Leather is one of the industries with high growth potential, utilizing Bangladesh's abundant labor and low-cost raw materials. The industry has the potential to participate in global value chains, enter new markets and meet growing domestic demand. Bangladesh has a wealth of labor and natural resources and successful development in the garment industry, making it ideal for producing high-value leather goods and leathers such as footwear. The manufacturing and export base must be diversified to shift the country's economy onto a higher growth trajectory and maintain high economic growth. The leather industry has considerable growth potential because of the abundance of labor and cheap raw materials in Bangladesh. The sector can contribute significantly to export diversification and increased export earnings. 
One of the main priorities is to develop a national tanning industry that is efficient, environmentally friendly, and complies with labor standards. Coordinated policy action is needed to realize the leather industry's full potential. With appropriate investments and policy reforms, the leather industry can attract significant investment into the industry, diversify and significantly increase exports, and achieve its goal of $5 billion in export revenue. At the end of last fiscal year, Bangladesh's leather industry exported $797.6 million, with a target of $920 million for the current fiscal year. The industry has successfully grown and achieved its goals in the first ten months. In the first ten months of the current financial year (July 2020-April 2021), the leather industry of Bangladesh exported US$760.92 million, an increase of 8.56% over the same period of the previous year. During the period, the level of exports exceeded the target set by 0.84%. The main contributing category is leather footwear, with global exports worth $461.72 million between July 2020 and April 2021, or 4.24% of the target for the same period. These products accounted for 60.7% of the leather industry's total exports, an increase of 11.76% over the same period last year. In the first ten months of this year, the export of finished leather brought in 96.1 million US dollars, an increase of 6.22% over the same period of the previous fiscal year, exceeding the target (94.33 million US dollars). Leather products contributed US$203.1 million, an increase of 2.94% over the same period last year, but came short of the target of 6.56%. Revenue from other footwear exports ($277.86 million) increased 13.29% over the same period last year but remained below the category target set for the same year period (-10.85%). 
Bangladesh's leather industry is developing well, ranking second in export earnings. The leather industry has been declared a priority due to its high added value, huge growth, and job opportunities. Bangladesh holds a 3% share of the global leather and products market. Nearly 60% of its annual production is exported. Exports of leather and leather products have grown exponentially over the past decades. The composition of leather and leather products in Bangladesh has undergone a structural change as the manufacturing industry has shifted from finished leather to the production of various finished products. Footwear industry growth increased from 36.64% of the industry's total export revenue in 2007-08 to 60.90% in 2017-18. With the country's steady economic growth and growing middle class, the local demand for leather products continues to grow. By the end of 2025, 30 to 40 million people are anticipated to enter the entry-level middle class, and another 30 million could reach the emerging middle class. In particular, the domestic shoe market is growing at an annual rate of 10-15%, and shoe consumption per capita has increased from 1.7 pairs a few years ago to 3 pairs. The market for global leather goods was valued at USD 241.0 billion in 2020 and is expected to reach USD 306.1 billion by 2027. 60% of Bangladesh's annual leather production is exported. Bangladesh has many assets to develop the leather industry. The leather industry, which ranks fifth in terms of export earnings, has been identified by the government as an industry with high potential for development and investment. Bangladesh now produces and sells high-quality bovine, ovine, caprine (buffalo and cow; sheep and goat), and goat (buffalo and cow; sheep and goat) leather with good texture all over the world. 
Bangladeshi leather is known for its excellent quality, and shoe manufacturers are gradually able to meet the high demands of external buyers. At the national level, the leather industry has the capacity to develop the entire supply chain, from raw leather to leather processing to the manufacture of footwear and leather goods. The current socio-economic situation in Bangladesh offers a bright future for the leather industry. Many financial analysts, local tyrants, and professionals have been summoned to consult on works based on different points of view in this segment. In addition to recent unrest, the leather and tanning industry also faces a fundamental problem, the lack of developed backward linkages, which often forces them to face shortages of hides and skins, processors of leather based on imported machinery, and production inputs (chemicals). The vast majority of tanneries and commercial leather exporters also rely heavily on brokers to connect them with buyers, preventing processors from expanding their presence in the supply chain. The situation is further complicated by the fact that the market is dominated by several local companies subcontracting to MSMEs. Many large international buyers have also avoided sourcing directly from Bangladesh to avoid negative publicity due to stagnating social, environmental, and economic conditions. 
Therefore, the Bangladeshi market has focused on low-end users, although a few market players are making efforts to enter the value chain, especially those of LFMEAB. Recently, about 155 tanneries were moved to the 200-acre Tannery Industrial Estate at Savar (selected for transfer in 1994) to save the Briganga River, which has been polluted by the dumping of industrial waste by manufacturers. It also strives to improve manufacturing standards by providing better production facilities. However, workers have not been provided with proper work gear to protect them from the various toxic fumes and dangerous chemicals used in leather production. Work-related illnesses and deaths are still common.
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