wallets, belts and finished leather.
The most promising markets for Bangladeshi leather, leather goods, and footwear products to Germany, Italy, France, Netherlands, Spain, Russia, Brazil, Japan, China, UK, Singapore, Poland, the US, Canada, and Taiwan, etc. The composition of leather and leather goods from Bangladesh underwent a structural change. Whereas in 2008, 62% of all export earnings by the leather sector came from finished leather, by 2014, this proportion came down to 39%. The growth of the footwear industry has increased from 20% of total sectorial export earnings in 2003 to 43% in 2015. From FY2013-14 up to FY2016-17 the leather sector engaged an approximate optimistic average annual growth rate of 11%. However, in the fiscal year, 2017-18 leather sectors suffered a huge drop of 12.03%, which was in an upward trend with a growth rate of 6.29% in FY2016-17. Since all the tanneries are yet to become fully operational at the estate, there is a crisis of finished leather as well.
According to Export Promotion Bureau (EPB) data, however, Bangladesh earned $1.23 billion from the leather sector in the FY 2016-17, accounting for 3.54% of the country’s total merchandise exports where the sector's export target for this fiscal year was $1.38 billion. In FY2017-18 (July-June), the overall export target from the leather industry was 1380 million USD, which is achieved by 294.49 million USD with an overall export performance of 1085.51 million USD. Bangladesh meets the demand for about 10% of the world’s total leather market. Leather Industry was developed in Bangladesh on a large-scale mainly in the 1970s as one of the largest industries of Bangladesh. The government considers ‘leather goods and footwear’ as one of the main growth generators for the country. Bangladesh leather industry makes leather-based products such as garments, shoes, belts, bags, and jackets, suitcases, wallets, and some fancy items. These products are sold both in the domestic and foreign markets.
Leather footwear is the fastest growing segment of the leather industry. Bangladesh meets the demand for about 10% of the world’s total leather market. Exports trend of Bangladesh leather industry According to the Leather Goods and Footwear Manufacturers’ and Exporters’ Association of Bangladesh (LFMEAB), the domestic demand of leather footwear and goods was worth about Tk 160 billion but 40 percent of the demands are met by importing goods from abroad. The leather industry, country’s second largest export-earning industry, is observing a continuous decline in export earnings. According to the data of Export Promotion Bureau (EPB), export earnings from the leather and leather products declined by 16.11% to US$434 million in the five months of the fiscal year 2018-19, which was US$518 million in the same period last year. In fiscal 2017-18, according to data from the EPB, export of leather, leather goods, and footwear were USD 1.08 billion. In 2016-17, Bangladesh exported leather and leather goods worth $1.23 billion, compared with $1.16 billion in the previous fiscal year. Export earnings from the leather & leather products declined by 16.11% in the five months of the current fiscal year. Therefore, it shows that the sector is not having a strong and remarkable growth.