Bangladesh has made remarkable advancements in the production of garment accessories and packaging materials, effectively meeting 90 per cent of the requirements of the export-oriented apparel industry.
Entrepreneurs have now recognised the substantial potential of this backward linkage industry to emerge as a primary sourcing hub for global buyers, and this surge is partly attributed to China’s transition away from manufacturing low-cost accessory items.
Investments in Bangladesh’s accessories and packaging subsector have steadily increased since the mid-1980s, resulting in the country achieving near self-reliance. What was once a sector dependent on 100 per cent imports has now transformed into a thriving domestic industry.
According to industry leaders, the accessories and packaging industry contributes significantly to the country’s total export earnings, contributing more than US $ 7 billion, primarily in the form of deemed exports.
Direct exports of packaging materials and accessories amount to US $ 7 million.
The journey of the garment accessories and packaging industry commenced in the mid-1980s, focusing initially on the production of corrugated cartons. After 1990, the sector diversified its offerings to include accessory items, and its remarkable growth trajectory has been closely aligned with the rapid expansion of apparel exports.
The promising prospects of this sector have motivated some of the largest apparel companies in Bangladesh to invest in accessory manufacturing even as in the past, apparel exporters had to import used cartons from Korea for shipping goods.
Today, Bangladesh excels in the production of sophisticated accessories and packaging materials, reducing business costs and lead times for the readymade garment (RMG) sector.
As per data provided by BGAPMEA, the count of manufacturing facilities dedicated to accessories and packaging has surged significantly, increasing from a mere 17 in the past to 1,959 in 2023 even if in the fiscal year 2021-22, the combined output of these factories resulted in exports valued at an impressive US $ 7.67 billion in the category of deemed exports.
