Bangladesh leather exports surge; India surpasses US as top market

20 Jul '23

2 min read

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Insights

In the first five months of 2023, Bangladesh's leather exports hit $174.328 million, with India surpassing the United States as the largest market.
India and the US made up 22.30 per cent and 19.75 per cent of these exports, respectively.
Interestingly, Bangladesh has managed to effectively tap into the large, vibrant Indian consumer market.

During the first five months of 2023, Bangladesh's leather apparel and accessories exports reached a noteworthy $174.328 million. Interestingly, India has become a more significant market than the United States, a shift from the usual trend. India and the US comprised 22.30 per cent and 19.75 per cent of these exports, respectively. However, in 2022, the US and India were the first and second largest markets for Bangladesh's total leather exports, which amounted to $474.555 million.

Developing nations typically export labour-intensive products to developed countries due to lower labour costs. But in this instance, Bangladesh has successfully penetrated the neighbouring Indian market. India, a significant competitor, also represents a large, dynamic consumer market for Bangladesh.

Bangladesh's top 10 markets for leather goods mostly include developed countries, with India as the only exception. According to Fibre2Fashion’s market insight tool TexPro, the exports to India were valued at $38.880 million between January and May 2023. Comparatively, the exports to the US stood at $34.430 million. Other significant markets included Japan ($33.174 million, 19.03 per cent), China ($10.577 million, 6.07 per cent) and the Netherlands ($9.234 million, 5.30 per cent). Among the next five top markets, Belgium had a share of 4.40 per cent, followed by Canada (2.91 per cent), Germany (2.71 per cent), Australia (2.55 per cent), and South Korea (1.39 per cent).

Last year, Bangladesh exported leather goods worth $474.555 million, with the US being the top market, contributing $107.781 million or 22.71 per cent of the total. India came in second, contributing $93.196 million or 19.64 per cent. Other significant contributors included Japan ($79.018 million, 16.44 per cent), China ($42.425 million, 8.94 per cent), and Belgium ($22.294 million, 4.70 per cent), as reported by TexPro.

Fibre2Fashion News Desk (KUL)

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This according to Fibre2Fashion's Market Intelligence Tool - TexPro