Leather industry

Leather industry

shoes

Bangladesh Leather Industry OVERVIEW Bangladesh leather industry is well established and ranked second in terms of export earnings. Because of its high value addition and huge growth and employment opportunities, leather sector has already been declared a thrust sector of the country. Additionally,recently research is being carried out to produce footwear in combination with leather and other locally sourced natural fibers. Bangladesh accounts for 3% share in the global leather & products market. Almost 95% of its annual output is being exported. The export of leather and leather products increased manifold over the past decades. The compound annual export earnings crossed billion-dollar mark in the year of 2013-2014. The composition of leather and leather goods from Bangladesh underwent a structural change. Whereas in 2008, 62% of all export earnings from the sector came from finished leather, by 2014, this proportion came down to 39%. The growth of the footwear industry has increased from 20% of total sectorial export earnings in 2003 to 43% in 2015. Products such as fabric-based footwear are also now being produced in Bangladesh for global retailers. Because of sustained growth performance and its increasing competitiveness in producing quality products, at least 51 foreign companies have shown interest in establishing footwear units in Bangladesh.

Bangladesh Leather Sector: Some Pointers

• Bangladesh has a long established tanning industry which produces around 1.13 % of the world`s leather from a local supply of raw materials.

• The leather sector includes 200 tanneries, 3,500 MSMEs,2500 footwear making units and 90 large firms.

• Bangladesh meets the demand for about 10% of the world’s total leather market.

• The sector generates direct and indirect employment for about 850,000 people, 53% of the workforce are women in the leather products industries.

• Strong environmental activism within the country. Bold industry initiatives in order to improve consumer safety & compliance standards.

• Media, civil society and regulators are vigilant to ensure occupational safety and work environment.

• Promising technology inflow and Foreign Direct Investment.

• Initiatives in leather industry for standardized and distinctive designed products by sophisticated technological production system.

• Enormous potential for future growth (domestic as well as export).

• Aims to reach USD 5 billion annual export by next 5 years.

Estimated livestock population

ITEM

CAPACITY

Livestock population Bovine

21.5 million heads

Livestock population Ovine

28.6 million heads

Source: Bangladesh Livestock Research Institute

Estimated annual capacity of raw materials

ITEM

CAPACITY

Bovine hides and skins

9 million pieces

Sheepskins and lamb skins

16 million pieces

Light leather from sheep and goats

6.14 million pieces

 Source: Bangladesh Livestock Research Institute & Bangladesh Tanners Association (BTA)

Estimated annual production of finished products

ITEM

AMOUNT

YEAR

Leather Footwear

364.5 million pairs

2013

Leather Belt

1.7 billion units

2013

Leather Bag

80.22 million pieces

2012

Small Leather Goods

3.1 billion pieces

2013

Source: Baseline Study Report on Leather Goods and Footwear Industries in Bangladesh 2015

Estimated Export Capacity of LFMEAB Members

ITEM

CAPACITY

Leather Footwear

12 million pairs

Espadrilles

12 million pieces

Leather goods

1.8. million pieces

Bangladesh’s Export of Leather and Leather Products

(Value in Million US$)

Category

2011-2012

2012-2013

2013-2014

2014-2015

Leather

330.16

399.73

505.54

397.54

Leather products

99.36

161.62

240.09

249.16

Footwear

335.51

419.32

378.54

483.81

Total (leather & products)

765.03

980.67

1124.17

1130.51

Growth

17.51%

28.19%

32.12%

0.56%

Source: Export Promotion Bureau

Major importing countries of Bangladesh Leather and Leather Products & Footwear

The European Union (EU) is the biggest destination for footwear exports accounting 60% share followed by Japan with 30%

Country

2012-2013

2013-2014

2014-2015

Germany

72.44

103.53

142.89

China

41.92

172.65

165.6

Japan

123.08

133.27

117.4

USA

33.49

57.59

98.52

Spain

41.96

51.96

60.01

Italy

37.75

38.17

44.4

France

22.88

21.19

25.05

UK

5.98

9.34

15.7

UAE

2.6

3.24

17.51

 

For more information see http://lfmeab.org/images/report/LEATHER_SECTOR_INVESTMENT_BROCHURE_LFMEAB.pdf