Leather was one of the first materials used by humankind, alongside natural fibres. The leather industry involves some of the oldest examples of a circular economy, adding value to meat, primarily through by-products such as animal hides and skins from slaughterhouses, while solving a significant waste management problem.

This brief explores the role of trade in advancing developing countries’ sustainability transition in the leather industry. Drawing on evidence from the SMEP Programme’s interventions in Bangladesh, Ethiopia and Pakistan, it outlines four trade-led, innovative solutions and pathways to transformation. Section 2 discusses the trade linkages of these solutions and the challenges facing companies pursuing these pathways, based on a thorough analysis of the country contexts. Section 3 reviews workable models for de-risking investment and identifies actionable policy recommendations for a greener and diversified leather industry.

This report has been launched at the LineaPelle Leather Trade Fair 2025 in Milan, Italy, where SMEP grantees presented their work at a SMEP-UNCTAD side event: Partnerships for innovation and policy action for sustainable leather