[🇧🇩] Footwear, Rubber and leather Industry in Bangladesh

[Saif]

Adilur visits Savar tanneries to see rawhide preservation

Industries Advisor Adilur Rahman has said rawhides of more than 3.5 lakh sacrificial animals have so far been preserved in the tanneries of BSCIC Industrial City in Savar this year. Moreover, hides of over 7.50 lakh sacrificial animals would be reached to the tanneries very shortly, he said while

thefinancialexpress.com.bd

Adilur visits Savar tanneries to see rawhide preservation

FE ONLINE DESK
Published :
Jun 09, 2025 18:06
Updated :
Jun 09, 2025 18:06

Industries Advisor Adilur Rahman has said rawhides of more than 3.5 lakh sacrificial animals have so far been preserved in the tanneries of BSCIC Industrial City in Savar this year.

Moreover, hides of over 7.50 lakh sacrificial animals would be reached to the tanneries very shortly, he said while addressing a meeting with tannery owners at BSCIC Savar.

Adilur Rahman said this year the government has tried to ensure the proper storing of the rawhides and allow the sellers getting price of the rawhides as fixed by the government, reports BSS.

He said the government has given about 30 thousand metric tons of salt to tanneries for proper processing of the rawhides.

Adilur said the present government is making all efforts for development of the tannery industries. Action will be taken against the persons who are responsible for current miseries of the industry, he said adding that the Anti-Corruption Commission (ACC) has already summoned them.

The adviser also said the government has taken initiatives to modernize the tannery's central waste treatment plant.

Later, he inspected the rawhide preservation activities of the some tanneries.

Leaders of tannery association and other organizations related to leather industry were present.​

 

[Saif]

Record leather prices this year: Bashir Uddin

Trade Advisor Sheikh Bashir Uddin stated that leather prices this year were the highest in a decade and are likely to rise further next year. He emphasised the need for collective efforts and trade expansion to boost the economy. Speaking at a meeting with leather traders in Natore's Chakbaidyanat

thefinancialexpress.com.bd

Record leather prices this year: Bashir Uddin

FE ONLINE DESK
Published :
Jun 10, 2025 18:12
Updated :
Jun 10, 2025 18:12
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Trade Advisor Sheikh Bashir Uddin stated that leather prices this year were the highest in a decade and are likely to rise further next year. He emphasised the need for collective efforts and trade expansion to boost the economy.

Speaking at a meeting with leather traders in Natore's Chakbaidyanath area on Tuesday, he mentioned that while 620 hides were spoiled by seasonal traders in Chattogram, no such incidents occurred in Dhaka, according to local media.

The government has supplied tannery owners with salt samples to ensure proper leather preservation and distributed 750,000 maunds of salt nationwide. Bashir Uddin stressed inclusive business practices and expanding international trade to strengthen the market.

Local officials and business leaders also attended the event.​

 

[Saif]

Raw hide procurement in disarray

Raw hide trade, following the Eid-ul-Azha, is facing serious disruptions, sending distress signals not only to those directly engaged in the business but also to the leather industry as a whole. Seasonal traders, who collect raw hides from across the country during the Eid season, are finding it in

thefinancialexpress.com.bd

Raw hide procurement in disarray

Published :
Jun 13, 2025 00:59
Updated :
Jun 13, 2025 00:59

Raw hide trade, following the Eid-ul-Azha, is facing serious disruptions, sending distress signals not only to those directly engaged in the business but also to the leather industry as a whole. Seasonal traders, who collect raw hides from across the country during the Eid season, are finding it increasingly difficult to sell their stocks. The core issue lies in the disconnect among the collectors, wholesale buyers (aratdars), and tannery owners. While seasonal traders accuse aratdars of offering prices far below expectations, the latter complain that tannery owners are unwilling to pay the government-fixed rates. Allegations abound that tanners have, for several years now, maintained a syndicate to artificially suppress prices in order to maximise profits.

This year, prices of cowhides reportedly dropped 30-40 per cent below the government-fixed minimum retail price (MRP). The government had set cowhide prices at Tk 1,350 in the capital and Tk 1,150 outside, or Tk 60-65 per square foot, up from Tk 55-60 the previous year. Tannery owners have set a target of collecting 8.0 to 8.5 million pieces of hides during the current season. However, as regards their reluctance to buy at government-set prices, they argue that in the wake of the continuing slump in international prices and stocks already available with them from last year's collection, they are not prepared to risk purchases at uncompetitive prices. Reports say, so far, collection of raw hides and skins has been far below the expected level. As a result, many seasonal traders, especially in the northern districts, are reportedly stockpiling unsold hides, anticipating better prices. In the case of goatskins, the situation is even worse. Many collectors, unaware of the prevailing market rates, purchased goatskins in bulk only to find that aratdars were offering throwaway prices, rendering their collections almost worthless.

Observers view this scenario as a troubling sign for the country's leather sector, which is already grappling with various challenges. They fear that in the absence of proper preservation, the raw stuff now lying with the traders unsold may get wasted. At the same time, there is the looming threat of large-scale smuggling to neighbouring countries. If the hides are not disposed of locally well within time, then smuggling becomes the only probable outlet. Informed sources say every year business people from across the border pay substantial amounts in advance to local collectors prior to Eid-ul-Azha to make sure that the illicit cross-border operation succeeds, despite 'watchful eyes' of the border forces on both sides.

To prevent such outcomes, the government must act promptly. Law enforcement and relevant agencies should intensify vigilance along border areas. A coordinated effort involving local administration, industry stakeholders, and security forces is essential to stabilise the raw hide market and protect the interests of both traders and the leather industry. Without timely intervention, the fallout could be severe-economically and reputationally-for a sector that holds significant export potential and employment prospects for the country.​

 

[Saif]

Loan release for leather sector falls short of target

The Bangladesh Bank’s initiative to inject Tk 232 crore into the leather sector for procuring rawhide during Eid-ul-Azha has fallen significantly short, with only Tk 125 crore disbursed to businesses, according to industry insiders...

www.newagebd.net

Loan release for leather sector falls short of target
United News of Bangladesh . Dhaka 12 June, 2025, 23:01

The Bangladesh Bank’s initiative to inject Tk 232 crore into the leather sector for procuring rawhide during Eid-ul-Azha has fallen significantly short, with only Tk 125 crore disbursed to businesses, according to industry insiders.

Bankers cited a lack of interest among leather traders in taking out new loans as a reason for the shortfall, while the industry insiders highlighted a sharp rise in loan defaults, which has made banks more reluctant to extend credit to the sector.

As a result, tannery owners and seasonal leather suppliers have been unable to purchase sufficient quantities of rawhide during the peak Eid-ul-Azha season.

Stakeholders are now calling for easier loan terms and relaxed documentation requirements ahead of what is typically the country’s largest rawhide collection period.

Although nine banks initially approved Tk 232 crore in loans for rawhide procurement this year, only Tk 125 crore was disbursed, leading to a funding shortfall that entrepreneurs say has hampered both the collection and processing of rawhide.

According to sources, the Tk 125 crore disbursed this Eid season marked a steep decline from previous years — down from Tk 270 crore in 2024, Tk 259 crore in 2023, Tk 443 crore in 2022, Tk 735 crore in 2021 and Tk 1,800 crore in 2019.

Md Shaheen Ahmed, chairman of the Bangladesh Tanners Association, told UNB, ‘Since leather is a perishable product, it needs to be collected and stored quickly. Cash is needed to buy leather collected from various warehouses across the country.’Bangladeshi cuisine recipes

‘For this, the warehouses collect leather from part-time traders during the Eid season. But even though tannery owners do business with their own capital throughout the year, special financing is needed for additional cash during Qurbani. This time, the banks had a demand of Tk 300–350 crore. They gave only Tk 125 crore, which is not enough,’ he added.

He said that with adequate cash loan support, problems in the leather sector could have been mitigated. ‘The poor and needy would have received cash from the leather. Foreign exchange income would have increased by exporting this,’ he pointed out.

Bangladesh Bank executive director and spokesperson Arif Hossain Khan said that the target for lending to the leather sector this time was Tk 232 crore. ‘It is not possible to say before the bank opens how much loan will be waived in the end,’ he said.

He also acknowledged that a segment of traders failed to repay borrowed funds, which has led to a significant rise in loan defaults in the sector. ‘If they ask for loans and don’t repay them, who will give them new loans? So they have to take loans with the mindset of repaying them. Otherwise, the crisis will not end,’ he said.Bangladeshi cuisine recipes

According to the Bangladesh Bank’s latest report, the outstanding loan balance in the leather industry stood at Tk 12,628 crore as of December 2024. Of this, Tk 4,844 crore has defaulted, accounting for 38 per cent of total loans in the sector.

The Bangladesh Tanners Association represents approximately 800 members, including tannery owners and commercial exporters. There are 1,866 large and medium-sized tanneries across the country.

Besides, many small tanneries collect leather from seasonal entrepreneurs during Eid-ul-Azha.

Tanner Anwar Hossain said that while most rawhide was collected during Eid-ul-Azha, inadequate management led to the wastage of roughly 30 per cent each year.

The leather sector not only contributes to national growth and employment but also earned approximately $1.13 billion in foreign exchange during the last financial year, underscoring the need for focused attention and support.Bangladeshi cuisine recipes

Amjad Ali, a seasonal leather supplier, said, ‘Banks only give loans to tannery owners and exporters. They do not give loans to others involved in the raw leather business. If money had been received according to demand, the spoilage of leather could have been prevented.’​

 

[Saif]

Synthetic footwear exports soar as global demand shifts

Bangladesh’s non-leather footwear sector is emerging as a steering force in the country’s export landscape, driven by global shifts in consumer preferences, strong manufacturing capacity, and competitive pricing

www.thedailystar.net

Synthetic footwear exports soar as global demand shifts

Bangladesh's non-leather footwear sector is emerging as a steering force in the country's export landscape, driven by global shifts in consumer preferences, strong manufacturing capacity, and competitive pricing

While leather footwear still leads with $620.17 million in exports until May of fiscal year 2024-25, up 28.96 percent year-on-year, the non-leather segment is rapidly catching up.

In the first 11 months of the current fiscal year, non-leather footwear exports fetched $494.28 million, marking a 30.25 percent growth compared to $379.48 million in the same period of the previous fiscal year, according to Export Promotion Bureau data.

In May alone, leather footwear fetched $74.82 million compared to $48.37 million a year earlier.

Industry insiders credit this growth to modern production capacity and fewer compliance burdens, making it easier for Bangladeshi manufacturers to meet global standards and attract international buyers.

"The non-leather segment benefits from fewer regulatory hurdles," noted one industry expert.

"Unlike the leather sector, which requires certification from the Leather Working Group (LWG) and faces challenges related to raw material quality and environmental compliance, synthetic footwear producers primarily need to meet factory compliance standards," he said.

As demand for fashionable, affordable, and sustainable footwear grows globally, particularly among younger consumers, the synthetic footwear segment is well-positioned to become a key contributor to Bangladesh's export diversification strategy.

In the decade preceding the end of FY24, non-leather footwear exports ballooned 120 percent, jumping from $189 million to $416 million.

"The young generation in the Western world is shifting from leather to synthetic shoes as they are more comfortable, fashionable, and cheaper," said Riad Mahmud, managing director of Shoeniverse Footwear.

In contrast, leather shoes are worn for formal occasions and have limited design flexibility, causing a global demand decline of around 12 percent annually, he noted.

This shift has fuelled steady growth in synthetic shoe demand over the past five to six years.

Shoeniverse's Mymensingh-based factory, employing around 4,700 workers, supplies footwear to major global brands including Inditex, Aldi, Matalan, and RedTape.

Mahmud said global brands are increasingly placing orders in Bangladesh, drawn by its competitive labour costs and proven expertise in apparel manufacturing.

He emphasised that the non-leather footwear sector holds strong potential due to its labour-intensive nature, giving Bangladesh a cost advantage over countries like Vietnam.

However, challenges persist. Delays in customs clearance for raw materials hamper lead times—a critical factor in the fashion-driven synthetic shoe market that demands quick delivery.

Despite this, demand remains robust. Shoeniverse is fully booked through March next year, with buyers seeking new slots amid potential US tariffs on Chinese goods.

A market assessment by Bangladesh Investment Development Authority (Bida) supports the trend, citing rising non-leather footwear exports due to increased orders from global brands such as H&M, Puma, Decathlon, FILA, and Kappa.

Major export destinations include Spain, France, the Netherlands, South Korea, India, Italy, and Germany.

Maf Shoes Ltd, a TK Group subsidiary exporting to France and Germany, boosted daily output from 50,000 to over 65,000 pairs. "European demand is soaring but structural barriers remain," said Managing Director Hasnat Md Abu Obida Marshall.

Europe remains the top market for Bangladeshi synthetic shoes, yet exporters face customs confusion, weak logistics, and exclusion from RMG-specific waivers.

"During Eid, our containers were stuck, but penalty waivers applied only to the BGMEA," a frustrated exporter said.

Moreover, competing with China is tough. While Chinese exporters enjoy 7 percent to 12 percent incentives and raw material self-sufficiency, Bangladesh battles high import duties, delays, and little policy support.

"We import everything and still try to compete on price," said one exporter.

The country also lags in value-added footwear. Despite paying lower wages than Vietnam, productivity remains much lower in Bangladesh.

"We are burning money just to keep factories running," the exporter added.

Some big global firms are eyeing India for relocation, drawn by availability of land, tax breaks, and better infrastructure in states like Tamil Nadu and Kerala.

"India calls investors—we don't even have an exit policy for foreign investment," said Marshall.

To unlock growth, exporters are calling for swift government action, including a dedicated synthetic footwear policy, equal customs treatment as RMG, access to technology financing, and incentives for backward linkage industries, he said.

Jakaria Shahid, managing director of Edison Footwear Limited, sees the synthetic footwear sector as a crucial driver for future export diversification, thanks to its fast-paced expansion.

However, he pointed out that major international brands like Nike and Adidas have yet to enter the Bangladeshi market, mainly because local manufacturers struggle to meet required lead times.​

 

[Bilal9]

Here is a factory overview for Shoeniverse Ltd. in Mymensingh

 

[Bilal9]

Another factory profile for Apex Footwear Ltd. in Gazipur. This is one of the largest state-of-the-art shoe factories in South Asia. They produce both leather-dress and non-leather-sports shoes.

 

[Saif]

Bangladesh needs to accelerate green transformation of the leather industry

Leather industry is one of the oldest industries in Bangladesh. While the global demand for leather and leather goods is constantly increasing, the leather industry of Bangladesh is grappling with challenges that, unless redressed effectively, stand out as hurdles for the sector to unlock its full

thefinancialexpress.com.bd

Bangladesh needs to accelerate green transformation of the leather industry

T I M Nurul Kabir
Published :
Jul 05, 2025 22:06
Updated :
Jul 05, 2025 22:06

Leather industry is one of the oldest industries in Bangladesh. While the global demand for leather and leather goods is constantly increasing, the leather industry of Bangladesh is grappling with challenges that, unless redressed effectively, stand out as hurdles for the sector to unlock its full potential.

According to the global market research reports and consulting firm Fortune Business Insights, the global leather goods market size was valued at USD 498.57 billion in 2024 and is projected to grow from USD 531.07 billion in 2025 to USD 855.36 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.05 per cent during the forecast period.

Leather and leather goods industry of Bangladesh is the second highest export-earning sector after the readymade garments (RMG) industry. Bangladesh's leather is acclaimed nationally and internationally for its high-quality grain, uniform fibre structure, smooth feel and natural texture.

The leather industry of Bangladesh has the advantage of abundant availability of domestic raw materials and low-cost labour. As Bangladesh is rich in key raw materials, the leather and leather goods industry has the potential to be the key sector for export diversification.

Previously exports depended mainly on wet blue leather. However, processed leather and finished leather products can add up to 90 per cent value to leather goods. In recent years, total export of raw hides, skins, and leather shows a downward trend. On the other hand, total export of merchandise made of leather is observed to have an increasing trend, signaling a shift toward higher-value products.

According to the Export Promotion Bureau (EPB) data, total leather exports between July 2024 and May 2025 amounted to 1,057.82 million US dollars, an increase of 12.55 per cent over the same period of the previous fiscal year. Leather footwear exports have demonstrated significant success. According to the World Footwear 2024 Yearbook, Bangladesh has emerged as one of the world's top 10 footwear producers over the past decade.

Export receipts from leather footwear stood at 545.35 million US dollars during the first ten months of FY25, showing 26.08 per cent rise. On the contrary leather goods exports between July 2024 and March 2025 fell by 6.11 per cent to 256.44 million US dollars, and finished leather exports fell by 6.29 per cent to 99.40 million US dollars, on a comparable basis to the same months of the previous fiscal year.

Bangladesh accounts for about 3.5 per cent of the total rawhide produced globally. However, despite ample supply of domestic raw materials the leather and leather goods industry contributes nearly 4 per cent of the country's total exports. The RMG industry, despite significant reliance on imported raw materials on the other hand, contributes 80 per cent to Bangladesh's total export earnings. Main restraints to industry performance of the leather sector include issues such as fragmentation in the sector; inefficient procurement, preservation and processing system of rawhide and animal skins; water pollution and health safety compliance issues, and inadequate finance.

Bangladesh's total supply of rawhide and skins is around 20 million units per year, of which about 50 per cent comes during the main sacrificial festival Eid-ul-Adha. In absence of an integrated network for collecting and preserving rawhides the procurement, preservation and processing system is fragmented and irregular.

Seasonal traders, brokers and wholesalers buy rawhides on the basis of average size. Rawhide is treated with salt for preservation. Workers involved in applying salt lack proper knowledge about preservation, and so, skin quality declines and skins are often permanently damaged. Moreover, per unit preservation cost of goat/sheep skin is higher than the selling price that the traders get. Local collectors and seasonal traders have been discarding goat/sheep skins along roadsides during Eid-ul-Adha. Such inability to sell bovine hides represents financial loss for the traders and a missed opportunity for the leather industry.

Tanners buy salt-cured rawhides from the wholesalers at per square foot price. There are 200 tanneries and 3500 small and medium enterprises (SMEs) producing blue wet leather, crust leather and finished leather from rawhides. According to the Bangladesh Investment Development Authority (BIDA), Bangladesh produces 350 million square feet of leather every year, of which 56 per cent comprise cowhides, 30 per cent goat/sheep hides and skins and 14 per cent buffalo skins. Of the total leather produced 20 to 25 per cent is used to meet domestic demand and 75 to 80 per cent is exported.

To enable compliance in the leather industry and to prevent pollution of the Buriganga river, all the tanneries were relocated from Hazaribagh to the BSCIC Tannery Industrial Estate in Savar. However, the central effluent treatment plant (CETP) has still not been made fully operational and there is no permanent arrangement for a solid waste disposal site or dumping yard. The result is growing pollution in the Dhaleshwari river. Work environment in tanneries is very dirty due to poor management of waste. Most tanneries do not follow the basic health compliance guidelines.

The government is urging the tannery owners to establish their own effluent treatment plant (ETP). According to reports, so far six companies have been given permission to build ETP of their own and another eight to 10 tanneries are in the process of getting approval. However, most SMEs do not have funds to establish ETP of their own.

Issues concerning environmental and health standards leave negative impact on the export of rawhide and leather goods. Having an effluent distribution system is one of the prerequisites for obtaining internationally recognized Leather Working Group (LWG) certification. Tanneries are unable to obtain the LWG certificate due to the lack of fully functional central effluent treatment plant (CETP).

All the developed countries, including the US, Japan and the EU demand transparent and sustainable supply chains. Major global brands stipulate that the products must be made using leather from LWG-certified companies. Using locally produced leather for higher value addition is not possible because majority of the tanneries do not have LWG certificate. Local tanneries are compelled to sell leather to countries such as China and India at approximately 50-60 per cent lower prices than that in Western markets. And Bangladeshi exporters spend approximately $100 million annually to import LWG certified finished leather, although the country has abundant supply of rawhide.

Despite the obvious challenges, the leather industry of Bangladesh has shown magnificent resilience and achieved remarkable growth in recent years. To unlock the full potentials of the leather industry, Bangladesh needs to accelerate green transformation of tanneries, develop integrated network for raw material collection and preservation and engage in public-private collaboration for skills development and green finance to achieve sustainable export growth in the post-LDC era.

T.I.M. Nurul Kabir is Business, Technology and Policy Analyst.​