Investment & Trade
Sector Profile: Leather & Footwear
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Executive Summary
The Leather & Footwear sector (including leather goods) exported USD 483M in FY2023-24 (HS-41 raw hides + HS-42 leather articles + HS-64 footwear). Bangladesh has the world's 6th largest cattle population, providing a strong raw material base. The sector has undergone significant transformation since 2017 when the government mandated relocation of all tanneries from Hazaribagh (Dhaka) to the Savar Tannery Industrial Estate (40 km from Dhaka) — a 200-acre dedicated zone with central effluent treatment plant (CETP). Footwear accounts for 60% of sector exports. Major markets: USA, Germany, France, Japan, UK. The sector is positioning for growth post-LDC graduation by upgrading to LWG (Leather Working Group) certification and targeting global brands. Footwear export target by 2027: USD 2B (under the Leather Goods & Footwear Manufacturers & Exporters Association of Bangladesh — LFMEAB roadmap). Cash incentive: 15% on footwear export, 8% on leather goods.
Key Points
- Export value FY2023-24: USD 483M
- HS chapters: 41 (raw hides) + 42 (leather articles) + 64 (footwear)
- World's 6th largest cattle population — strong raw material base
- Savar Tannery Industrial Estate: 200 acres, CETP, 155 tanneries relocated
- Footwear = 60% of sector export
- Major markets: USA, Germany, France, Japan, UK
- Cash incentive: 15% footwear, 8% leather goods
- Target: USD 2B footwear export by 2027
- LWG certification being adopted industry-wide
- LFMEAB: sector apex body
- Hazaribagh tannery relocation completed 2017
Full Details
Investment profile for the leather and footwear sector. 3,600+ footwear units and growing export market.