The Ministry of Industry of Bangladesh published its Plastic Industry Development Policy 2023 in its official gazette last December.
The policy, approved by the government on Sep. 4, 2023, outlines a five-year plan to grow the domestic plastic industry in the next five years whilst promoting a circular plastic economy. It poses the country’s plastic industry to grow from the current around $4 billion to $10 billion by 2028 and $20 billion by 2030.
The document states the policy’s aims include achieving consistent 15% annual growth, attracting foreign direct investment, creating a skilled workforce alongside half a million new jobs, raising the plastic sector's contribution to GDP by at least 2% by 2028, and being recognised as a Zero Waste Nation by 2030.
The sustainability focus of the policy is on waste management, increased plastic recycling, and investment in bioplastics and Industry 4.0 technology. A platform identifying key barriers to the expansion of the circular economy will also be established.
“Average per capita consumption of plastic products in Bangladesh is 5kg to 7 kg, while global average per capita consumption of plastic products is around 50 kg,” the policy reads. “Despite the potential, Bangladesh is lagging far behind in achieving market advantage for export of plastic products on a priority basis mainly due to lack of appropriate policy support.”
Bangladesh plans to stimulate its domestic market by increasing the production of substitutes for imported goods and increasing exports of plastic products to the EU, Middle East, North America, and Asian countries.
The policy also recognises the wide range of obstacles faced by the industry, including lack of standardised testing facilities, innovative technology and design, proper management of plastic waste, and business-friendly taxes and duties.
Last November, the European Union announced it would be requiring mandatory audits of plastic recyclers in Bangladesh if the wish to export their food-grade products to the bloc.
According to the Bangladesh Investment Development Authority (BIDA), exports reached values of $900 million in 2018-2019, with products being exported to over 70 countries. The Bangladesh Plastic Goods Manufacturers & Exporters Association, counting over 14,550 members, says that exports reached $1.2 billion in 2022. BIDA says that plastics exports from Bangladesh have been growing at a rate of 4.5% per year since 2014, with packaging items making up the largest share of exports. The primary export destinations include the US, Canada, EU, China, India, and Nepal.