September 26, 2025
DHAKA – Bangladesh’s leather sector is showing fresh signs of life. Exports of leather, leather products and footwear earned about $1,145 million in FY2024. By June FY2025 those exports stood near $1,039 million. For leather footwear alone the figures were $672 million in FY2024 and $544 million by June FY2025, reports Export Promotion Bureau (EPB). The footwear segment grew fast. Non-leather footwear, in particular, has risen sharply in recent years. While Bangladesh ranks as the eighth-largest footwear producer in the world, leather goods and footwear together brought in about $1.6 billion last fiscal year which shows there is a good market demand and production capacity.
The industry supports many families. Recent government and sector reviews estimate employment at roughly 8 to 10 lakh people linked to leather and footwear work.
The sector’s gains face clear obstacles. Waste treatment and environmental compliance are a major hurdle. The Central Effluent Treatment Plant (CETP), at the Savar tannery estate has struggled to operate at the required standard. When the CETP is underperforming, tanneries cannot meet buyers’ environmental checks. That limits access to higher-value orders.
Other problems include a thin domestic supply chain for synthetic materials, slow customs procedures, and a shortage of trained technicians for modern production lines. Small factories find it hard to raise funds for upgrades. These bottlenecks raise costs and slow deliveries.
The bright spot again
Footwear is the engine now. Buyers are ordering more from Bangladesh, with non-leather exports set to cross half a billion dollars this year. Investments in modern machines and design have paid off. Factories now produce better styles, while small workshops meet buyer standards. New orders create steady jobs for cutters, stitchers, and packers. Higher quality brings higher prices and repeat business, and the gains could spread further with stronger support for training, credit, and market access.
What LWG means and where it falls short
The Leather Working Group (LWG) is a not-for-profit group that audits tanneries. LWG checks water use, energy use, chemical safety and wastewater treatment. Tanners get ratings when they meet these checks. LWG-certified hides and leather are easier to sell to big buyers.
But many Bangladeshi tanneries are not LWG certified. The main reason is the CETP problem and weak technical records. Certification needs good waste treatment and consistent documentation. Smaller units struggle to meet both. The certification gap keeps some buyers away. Reports also show social risks in parts of the supply chain. Investigations find vulnerable workers in small workshops. These issues raise reputational risk for the sector and for buyers. Therefore, tackling the certification gap will reduce those risks and help the industry sell more furnished leather.
Practical steps government and industry can take
A dependable CETP at Savar would allow more tanneries to meet environmental checks and win back buyer confidence. Private effluent plants can share the load, reducing delays and keeping orders flowing. With waste management in place, factories can focus on audits like those by the Leather Working Group (LWG), which assess water use, chemical safety and treatment.
Government support—short training, low-cost loans, and phased incentives—would help smaller units upgrade and move toward certification. Compliance then becomes not just a burden, but a selling point.
Stronger treatment and certification will also deepen the supply chain, support footwear clusters, and encourage local suppliers of synthetic materials. Faster customs and simpler warehouse rules can further cut lead times. Together, reliable treatment, better suppliers, and timely deliveries create the conditions for larger orders, higher quality, and steady growth.
With this joined-up approach, Bangladesh can turn potential into higher-value exports, reliable jobs, and stronger earnings.