Despite having no local source of raw materials, Bangladesh is the world’s second largest textile exporter. Total apparel exports in the last financial year stood at $46.99 billion.
In the leather sector, the country is rich in raw materials, but exports are only $1.22 billion, which is 38.5 times less than apparel exports.
According to Fortune Business Insights, the global market for leather products was worth $468 billion last year, with the European market alone worth $166 billion. The market is expected to grow to $738 by 2030.
However, Bangladesh’s current share in the global market is only 0.26 percent.
Tannery owners said LWG-certification is a prerequisite for exporting leather products, including shoes, to Europe and many other countries. Now, tanneries without certificates export each square foot of processed leather at an average price of 85-90 cents. With LEG-certification, they can export products to the European market at double the price.
China took advantage of the situation and emerged as the largest buyer of Bangladeshi leather.
