Bangladesh’s non-leather footwear sector is on an impressive growth trajectory, with exports projected to reach the half-billion-dollar mark by the end of the fiscal year 2024-25. This rapid expansion has positioned non-leather footwear as a burgeoning segment within the country’s export market, traditionally dominated by readymade garments.
Data from the Export Promotion Bureau (EPB) indicates that non-leather footwear exports surged 120 per cent in the decade leading to FY ’24, rising from US $ 189 million to US $ 416 million. The momentum has continued into the current fiscal year, with exports increasing by 41 per cent year-on-year in the first five months of FY ’25, totaling US $ 217.81 million.
Despite readymade garments still accounting for over 80 per cent of Bangladesh’s total exports, Riad Mahmud, managing director of Shoeniverse Footwear noted that the country’s competitive labour costs and strong reputation in apparel have made it an attractive destination for footwear orders. He emphasised that Bangladeshi manufacturers can offer more competitive prices for synthetic shoes compared to Vietnam.
The Bangladesh Investment Development Authority (Bida) highlighted that increased orders from well-known brands like H&M, Puma, Decathlon, FILA, and Kappa have fueled the rise in non-leather footwear shipments. The primary markets for these exports include Spain, France, the Netherlands, South Korea, India, Italy, and Germany.
In comparison, while non-leather footwear exports have averaged an annual growth rate of 23 per cent over the past decade, leather footwear exports have only expanded by 6 per cent, rising to just over US $ 544 million in FY ’24 from US $ 483.81 million in FY ’15.
Mahmud noted that synthetic footwear exporters currently receive a cash incentive of only 4 per cent, while the leather sector benefits from 15 per cent. Despite the potential for growth, there are concerns about operational bottlenecks, particularly with customs processes.
Nasir Khan, chairman and managing director of Jennys Shoes, expressed frustration over bureaucratic hurdles that complicate export negotiations, often extending the process to over three months. He warned that these inefficiencies could hinder the industry’s ability to capitalize on emerging opportunities, especially as Chinese companies consider investing in Bangladesh to sidestep US tariffs.
MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), noted that while the local leather footwear sector faces challenges related to compliance, the synthetic footwear industry benefits from fewer restrictions, allowing for greater export potential.
With the global athletic footwear market valued at US $ 68.26 billion in 2023 and projected to grow at a compound annual growth rate of 7.11 per cent through 2030, the future looks promising for Bangladesh’s non-leather footwear industry. If the government can address existing bottlenecks, this sector could emerge as a significant contributor to the nation’s export earnings.
