Bangladesh’s Plastic Industry: An Epitome of Diversified Export Growth
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The plastic industry in Bangladesh has experienced substantial growth over the past two decades, evolving into a significant contributor to the national economy. With an annual growth rate of 20%, the sector employs over 2 million people across 6,000 factories, 80% of which are small and medium-sized enterprises (SMEs) (BPGMEA, 2024). The industry not only meets the growing domestic demand but has also expanded its presence in international markets, particularly in packaging, household goods, and industrial applications. According to BPGMEA, Bangladesh currently exports plastic products to over 70 countries, reflecting its growing competitiveness in the global supply chain.
As the industry continues to expand, strategic investments are paving the way for sustainable and innovative manufacturing solutions. The sector presents significant opportunities for further growth, particularly with the increasing effort towards the integration of Extended Producer Responsibility (EPR) policies and advancements in eco-friendly materials.
Growth Trends and Market Dynamics
The total production of plastic products in Bangladesh was valued at Tk 40,000 crore ($3.5 billion), generating Tk 3,500 crore ($305 million) in annual government revenue. The country’s per capita plastic consumption has increased from 5.56 kg in 2005 to 17.24 kg in 2017, significantly lower than the global average of 80 kg per person, indicating substantial growth potential (BIDA, 2023). Export data suggests a 3.59-fold increase over the last 13 years, with the sector now contributing to 0.1% of the global plastic market (EPB, 2024). The Compound Annual Growth Rate (CAGR) of Bangladesh’s Plastic Export Growth (2010-2024) is 10.4%.
Figure 1: Bangladesh's Plastic Export Growth (2010-2024) with a CAGR of 10.4%
Global and Regional Market Comparisons
The global plastics industry was valued at $712 billion in 2023, with expectations to surpass $1.05 trillion by 2033, growing at a CAGR of 4% (Statista, 2023).
While Bangladesh continues to expand its footprint in the global plastic market, it must navigate a competitive landscape shaped by established players in the region. India’s plastic industry, a significant regional competitor, recorded exports of $11.55 billion in FY24, vastly outpacing Bangladesh’s $275 million strategic target for the same period (Plexconcil, 2024). China remains the dominant player, with plastic product exports valued at $46.8 billion annually (OEC, 2024).
Sustainable Practices and EPR Initiatives: Bangladesh’s Next Growth Frontier in Plastics
The plastic industry in Bangladesh has increasingly focused on sustainability, driven by policies such as the National Action Plan for Sustainable Plastic Management, which aims to increase the recycling rate to 50% by 2025 and reduce plastic waste by 30% by 2030 (Global Plastic Action Partnership, 2024). Currently, Bangladesh recycles approximately 362,332 metric tons of plastic annually, with the informal sector responsible for 90% of the activity, leading to a recycling efficiency of 28%, higher than many developed nations (The Daily Star, 2024).
In June 2023, the International Organization for Migration (IOM), in partnership with Dushtha Shasthya Kendra (DSK) and supported by the European Civil Protection and Humanitarian Aid Operations (ECHO), launched an innovative plastic recycling initiative in Cox's Bazar, Bangladesh. The project transforms plastic waste from refugee camps into useful products, such as educational materials and construction items, improving environmental health and generating economic opportunities for the community (IOM, 2023), an initiative highlighting Bangladesh's growing capacity for sustainable plastic management.
Through a mechanical process, harmful plastic waste is turned into learning materials and other useful objects in Cox’s Bazar.
Photo: IOM/Abdullah Al Mashrif.
The Extended Producer Responsibility (EPR) framework is gaining traction in Bangladesh.
Bangladesh is advancing Extended Producer Responsibility (EPR) as a core strategy for sustainable plastic waste management, leveraging the Solid Waste Management Rules (2021) and the Action Plan for Sustainable Plastic Waste Management (2021). The Ministry of Environment, Forest, and Climate Change (MoEFCC) is actively working to implement EPR frameworks, aligning with global best practices.
The country is focusing on establishing PROs, integrating the informal sector, and enforcing regulatory compliance to enhance plastic recovery and recycling infrastructure (World Bank, 2024).
Investment and Export Opportunities
Bangladesh currently exports plastic products to 126 countries, including the USA, Canada, and the EU, with major exports being household ogoods, packaging materials, toys, and garment accessories (EPB, 2024). With policy support and technological investment, the sector aims to increase annual export earnings to $5 billion within the next five years. Recheck the department/ministry
Foreign investment is also on the rise for the sector. A Finnish company recently proposed a plastic recycling plant in Cox’s Bazar, aimed at repurposing single-use plastics into sheets for Rohingya shelters (The Daily Star, 2024). Meanwhile, local firms like Colorplus Masterbatch Manufacturing Co. have invested Tk 100 crore ($8.7 million) in domestic production, reducing dependency on imports (TBS News, 2024).
A moment during the meeting between the Finnish ambassador and the Chief Advisor. Photo: BSS
Contribution of SMEs and Entrepreneurs
SMEs in Bangladesh's plastic industry are at the forefront of innovation, driving sustainable solutions and expanding their global reach. With increasing government support and circular financing models, these enterprises have a unique opportunity to scale operations, invest in advanced technology, and enhance sustainability practices.
As policies evolve to foster business-friendly conditions, SMEs are well-positioned to contribute significantly to the sector’s rapid growth.
Bangladesh’s plastic industry presents a strategic opportunity for export diversification, particularly in light of the country’s upcoming graduation from Least Developed Country (LDC) status in 2026. With a global plastic market projected to reach $721 billion by 2025, even a 1% market share could generate over Tk 6,000 crore in annual exports (Aspire to Innovate (a2i), 2023, p. 5). The domestic industry, consisting of 5,030 factories employing 1.2 million people, contributes to multiple sectors, including textiles, pharmaceuticals, electronics, and construction (Aspire to Innovate (a2i), 2023, p. 4).
The pharmaceutical plastic packaging segment, in particular, has seen significant domestic engagement. Despite the 30% import dependency in pharmaceutical plastic packaging due to high-tech processing requirements, local plastic manufacturers are investing in world-class dedicated plants to bridge this gap (Sadek & Jahan, 2017). Leading pharmaceutical companies like Square and Acme are expanding into the backward value segment of the plastic packaging industry, enhancing domestic production capacity and reducing reliance on imports.
The plastic toy segment alone is growing at 24% annually and is projected to reach $466.31 million in exports by 2030, positioning Bangladesh among the top 30 global toy exporters (Aspire to Innovate (a2i), 2023, p. 6). Bangladesh’s competitiveness is further enhanced by lower production costs, government incentives (10% export subsidy), and a young labor force, making it an attractive destination for foreign investment in plastic manufacturing (Aspire to Innovate (a2i), 2023, p. 7).
Bangladesh’s plastic industry presents a strategic opportunity for export diversification, particularly in light of the country’s upcoming graduation from Least Developed Country (LDC) status in 2026. With a global plastic market projected to reach $721 billion by 2025, even a 1% market share could generate over Tk 6,000 crore in annual exports (Aspire to Innovate (a2i), 2023, p. 5). The domestic industry, consisting of 5,030 factories employing 1.2 million people, contributes to multiple sectors, including textiles, pharmaceuticals, electronics, and construction (Aspire to Innovate (a2i), 2023, p. 4).
The plastic toy segment alone is growing at 24% annually and is projected to reach $466.31 million in exports by 2030, positioning Bangladesh among the top 30 global toy exporters (Aspire to Innovate (a2i), 2023, p. 6).
Bangladesh’s competitiveness is further enhanced by lower production costs, government incentives (10% export subsidy), and a young labor force, making it an attractive destination for foreign investment in plastic manufacturing (Aspire to Innovate (a2i), 2023, p. 7).
The National Plastic Industry Development Policy 2020 emphasizes establishing mold-making facilities to enhance production capabilities and cater to mid- and high-end markets. Leading companies such as RFL Plastics Ltd., Partex Plastics Ltd., Gazi Group, Bengal Plastics, and Navana Engineering Ltd. have responded to these initiatives with significant growth and diversification. For instance, RFL Plastics Ltd. has achieved a 30% annual growth rate, utilizing 4,000 molds across 600 machines, supported by in-house tooling facilities (Rahman, 2023).
RFL Plastics Ltd. manufactures a variety of plastic products such as baskets, buckets, containers, dust pans, jugs, kitchen items, racks, tableware, tiffin boxes, trays, chairs, tables, and crates.
Partex Plastics Ltd. produces PPR and PVC products like sockets, plugs, elbows, tees, valves, pipes, as well as chairs, tables, stools, and various other plasticware.
Gazi Group has diversified into manufacturing plastic overhead water tanks, sanitary pipes, irrigation pipes, suction hose pipes, HDPE coil pipes, and filter pipes.
Bengal Plastics, a subsidiary of Bengal Group of Industries, processes more than 3,000 metric tons of raw materials per month, producing items such as chairs, tables, cabinets, wardrobes, food boxes, gardenware, kitchenware, tableware, home organizers, crates, mats, and pallets.
Navana Engineering Ltd., a concern of Navana Group, specializes in manufacturing plastic products, further contributing to the industry's expansion.
Bangladesh's plastic industry is poised for global expansion, driven by technological upgrades, advanced recycling initiatives, and export diversification beyond RMG-linked plastics. Strengthening Extended Producer Responsibility (EPR) frameworks with mandatory compliance will enhance sustainability, attracting eco-conscious buyers.
References
Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA). (2024). Annual Report on Bangladesh's Plastic Industry Growth & Export Performance. https://www.bpgmea.org.bd
Export Promotion Bureau (EPB). (2024). Plastic Industry Export Data. https://epb.gov.bd
