Between January and April of 2023, exports of leather and leather goods from Bangladesh decreased by 17.55 percent due to a decline in global demand for luxury goods brought on by inflation. Another reason given for the drop was a lack of environmental compliance.
According to the Export Promotion Bureau, the country's exports of leather and leather items dropped by $78.61 million to $369.2 million in the first four months of 2023 from $447.81 million in the same period of 2022.
According to an export performance report created by the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), export revenues from leather, leather products, and non-leather footwear fell by 16% to $509 million in January–April 2023 from $604 million in the same period the previous year.
After Covid, exports of leather products and footwear were rebounding, but the Russia-Ukraine war's impact on the world economy caused a disruption, according to Mohammed Nazmul Hassan, senior vice-president of LFMEAB. Global purchasers are forced to carry large inventories after ramping up imports of leather products and footwear because inflation reduced consumer purchasing power.
The data indicates that the sector’s exports in the first four months of 2023 were on a negative trend. Exports of leather, leather products, and non-leather footwear dropped by 13 percent in January and February and 17 percent in March and April.
The total export of leather products and leather footwear in January-April of 2023 fell by 13 percent while leather footwear exports dropped by 23 percent .