The second largest export earner after RMG, the leather and leather products sector has received considerable investment in recent years due to its comparative labor source and domestic production of sustainable raw materials.

Bangladesh leather industry is well established and ranked second in terms of export earnings. Because of its high value addition, huge growth and employment opportunities, leather sector has already been declared a top priority sector. Bangladesh accounts for 3% share in the global leather and products market. Almost 60% of its annual output is being exported. The export of leather and leather products increased manifold over the past decades. The composition of leather and leather goods from Bangladesh underwent a structural change as manufacturing is moving from finished leather towards production of diversified finished products. The growth of the footwear industry has increased from 36.64% of total sectorial export earnings in FY’2007-08 to 60.90% in FY’2017-18.

  • Tanning & Finishing
  • Footwear & Footwear Components
  • Leather Accessories
  • Leather Goods (bags, wallets, belts, accessories, etc.


Local demand for leather products continues to grow as the country experiences steady economic growth with increasing middle-income class. By 2025, 30 to 40 million people are forecasted to join the entry level of middle-income class, another 30 million may reach the aspirant/ emerging middle class. In particular, domestic footwear market has been growing at the rate of 10-15% per annum, where per capita consumption of footwear has increased to 3 pairs from 1.7 pairs several years ago.
The Global leather goods market is values at USD 241 billion in 2020 and is expected to reach 306.1 billion by 2027. Bangladesh exports 60% of its annual produce of leather goods

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2nd largest export item after RMG

A large and growing domestic market worth US$ 2billion

Bangladesh accounts for 3% share in the global leather and products market

2.5 - 3 Billion USD
Market Size
241Billion USD
Market Size
5 %
Compounded Annual Growth
3500+ Small & medium manufacturing units
90+ large manufacturers

Key Players