Bangladesh’s leather sector is once again showing signs of momentum. According to the Export Promotion Bureau (EPB), exports of leather, leather goods and footwear reached about $1.14 Billion in FY2024.
By June FY2025 that figure was already close to $1.03 Billion. Leather footwear alone earned $672 million in FY2024 and $544 million by June FY2025. Non-leather footwear has also risen sharply and is now a major contributor.
The industry remains a vital source of income for many. Recent reviews by the government and sector bodies estimate that about 800,000 to 10,00,000 people are linked to leather and footwear work in Bangladesh.
Despite the gains, the sector faces serious obstacles. Waste treatment and environmental compliance are a key challenge.
The Central Effluent Treatment Plant (CETP) at the Savar tannery estate has struggled to run at the required standard. Without proper operation, tanneries fail to meet environmental checks demanded by international buyers, which limits access to higher-value orders.
Other issues include weak domestic supply of materials, slow customs procedures and a shortage of trained technicians for modern production lines. Smaller factories also find it difficult to raise funds for upgrades, which raises costs and slows deliveries.
The footwear segment remains the bright spot. Non-leather exports are on track to cross half a billion dollars this year.
Investments in modern machines and improved design have paid off. Factories now produce better styles and small workshops are meeting buyer standards.
New orders create steady jobs for cutters, stitchers and packers. Higher quality brings higher prices and repeat business. With more support for training, credit and market access, these gains could spread further across the industry.
The Leather Working Group (LWG) plays a key role in shaping global market access. LWG-certified leather is easier to sell to major buyers. But many Bangladeshi tanneries are still not certified mainly due to the CETP problem and weak technical records.
Practical steps are within reach. A dependable CETP at Savar would enable more tanneries to meet environmental checks and rebuild buyer confidence.
Private effluent plants could help share the load and prevent delays. With strong waste management and other compliances in place, factories can focus on audits like those by the LWG.
Government support through short training, low-cost loans and phased incentives would help smaller units upgrade and move toward certification.
Improved treatment and certification would also strengthen the supply chain. Faster customs and simpler warehouse rules can further cut lead times. Together, these steps can create the conditions for larger orders, higher quality and steady growth.
With a coordinated approach, Bangladesh’s leather sector has the potential to turn its current progress into higher-value exports, reliable jobs and stronger earnings.
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