Bangladesh’s garment accessories and packaging industry is rapidly emerging as a major export driver, with direct exports doubling over the past three years and industry leaders projecting a rise to $5 billion within the next three years, provided key policy barriers are addressed.
According to the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), the sector contributed $7.45 billion to the country’s exports in FY2024–25. While most of this came from deemed exports supplying the local ready-made garment (RMG) industry, direct exports reached $1.6 billion, marking significant progress toward global market integration.
Once heavily dependent on imports, the accessories sector has undergone a dramatic transformation over the past two decades. Investments of around Tk 40,000 crore have enabled the industry to achieve near self-sufficiency, supplying almost all accessory needs of export-oriented manufacturers. The sector now employs more than 700,000 workers across over 2,000 operational units.
BGAPMEA President Md Shahriar said that removing policy constraints—such as discriminatory export incentives and high import duties on raw materials—could unlock rapid export growth not only for accessories but also for related sectors such as pharmaceuticals, agriculture and footwear. He noted that, unlike other export-oriented industries, the accessories sector has never received cash incentives, while high import taxes on paper and other inputs continue to undermine competitiveness.
Global market trends are working in Bangladesh’s favor. The global fashion accessories market, valued at $720 billion in 2023, is expected to reach $1.5 trillion by 2033. As manufacturing hubs gradually shift away from China, Bangladesh is attracting increasing foreign investment. Over the past two years, at least eight Chinese companies have proposed or initiated investments in Export Processing Zones, while nearly 300 new accessories firms have entered the local market.
Local manufacturers are also expanding capacity and upgrading technology. Companies such as RSS Thread and Accessories Limited have doubled production and secured global buyers like Inditex, while more than 100 factories are preparing to adopt RFID-based tracking systems. Advanced solutions such as Digital Product Passports (DPP) and anti-counterfeiting technologies are already being produced locally to meet evolving EU compliance requirements.
Despite these advances, industry veterans warn that without targeted policy support, stable political conditions and streamlined customs procedures, Bangladesh may struggle to fully capitalize on rising global demand. However, with strong fundamentals, technological adoption and growing investor interest, the accessories and packaging sector is increasingly seen as a potential next growth engine of the country’s export economy.
