Plastic product exports from Bangladesh have reached a record high, growing by 17% year-on-year to $162 million in the first eight months of the current fiscal year. This surge in exports is a result of Bangladesh's ability to ensure a steady supply of plastic products at competitive prices and discover new markets, despite the global economic downturn. The country's plastic product exports mainly go to the US, Canada, EU, China, India, and Nepal, with packaging items being the largest category, followed by tableware and kitchenware. The competitive pricing of locally-made plastic products has been a key driver behind the growth in exports. Local companies in Bangladesh now manufacture world-class plastics, which has encouraged foreign buyers to source products from the country. The increased availability of mother vessels and reduced freight costs have also contributed to the growth of plastic product exports. However, profit margins have shrunk due to a roughly 30% increase in production costs. Plastic product manufacturers in Bangladesh currently produce more than 142 items, relying on imports as there is no polyolefin production facility in the country. Some manufacturers, such as Akij Biax Films Ltd, have faced difficulties in terms of export due to a lack of support in competing against foreign brands. The government could provide incentives such as a tax holiday to facilitate exports from the sector. The strength of the domestic market can be leveraged to help the sector become more competitive in the international market. The government currently provides an 8% cash incentive for exports of plastic goods. Sales in the domestic market have also seen significant growth, reaching Tk 35,000 crore in FY2022-23, up from Tk 25,000 crore in FY2017-18.
Wood plastic composites in the form of kitchen cabinets, bathroom and balcony doors are slowly gaining popularity in Bangladesh as an alternative to wood. The composites are a combination of wood particles or fibers and thermoplastics, offering a durable and low-maintenance alternative. The annual sales of doors made of all types of materials stands at around Tk 3,000 crore, while the annual sale of wood plastic composite doors amounts to around Tk 240 crore to Tk 250 crore. There are at least three manufacturers in the country -- Pran-RFL Group, N Mohammad Group, and National Polymer Group. Wood plastic composites look like natural wood but absorb very little moisture and are almost 50 percent less expensive than teak. Each door is priced at around Tk 14,000 and is durable and environmentally friendly. The wood plastic composite market is currently dependent on imports, but National Polymer Group aims to grab a bigger portion of the sales. The sales of wood plastic composites are increasing steadily as they are a good alternative to wood and more durable than plastic. The market assessment shows that wood plastic composite doors are gaining more popularity than non-plasticised polyvinyl chloride or UPVC doors. Wood plastic composites are used in bathrooms, kitchens, and balconies as they are waterproof, durable, and environmentally friendly. However, the attraction for natural wooden doors will never die down. The manufacturers believe that wood plastic composites will gradually dominate the market for doors. [2c0ef3a5] [95998952]