Bangladesh missing $700b packaging market amid policy bottlenecks

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 Hotel La Vinci 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.

“Bank financing, customs facilities, and Bangladesh Bank policies applicable to the RMG sector are not implemented in practice for us, resulting in clear discrimination,” he said.

Md Shahriar further said that accessories and packaging products are excluded from cash incentives for both direct and deemed exports, even though similar benefits are extended to some other export items, including hogla leaves. He added that lower GSM paper is not allowed under duty-free import facilities, further limiting production flexibility and increasing costs.

The BGAPMEA president urged the government to extend the validity of Utilisation Permits (UPs) from one year to three years, arguing that shorter durations create operational challenges. He noted that although import policy provisions allow deemed exporters to enjoy the same facilities as direct exporters, this is not reflected in actual implementation.

He also claimed that Bangladesh is now capable of producing 100 per cent of garment accessories and packaging products domestically, countering claims that certain items cannot be made locally. “If anyone says a particular product cannot be produced in Bangladesh, we are ready to take them to factories to demonstrate the manufacturing process,” he said.

According to him, the existing infrastructure, skilled workforce, and factory capacity developed for the RMG sector can be utilised to significantly boost direct exports of packaging products without requiring major new investments or additional manpower.

The press conference was informed that written proposals have already been submitted to the NBR and the Ministry of Commerce, seeking export incentives, tax exemptions on raw material imports, and broader policy support. Speakers expressed optimism, noting that the government has already identified the accessories and packaging sector as a potential driver of export growth and employment.

Replying to journalists’ questions, Md Shahriar said there is no conflict with the garment sector, describing accessories and packaging as a key supporting industry. “If this sector advances, it will help increase export earnings and create more jobs,” he added.

The four-day expo began on January 14 at International Convention City Bashundhara (ICCB), Dhaka.

The 23rd edition of Garment Technology Bangladesh (GTB) 2026 is being held concurrently with the 14th edition of the Garment Accessories & Packaging Expo (GAP Expo) 2026 and the 12th edition of the International Yarn & Fabrics Sourcing Show 2026.

The combined expos feature around 350 exhibitors from more than 15 countries, spread across 1,500 booths and showcasing over 450 global brands. Exhibits cover garment machinery and parts, accessories and packaging, yarn, and fabrics, bringing the entire RMG supply chain under one roof.

“To remain competitive globally, Bangladesh must scale digital adoption across factories of all sizes, invest in worker upskilling and technical education, attract strategic investment in smart machinery and sustainable technologies, and collaborate with global brands on transparency and innovation,” said Tipu Sultan Bhuiyan, managing director of ASK Tradeshows & Exhibitions Pvt Ltd.

“GTB is showcasing technological solutions to address these challenges, and the expansion of this edition reflects growing optimism in the sector,” he added.

The tradeshow will remain open to business visitors from 11:00 am to 7:00 pm throughout the event.

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