According to the latest data from the Export Promotion Bureau (EPB), Bangladesh experienced a decline of 1.74% in overall exports in FY2022-23, largely due to the global economic crisis resulting from the Russia-Ukraine war. The government had anticipated a 15.64% YoY growth in leather and leather product exports for the same period. The country’s earnings from the leather sector amounted to $1,223.62 million, falling 15% short of the $1,440 million target. While leather product exports showed positive growth, leather and leather footwear exports witnessed a decline in the past fiscal year.
The decline in leather exports was attributed to lower orders from Europe, the largest market for Bangladesh’s leather and footwear sector. Leather footwear exports decreased by 6.93% YoY, while leather exports declined by 18.45% in FY23. However, the shipment of leather products saw a rise of 17.40%.
Industry experts highlighted the adverse impact of the Ukraine-Russia war and the ongoing compliance issues in the leather sector. The lack of international standard leather and the non-compliance of the Savar Tannery State were identified as obstacles to expanding the leather market to the USA.
The leather sector remains a vital emerging export item for Bangladesh, with efforts underway to address compliance issues and obtain Leather Working Group (LWG) certification. The country’s leather and leather goods exports have shown fluctuations in recent years, but the global leather goods market is projected to grow steadily, reaching $624.08 billion by 2028.
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