Bangladesh's synthetic footwear sector is quickly emerging as a vital component of the country's export diversification efforts.
While leather footwear still leads with $620.17 million in exports during the first 11 months of the FY24-25 with a 28.96 per cent Y-o-Y increase, the synthetic, or non-leather, footwear segment is rapidly catching up. According to Export Promotion Bureau (EPB) data, non-leather footwear exports reached $494.28 million in the same period, marking an impressive 30.25 per cent growth from $379.48 million recorded a year prior.
Industry insiders attribute this swift rise to Bangladesh's robust manufacturing base, fewer regulatory obstacles, and increasing global demand for affordable, fashionable, and sustainable footwear. Unlike leather products, which require extensive certifications and face raw material sourcing and environmental compliance issues, synthetic footwear producers primarily need to meet factory compliance standards, simplifying international buyer requirements.
This growth is further supported by broader market trends, with the Bangladesh Investment Development Authority (BIDA) noting rising orders from major global brands like H&M, Puma, Decathlon, FILA, and Kappa. Export destinations have also expanded to countries including Spain, France, the Netherlands, South Korea, India, Italy, and Germany. For instance, Maf Shoes has boosted its daily output significantly due to surging European demand.
Despite this momentum, exporters face frustrations with customs clearance delays, complex regulations, and insufficient government support. Unlike the ready-made garment (RMG) sector, which enjoys various fiscal incentives and faster customs processes, the synthetic footwear industry lacks many of these advantages. Bangladesh also contends with fierce competition from China, which benefits from government incentives, raw material self-sufficiency, and superior infrastructure. Conversely, Bangladeshi manufacturers heavily rely on imported raw materials, increasing production costs and logistical hurdles.
Additionally, despite lower labor costs than competitors like Vietnam, Bangladesh's footwear sector lags in productivity. Major global brands such as Nike and Adidas have yet to enter Bangladesh's synthetic footwear market, primarily due to concerns over lead times and delivery capacity. Meanwhile, countries like India are actively attracting foreign investors with favorable land availability, tax incentives, and improved infrastructure.
To realize the sector's full potential, exporters are urging the government to implement a dedicated synthetic footwear policy, ensure equal customs treatment with the RMG sector, facilitate access to technology financing, and incentivize backward linkage industries. Despite these challenges, industry leaders remain optimistic that, with timely policy interventions, Bangladesh's synthetic footwear sector can become a significant economic growth driver.
