Bangladesh missing $700b packaging market amid policy bottlenecks

Business Report:

Bangladesh is missing out on untapped opportunities in the global packaging market—estimated at around $700 billion—due to inadequate policy support and the absence of export incentives, said Md Shahriar, president of the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA).

He said the sector has already demonstrated strong export capacity, with direct exports nearing $1.6 billion and deemed exports exceeding $7.8 billion. However, the industry has been unable to scale up further because of persistent policy and regulatory constraints, the BGAPMEA leader alleged.

Md Shahriar made the comments at a press conference on Sunday at a city in the capital, jointly organised by ASK and BGAPMEA ahead of the Garments Accessories and Packaging Expo (GAPEXPO) 2026.

He said that despite growing global demand for packaging products, Bangladesh has struggled to secure a meaningful share of the market, mainly because no cash incentive is available for direct exports, along with other structural barriers.

“Packaging products exported directly from Bangladesh are not eligible for any cash incentive, whereas countries such as China, Vietnam, Cambodia, and Indonesia offer incentives ranging from 4.0 per cent to 17 per cent,” he said, adding that the sector has never been brought under any export incentive scheme, weakening its global competitiveness.

Referring to policy bottlenecks, Md Shahriar said imports of paper below 300 GSM face very high duties and taxes, in some cases ranging between 58 per cent and 83 per cent, significantly raising production costs. He described this as a major policy challenge linked to the National Board of Revenue (NBR), noting that such tariff structures undermine the industry’s ability to compete with regional peers.

He also alleged that while the ready-made garment (RMG) sector benefits from extensive policy, banking, and regulatory support, the garment accessories and packaging sector remains largely excluded.