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Plastics
Emerging Export Diversification Engine
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factories
domestic market
annual market growth
export growth in FY25
Bangladesh’s plastics industry is a fast-growing, employment-intensive sector supporting both domestic demand and global trade. The country is home to over 6,000 plastic manufacturing units, with 80% small and medium enterprises (SMEs) and 450 export-oriented firms. The industry employs approximately 1.5 million workers, meets over 80% of domestic demand (valued at USD 3 billion), and is growing at an estimated 20% annually.
Bangladesh produces more than 2,500 types of plastic products across sectors including packaging, construction, textiles, consumer goods, pharmaceuticals, automotive, and electronics. Around 17% of the sector’s output is exported, reflecting growing global competitiveness.
Recognized as a priority sector for export diversification under the National Industry Policy 2022, plastics exports recorded a 21.25% year-on-year growth in the July–February period of FY2024–25, reaching USD 203.63 million. While exports were historically concentrated in Europe, the sector is now expanding into North America, Australia, and emerging African markets.
Globally, the plastics market was valued at USD 712 billion in 2023 and is projected to reach USD 1.05 trillion by 2033 (CAGR: 4%), driven by demand across food & beverage, consumer goods, automotive, and electronics. Bangladesh currently holds only 0.5% of the global market, with clear ambitions to increase its share to 3%, backed by rising capacity, strong price competitiveness, and improving product standards.
Growth Drivers
Expanding Export Base
Plastic exports include USD 220M in direct shipments and USD 900M indirectly through the garment sector.
High Domestic Coverage
The sector meets approximately 83.4% of Bangladesh’s domestic demand, significantly reducing reliance on imported plastic products.
Diverse Product Range
The industry produces over 2,500 product types, including household items, packaging materials, toys, plastic moulds, melamine, furniture, PP woven bags, garment accessories, and components for electrical and automotive applications.
Foreign Supplier Interest
Growing demand for advanced technology including plastic injection moulding machines, PP woven bag machines, flexographic printing units, PET blow moulding machines, and plastic bag-making equipment.
Job Creation & Cost Advantage
With a workforce of 1.5 million and a competitive average monthly wage of USD 66, the industry offers a compelling cost advantage for both local and international investors.
KEY PLAYERS
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- National Plastic Industry Development Policy 2020 aims to establish a competitive plastic/packaging hub in South Asia and internationally accepted brands.
- Reduced Corporate Income Tax for 5 to 10 years depending on location for newly established plastic recycling businesses.
- 1% import duty exemption on capital machinery/spares for export-oriented industries.
- 3% import duty exemption on capital machinery/spares for other industries.
- Reduced import duty on raw materials & Import duty exemption on capital machineries.
- 50% tax exemption for income derived from export.
- No VAT imposition on export goods.
- 10% cash incentive on export value of plastic products, including PET bottles.
- 10% export subsidy on polyester staple fiber plastic produced from PET bottle flex.
- 5% export subsidy for the export of PET bottles for potato flakes.
- Ministry of Industries
- Ministry of Commerce
- Bangladesh Plastic Goods Manufacturers & Exporters Association (BPGMEA)
- Bangladesh Plastic Flakes Manufacturers and Export Association (BPFMEA)
- Bangladesh Institute of Plastic Engineering & Technology (BIPET)
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