Executive Summary:

Bangladesh's arts and crafts have always been inextricably related to our culture and heritage.
Leather and leather products have always been a part of that legacy, and the sector regained
pace after Bangladesh became independent in 1971. In the early 1980s, Bangladesh began
exporting crust and finished leather, followed by footwear and other manufactured leather
goods in the 1990s. This sector's export growth is quite positive. In the fiscal year 2019-20,
Bangladesh generated US$797.6 million from the export of leather and leather items (including
footwear). However, there is still a lot of room for improvement and growth in the leather
goods export market. Because it is a labor-intensive industry, there are numerous opportunities
to expand exports in this sector.
With rising disposable income among Bangladesh's middle and upper-middle classes, the
leather products industry has enormous potential. Over the previous decade, the economy has
grown at a rate of over 5%, demonstrating its strength and durability. Bangladesh's leather
industry is the country's second largest export sector, with exports exceeding $1 billion in 2015.
This report was created using information gathered from websites, yearly reports from many
tanneries, and different leather-related literature articles.
Despite recent political upheaval, natural catastrophes, and global recession, Bangladesh's
leather exports grew from USD 765.03 million in 2011-2012 to USD 797.6 million in 2019-20.
With rising disposable income among Bangladesh's middle and upper-middle classes, the
leather products industry has enormous potential. Over the previous decade, the economy has
grown at a rate of over 5%, demonstrating its strength and durability. Despite the global crisis,
the industry's export growth demonstrates its competitive edge, owing to the availability of
high-quality raw materials and low-cost labor.
Depending on these two major factors, the government of Bangladesh has taken several
measures to upgrade the sector. For tapping the vast potentials of the country's leather sector,
the government has already established a sophisticated leather industrial park in Savar, and
two more leather industrial parks will be established in Chattogram and Rajshahi.
Again it is a fact that we still have some short comings regarding this leather sector. But at the
same time, we have some strength and opportunities too. Due to the transformation of the
entire tannery industry to Savar from Hazaribagh, this industry is now in lack of getting
sufficient orders from the buyers. Besides these, the Covid-19 has caused a major damage too
to this industry.

The COVID-19 pandemic has had a substantial influence on the market and its distribution
channels, and the sector requires assistance in developing the market and its distribution
channels. As a result, assistance is critical in developing the necessary capacity to create an
integrated supply chain with capital-intensive and high-value-added stages. The industry must
emphasize building infrastructure and logistics, research, and technology implementation in
order to overcome the economic crisis and survive in this competitive landscape. The
government might also make financing more accessible by establishing a credit line dedicated
specifically to small and medium-sized tanneries and footwear makers. The SMEs in this area
can expect to have a long-term viable business with substantial assistance from government
bodies and associations.