From Potential to Powerhouse: How Bangladesh's Leather Industry Can Conquer the Global Market
Bangladesh's leather industry is poised to drive the nation's next phase of economic growth, but to realise this potential and become a global leader, the sector must implement a well-planned strategy focused on modernisation, technology, and policy support—mere potential is not enough.
The global leather market is valued at over $400 billion and is projected to reach $550–$600 billion by 2030. Bangladesh's share is small, and increasing it requires a comprehensive, long-term strategy.
The modernization of technology is crucial for the leather industry to reach global standards. Bangladesh must adopt advanced, eco-friendly technologies to replace traditional methods and address environmental concerns. Despite relocating tanneries from Hazaribagh to Savar, environmental pollution remains problematic due to the incomplete Central Effluent Treatment Plant (CETP) at the Savar leather industrial park, resulting in ongoing pollution of rivers and the surrounding environment.
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Modernisation in technology and reduced environmental impact are essential for entering the international market. Utilising high-quality chemicals, automation, and digital technology can enhance efficiency, improve product quality, and minimize waste. Supporting local entrepreneurs in this transition with flexible loans and government assistance will facilitate the technological shift needed to compete globally.
Modern methods are required for sourcing and preserving raw materials. Many raw hides are wasted annually due to poor preservation and processing, harming the industry. Expanding modern cold storage and fast-processing units can reduce this loss. Gaining international trust also requires obtaining certifications like ISO 14001 and ISO 9001.
Technology alone is not enough for competitiveness; proper and stable policy support is also needed. The government should implement long-term, stable policies, such as tax and duty exemptions, easier access to imported raw materials, and streamlined export processes, to support industry entrepreneurs.
The government must also address the following areas:
Research and Development (R&D): Strong investment in R&D is vital. A public-private partnership model could drive innovation, improve quality, and create eco-friendly production.
A skilled workforce is essential for leveraging modern technology. Specialised technical courses, hiring trained instructors, and close industry-education ties are needed.
Branding and Market Expansion: Bangladeshi leather branding is weak globally. To promote high-quality goods, Bangladesh can hold exhibitions, trade fairs, and roadshows abroad. Diplomatic and commercial work is also necessary to access new markets, such as Latin America and Africa.
Global success in the leather industry requires joint effort from the government, entrepreneurs, and workers. The aim should be not just export growth, but a sustainable industry that upholds environmental and social responsibility. Global buyers now consider both product quality and ethical and environmental standards.
In summary, only through modernisation, eco-friendly practices, and effective policy support can Bangladesh's leather industry fulfil its potential as a major economic driver, echoing the success of the RMG sector. These actions will foster not just export growth but lasting economic and social advancement.
