Bridge Overview
An abridged overview of Bangladesh Leather Sector
  • Leather sector in Bangladesh has, by and large, made progressive growth in terms of the output of producing finished leather, leather footwear production etc. Technical improvements integrated in the process of producing finished leather have widened and enriched the product lines in various sub-sectors of the industry. Presently, there are about 207 small, medium and large tanneries in Bangladesh.
  • Leather from Bangladesh enriched with natural texture and grain patterns, is in great demand and benefits from high reputation in international market.
  • Bangladesh has about 59.81 million heads of livestock population consisting of 23.25 million cow heads, 0.85 million buffalo heads, 34.59 million goat heads and 1.12 million sheep heads.
  • The annual supply of hides and skins is about 300 million square feet out of which 64% are cow hides, 31.82% goat skins, 2.25% buffalo hides and 1.10% sheep skins.
  • The tanning sub sector has capacity to produce more than 400 million square feet of wet-blue hides, about 300 million square feet crust leather and 130 million square feet of finished leather per year. Export of finished leather including consumption in export-oriented footwear and leathergoods is about 50.14 million square feet; while small tanners and traders produce about 42.86 square feet low grade finished leather for local consumption.
  • The present employment in tannery of Bangladesh is about 15,000 (including managerial and production staff), 51,400 in footwear sub-sector (15,000 in mechanized sub-sector and 36,400 in small and cottage level non-mechanized sub-sector) and 10,200 in leathergoods sub-sector (1200 in mechanized units and 9,000 in non-mechanized units).
  • There are now about 25 mechanized footwear industries in the country. These are mostly established in recent years. There are also about 4,500 small and cottage (Artisan) units producing various types of leather footwear. The annual production capacity of the footwear sub-sector is estimated to be 178.74 million pairs being 32.17 million pairs by mechanized sub-sector and 146.57 million pairs by small and cottage sub-sector. The annual actual production is estimated to be about 132.40 million pairs.
  • The leathergoods manufacturing in Bangladesh is still in its infant stage, operating mainly at cottage micro industry level. There are five large and about 15 medium and small mechanized units and more than 1500 cottage level leathergoods manufacturing units in the country. Annual production of this sub-sector is about 7.50 million pieces, being 1.37 million pieces by mechanized/ semi-mechanized units and 6.13 million pieces in small and cottage (Artisan) level units.
  • Easy import regulations for tannery chemicals and other items are permissible (Bonded Ware house facilities are also available).
  • Low level labor cost.
  • Relatively less lead-time (as because finished leather output is locally available).
  • Export customers can avail GSP facilities for export to EU.
  • Price structure is quite competitive.
  • Shipment facilities (both by Air & by Sea) are adequate.
  • Supply of fairly large quality of soling materials NR (Natural Rubber based), EVA, TPR and PVC are locally available.
  • New Leather Processing Zone under construction will permit accelerated industrial performance in terms of further improved quality merchandise and higher productivity in an "Environmentally-Friendly" working area.
  • Leather and leather products are exported to different countries of the world. The major importing countries are Italy, Korea, Japan, Hong Kong, Spain, France, Germany, UK and USA and partly middle-east.