Despite the global crisis, leather exports have maintained healthy growth.

Despite the global economic crisis, Bangladesh's leather and leather products exports grew by 17.56% year-on-year in the first five months of the fiscal year, benefiting from increased buyer orders. According to data from the Bangladesh Export Promotion Board (EPB), leather and leather product exports reached US$537.5 million from July to November, compared to US$456.85 million in the same period last year. Footwear exports reached US$328.19 million, a 17.55% increase, while leather product exports reached US$153.74 million, a 26.89% increase. Leather exports decreased by 1.61% to US$55.57 million.

The leather industry was severely impacted by the coronavirus pandemic, which led to reduced orders in 2020 and 2021. However, the rapid recovery of production and the shift of orders to Bangladesh by importers resulted in a record high of US$1.25 billion in leather and leather product exports. Furthermore, a surge in demand before winter and Christmas further boosted exports of leather products and footwear.

Nasir Khan, General Manager of Janis Footwear, a footwear exporter, stated that it remains uncertain whether the current export growth trend will continue until the end of the fiscal year, as the global economic crisis triggered by the Russia-Ukraine conflict shows no signs of ending in the short term. While export business has increased, it is still below expectations.

Nasir Khan explained, “Insufficient coordination within the leather industry means companies cannot obtain the necessary raw materials and components on time, leading to delays in delivery.”

The Vice President of the Bangladesh Leather Goods and Footwear Manufacturers and Exporters Association (EPB) stated that although EPB data shows relatively good export performance for footwear and leather goods, the situation for manufacturers is not optimistic. Exports of non-leather shoes are growing strongly due to increasing global demand for low-priced synthetic material footwear. According to a study, the global synthetic leather market is projected to reach $66.84 billion by 2030, growing at an average annual rate of 8%.

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