Bangladesh’s footwear exports to the United States rose sharply in 2025, registering around 52 per cent growth as American buyers increasingly diversified sourcing destinations amid trade and tariff tensions affecting traditional suppliers such as China and Vietnam.

Data from the Office of Textiles and Apparel (OTEXA) showed that Bangladesh exported footwear worth $387.72 million to the US market in 2025, up from $255.21 million in 2024.

Industry insiders said the shift reflected a gradual reconfiguration of global supply chains, with American buyers seeking to reduce dependence on China and diversify production bases across South and Southeast Asia.

However, they also cautioned that Bangladesh could capture a much larger share of the market if it improves speed to market, simplifies customs procedures and enhances the overall ease of doing business to reduce long lead times.

The strong performance followed two relatively stagnant years for Bangladesh’s footwear exports to the US. Export earnings stood at around $255 million in 2024 and $235 million in 2023, reflecting a slowdown after earlier rapid growth.

Exports had previously surged to $451.40 million in 2022, up from $274.78 million in 2021, before the momentum eased.

Industry analysts said that the renewed growth in 2025 indicated that Bangladesh was once again benefiting from shifting global sourcing patterns as buyers reassessed supply chain risks.

Data analysis showed that the bulk of Bangladesh’s shipments to the US consisted of leather footwear.

Of the $387.72 million exported in 2025, about $343.71 million came from leather footwear products.

According to OTEXA data, the United States imported footwear worth $25.12 billion during January-December 2025, marking a marginal change from $25.53 billion in 2024.

Vietnam retained its position as the largest supplier to the US, exporting footwear worth $9.43 billion in 2025, an increase of 9.01 per cent from $8.65 billion a year earlier.

China’s shipments to the US, however, declined sharply. Exports fell to $6.0 billion, representing a 28.8 per cent contraction compared with $8.42 billion in 2024.

Other countries also expanded their presence in the US market. Footwear imports from Indonesia, Cambodia and India grew by 16.03 per cent, 50.08 per cent and 10.21 per cent, reaching $2.93 billion, $1.28 billion and $485.49 million respectively.

Riad Mahmud, managing director of Shoeniverse Footwear Ltd, a unit of NPOLY Group, said American buyers began diverting work orders from China to alternative destinations amid expectations of a prolonged trade dispute between Washington and Beijing.

He noted that Bangladesh received a large number of enquiries and orders in the early months of 2025, particularly between January and June.

However, orders slowed temporarily after July when buyers reassessed sourcing costs in light of newly introduced tariff structures affecting different countries.

‘Buyers held some orders while calculating cost differences between Bangladesh and China,’ he said.

Although Bangladesh enjoys cost advantages in labour, it still lags behind China in terms of lead time and availability of raw materials, many of which are imported from Chinese suppliers.

‘Buyers sometimes find little difference in overall costing and still prefer China due to its faster speed to market,’ Mr Mahmud said.

Mahmud also noted that several large companies were obtaining compliance certification from Nirapon, a platform that monitors workplace standards following the earlier oversight role of the Alliance for Bangladesh Worker Safety.

He said such certifications were helping local producers secure orders from major US retailers including Walmart and Target.

Mahmud added that around 15 per cent of Shoeniverse Footwear Ltd exports—mainly synthetic or non-leather footwear—were shipped to the United States in 2025, marking the company’s first entry into that segment.

RN Paul, managing director of RFL Group, said that Bangladesh held significant potential in both footwear and luggage manufacturing due to its large labour force.

His company invested more than Tk 3 billion last year to expand operations in these sectors.

The group has acquired several closed government factories in Rajshahi and added production lines to manufacture footwear and luggage.

RFL is also expanding operations into regions such as Pabna District, Rangpur Division and Bhola District to utilise untapped labour resources and generate employment.

Mr Paul said the company’s monthly production capacity of $20 million is expected to double this year.

He called for government support through measures such as toll-free raw material transportation, area-based gas pricing, improved local road infrastructure, and worker training facilities.

Industry leaders also urged the central bank to introduce policies tailored to the needs of emerging industries in order to strengthen backward-linkage sectors.

Meanwhile, investment interest in Bangladesh’s footwear supply chain is growing.

According to the Bangladesh Export Processing Zones Authority, at least three Chinese companies and one South Korean firm recently signed agreements to invest in manufacturing shoe accessories and footwear products in the country.

Industry insiders said that Bangladesh must create a more investment-friendly environment, including fiscal incentives such as tax holidays and dedicated export zones, to attract both domestic and foreign investors.

They stressed that capturing a larger share of orders relocating from China would require the simultaneous development of backward-linkage industries, improved logistics and a stable energy supply.