Bangladesh Leather & Footwear Industry Overview
The leather and footwear industry is the sector the Bangladesh government is most actively promoting as the next strategic export pillar after RMG (ready-made garments). As of 2024, leather and leather goods exports totaled approximately USD 1.2 billion, with the government targeting USD 5 billion by 2030. With roughly 50 million livestock slaughtered annually (cattle, goat, and buffalo), raw hide supply is abundant — combined with low labor costs, Bangladesh is rapidly emerging as a global OEM production base for leather goods and footwear.
Footwear exports in particular have grown at an annual average rate exceeding 25% over the past five years, becoming a powerful new growth driver within the leather sector. Local companies such as Apex, Bay, and Jennys serve as OEM producers for global brands including Nike, adidas, and Timberland — opening opportunities for Korean brands to source OEM production and export leather raw materials and accessories.
Export Performance by Product Category
Bangladesh's leather and leather goods exports are broadly categorized into raw/semi-processed hides, finished leather, leather footwear, leather bags/belts/wallets, and non-leather footwear. While raw and semi-processed hide exports previously dominated, the government's ban on raw hide exports and its value-addition strategy have rapidly shifted the composition toward finished product exports.
| Category | Export Value | Share | Key Markets | Growth Rate |
|---|---|---|---|---|
| Leather Footwear | $520M | 43% | EU, US, Japan | 25%/yr |
| Finished Leather | $280M | 23% | Italy, China, Hong Kong | 5%/yr |
| Non-leather Footwear (Synthetic) | $180M | 15% | EU, US | 30%/yr |
| Leather Bags & Belts | $120M | 10% | EU, US, Japan | 20%/yr |
| Semi-processed Leather (Crust) | $60M | 5% | China, Italy | Declining |
| Others (Gloves, Wallets, etc.) | $40M | 4% | Japan, EU | 15%/yr |
Leather Processing Value Chain
The value chain of Bangladesh's leather industry is fully integrated domestically, spanning from raw hide collection to finished product export. Since the relocation of Hazaribagh tanneries to Savar in 2017, environmental standards have been strengthened and production efficiency has improved.
Bangladesh vs. Competitor Countries
Bangladesh's primary competitors in leather and footwear exports are India, Pakistan, and Vietnam. The following comparison highlights each country's strengths and weaknesses to assess Bangladesh's competitive position.
Opportunities and Entry Strategies for Korean Companies
Bangladesh's leather and footwear industry is rapidly growing as the next export engine after RMG, powered by three competitive advantages: abundant raw hide supply, EU GSP+ duty-free access, and low labor costs. For Korean companies, there are multifaceted opportunities in OEM production (footwear and bags), raw material and chemical exports, and environmental technology transfer. Leveraging KOTRA Dhaka's buyer matching services and the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) for local partner connections is strongly recommended.