Bangladesh’s leather industry stands out globally due to its robust backward linkage, supported by the availability of high-quality raw materials and an efficient manufacturing base. However, the sector’s real potential lies in fully unlocking opportunities in high-value product categories such as leather footwear, particularly under HS6403.

Steady Growth in Leather Footwear (HS6403) Exports

Source: Author's Presentation from BB data

Leather footwear (HS6403), which includes shoes with soles made of rubber, plastic, or leather and uppers crafted from leather, has shown consistent growth in exports over the years. Data reveals that exports of HS6403 saw a 101.95% increase from USD 259 million in 2019-2020 to USD 523.041 million in 2023-2024, a significant leap showcasing the sector’s upward trajectory. This trend underscores the increasing demand for Bangladesh’s leather footwear in the global market.

Emerging and Leading Export Destinations

Source: Author's Presentation from BB data

Source: Author's Presentation from BB data

The United States dominates as the top export destination for HS6403, accounting for a staggering 32% of the market share in 2023-2024, up from 17% in 2019-2020. This growth reflects a strengthening trade relationship and growing acceptance of Bangladeshi leather footwear in North America.

European markets also present lucrative opportunities, with countries like the Netherlands, Germany, Poland, and Italy collectively holding a significant share of the export share. The Netherlands and Germany stand out as prominent partners, while Poland and Italy show steady demand, indicative of the European Union’s sustained preference for quality leather goods from Bangladesh.

Emerging markets such as Canada, Japan, and the United Kingdom are also contributing to the sector’s growth. These countries have witnessed a gradual increase in imports, pointing to opportunities for further market penetration through targeted branding and compliance with import regulations.

Strengthening Forward Linkages

While significant progress has been made, Bangladesh is actively working to enhance value addition within the leather sector. Efforts are underway to increase the production of premium finished goods, ensuring that more of the exported leather is transformed domestically.

Additionally, the industry is focusing on strengthening its global competitiveness by addressing compliance requirements, improving production standards, and building a strong international brand presence. By tackling these areas, Bangladesh is steadily positioning itself to capture higher market shares and establish a stronger foothold in the global leather industry.

Opportunities for Advancement

To strengthen forward linkage and expand exports of leather footwear under HS6403, Bangladesh must focus on:

• Enhancing Value Addition: Expanding investment in advanced manufacturing and skilled workforce development to create high-quality, innovative footwear that meets global demand.
• Strengthening Compliance: Aligning with international environmental and ethical standards to attract conscious consumers and boost credibility in developed markets.
• Expanding Market Reach: Tapping into new regions such as Asia, Latin America, and Africa to reduce dependency on traditional buyers and create fresh opportunities.
• Building a Global Brand: Elevating Bangladesh’s presence in the global footwear industry through strategic marketing, storytelling, and active participation in international trade fairs.

Bangladesh’s leather footwear segment is on a promising growth path. By addressing existing challenges and capitalizing on emerging opportunities, the industry can elevate its forward momentum and position itself as a global leader in premium leather footwear. This will not only drive export revenues but also significantly contribute to the country’s economic growth and employment generation.

This article was authored by Sakina Binte Belayet, a Business Analyst at LightCastle Partners. For further clarifications, contact here: [email protected]