Plastic exports surge amid rising global demand
The local plastic sector has seen strong export growth in the first eight months of fiscal year (FY) 2024-25, driven by increasing global demand, product diversification, and enhanced production capacity.
From July to February in FY25, the sector recorded a 21.25 percent rise in exports compared to the same period in the previous fiscal year.
For all latest news, follow The Daily Star's Google News channel. According to the Export Promotion Bureau (EPB), plastic product exports reached $203.63 million during this period, up from $166.59 million a year earlier.
"European buyers are increasingly turning to Bangladesh to reduce their reliance on China," said Md Jashim Uddin, managing director of Bengal Plastics Limited.
"This shift has allowed Bangladesh to capitalise on the opportunity and expand its global presence," he said.
In 2023, the global plastics market was valued at $712 billion, with a total production of 413.8 million tonnes.
By 2033, the global plastics market is projected to grow to over $1,050 billion, according to the Geneva Environment Network, a cooperative partnership of over 75 environmental and sustainable development organisations based in Geneva.
Jashim Uddin said that the sector could achieve even better results if the business environment remained stable.
He said political unrest had severely impacted the industry, with miscreants destroying three of his factories, including a fully export-oriented manufacturing unit.
As a result, his company lost an $11 million export order from a German buyer. "If my factory had been able to fulfil these orders, the export volume would have exceeded the current figures," he said.
Jashim Uddin added that his company had been unable to contribute to exports for the past seven months due to the damage caused to its factory.
He also pointed out that the ongoing gas crisis and inconsistent power supply were disrupting production and affecting export performance.
Meanwhile, RN Paul, managing director of RFL Group, a subsidiary of Pran-RFL Group, said the sector had seen a significant increase in export orders, especially from new foreign markets.
"While the sector previously focused on European exports, it has now successfully expanded to North America, Australia, and several African nations," he said.
Referring to export growth over the past eight months, Paul said RFL Group alone recorded around 35 percent growth during this period.
The company has also secured around $10 million in advance export orders from North America, further boosting confidence in the industry's future, he added.
The managing director said the sector will continue its upward trajectory as businesses introduce new product categories, such as toys, to diversify their offerings. With more export destinations and expanding product lines, Bangladesh's plastic industry is poised for sustained growth, solidifying its position as a key player in the global market, he added.
Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), said Bangladesh currently holds only 0.5 percent of the global plastic market, but exports are steadily growing.
He said exports are expected to rise further as the global market expands.
According to Ahmed, the domestic plastic market is currently worth around $3 billion, with 83.4 percent of production consumed locally and 16.4 percent exported.
He said manufacturers aim to capture a 3 percent share of the global market in the coming years.
Ahmed elaborated on the sector's export potential in toys, bags and sacks, household items, engineering products, and electronic and electrical goods.
He said the sector had experienced double-digit growth in recent years, driven by rising demand from both traditional and new markets.
This growth, he said, is the result of strategic investments in manufacturing, compliance with international quality standards, and government incentives.
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