Bangladesh experienced a significant decline of nearly 26 per cent in leather footwear exports from July to May in the fiscal year 2023-24 while non-leather footwear exports increased by approximately 7 per cent in the period, according to data from the Export Promotion Bureau.

This shift is attributed to evolving global consumption patterns favoring artificial leather over traditional leather items.

Factors such as high inflation and changing fashion trends have contributed to a contraction in the global market for leather footwear, industry people said.

Exporters noted that Bangladesh’s leather footwear exports declined due to environmental compliance issues in the tannery sector, despite efforts to relocate tanneries from Hazaribagh to Savar.

They emphasized the importance of environmental standards, mentioning that although some tanneries have obtained certification from the Leather Working Group (LWG), broader compliance is necessary to enhance competitiveness in the global market.

In the first 11 months of FY24, Bangladesh earned $477.24 million from leather footwear exports, marking a 25.92 per cent decrease from the $644.18 million earned in the same period of FY23.

Conversely, earnings from non-leather footwear grew by 6.87 per cent to $463.33 million during July-May FY24, up from $433.53 million in FY23.

Over the past five years, export earnings from non-leather footwear more than doubled, reaching $478.86 million in FY23 from $244.09 million in FY19.

Md Saiful Islam, president of the Leathergoods and Footwear Manufacturer and Exporters Association Bangladesh, highlighted the global shift towards non-leather and synthetic footwear due to economic slowdowns.

He underscored that non-leather footwear prices are significantly lower amid high inflation, influencing consumer preferences.

Saiful also pointed out ongoing challenges in achieving environmental compliance in Bangladesh’s tannery sector, affecting the export potential of leather footwear.

Looking ahead, he expressed optimism that increased LWG certification among tanneries could boost exports of leather footwear, noting the durability advantage of leather products despite their higher costs.

Overall, Bangladesh’s export earnings from leather and leather goods in July-May FY24 decreased by 14.17 per cent to $961.49 million compared to $1.12 billion in FY23, reflecting broader market dynamics and sectoral challenges.