According to a recent report by The Business Standard, Bangladesh’s leather industry once hailed as the country’s “next big export story” continues to remain stuck in what many now call the billion-dollar cage.
According to the report, globally the leather and footwear market exceeds $420 billion and Bangladesh, with its cost advantage and raw material base, should be well-positioned to claim a bigger share.
Industry experts estimate an export potential of up to $10 billion annually if compliance and infrastructure gaps were fixed. Yet, the sector’s export earnings have barely grown since 2012 when they peaked at $1.24 billion.
Despite having the skills, materials and manufacturing capacity, the country’s leather industry has failed to scale up.
The reasons, report says, lies in a mix of bureaucratic delays, lack of environmental compliance, and policy paralysis.
The much talked about Central Effluent Treatment Plant (CETP) at Savar still remains non-operational, leaving the entire industrial zone short of international environmental standards.
Without credible certification and a clear export policy, Bangladesh’s leather sector has lost global trust.
As global buyers increasingly demand ethically sourced and environmentally responsible leather, Bangladesh risks being left behind.
Environmental compliance is no longer optional it is becoming a key condition for global trade.
Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), believes that the sector still holds massive untapped potential.
He emphasized that by focusing on sustainability, workers’ welfare, carbon reduction and waste management, Bangladesh could still turn leather into a major export earner.
Md Shaheen Ahamed, chairman of the Bangladesh Tanners Association (BTA), echoed similar concerns, highlighting the urgent need to make Savar fully compliant.
“At the same time, we need to consider the financial strain the tannery owners are facing. Many of them have lost their working capital nearly Tk10,000 – 12,000 crore in total after investing in factory buildings at Savar,” he said.
Md Shaheen Ahamed, Chairman, Bangladesh Tanners Association (BTA)
He added that the government should consider providing Tk3,000 – 4,000 crore in new working capital and offer soft loans to help businesses achieve Leather Working Group (LWG) certification and invest in compliance upgrades.
Bangladesh’s leather story is not just about missed business opportunities. It is about how weak governance and policy neglect can hold back a high-potential industry from realizing its global promise.
Until the country aligns its industrial policy with environmental and financial realities, the dream of transforming leather into the next major export success will remain just that a dream fading in the smell of untreated waste and lost opportunity.
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