Leather Footwear and Leather Products
Overview
Pakistan's leather industry, renowned for its excellence in producing high-quality leather goods such as footwear, handbags, belts, and wallets, stands as a testament to the country's rich craftsmanship heritage and robust export capabilities. With exports reaching USD 1.13 billion in 2022, the sector showcases a sustained growth trajectory, underpinned by a Compound Annual Growth Rate (CAGR) of 1.06% from FY 2009 to FY 2022. Particularly noteworthy is the footwear segment, which alone has demonstrated remarkable potential for expansion, growing from USD 88.6 million in 2009 to USD 155 million in 2022, with a CAGR of 4.43%. This growth is indicative of the sector's significant untapped potential, despite its current nominal share in Pakistan's overall exports. Backed by a vast supply of raw materials courtesy of the country’s large livestock resources, and a global reputation for quality and craftsmanship, the Pakistani leather industry presents an enticing avenue for investment. Opportunities abound in the production of leather articles, raw hides, and an array of footwear, making it a sector ripe for exploration by investors keen on tapping into a market with robust growth prospects and a strong foundation for further expansion.
Leather Footwear and Leather Products: An Economic Outlook (2022 ~ 23)
|
Indicator |
Performance |
|
Contribution to GDP |
5% |
|
Number of Manufacturing Units |
More than 2500 (tanneries and footwear manufacturing units operating in Pakistan) |
|
Employment Generation |
More than 500,000 |
|
Total Export Value |
$ 1.13 Billion |
|
Contribution to Pakistan’s Exports |
5.4% |
|
Share in World’s Exports |
10 % |
|
Pakistan’s Ranking in World’s Exports |
4 |
|
Compound Annual Growth Rate (2009-2022) |
1.06% (Leather & Leather Products) 4.43 %(Leather Footwear) |
|
Production Quantity Export (2022-2023) |
Leather Tanned 11032 M.T Leather Manufacturers 11432 TH.DOZ Leather Footwear 10239 TH. Pairs |
|
Percentage of Total Production Exported |
95% |
|
Capacity Utilization |
55% to 70% |
Value Proposition to International Investors:
The Pakistani leather sector offers a rich resource base with its abundant supply of raw materials from the livestock industry. The traditional craftsmanship and the evolving modern production capabilities present a strong foundation for high-quality leather goods.
The Pakistani leather sector offers a rich resource base with its abundant supply of raw materials from the livestock industry. The traditional craftsmanship and the evolving modern production capabilities present a strong foundation for high-quality leather goods.
Why Invest in Pakistan?
With actual exports recorded at USD 849 million and an export potential valued at USD 1.4 billion, there lies an untapped export potential of USD 621 million in this sector (see figure 7). This gap highlights the significant room for growth and expansion within the Pakistani leather market. The varied range of leather products being produced reflects the sector's capacity for diversification and adaptation to global market trends. By investing in the leather sector, stakeholders can unlock this untapped potential, encouraging not only the expansion of existing product lines but also the introduction of innovative leather products.
Pakistan’s Export Potential of Leather Footwear and Leather Products
