Tanned Skin Exports Double (+113%): Leather Industry Sees Big Rebound

Nepal’s tanned skin exports jumped by 113% in FY 2025/26, signaling a strong rebound for the country’s leather industry. According to trade data, exports surged from Rs. 34.4 million last year to Rs. 73.4 million this year, reflecting rising international demand for semi-processed leather materials. This recovery is notable as the sector had been facing prolonged stagnation due to weak global demand, compliance challenges, and rising production costs.

The growth in tanned skin exports highlights Nepal’s potential to tap into the regional leather supply chain, especially in South Asian and East Asian markets, where demand for processed raw materials remains high. However, experts caution that Nepal still needs to move up the value chain by producing finished leather goods (bags, shoes, accessories) to capture more export value rather than depending only on raw and semi-processed hides.

Overall, the sharp rise in exports is a positive sign for job creation in rural areas where leather collection and processing are based, and it provides much-needed diversification at a time when traditional exports like woolen carpets and handicrafts are struggling.