Leather Industry in Bangladesh:

Challenges and Opportunities for a

Sustainable Future
Abu Rayhan1, S. Begum2

Abstract

The leather industry in Bangladesh is a significant contributor to the country’s economy,

providing employment to millions and generating substantial export earnings. However, the
industry faces numerous challenges, including environmental pollution, labor rights issues,
and regulatory inefficiencies, which threaten its long-term sustainability. This paper
examines the current state of the leather industry in Bangladesh, the associated socio-
economic and environmental challenges, and explores potential pathways for achieving a
sustainable and responsible leather industry. Recent research findings, case studies, and
statistical data are used to provide a comprehensive analysis.

Keywords

Leather industry, Bangladesh, environmental impact, labor conditions, sustainability,

regulatory challenges, technological innovations, economic significance

1
Abu Rayhan, CBECL, [email protected]
2
S. Begum, University of Dhaka, Bangladesh

This Research is Sponsored by CBECL GROUP

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1. Introduction

The leather industry in Bangladesh is both an economic powerhouse and a source of

environmental and social challenges. This industry, which includes tanneries, leather goods
manufacturers, and exporters, plays a crucial role in the national economy. However, the
environmental degradation and labor rights violations associated with leather production
necessitate urgent reforms. This paper provides an in-depth analysis of the industry’s
current state, the challenges it faces, and potential strategies for sustainable development.

Figure 1

2. Historical Background and Industry Overview

2.1 Historical Development

The leather industry in Bangladesh dates back to the colonial period when small-scale
tanning operations were established. The industry saw significant growth in the post-
independence era, particularly in the 1980s and 1990s, when export-oriented policies were
introduced.

2.2 Industry Structure

The industry comprises several segments, including raw hides and skins processing, tanning,
and the production of finished leather goods such as footwear, bags, and accessories.
Historically, the Hazaribagh area in Dhaka was the hub of leather tanning activities until
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environmental concerns prompted the government to relocate these operations to the Savar
Leather Industrial Park.

3. Economic Significance of the Leather Industry

3.1 Contribution to GDP

The leather industry is a vital sector for Bangladesh’s economy. In 2022, the industry
contributed approximately 3% to the country’s GDP. The sector’s growth has been driven by
increasing global demand for leather products and the competitive advantage offered by
lower production costs in Bangladesh.

3.2 Employment

The leather industry provides employment to around 850,000 people, making it one of the
largest employers in the manufacturing sector. The workforce includes a significant
proportion of women and workers from marginalized communities, highlighting the
industry’s socio-economic importance.

3.3 Export Earnings

Leather and leather products are among Bangladesh’s top export earners. In 2022, the
industry generated over $1 billion in export revenue. Major export destinations include the
European Union, the United States, and Japan.

Table 1: Economic Contributions of the Leather Industry in Bangladesh (2022)

Metric Value

Total Export Revenue $1 billion

Percentage of Total Exports 3%

Employment 850,000

Major Export Destinations EU, USA, Japan

4. Environmental Impact of Leather Production

4.1 Water Pollution

The leather tanning process involves the use of hazardous chemicals such as chromium,
which can lead to significant water pollution if not managed properly. Historically, tanneries
in Hazaribagh discharged untreated effluents into the Buriganga River, causing severe water
contamination.
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Recent Research Highlight: A study by Islam et al. (2023) revealed that despite the
relocation of tanneries to Savar, many facilities continue to discharge effluents without
adequate treatment, resulting in moderate levels of water pollution.

4.2 Air Pollution

The leather industry also contributes to air pollution through the emission of volatile organic
compounds (VOCs) and particulate matter from tanning processes. These emissions pose
health risks to workers and nearby communities.

4.3 Solid Waste Management

Solid waste generated from leather processing, including animal fleshings, trimmings, and
sludge, poses significant disposal challenges. Inadequate waste management practices can
lead to soil contamination and other environmental hazards.

Table 2: Environmental Indicators Before and After Relocation to Savar

Indicator Hazaribagh (2016) Savar (2023)

Water Contamination High Moderate

Air Quality Index Poor Improved

Solid Waste Management Inefficient Developing

5. Labor Conditions and Human Rights Issues

5.1 Occupational Health and Safety

Leather workers in Bangladesh often face hazardous working conditions, with prolonged
exposure to toxic chemicals leading to various health issues. A study by Ahmed et al. (2022)
found that over 60% of tannery workers suffer from skin diseases and respiratory problems
due to inadequate safety measures.

5.2 Child Labor

Child labor remains a critical issue in the leather industry. Despite legal prohibitions, many
tanneries employ underage workers, often due to economic pressures and lack of
enforcement.

Recent Research Highlight: Research by Rahman (2021) indicates that approximately 10% of
the workforce in some tanneries consists of children, highlighting the need for stricter
enforcement of labor laws.
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5.3 Wages and Social Security

Low wages and lack of social security are prevalent in the leather industry. The average
monthly wage for tannery workers is around $100, and only a small fraction of workers have
access to social security benefits.

Table 3: Labor Conditions in the Leather Industry

Metric Percentage/Value

Workers with Occupational Diseases 60%

Child Labor Prevalence 10%

Average Monthly Wage $100

Workers with Social Security 15%

6. Regulatory Framework and Policy Challenges

6.1 Existing Regulations

The Government of Bangladesh has introduced various regulations to manage the

environmental and social impacts of the leather industry. Key policies include the National
Environment Policy and the Leather Industry Development Policy.

6.2 Implementation Challenges

Despite these regulations, enforcement remains weak due to corruption, lack of resources,
and inadequate infrastructure. A report by the Bangladesh Centre for Policy Dialogue (2022)
highlights that only 30% of tanneries comply with environmental regulations.

Recent Research Highlight: The study underscores the need for capacity building within
regulatory agencies and greater accountability mechanisms to ensure compliance.

7. Recent Research and Technological Innovations

7.1 Eco-Friendly Tanning Processes

Innovations in eco-friendly tanning methods, such as the use of vegetable tannins and
enzymatic treatments, are being explored to reduce the environmental footprint of leather
production.

Recent Research Highlight: Khan et al. (2023) demonstrated that vegetable tannins and
enzymes could significantly lower the use of hazardous chemicals in tanning, making the
process more sustainable.
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7.2 Advanced Waste Management

Advanced waste treatment technologies, such as membrane bioreactors and constructed

wetlands, offer solutions for efficient effluent treatment and solid waste management.

Recent Research Highlight: Chowdhury et al. (2023) highlighted the potential of membrane
bioreactors in treating tannery effluents, achieving higher removal rates of contaminants
compared to traditional methods.

Table 4: Technological Innovations in Leather Processing

Innovation Environmental Impact Cost Efficiency

Vegetable Tanning Low chemical use High initial cost

Enzymatic Treatment Reduced pollutants Moderate cost

Membrane Bioreactors High effluent treatment High operational cost

8. Case Studies: Successes and Failures

8.1 Relocation to Savar

The relocation of tanneries from Hazaribagh to the Savar Leather Industrial Park was aimed
at mitigating environmental damage. However, the transition has been plagued by delays
and inadequate infrastructure, leading to mixed outcomes.

Case Study: Relocation to Savar Hasan (2023) documented the challenges faced during the
relocation process, including the incomplete setup of the Central Effluent Treatment Plant
(CETP) and lack of proper waste management facilities.

8.2 Footwear Export Growth

Despite challenges, the footwear segment of the leather industry has seen significant
growth due to improved quality standards and adherence to international regulations.

Case Study: Footwear Export Growth Islam et al. (2022) highlighted the success of
Bangladesh’s footwear industry in capturing international markets by focusing on quality
improvements and compliance with environmental and labor standards.

Table 5: Comparative Analysis of Relocation and Footwear Export Growth

Indicator Relocation to Savar Footwear Export Growth

Project Completion Time Delayed On schedule

Compliance with Regulations Low High

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Economic Impact Mixed Positive

Environmental Impact Moderate Improvement Low

9. Pathways to Sustainability

Achieving sustainability in the leather industry requires a holistic approach that addresses
environmental, social, and economic aspects.

9.1 Adoption of Green Technologies

Encouraging the use of eco-friendly tanning methods and advanced waste management
systems can significantly reduce the environmental impact of leather production.

9.2 Strengthening Regulatory Frameworks

Improving regulatory enforcement and accountability mechanisms is crucial for ensuring

compliance with environmental and labor standards.

9.3 Capacity Building

Providing training and education to workers on safe practices and environmental

stewardship can enhance the industry’s sustainability.

9.4 Stakeholder Engagement

Involving industry players, government agencies, and NGOs in dialogue and decision-making
processes can lead to more effective and inclusive solutions.

Table 6: Recommended Actions for Sustainability

Action Expected Outcome

Green Technology Adoption Reduced environmental impact

Improved Regulation Enforcement Higher compliance rates

Worker Training Programs Safer working conditions

Stakeholder Collaboration Holistic industry improvement

10. Conclusion

The leather industry in Bangladesh stands at a critical juncture. While it remains a vital
economic sector, its future depends on addressing the environmental and social challenges
it faces. By adopting sustainable practices, strengthening regulatory frameworks, and
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fostering stakeholder collaboration, Bangladesh can transform its leather industry into a
model of responsible manufacturing.

11. References

• Ahmed, R., et al. (2022). Occupational health hazards in Bangladesh’s tannery

industry. Journal of Environmental Health.

• Bangladesh Centre for Policy Dialogue. (2022). Policy implementation gaps in the
leather industry.

• Chowdhury, A., et al. (2023). Advanced waste treatment technologies in leather

processing. Water Research.

• Hasan, S. (2023). The challenges of relocating tanneries to Savar. Dhaka Tribune.

• Islam, M. S., et al. (2023). Water pollution from tanneries in Bangladesh: Current
status and future solutions. Environmental Science & Technology.

• Khan, A., et al. (2023). Eco-friendly tanning processes in Bangladesh’s leather

industry. Journal of Cleaner Production.

• Rahman, A. (2021). Child labor in Bangladesh’s leather industry. Human Rights

Watch.

• Voigt, P., & Von dem Bussche, A. (2017). The EU General Data Protection Regulation
(GDPR). A Practical Guide, 1st Ed., Cham: Springer International Publishing.